THE BUSINESS FOR GAMES

www.G3imagazine.com

GLOBAL GAMES AND GAMING MAGAZINE I SEPTEMBER 2012

PREVIEW

THE LATEST INNOVATIONS LAUNCHING AT G2E VEGAS SOUTH AMERICA

ARGENTINA IN TURMOIL

INDUSTRY NATIONALISATION EXCLUSIVE

HIVE OF INDUSTRY HOHENSYBURG CASINO REFURB

Gladiator Games INTERVIEW

exclusive interview - francesco corallo

DOWIPAND,LIPHOONAE ORD TO YOUR W IPOD TOUCH TO VIE UE ISS THE LATEST

G3 launches industry’s first GaminG maGazine app DOWNLOAD: LATEST ISSUES OF G3 AND G3I MAGAZINES DIRECTLY FROM THE APPLE APP STORE

“I think the world since April or May has gotten more difficult. There’s a trepidation on the part of consumers to spend at the rate they have historically. After a strong first quarter, difficult economic conditions led to lower visitation in several regions, impacting our core operating results in the second quarter. We saw weaker results in much of our core business amidst a different macro environment.”

Contents SEPTEMBER 2012

Gary Loveman, Chairman and CEO, Caesars Entertainment Page 45

Gladiator Games

In an exclusive interview with G3, Francesco Corallo defends himself and his company from recent allegations

page 70

PARTOUCHE OPENS NEW PASINO IN FRANCE - paGe 14

baha mar raises bar

astra completes deal

The largest casino in the Caribbean, Baha Mar, has passed 100ft. milestone

Astra Games secures the purchase of Danoptra, including BFG and Gamestec

paGe 9

paGe 16

ARGENTINA’S NATIONALISATION FEARS - paGe 54

philadelphia spread

tiGer’s extra bite

Pennsylvania pushes forward with its second tender for a Philly casino

Taipan billionaire to invest in Kazuo Okada’s Philippines Tiger Resorts

paGe 12

paGe 20

WILLIAMS INTERACTIVE - BACK IN THE GAME - paGe 58

BASEL ADDS SPICE WITH SBG New Grand Casino Basel boss oversees sbX install - pg 38

MISSING LINQ ON THE STRIP Caesars plans to operate world’s largest ferris wheel - pg 40

G2e las veGas preview - 78

HOHENSYBURG CASINO REFURBISHMENT - paGe 62 September 2012 PAGE 3

Viewpoint SEPTEMBER 2012

doG day afternoon

I was about 10 years old when there was a scandal on my grandmother’s street. A neighbour went on holiday leaving their dog, an Alsatian, home alone. The neighbour, presumably having explained to the dog prior to departure that it was to be left for 12 days, while they enjoyed the sun in Teneriffe, gave their pet a surprising level of autonomy. The owner at the end of July opened 12 cans of dog food, expecting their animal to we launched ration out the portions over a fortnight. On finding itself G3newswire.com alone, and believing all its - a daily GaminG Christmases had come at once, the delighted canine industry news devoured almost two week’s service for worth of food in a single sitting. The next day its GaminG industry bloated howls raised the alarm with neighbours and professionals. the RSPCA were called to rescue the gluttonous beast, before banning the owner from keeping any animal with an equivalent level of intelligence. I tell this story as we have begun to concentrate our own news coverage, expecting our readership to acquaint itself with daily news rations in addition to the gluttonous quantities contained each month in the magazine. At the end of July we launched G3Newswire.com, a daily gaming industry news service. The G3Newswire is edited by industry gaming journalist, Phil Martin, who

joined the Gaming Publishing team back in March. Our aim with the G3Newswire is to provide leading-edge news that serves the needs of the industry’s gaming professionals. As news becomes increasingly a minuteby-minute commodity, the website provides a constant resource for information and news about the global gaming market, with extensive coverage of each of the major markets, North and South America, the Far East and Australia, Europe and Africa. The printed magazine will continue to cover all the latest events, but will expand coverage of key stories and carry exclusive country and market analysis that readers can only find within the pages of G3. G3Newswire further uses a proprietary advertising engine, which mirrors Goggle and Facebook by matching the advertising content on the pages to the news stories. The effect is to reduce the advertising on the site, which speeds page loading, while making sure that the site matches searched content with relevant advertising. If you search for news relating to the VLT market in Italy, casino expansion in South Africa or regulation change in Argentina, for example, the advertising changes to match the news criteria. It’s an intelligent gaming news service that reacts to the needs of the reader. Now if we could just teach dogs to open cans...

Lewis Pek Editor - Tel: +44 (0) 1942 879 291, Email: [email protected] John Slattery Commercial Director - Tel: +44 (0)7917 166471, Email: [email protected] Phil Martin News Editor - Tel: +44 (0)161 236 6669 Email: [email protected] Karen Southall G3 Spain - Associate Editor, Email: [email protected] John Carroll G3 Germany, Email: [email protected] Lisa Nichols Sub Editor, Gareth Irwin Senior Designer, Paul Jolleys Production Manager, John Malin, David Addison, Bepi Mottes, Alexandre Rotenberg Contributors, Jennifer Pek Subscriptions Manager John Pek Commercial Administrator, Feature Images: Gareth Irwin For sales enquiries contact: John Slattery, Tel: +44 (0)7917 166471 - Email: [email protected] For editorial enquiries contact: Lewis Pek, Tel: +44 (0)1942 879 291 - Email: [email protected] Gaming Publishing Limited, Samson House, 457 Manchester Road, Manchester M29 7BR, UK

September 2012 PAGE 4

Calendar SEPTEMBER 2012 - FEBRUARY 2013 september 2012

september 2012

malta iGaminG seminar

caribbean GaminG show & conference (dominican republic)

Date: September 11-12, 2012 Location: The Hilton Resort, Malta Organiser: Swan Events, United Kingdom Contact: Karen Cooke Tel: +44 1582 767254 Email: [email protected] Web: www.maltaigamingseminar.com

Date: September 19-20, 2012 Location: Sans Souci Ports Convention Center, Santo Domingo, Dominican Republic Organiser: C&GS Group, Calle Mercator 424 San Borja, Lima, Peru Tel: +51 981074807 Email: [email protected] Web: caribbeangamingshow.com

october 2012

entertainment arena expo 2012 (romania)

G2e 2012 (las veGas, us)

Date: September 12-14, 2012 Location: Polivalent Hall, Bucharest, Romania Organiser: Anton Vlad, Expo 24 Romania 10 Cornelia St, Sector 4 Bucharest, Romania Show times: September 12-13: 10:00 - 17:00. September 14: 10:00 - 15:00 Tel: +40 21 335 6681 Fax: +40 21 335 6680 Email: [email protected] Web: www.earena.ro

Date: October 2-4, 2012 Location: Sands Expo and Convention Center, Las Vegas, Nevada, US Organiser: Reed Exhibitions Show times: Tuesday: 10:00 am - 5:00 pm Wednesday: 10:00 am - 5:00 pm Thursday: 10:00 am - 3:00 pm Tel: +1 203-840-5626 Email: [email protected] Web: www.globalgamingexpo.com

us online GaminG law

barcelona affiliate conference 2012

Date: September 18-19, 2012 Location: The Bellagio Las Vegas, Nevada, US Organiser: C5 Online, Trans-World House, 100 City Road, London, United Kingdom EC1Y 2BP Contact: Estella Kizza Tel: +44 20 7878 6950 Email: [email protected] Web: www.c5-online.com

european conference on GamblinG studies and polict issues Date: September 18-21, 2012 Location: Club Hotel Casino, Loutraki, Greece Organiser: Assissa Consultancy, PO Box 9150, Amsterdam, Netherlands 1006 AD Contact: Pieter Remmers Tel: +31 20 689 5989 Fax: +31 20 689 6418 Email: [email protected] Web: www.easg.org

September 2012 PAGE 6

Date: October 11-14, 2012 Location: Fira de Barcelona (Hall 2), Spain Organiser: iGaming Business 33-41 Dallington Street London, UK, EC1V 0BB Contact: Nick Richardson Tel: +44 207 954 3406 Email: [email protected] Web: www.igbaffiliate.com

european iGaminG conGress and expo 2012 (spain) Date: October 16-18, 2012 Location: Fira Barcelona, Spain Organiser: Clarion Events Contact: Ewa Bakun Tel: +44 (0) 207 384 8116 Email: [email protected] Web: www.eigexpo.com

october 2012 enada rome 2011 (italy) Date: October 17-19, 2012 Location: Via Portuense 1645/1647 00148 Rome, Italy Show times: From 10:00 am - 6:00 pm Organiser: Rimini Fiera Spa, Via Emilia 155 Contact: Carmen Zeolla Tel: +39 0541 744 261 Email: [email protected] Web: www.en.enada.it

international masters of GaminG law - autumn conference Date: October 10-12, 2012 Location: London, UK Organiser: IMGL, 3288 St Vincent Place Boulder, Colorado United States CO 80301 Contact: Melissa Lurie Tel: +1 303 449 9955 Email: [email protected] Web: www.gaminglawmasters.com

balkan entertainment GaminG expo (bulGaria) Date: October 16-18, 2012 Location: Inter Expo Center, 147 Tzarigradsko Shousse Blvd, Bulgaria Organiser: BEGE, 7 Kukush Str, Sofia, Bulgaria Contact: Nataliya Baevska Tel: +359 2 812 9438 Email: [email protected] Web: www.balkangaming

surexpo 2012 (poland) Date: October 19-20, 2012 Location: Centre XXI, Warsaw, Poland Organiser: Wigor Agency ul. Sokolnicza 34/38 Wroclaw, Poland 53-660 Tel: +48 71 359 6271 Email: [email protected] Web: www.wigor-targi.com

november 2012

saGse buenos aires

Date: November 13-15, 2012 Location: Costa Salguero Convention Center, Buenos Aires, Argentina Organiser: Monografie SA, Avenida Alvear 1883, Loc. 21, Buenos Aires 1129 Argentina Contact: Alan Burak Tel: +54 11 4805 4623 Fax: +54 11 4805 4791 Email: [email protected] Web: www.monografie.com

december 2012

mobile GaminG eu summit

Date: December 3-4, 2012 Location: London Organiser: FC Business Intelligence 7-9 Fashion Street, London United Kingdom E1 6PX Contact: Seyi Ibidunni Tel: +44 207 375 7563 Email: [email protected] Web: www.bulletbusiness.com

January 2013

eaG expo

Date: January 22-24, 2013 Location: ExCeL London Exhibition Centre, London, UK Organiser: European Amusement & Gaming Expo Ltd, Alders House London, UK EC1A 4JA Contact: Karen Cooke Tel: +44 1582 620951 Email: [email protected] Web: www.eagexpo.com

february 2013

ice totally GaminG 2013 Date: February 5-7, 2013 Location: ExCel London Exhibition Centre, UK Organiser: Clarion Gaming, Fulham Green, Bedford House, 69-79 Fulham High Street, London, UK SW6 3JW Tel: +44 1582 767254 Email: [email protected] Web: www.totallygaming.com

September 2012 PAGE 7

News INTERNATIONAL UPDATE DIE IOWA RACING AND GAMING Commission wird eine Ausschreibung durchführen, um einen Ersatzbetreiber und -standort für ihre Sioux City’s Casinolizenz zu finden. Für das Einreichen von Angeboten hat sie als Abgabefrist den 1. November genannt und sie möchte die Lizenz bis zum 18. April 2013 erteilen.

Baha Mar is raising the bar

DIE STADT WLADIWOSTOK IST MIT OJSC Nash Dom Primorye, einem Unternehmen, das zu hundert Prozent staatliches Eigentum des Gebietes Primorsky ist, ihrem Ziel näher gekommen, eine von Russlands vier Glücksspielzonen zu werden, indem sie einen Prozess in die Wege geleitet hat, in dessen Rahmen globale Investoren dazu aufgefordert werden, integrierte Ressorts mit CasinoGlücksspielkomponenten in ihrer integrierten Unterhaltungszone zu entwickeln.

DIE FÜR DAS GLÜCKSSPIEL zuständigen Regulierungsbehörden in Pennsylvania haben beschlossen, in Bezug auf ihre zweite Casinolizenz einen neuen Ausschreibungsprozess in Philadelphia zu initiieren, da sie lange genug darauf gewartet hätten, dass der Gesetzgeber entscheiden würde, ob die Ausschreibung für den gesamten Staat gelten sollte und nachdem bereits die Lizenzen für die verzögerten Foxwood-Projekte im Jahre 2010 wieder entzogen wurden.

DIE PARTOUCHE GRUPPE HAT FÜR DIE Eröffnung ihres neuesten Pasinos in der an der französischen Riviera gelegenen Stadt La Grande Motte - des fünften in ihrem Portfolio - € 6,5 Mio. ausgegeben. Das Pasino bietet 200 Spielautomaten, einen Raucherraum, einen mit einer Fläche von 1000 m² der größten Spielsäle Frankreichs, drei Restaurants und ein Theater, das Platz für 1300 Menschen bietet.

The largest casino in the Caribbean, Baha Mar, has passed its 100 foot milestone Baha Mar, the largest single-phase resort development in the history of the Caribbean, welcomed on site The Prime Minister of The Bahamas, The Honourable Perry Christie, to celebrate reaching the 100-foot mark on its iconic casino tower construction, a significant milestone that shows Baha Mar is firmly on its way to becoming the most anticipated new destination in the Western Hemisphere. The casino hotel, the centrepiece of Baha Mar, will host the largest casino floor in the Caribbean, with over 100,000sq.ft. (9,000sq.m.) of gaming area and is expected to compete with the

“This 100-foot milestone is the visible manifestation that Baha Mar is credible and that all promises made at the project's beginning are being delivered. We celebrate that the vision of Baha Mar is a giant step closer to reality." SARKIS IZMIRLIAN, Baha Mar Chairman.

RESORTS WORLD CASINO NEW YORK City generierte vom 1. bis zum 7. Juli knapp $15 Mio. und überschritt damit den bisherigen Wochenrekord im Bereich der Bruttoeinnahmen aus Spielautomaten und der Steuergenerierung eines Glücksspielbetriebes im Bundesstaat New York. Dadurch konnten $ 6,5 Mio. an den Education Fund des Staates fließen.

ASTRA GAMES HAT INZWISCHEN DEN Kauf von Danoptra abgeschlossen und bringt damit Gamestec Leisure, Bell-Fruit Games, RLMS Sales und Mazooma Interactive Games unter das Dach der Novomatic Group. Alle vier "übernommenen" Unternehmen, die zu den renommiertesten und bekanntesten Namen der Glücksspielindustrie des Vereinigten Königreiches gehören, behalten ihre individuelle Identität und betreiben ihr Geschäft mit demselben Personal und in derselben Weise, wie dies in der Vergangenheit der Fall war.

ES WIRD SPEKULIERT, DASS DER Großunternehmer und Milliardär, John Gokongwei, Gespräche darüber führt, seine Finanzkraft in das Philippinen-Projekt des japanischen Milliardärs und "PachinkoKönigs" Kazuo Okada zu stecken, eines der vier Konzerne, die eine Lizenz besitzen, ein Casino in der $ 5 Mrd. schweren Entertainment City, einem 100 Hektar großen Grundstück am Rande der Manila Bay zu betreiben.

Iowa looking for new operator for Sioux City The Iowa Racing and Gaming Commission is to launch a tender to find a replacement operator and location for its Sioux City’s casino license. It has publicised a November 1 deadline for submissions with the aim of awarding the licence by April 18, 2013. The unprecedented move follows months of stalled talks between Penn National Gaming and Missouri River Historical Development, who hold the casino license. Penn wants to build a $100m land-based casino in downtown Sioux City but the non-profit partner wants to raise its share from three per cent of gross gaming revenue for community projects,

delaying any progress. Penn bought the operator of the Sioux City licence; Argosy Gaming Company for US2.2bn in 2005. The license must though stay in Sioux City. Chairman Jeff Lamberti of Ankeny, said: “Our goal is to get the best facility for the people of Iowa. We expect strong interest in that facility.” The current 22 table, 700 slot river-boat casino generated Gross Gaming Revenues of US61m over the last year attracting 913,334 visitors. Penn has tried to block the move to launch a new tender by filing a petition in Polk County District Court but state officials have vowed to fight any legal action.

most sophisticated casinos in Las Vegas or Macau. “I am pleased Baha Mar has reached this important milestone on schedule. It builds credibility for the project and for our country,” said Mr. Christie. “I congratulate every worker that has helped Baha Mar reach this 100-foot elevation mark, and I am optimistic that many more Bahamians will benefit from Baha Mar in the near future and for generations to come.” Mr. Sarkis Izmirlian, Baha Mar Chairman and CEO added: "I am incredibly proud that we have reached this pivotal point in the development of Baha Mar and am grateful for the hard work and dedication of everyone who has touched this project. We've made amazing progress on and off the construction site during the past year and a half. This 100-foot milestone is the visible manifestation that Baha Mar is credible and that all promises made at the project's beginning are being delivered. We celebrate that the vision of Baha Mar is a giant step closer to reality." Reaching 100 feet in elevation, the ninth floor level, in its largest and important casino tower demonstrates meaningful and sustained progress in the construction of Baha Mar and puts the resort on pace for its scheduled December 2014 opening. Since its February 2011 groundbreaking, Baha Mar has begun to rise both in The Bahamas and in the eyes of the world's travel elite. Early in 2012, the Baha Mar brand began to emerge with the introduction of a new logo, website and brand identity. In June, Baha Mar partnered with Harrods Estates to launch pre-construction sales for The Residences at Baha Mar, showcasing the Baha Mar project in the world-renowned Harrods department store in London. Confident of the strong international appeal of The Bahamas, Baha Mar also hosted successful media and sales events throughout Asia and the Middle East, including in Beijing, Hong Kong, Shanghai and Singapore. September 2012 PAGE 9

News INTERNATIONAL UPDATE NACHDEM SICH SEINE TRADITIONELLEN

Vladivostok shows blueprint

Märkte stabilisiert haben, geht Olympic Entertainment im Wege einer Partnerschaft mit der lokalen italienischen GHolding an den italienischen Markt. Die beiden Unternehmen werden in Italien VLT-SlotCasinos einrichten und betreiben. Beide Parteien werden je zur Hälfte das Betreiberunternehmen The Box S.r.l. besitzen. Das Joint Venture plant seine ersten drei Casinos in Italien bis Ende 2013 zu eröffnen, wobei OEG plant, im gleichen Zeitraum € 4,5 Mio. zu investieren.

EVOLUTION GAMING HAT angekündigt, dass StarCasino in Italien jetzt mit den lokalisierten Online LiveCasino-Services von Evolution an den Start geht. StarCasino, Teil der Betsson-Gruppe, ist mit den von Evolution gehosteten Venezia Roulette und Ventuno Live-OnlineTables an den Start gegangen.

SANDS CHINA HAT BESTÄTIGT, DASS

Vladivostok is driving forward with plans to assert its casino resort as a viable development Vladivostok has moved closer to its aim of becoming one of Russia’s four gambling zones with OJSC Nash Dom Primorye, a wholly owned government corporation of the Primorsky Territory government of Russia, issuing a Request for Concepts (RFC) process inviting global investors to develop integrated resorts with casino gaming components, at its Integrated Entertainment Zone (IEZ). Nash Dom Primorye announced its Notice of Intent to issue a RFC at the Global Gaming Expo (G2E) Asia in May 2012. The IEZ aims to capitalise upon the significant economic growth of Asia's economies. The zone, located approximately 20km from the new Vladivostok International Airport is one of four designated zones in Russia that will allow legalized casino gaming activity. It is the only zone with direct access to Asia and is only a two-hour flight from both Seoul and Tokyo. The master plan includes hotels, a yacht club, retail outlets as well as golf courses. Vladivostok is looking to take on markets such as Macau, Singapore, Vietnam and the Philippines as it looks for its own slice of Asian gaming action. Whilst other remote zones have been belittled by analysts as having no chance of working, a report from Gaming Market Advisors believes Vladivostok’s Integrated Entertainment Zone could generate Gross Gaming Revenues of between US$2 and $7bn when completed pitching it either side of Singapore’s GGR of $5bn, generated in 2011. Vladivostok will host the 2012 Asia-Pacific Economic Cooperation Summit later this September. September 2012 PAGE 10

Any investors interested must register their company details at http://www.iezprim orye.com to download the RFC documents by September 21.

General Director of Nash Dom Primorye, Marina Lomakina, said: "The RFC process will streamline communication, allowing more structured and transparent exchanges with global investors. While casino gaming is legal in the zone, we are looking for concepts that focus on tourism development. Every effort is being made to ensure that global investors are confident in the business environment of Primorye. We look forward to receiving RFC responses that capitalize upon Vladivostok’s strong linkages with Asia.” “We believe the IEZ will create a compelling experience for Asian tourists seeking a destination that is near, but culturally different. We also believe that investors will be interested in the tourism and casino gaming potential of the IEZ," added Ms. Lomakina.

Montevideo casino down but still plans to relocate Casino Parque Hotel, one of the leading casinos in Uruguay and the only such venue in Montevideo, saw Gross Gaming Revenues fall in 2011 by US1m whilst falling $3m below expectations. According to the latest budget balance of the Administration, the casino generated US$14.3m in 2011, around $1m less than in 2010. Live gaming brought in revenues of $3.2m whilst the slots accounted for $12.7m. The property has seen its

dem Unternehmen eine Verlängerung zur Erschließung von Land auf einem Parzelle 3 genannten Grundstück gewährt wurde, dass aber wegen der Verzögerung eine Vertragsstrafe zu erwarten wäre. Das Land war für Sands größtes Macau-Projekt für Kosten in Höhe von US$ 5 Mrd. vorgesehen. Der Staat hat die Frist von April 2013 auf den 17. April 2016 verlängert. Die Arbeiten an dem neuen Ressort, das auf den Massenmarkt und "familienorientierte" Einrichtungen abzielt, haben noch nicht begonnen.

GRUPO TORCELLO, EIN IN BUENOS Aires ansässiges Planungs-, Entwicklungs- und Investititonsunternehmen will US $ 78 Mio. in den Bau eines Fünf-Sterne-HotelCasinos in der Nähe des Flughafens von Mendoza, einer der bedeutendsten Städte in Zentralargentinien investieren und 2015 eröffnen. Das 13.000 m² große Projekt, das im Nobel-Industriepark nördlich von Mendoza entwickelt werden soll, wird eine amerikanische Hotelkette, Konferenzsäle, ein Casino und ein Shopping-Centre im Bereich Las Heras umfassen.

LANG ERWARTETE PLÄNE FÜR DAS erste Racino im Vereinigten Königreich könnten doch noch in Wolverhampton entwickelt werden. Die Ratsherren haben sich darauf geeignet mit dem formellen Ausschreibungsprozess für die "kleine" Casino-Lizenz zu beginnen. Wolverhampton Racecourse, das einst als die Vorzugsoption in einer Liste von fünf Unternehmen, die daran interessiert waren, das Projekt im Jahre 2009 zu entwickeln, genannt wurde, hat bestätigt, dass es im Rennen um die Lizenz dabei sein wird. Der Standort gehört Arena Leisure und es würden 280 neu Jobs geschaffen.

DER FRANZÖSISCHE BETREIBER move to new premises at the former Park Hotel Casa de postponed several times due to delays with the hotel redevelopment. The casino can’t relocate until Hotel Casino Carrasco is up and running. Work is expected to be complete by the end of the month.

Groupe Partouche betritt demnächst im Vereinigten Königreich den traditionellen Casinomarkt als Betreiberkraft hinter der "kleinen" Lizenz in Bath, einer historischen Stadt in Somerset im Südwesten Englands. Global Gaming Ventures, eine Gruppe, die Partouche umfasst, erhielt die "kleine" Lizenz in Bath vom Bath & North East Somerset Council’s Licensing Committee für ihre Vorschläge für die ehemalige Sawclose Clinic und die Gala Bingo Hall, Sawclose, Bath.

News INTERNATIONAL UPDATE LA COMMISSIONE PER LE scommesse ippiche e per i giochi d'az-

Spreading over Philadelphia Pennsylvania pushes forward with its second tender for a casino licence in Philadelphia

VLADIVOSTOK È SEMPRE PIÙ VICINA a diventare una delle quattro aree riservate ai giochi d'azzardo in Russia. OJSC Nash Dom Primorye, un ente governativo del territorio russo di Primorsky, ha emesso una Richiesta di Proposte invitando investitori di tutto il mondo a sviluppare resort integrati con casinò, nella propria Zona Divertimenti Integrata.

Gambling regulators in Pennsylvania have decided to start a new tender process for its second casino license in Philadelphia, saying it has waited long enough for the Legislature to decide whether to open up the bidding statewide and having already revoked the licences of the stalled Foxwoods project in 2010. The Pennsylvania Gaming Control Board confirmed it was now accepting applications for the one remaining Category 2 Slot Machine License and Table Games Certificate. The deadline for submission is November 15, 2012. Chairman William Ryan noted that the Pennsylvania General Assembly has been considering legislation that would amend the Gaming Act and repeal the requirement that the licensed casino be located only in Philadelphia. “However, since it appears that the General Assembly will not approve such a change in the foreseeable future,” Mr. Ryan said, “the Board believes that it is in the best interest of the people of Pennsylvania to proceed with the application process.” The process may take nine to 12 months from the close of the application period until the Board is in a position to consider all the applications. The Pennsylvania Race Horse Development and Gaming Act permits the Board to award up to five Category 2 slot machine operator licenses, with at least two of those being in the City of Philadelphia. The Board awarded two such licenses to Philadelphia applicants in December 2006. One of the Philadelphia awards was to HSP Gaming, which opened the SugarHouse Casino in September 2010. The second award was made to Philadelphia Entertainment & Development Partners, which intended to open the Foxwoods Casino Philadelphia. That license holder, however, was unable to construct and open that casino, and the Board revoked the license in December 2010. Following court appeals, the revocation decision was upheld in March of this year. Mr. Ryan said the public can be assured that the process in awarding this license September 2012 PAGE 12

zardo dell’ Iowa istituirà una gara d'appalto per trovare un altro operatore ed un altro sito per il casinò di Sioux City. Il termine ultimo per la presentazione delle domande è il 1º novembre, e la licenza verrà assegnata prima del 18 aprile 2013.

I REGOLATORI DEI GIOCHI d'azzardo della Pennsylvania hanno "There will be a thorough background investigation of all applicants and public vetting of all proposed projects. Most importantly, this Board will come to Philadelphia and listen to comments both in support of and against each application." WILLIAM RYAN, Chairman, PGCB.

will be transparent with affected citizens and organisations provided ample opportunity to weigh in with comments and concerns. If awarded a Category 2 Slot Machine Operator's license, the holder must pay a $50,000,000 one-time fee to the Commonwealth to operate up to 5,000 slot machines and an additional $16,500,000 for a certificate that permits the operation of up to 250 table games. The license holder must also maintain $1,500,000 in an account as a deposit from which payments can be drawn to satisfy bills from the regulatory agencies of the Commonwealth.

IOM’s seven submissions whittled down to one With only one expression of interest in developing a fivestar hotel and casino on the Isle of Man, the decision seems to have been made. Planning approval was granted for the project two years ago. With the application deadline of January 31 being met, the government has been in talks with potential operators with regards to their plans with tenders expected to be invited by the end of March. Economic Development Minister John Shimmin said: “The department would only consider awarding the second licence if the proposed new development was significantly different to the existing casino and associated hotel. If we are realistic, the idea of having sufficient bed spaces filled in the middle of winter is a

challenge any operator would find difficult to overcome. At this stage in the process, and despite a requirement in the invitations document, the department considered that it had insufficient information to evaluate the seriousness, capability, expertise or financial soundness of the potential developers. The next stage in the process was to be a full tender submission. However, before doing so, the department decided to invite each party to answer a key facts questionnaire and to make a short presentation. At the end of this process, only one expression of interest remained. The Council of Ministers has since requested the Department of Economic Development to purse the progress of the project with the interested party to identify its viability.”

deciso di lanciare una gara d'appalto per un secondo casinò a Philadelphia. Affermano di avere aspettato abbastanza a lungo le decisioni dei legislatori, relative all'apertura di una gara d'appalto nazionale, e hanno già revocato le licenze del defunto progetto Foxwoods nel 2010.

IL GRUPPO PARTOUCHE HA investito €6,5 milioni nell'apertura dell'ultimo Pasino, il quinto del portfolio, nella città balneare di Grande Motte, sulla costa francese. Il Pasino dispone di 200 slot machine, una sala riservata ai fumatori, una sala giochi di oltre 1000 m², una delle più grandi in Francia, tre ristoranti e un teatro che può ospitare 1300 persone.

RESORTS WORLD CASINO NEW York City ha fatturato quasi $ 15 milioni, nel periodo 1-7 luglio, battendo il precedente record settimanale per entrate derivanti da slot machine e entrate fiscali nello Stato di New York, e generando $6,5 milioni per il fondo istruzione statale.

ASTRA GAMES HA FINALIZZATO l'acquisto di Danoptra, portando così le aziende Gamestec Leisure, Bell-Fruit Games, RLMS Sales e Mazooma Interactive Games sotto l’egida del gruppo Novomatic. Tutte e quattro le società manterranno la propria identità individuale, dal momento che si tratta dei nomi più conosciuti e rispettati nel settore dei giochi d'azzardo nel Regno Unito, e manterranno i rapporti con i propri dipendenti, come se non fosse successo niente.

SI PENSA CHE IL MILIARDARIO DI Taipan John Gokongwei stia conducendo trattative per il finanziamento del progetto nelle Filippine del miliardario giapponese e re del Pachinko, Kazuo Okada. Si tratta di uno dei quattro gruppi a cui è stata concessa una licenza per la gestione di un casinò a Entertainment City, una proprietà del valore di $ 5 miliardi, estesa 100 ettari, sulla sponda della baia di Manila.

News INTERNATIONAL UPDATE DOPO IL CONSOLIDAMENTO DEI

Partouche open new Pasino Partouche Group’s latest opening in France seeks to buck the downward market trend The Partouche Group has spent €6.5m opening its latest Pasino, the fifth in its portfolio, in the seaside town of le Grande Motte on the French Riviera. The Pasino offers 200 slot machines, a room reserved for smokers, a games room covering over 1,000m. sq., making it one of the largest in France, three restaurants and a theater with a capacity for 1,300 people. Partouche expects it to generate at least €25m per year for a full year. The group has also cashed in by selling its old casino, located on the seafront, for €4m. Whilst the opening of Grande Motte Pasino took place in mid-July, the official inauguration will take place on September 20. Fabrice Pair, Chief Executive highlighted that the Pasino was a ‘family entertainment complex.’ It even has a play area for children. He predicts a ‘doubling in the activity of the old casino’ which hosted 500 players per day. The fifth Pasino follows successful launches in Aix En Provence, Le Havre, Djerba, St Amand-Les Eux. The opening comes though as Partouche struggles to

L'AZIENDA EVOLUTION GAMING HA annunciato che StarCasino è adesso operativo in Italia, con i servizi online Live Casino della Evolution. StarCasino, parte del gruppo Betsson, ha lanciato la Roulette Venezia, di Evolution, e i tavoli da gioco online Ventuno.

LA SOCIETÀ SANDS CHINA HA The Pasino offers 200 slot machines, a room reserved for smokers, a games room covering over 1,000m. sq., making it one of the largest in France.

deal with the downturn in the economy, posting a decline of nearly two per cent for the first half of 2012, down to €335m. Despite good control of costs, trading profit slumped to €5.1m, down nearly 20m. Operating profit was down 22.5 per cent. Groupe Partouche said: “The casino operating sector is currently suffering from a lack of visibility, which has been increased due to the underperformance experienced since February 2012. If the continued slowdown of activity continues, the group will record achievements in gross gaming revenue and EBITDA lower than those in the business plan and then revise this predictive framework."

Merkur sun shines Resorts World smashes across Bratislava New York revenue record Merkur Gaming has opened a new Video Lottery Terminal venue in the Slovakian capital city of Bratislava. The new Merkur Herna joins the four Merkur Hernas in Bratislava and another four in Nitra, Skalica, Trencin and Zilina. The arcade in the Devinska Nova Ves district is equipped with 18 video lottery terminals (VLTs), six AWPs and a Merkur Roulette, offering diversified high-end gaming over 400sq.m. The new arcade has a large shopping centre in close proximity and numerous parking spaces. Rolf Falke, spokesman of the management team at Merkur International, said: “The new Merkur Casino has a stylish atmosphere, the latest products and premium service from well trained staff.” The VLT systems have been supplied amongst others by Merkur Gaming (MLT), a subsidiary of the Gauselmann Group. VLTs are connected to a central server providing direct supervision for the Finance Ministry.

Resorts World Casino New York City generated nearly $15m from July 1 to July 7 smashing the previous weekly record for gross slot gaming revenue and tax-generation by a gaming property in the State of New York, whilst sending $6.5m to the state’s education fund. Resorts World New York generated GGR of $14.9m in just one week, outdoing the casino’s previous high of $14.4m in February and setting a state record in the process. During the same one week, Resorts World sent more than $10m to education, the horse racing industry and other state entities. Michael Speller, President of Resorts World Casino New

September 2012 PAGE 14

propri mercati tradizionali, l'azienda Olympic Entertainment sta per entrare sul mercato italiano, grazie a un partenariato con l'azienda italiana GHolding. Le due società gestiranno sale di medie dimensioni per video lotterie in Italia. Entrambe le aziende saranno proprietarie della metà della società Box Srl, che gestisce le operazioni. Si progetta di creare una joint venture per l'apertura dei primi tre casinò in Italia, entro la fine del 2013, e l'azienda OEG intende investire €4,5 milioni nello stesso periodo.

York City, said: “The recordbreaking revenue that Resorts World has generated to support the education of New York’s students, and the more than 3,000 jobs we have created for hard-working New Yorkers is proof positive that our partnership with New York State is working. However, we can still do more. We will look to pursue additional opportunities in the future to generate even more revenue for the state and create thousands of more jobs for New Yorkers.” In less than eight and a half months of operation, Resorts World Casino New York City has sent more than $311m in taxes to the state, including more than $198m earmarked for education.

confermato di avere ottenuto la concessione di una proroga per la costruzione su un terreno chiamato Parcel 3, ma ritiene di dover pagare una penale per questo ritardo. Il terreno è destinato al più grande progetto di Sands a Macao, del costo di $ 5 miliardi. Il governo ha differito la scadenza, da aprile 2013 al 17 aprile 2016. I lavori non sono ancora iniziati su questo resort, che è destinato al mercato di massa e comprende strutture ricreative per tutta la famiglia.

GRUPO TORCELLO, UNA SOCIETÀ DI design, sviluppo e investimenti, con sede a Buenos Aires, investirà $ 78 milioni nella costruzione di un hotel-casinò a cinque stelle, nei pressi dell'aeroporto di Mendoza, una delle città principali del centro dell'Argentina. L'apertura è prevista nel 2015. Il centro, esteso 13.000 m², sarà costruito nella zona industriale Nobel, a nord di Mendoza. Ospiterà una catena di alberghi americana, sale da conferenza, un auditorium, un casinò ed un centro commerciale, nella regione di Las Heras.

I TANTO ATTESI PROGETTI PER IL primo racino nel Regno Unito potrebbero realizzarsi a Wolverhampton. I consiglieri comunali hanno deciso di indire una gara d'appalto per la concessione di una licenza per un ‘piccolo’ casinò. L’azienda Wolverhampton Racecourse, che rappresenta l'opzione preferita tra le cinque aziende interessate al progetto nel 2009, ha confermato che parteciperà alla gara d'appalto. Il centro, di proprietà della società Arena Leisure, porterebbe alla creazione di 280 posti di lavoro.

IL GRUPPO FRANCESE PARTOUCHE intende entrare nel mercato dei casinò nel Regno Unito, gestendo un ‘piccolo’ casinò a Bath, un'antica città nella contea del Somerset, nel sud-ovest dell'Inghilterra. Global Gaming Ventures, un gruppo commerciale che comprende anche Partouche, ha ottenuto una concessione per la gestione di un ‘piccolo’ casinò a Bath, dal comitato per le licenze dell’ East Somerset. Le proposte erano relative alla ristrutturazione della Sawclose Clinic e della sala da bingo Gala, nel quartiere di Sawclose, a Bath.

News INTERNATIONAL UPDATE LA COMMISSION DES COURSES ET DES

Astra secures Danoptra deal Astra Games completes the purchase of Danoptra, including Bell Fruit Games and Gamestec

VLADIVOSTOK S’EST RAPPROCHÉE DE son but de devenir l’une des quatre zones de jeux d’argent de Russie, avec la société par action ouverte Nash Dom Primorye, une corporation gouvernementale entièrement détenue par le Gouvernement du Territoire de Primorsky en Russie, émettant une Demande de Concepts (DdC) invitant les investisseurs du monde entier à développer des complexes intégrés composés de jeux de casino, dans sa Zone de divertissement intégrée (Integrated Entertainment Zone - IEZ).

Astra Games has now completed the purchase of Danoptra bringing Gamestec Leisure, Bell-Fruit Games, RLMS Sales and Mazooma Interactive Games under the overall umbrella of the Novomatic Group. Each of the four acquired companies will maintain their individual identities, being some of the most respected and iconic names in the UK gaming industry, and will conduct themselves with their existing staff and in a ‘business as normal’ manner. The Astra UK Gaming Group will be managed by a five man Board of Directors. Zane Mersich, Managing Director of Astra Games since 2008, will become the Group’s CEO and will be joined by John Austin, Managing Director, Bell-Fruit Games, Chris Butler, Managing Director of Gamestec, Neil Paramore, CFO and Paul Terroni, who moves from Danoptra to take up the role of Business Development Director in the new entity. Now backed by the huge resources of the Novomatic Group a Technology Committee covering all aspects of the Astra UK Gaming Group will be established. To be chaired by Astra’s Game Design Director and Board member Andy Dinning, this committee will be responsible for directing new innovations in both analogue and digital gaming products and creating an overall policy of strategic research and development across all companies within the group. Zane Mersich, Managing Director of Astra Games, said: “All of us involved in the process of bringing together Astra and Danoptra understand the importance for the wider UK gaming industry, as well as just the parties directly involved, of a deal that will now safeguard iconic industry names and the employment that they provide. We look forward now with great confidence and in the belief that the group of companies that we have created under the Astra banner will, from the outset, play a leading role in the development of the UK gaming industry.” Dr. Franz Wohlfahrt, CEO Novomatic AG added: "Following the take-over of Astra Games in 2004 and Empire Games in 2011 this major acquisition in the UK brings to our group a true domestic market in the gaming industry’s home country. We are convinced that the synergies generated through the cooperation of the various companies will not only secure jobs but September 2012 PAGE 16

Jeux de l’Iowa est sur le point de lancer un appel d’offres afin de trouver un lieu et un opérateur de remplacement pour sa licence de casino à Sioux City. L’échéance prévue de dépôt des candidatures est le 1er novembre, en vue d’accorder la licence d’ici au 18 avril 2013.

LES AUTORITÉS CHARGÉES DE LA

Gamestec Managing Director, CHRIS BUTLER and Astra UK Gaming Group Managing Director, ZANE MERSICH. “For all the four companies involved, this deal will enable them to progress their business objectives, and turn them into reality. I look forward with extreme confidence that the enlarged group will now be able to invest and grow their market sectors with the added benefit that being part of the Novomatic Group will bring.” PAUL TERRONI, Business Development Director of the Astra UK Gaming Group.

will also provide important impetus for our global growth as a group as well as for our business strategy that is traditionally based on the duality of business activities as a producer and as an operator." Bell-Fruit Games Managing Director, John Austin, said of the deal: “This is great news for BFG, its staff, customers and the industry it serves. Being part of Novomatic, a globally leading group in the gaming machine market, provides us with the benefits of an owner who understand the issues around this particular market and is able to provide the investment we very much need to take us forward with new developments and emerging technologies as well as offering synergy with their products and technologies. I have said on numerous occasions in the past that ownership of any business in the design and manufacture of gambling machines is infinitely better in the hands of major players in the global market than banks or PLCs who know little about the market and its needs.” Gamestec’s Managing Director, Chris Butler underlined the importance of the company’s new position within the Astra UK Gaming Group. He said: “Gamestec have had the benefit of a close working relationship with Astra and the Novomatic group of companies for nearly two years now. I have personally found both teams to have worked well and closely to deliver the innovation that we now refer to as iPub. It has been a fantastic project that has now started to deliver results; on the premise of maximising the potential of new and existing customers in pubs. This is only the start! With our new situation and with the benefit of sustained investment, we have only scratched the surface of our future potential.”

règlementation des jeux d’argent en Pennsylvanie ont décidé de lancer un nouvel appel d’offres pour leur deuxième licence de casino à Philadelphie, disant avoir attendu assez longtemps pour que la Législature décide d’ouvrir ou non l’appel d’offres à l’échelle de l’Etat et ayant déjà révoqué les licences du projet Foxwoods retardé en 2010.

LE GROUPE PARTOUCHE A DÉPENSÉ 6,5 millions d’euros dans l’ouverture de son dernier Pasino, le cinquième de son portefeuille, dans la ville côtière de la Grande-Motte sur la Côte d’Azur. Le Pasino compte 200 machines à sous, une salle réservée aux fumeurs, une salle de jeux de plus de 1 000 m², ce qui en fait l’une des plus grandes de France, trois restaurants et un théâtre pouvant accueillir 1 300 personnes.

RESORTS WORLD CASINO NEW YORK City a généré près de 15 millions de dollars entre le 1er et le 7 juillet, écrasant le précédent record hebdomadaire en termes de recettes brutes de jeux de machines à sous et fiscales par une propriété de jeux dans l’Etat de New York, tout en reversant 6,5 millions de dollars au fonds d’éducation de l’Etat.

ASTRA GAMES A DÉSORMAIS FINALISÉ l’achat de Danoptra, mettant Gamestec Leisure, Bell-Fruit Games, RLMS Sales et Mazooma Interactive Games sous l’ombrelle globale du Groupe Novomatic. Chacune des quatre sociétés « acquises » gardera son identité propre, possédant certains des noms les plus respectés et les plus emblématiques de l’industrie britannique du jeu, et poursuivra ses activités normalement avec son personnel existant.

LE MILLIARDAIRE TAÏPAN JOHN Gokongwei serait apparemment en cours de discussion concernant le prêt de ses atouts financiers en faveur du projet aux Philippines du milliardaire japonais et roi du Pachinko, Kazuo Okada, dont le groupe est l’un des quatre à s’être vu accorder une licence pour l’exploitation d’un casino dans Entertainment City (la Ville du divertissement) , une propriété de 100 hectares et d’une valeur de 5 milliards de dollars sur la rive de la Baie de Manille.

News INTERNATIONAL UPDATE AYANT VU SES MARCHÉS

Estoril-Sol slams high taxes More redundancies at Estoril-Sol as the casino blames taxes for latest round of painful job cuts Estoril-Sol has blamed the high taxes imposed by the Portuguese government for 38 new layoffs, the second wave of mass redundancies issued in the last two years. Mario Assis Ferreira, President of Estoril-Sol said governments should recognise the importance of the casino sector and look to better protect it, as it helps finance over 70 per cent of tourism in the country. He said: “The taxes charged to Portuguese casinos are amongst the highest in the world.” He highlighted the Estoril-Sol is taxed at 62 per cent of its GGR. With the economic crisis and falling revenues from the recession he said it was ‘very difficult to keep companies going’ adding that the financial stability of the casino was absolutely necessary if the situation regarding staff levels was also to remain stable. “It is deeply painful, but until the government takes key decisions regarding the casinos in Portugal and on their contribution to national tourism, we have no other solution than to make cut backs,” he explained.

EVOLUTION GAMING A ANNONCÉ QUE StarCasino était désormais ouvert en Italie, avec les services localisés de casino en direct en ligne d’Evolution. StarCasino, faisant partie du Groupe Betsson, s’est initialement lancé avec les tables de jeu en direct en ligne Ventuno et Venezia Roulette hébergées par Evolution.

SANDS CHINA A CONFIRMÉ AVOIR In January 2010 the operator announced 113 collective dismissals. This move was subsequently expanded to include 112 people, plus another 17 who were individual dismissals. Workers moved forward with an injunction to challenge the decision, which was rejected.

Lisbon, Estoril and Povoa, confirmed to the Ministry of Economy and Employment at the end of July that the 38 redundancies would be made from positions across its Food & Beverage, Gaming and General Directorate of Operations sectors through a collective redundancy. It will cost €1.8m. Workers at the Estoril casino said they will contest the lay-offs and consider legal action challenging the decision. “Two years ago there was a collective dismissal and the company continues to insist on reducing the expenditure at the expense of the workers,” said employment union Nuno Benodis.

Estoril-Sol, which operates casinos in

Castilla y León hopeful of Genting finds new leaving Boecillo suburb platform to market Genting in the UK has come up with a unique marketing method in Sheffield where it has sponsored one of the Yorkshire city’s SuperTrams and filled it with entertainers to advertise the fact that a Genting Club will soon be opening. The tram, simply called the Genting Tram, is convincing passengers to put down their newspapers and books, and turn off their mp3 players and listen to performances of music, comedy and magic tricks instead on the service running throughout the city. Kath Barton, the Genting Club’s general manager, described the tram as a ‘pop-up’ entertainment venue for the people of Sheffield to enjoy for no more than the cost of a tram ticket. Passengers on the tram are also given the chance to win prizes and tickets for the club’s VIP opening night. The Genting Club will be opening in the city on September 28, offering a casino, two restaurants and a lounge bar.

September 2012 PAGE 18

traditionnels se stabiliser, Olympic Entertainment pénètre sur le marché italien via un partenariat avec la société italienne locale GHolding. Les deux sociétés s’installeront ensemble et exploiteront conjointement des machines de VLT de taille moyenne en Italie. Les deux parties possèderont la moitié de la société opérante The Box S.r.l. La coentreprise prévoit d’ouvrir ses trois premiers casinos en Italie d’ici à la fin de 2013, OEG prévoyant d’investir 4,5 millions d’euros au cours de la même période.

The somewhat turbulent process of relocating the Casino of Castilla y León from Boecillo, a suburb of Valladolid to the city center of Valladolid could be heading for calmer waters if new regulation is adopted aiming to ease the movement of such licences. Proposed laws will allow transfers within the same or different municipality, provided that it is within the same province and regardless of the population of the town, which was previously limited to less than 300,000 inhabitants. The intention of the casino’s owners to move the licence to Valladolid from its current location in the Palace of the Guzmanes of Boecillo, a late 19th Century neoclasscial

building, began in 2008. However the Teatro Lope de Vega, a theatre in the Valladolid Province protested against the relocation as the casino had a theatre and a conference center as part of its entertainment package. The casino group then looked at relocating to a hotel and then to a former cinema, with the latter still being very much on the cards. Two years ago an agreement was signed with the owners of the Roxy cinema, including film producer and President of the Atletico Madrid, Enrique Cerezo, for the rental of the building. The group behind the Castilla y León casino said they would wait patiently to see if the new laws were introduced and then act accordingly.

reçu une extension pour développer son terrain sur une parcelle du nom de Parcel 3, mais a déclaré s’attendre à devoir payer une pénalité de retard. Le terrain a été réservé pour le plus grand projet de Sands à Macau à ce jour, dont le coût s’élève à 5 milliards de dollars. Le gouvernement a étendu le délai d’avril 2013 au 17 avril 2016. Le travail n’a pas encore commencé sur le nouveau complexe, qui ciblera le marché de masse et inclura des installations familiales.

GRUPO TORCELLO, UNE SOCIÉTÉ DE conception, de développement et d’investissement basée à Buenos Aires, s’apprête à dépenser 78 millions de dollars dans la construction d’un hôtel-casino cinq étoiles près de l’aéroport de Mendoza, l’une des plus grandes villes du centre de l’Argentine, avec une ouverture prévue pour 2015. Ce projet de 13 000 m², qui sera développé dans le parc industriel Nobel au nord de Mendoza, hébergera une chaîne hôtelière américaine, des salles de conférence, un auditorium, un casino et un centre commercial dans la région de Las Heras.

LES PLANS TRÈS ATTENDUS DU premier racino au Royaume-Uni doivent encore être développés à Wolverhampton, des conseillers ayant convenu de lancer le processus d’appel d’offres officiel pour la licence de son « petit » casino. Wolverhampton Racecourse, autrefois validé comme le choix préféré parmi une liste de cinq sociétés enclines à développer le projet en 2009, a confirmé qu’il serait dans la course pour l’obtention de la licence. Possédé par Arena Leisure, le lieu créerait 280 emplois.

LE GROUPE PARTOUCHE, OPÉRATEUR français, s’apprête à pénétrer le marché des casinos physiques au Royaume-Uni en tant que force motrice de la « petite » licence à Bath, ville historique du Somerset dans le Sud-Ouest de l’Angleterre. Global Gaming Ventures, un groupe composé de Partouche, s’est vu accorder la « petite » licence à Bath par le Comité d’octroi de licences du Conseil du Nord-Est du Somerset et de Bath pour ses propositions à l’ancien Sawclose Clinic and Gala Bingo Hall, à Sawclose, dans la ville de Bath.

News INTERNATIONAL UPDATE BERTIL KNUTSSON,

Extra bite for Tiger Resorts Kazuo Okada’s Tiger Resorts in the Philippines is to be bolstered by Taipan billionaire Taipan billionaire John Gokongwei is believed to be in discussions over lending his financial muscle to the Philippines’ project of Japanese billionaire and Pachinko King, Kazuo Okada, one of four groups given a license to operate a casino in the $5bn Entertainment City, a 100hectare property on the edge of Manila Bay. Mr. Gokongwei, listed at number four on the Forbes’ list of richest Filipinos with an estimated net worth of $3.25bn, is believed to have proposed that his property division, Robinson Land Corporation, operate the gaming and retail side of Okada’s $2bn project. Tiger Resorts will stretch across 45 hectares, making it the largest of the four licensees in Entertainment City. Mr. Okada, began construction on it in late January this year with 2,000 guest rooms in three hotels expected to debut in the first half of 2014. Following his well-publicised fall out with Las Vegas developer Steve Wynn, Mr Okada said: “My dream is to create the best casino in the world here in the

1,600 slots set for Lake Charles site Ameristar Casinos has completed the purchase of Creative Casinos of Louisiana for US$32.5m, allowing it to develop Ameristar Casino Resort Spa Lake Charles, which will include a casino with around 1,600 slots and 60 table games. Ameristar expects to complete the project in the third quarter of 2014, which will include a hotel with 700 guest rooms, a variety of food and beverage outlets, an 18-hole golf course, a tennis club, swimming pools, a spa and other resort amenities. Gordon Kanofsky, CEO, said: “We're excited about the growth this opportunity will bring to our company, and for the thousands of construction and permanent jobs we will create in Lake Charles. In just two years, Ameristar Casino Resort Spa Lake Charles will begin serving southwestern Louisiana and southeastern Texas, including the Houston area."

September 2012 PAGE 20

Philippines operator and regulator, PAGCOR, has stipulated that all four licensees must invest $1bn in each integrated resort develop at least a footprint of 250,000sq.m. and build 800 hotel rooms.

Philippines,” he said. “This is why I’m focusing on Philippine gaming; to make it the best in the world and to beat Wynn Resorts.” The region’s big hitters are certainly getting involved in Entertainment City. Mr. Gokongwei, who made his fortune through hotel resorts, shopping malls and budget airlines, will be joined in the project by another Filipino billionaire, Andrew Tan, whose property division would oversee the land development part of Mr. Okada’s project. Macau operator Melco Crown recently partnered with Belle Group to take part in Belle Grande, an integrated gaming complex, which is being built on six hectares of land at the Aseana Business Park in Parañaque City.

SkyCity considering VIP Hamilton hotel project SkyCity is to announce whether it is building Hamilton’s first five-star hotel on the top floors in a month’s time, as it looks to better reposition its offering to attract high-rollers. The operator has been given planning permission to build a three-level, 135-suite hotel with a pool, gymnasium and sauna facility, doubling the floor space of the property and adding more than 9,000 sq. m. to its footprint and almost 15m in height. Chief financial officer James Burrell said SkyCity would wait for the release of the company's financial results on August 15. "We will update

the market on the status of potential projects at that point,” he said. The plan is to build a five-star hotel with the top mezzanine level reserved for SkyCity's VIP customers with room sizes including eight two-level, 84sq.m. premiere suites. A grand atrium will also rise up through the hotel from the fourth floor.

former TCSJohnHuxley owner, has died aged 80 in Gothenburg, Sweden. Company officials described Mr. Knutsson as an inspiring leader, who became one of the gaming industry’s most influential characters in a career spanning more than 50 years. The introduction of the revolutionary Chipper Champ in 1979 changed the face of casino gaming forever. Earlier this year, he received the Outstanding Contribution Award at the 5th International Gaming Awards, in recognition of his influence and contribution to the gaming industry. Michael Knutsson, Director at TCSJohnHuxley, said: “Bertil was not just a father, he was my best friend and confidant. The values he instilled in his three sons transcends all aspects of life; integrity, honesty and compassion.” “For those of us who were fortunate enough to know and work with Bertil we have lost a dear friend and mentor. Bertil leaves behind enduring legacies and his spirit will be forever with the company. The gaming industry will miss him dearly, and I have lost a father,” said Tristan Sjöberg, Executive Chairman of TCSJohnHuxley. A true visionary who introduced leisure casinos to Sweden in 1958, he also signed one of the first foreign company controlled joint ventures in the former Soviet Union in the late 1980’s. Mr. Knutsson also broke new ground in bringing online sports-betting and poker to the Nordic markets through a joint venture with Ladbrokes. He became a major shareholder in online gaming providers Betsson and Net Entertainment. His zest for life and varied interests led him to become involved in many industries, such as bingo in Africa, renewable energy and IT security, and he left his mark on them all. In addition to his business interests, he was an accomplished boxing referee who umpired Championship bouts all across Europe; he subsequently turned his enthusiasm to organising boxing galas together with his childhood friend Ingemar Johansson, the former World Heavyweight Champion of the world – and was Chairman of the Swedish Boxing Federation 1985 to 89. A keen follower of sports in general he also brought World Championship Tennis (WCT) to Sweden and Harlem Globetrotters to Scandinavia in the 1970s. His love for harness racing will live on through the establishment of Knutsson Trotting AB, a venture that has produced top class racing horses such as Sebastian K, the winner of King Gustav V’s trophy in 2010.

News INTERNATIONAL UPDATE TOPJACK GAMES HAS SIGNED WHITE

OEG enters Italy VLT market Baltic giant Olympic is to enter Italy’s VLT market just as its domestic markets start to rally Having seen its traditional markets stabilise, Olympic Entertainment is entering the Italian market through a partnership with local Italian company GHolding. The two companies will jointly set up and operate medium-sized VLT slot casinos in Italy. Both parties will own half of the operating company The Box S.r.l. The joint venture plans to open its first three casinos in Italy by the end of 2013, with OEG planning to invest €4.5m during the same period. “This is a major challenge for us, being the first time that Olympic EG will be offering modern casino entertainment in Western Europe, and particularly on the strictly regulated Italian market,” said Mr. Armin Karu, Chairman of the Board of OEG, adding that involving an experienced partner in Italy was a significant and strategic decision. Listing success factors for the new market, Mr. Karu said: “The key is to combine the experience of both partners, the local market knowledge of GHolding and strong capitalisation of OEG, ensuring sufficiently rapid growth, as necessary.” The first three casinos of between 50 and 70 VLT slots are planned to be opened in the Northern Italy by the end of 2013 at the latest. “This format is very similar to the current gaming halls of Olympic Casino and we hope to successfully implement the same concept also in Italy,” added Madis Jääger, CEO of OEG, adding that it would almost be a pilot project. “In the first phase we are talking about three gaming locations with a total of a couple of hundred VLT slots, but the potential is much higher,” explained Mr. Jääger. Italy has only four so-called classic casinos, all of them in municipal ownership. There are a total of 56,500 VLT slot licenses issued for the term of 10 years. The largest concessionaire is Lottomatica, a leading operator in the lottery sector that has a license for 10,000 VLT slots and will also be leasing the license and VLT slots to The Box S.r.l. Since 2006, GHolding has been operating small VLT game rooms under the “La Casa del Gioco” (The House of Games) name with up to 200 sq. m. of floor space. All in all, the company manages 73 September 2012 PAGE 22

“In the first phase we are talking about three gaming locations with a total of a couple of hundred VLT slots, but the potential is much higher.” MADIS JÄÄGER, CEO, OEG

gaming locations, of which 15 belong to GHolding and the remaining 58 are affiliate contracts. “We’re very proud of this opportunity of joint venture with such an experienced partner as Olympic Casino," said CEO of GHolding, Andrea Gasparri. With more than 2,200 employees, Olympic operates in Estonia, Latvia, Lithuania, Poland, Slovakia and Belarus.

SPIELO to boost player experience in Alberta SPIELO International has been selected by the Alberta Gaming and Liquor Commission (AGLC) in Canada to work toward a Player Experience solution through SPIELO International’s Value-Added Player Services Manager Application for its Intelligen video lottery terminal (VLT) central system. The solution was selected as part of a competitive procurement process. “We’re pleased to have the opportunity to work with AGLC to enhance the functionality of their Intelligen Central System with our Player Experience solution. Our goal is to provide AGLC with future capabilities for a two-way communication conduit between the operator and the player, and significantly enhance the program’s entertainment value,” said SPIELO International President and CEO Walter Bugno. “SPIELO International’s ground-breaking openstandards-based technology

for distributed gaming customers means that this solution could eventually be available from every gaming machine in AGLC’s VLT program, so that all Alberta players can enjoy a more customised and personalised gaming experience.” Because the Player Experience solution is based on industry open standard protocols and is designed to operate using the Game to System (G2S) protocol, it can be integrated with any G2S compliant VLT acquired by AGLC from any manufacturer. SPIELO International signed a five-year contract with AGLC to provide the Intelligen Central System following a separate competitive procurement process in July last year. In December 2011, SPIELO International also announced that AGLC had selected SPIELO International's Distributed Game Management application for the Intelligen Central System.

label deal number four, secured in just four weeks after becoming the first company in the world to offer operators licensed and insured jackpot games. In a unique arrangement, insured via Lloyds of London, Topjack Games is offering a unique formula applied to instant lotto, slots, scratch cards, bingo, video poker, blackjack, roulette and keno. The chance to offer players a million dollar prize with no risk and no need for liquidity is proving a big hit. To date, Topjack Games have secured deals with Orient Play, Myesyats, Eseguire, and the new El Penguini Games. There are many more to follow according to the company. “The Topjack Games’ product is ground breaking,” said El Penguini Chief Anna Babola. “Their instant win lottery and mega jackpot casino games will help us acquire, convert, and retain players. Never before have players had so many jackpot choices.” Topjack founder Nick Lynes added: “It’s surpassed our expectations. Clearly, the pre-launch buzz really helped.”

TIVOLI A/S, OWNER OF THE TIVOLI Gardens in Copenhagen, has expanded its operations of over 450 slots and gaming arcade machines and launched online with TivoliCasino.dk. Already a leading tourist destination, Tivoli holds the second ever land-based casino license awarded in Copenhagen and was recently awarded a license for operating online in Denmark. They have now gone live with TivoliCasino.dk. QuickFire, powered by Microgaming, stood out as an online casino games supplier thanks to its broad portfolio of games, coupled with ease of integration. TivoliCasino.dk hopes to use QuickFire’s already well-established presence in the Scandinavian market to build on the company’s unique position in Denmark. Lars Dam-Johnsen, Head of Gaming at Tivoli Casino, says: “QuickFire was the natural choice for an operator entering the recently regulated Danish market like ourselves. With its ample experience in other Scandinavian markets and its everincreasing portfolio of games, we are confident that QuickFire, powered by Microgaming, will attract many new players to TivoliCasino.dk and will continue to satisfy them into the future.” Ashley Sandyford-Sykes, QuickFire spokesperson, said: “We’re thrilled that TivoliCasino.dk has chosen QuickFire for its launch into the Danish online market. QuickFire, powered by Microgaming. It is the perfect choice for a brand as wellestablished and respected as Tivoli, and after the first two weeks live, our gaming content is already proving to be popular with Danish players as it has elsewhere in Europe.”

News INTERNATIONAL UPDATE

Peru casinos integrate DRGT Over 50 casinos in Peru have committed to install DRGT SiP systems for their operations ASIA ENTERTAINMENT AND RESOURCES

Over 50 Peruvian casinos have already signed up to use slot systems from DRGT powered by SiP solutions. The new requirements for connecting all slots to a system in Peru has enabled the Peruvian market to implement the latest and most innovative systems solutions with DRGT playing a central role. Jurgen De Munck, CEO and co-founder of DRGT, said: “As an independent company, each of the casinos that have signed up with us have done so having considered the options in the marketplace and chosen us as being the best. They have not chosen us because they belong to the same group of companies and so are forced into taking a particular option or because of combined machine-system deals that obligate the operator to take slots that are not even performing in this market.”

StarCasino goes live with Evolution Evolution Gaming has announced that StarCasino has now gone live in Italy with Evolution’s localised online Live Casino services. StarCasino, part of the Betsson Group, has launched initially with the Evolution-hosted Venezia Roulette and Ventuno live online tables. Venezia Roulette is an opulent online Roulette room designed in the Italian style, while Ventuno is a variant of Evolution’s Live Blackjack, customised for Italian customers. This will be followed by the introduction of a dedicated Live Blackjack table, which will give StarCasino virtually limitless customisation and branding options. Commenting on StarCasino’s Italian Live Casino strategy Fabio Bufalini, General Manager, Italy of Betsson Group, said: “Betsson Group has already achieved international success with Evolution Live Casino. In Italy we were also aware of Evolution’s localised solutions and their dedicated tables, which we see as the way forward in this market. Evolution was therefore the natural choice as StarCasino’s Live Casino partner for Italy.”

September 2012 PAGE 24

DRGT’s GEORG STEINER and JURGEN DE MUNCK. “Our systems are completely flexible, and moreover can be connected to all slot machines, from the oldest to the newest.” JURGEN DE MUNCK. CEO and cofounder, DRGT.

The DRGT structure is already firmly in place in Peru with a local subsidiary. The team consists of over 10 highly qualified staff and is set to grow. The swift and decisive move to create DRGT Peru sent out a clear signal to local operators, that they can benefit from all DRGT has to offer with a local support team. Mr. De Munck added: “We’re playing a defining role in bringing the most beneficial systems solutions to Peruvian operators. DRGT Peru will enable operators to place their trust in us, as systems are a long-term solution and operators rightly see us as a long-term partner. As the market grows, our customers have the options to define and manage their machines to make optimal use of the opportunities, from accounting to jackpots, player tracking and ticketing or cashless to name just a few.”

Bally goes mobile with H5G games agreement Bally Technologies has entered into an agreement that will publish a substantial number of new H5G games under the Bally brand for the worldwide land-based, mobile, and online business-to-business casino gaming markets. The multiyear agreement includes the creation and development of a variety of unique games for Bally Technologies. Jean Venneman, Vice President of Product Management and Licensing at Bally Technologies, said: “We’re excited to partner with a game creator that has such a world-class track record of developing high-performing and engaging game content.

We look forward to leveraging H5G’s newest game content to help casino operators across the world drive revenues and delight players.” Ramesh Srinivasan, Bally’s President and COO, added: “The partnership with H5G reflects our commitment to delivering best-of-breed, crossplatform game content to our customers. This promise is reflected in the more than 25 game studios we have established across the globe, augmented by relationships with proven game developers like H5G that enable us to deliver a diverse array of creative, interactive, and exciting game content.”

has bought Bao Li Gaming Promotion, a Macau-based VIP room gaming promoter that currently operates one room with five tables at City of Dreams Macau, a Melco Crown property for US$15m. Additionally, if BLGP’s Rolling Chip Turnover is at least US$2.5bn in each of the next three full years, its shareholders will receive three additional purchase consideration instalments of US$13m and 625,000 ordinary shares of AERL. The City of Dreams Casino offers both the fixed commission and the revenue sharing remuneration model, and this VIP room will operate under the revenue sharing model. AERL will be able to expand its existing agents network. It will now have 34 tables in four VIP rooms. One VIP gaming room is located at the top-tier 5-star hotel, the Star World Hotel & Casino in downtown Macau, and another is located in the luxury 5-star hotel, the Galaxy Macau Resort in Cotai, each of which is operated by Galaxy Casino. The third VIP gaming room is located at the Venetian MacaoResort-Hotel in Cotai. AERL Chairman La, said: “We are pleased to have the opportunity to add BLGP to the Asia Entertainment family. In addition to our current presence at the Galaxy and Las Vegas Sands casinos, this acquisition will allow us to expand our presence with another license holder (Melco Crown) in the Macau VIP gaming market, and with five more tables, further mitigate volatility from the revenue sharing model which becomes effective for all our VIP rooms on September 1, and ultimately provide our shareholders with long-term value.”

DEQ SYSTEMS HAS BEEN DECLARED AS an authorised vendor of the Société des casinos du Québec, a subsidiary of LotoQuébec. The vendor authorisation granted to DEQ enables the company to directly commercialise its breadth of products in the Quebec province. DEQ was already granted similar authorisations in other provinces in Canada including British Colombia and Manitoba. DEQ has currently more than 180 products in over 30 casinos in Canada. Earle Hall, President and CEO of DEQ, said: “We are very proud that we are now licensed to do business in Quebec. Quebec is our home base and where we have founded and built this fine company. We are very excited to the possibilities of deploying our world renowned products that are performing in Las Vegas, Macau and all around the world in the very place that they were developed.”

News INTERNATIONAL UPDATE

Dongle or no dongle Bell-Fruit Games is seeking to change the UK marketplace with a new commercial model that puts an end to sale or return Bell-Fruit Games Managing Director John Austin has written to customers giving notice of changes to the commercial model which have been taken in order to ensure the company’s ongoing investment in the development and supply of top-performing Category C games including the award winning Deal or No Deal series which has registered a total of over 40,000 sales following the launch of the first DoND model in 2006. From October 2012 Bell-Fruit Games is introducing a dongle technology, similar to that used by SWP developers, whereby the game software will be enabled via a resin encapsulated (potted) piece of hardware (‘the dongle’), within which a finite expiry date is set. The dongles plug into a receptacle device inside the machine, which is connected to the main MPU. The dongle expiry will occur on the first anniversary of the launch date of the game in question, and at which point a ‘re-loaded’ dongle may be purchased. Explaining the background to and rationale for the changes, John Austin said: “Our ultimate aim is to create a healthier market for everyone and to provide a foundation for the future development of gaming in pubs. The market in which we operate has changed dramatically. Whilst there has been a significant reduction in sales of Category C games, we have been faced with escalating costs of brand licensing, development and testing and continued erosion of margins which has led to the withdrawal from the market and in some cases the demise of once famous manufacturing brands. “Despite these severe pressures we have remained focused on new games, and have succeeded in delivering a significant uplift in performance following the introduction of new Cat C regulations in October 2011. Our aim is to preserve employment prospects not just at Bell-Fruit Games, but throughout the supply chain, which includes component and peripheral device suppliers, transport companies, operators and many others spread throughout the country.

“If we are not careful the manufacturing sector is in great danger of becoming the dairy farmers of the gaming industry and I believe that it would be both cowardly and dangerous not to act now. These changes mean that we will be able to continue to invest in new technology, continue to employ the smartest games developers, continue to secure the best brand licenses, continue to deploy the most effective security measures and continue to deliver our customers top earning gaming machines which contribute to their bottom line profits. It is very important to stress that this change is not just about us: the new business model, which we have considered at great length, is being introduced to create a healthier market for everyone involved in the sector.” JOHN AUSTIN, Bell Fruit Games.

September 2012 PAGE 25

News INTERNATIONAL UPDATE A new shuffler is a rare animal, and one recommended so highly by an operator is special King’s Casino in Rozvadov in the Czech Republic has been singing the virtues and operational impact of its Shuffle Kings from Apex Gaming, which it has in use throughout its gaming floor. With 64 poker tables, King’s Casino in Rozvadov is one of the premiere locations for poker in Europe. Having built up a strong and lasting working relationship with the management team of APEX gaming, casino owner Leon Tsoukernik decided to place his faith in the Shuffle King, after it had successfully completed a thorough in-house quality assurance programme. Mr. Tsoukernik said: “Electronic card shufflers are in constant use at King’s Casino. This is the casino where they really have to prove their worth. The Shuffle King provides incredible protection to players as the shuffling process is 100 per cent automated. The casino knows it is using a trusted product each and every time. It is a win-win for players and dealers and thus plays a major role for us. The Shuffle King works

Barcrest passes reins to E-service Barcrest has announced that it is outsourcing its after-sales operation for analogue (reel-based) gaming machines to E-service, the repairs and after-sales specialist. The move is part of Barcrest’s strategy to focus on digital gaming as announced earlier this year. The deal will see E-service acquire the service tools and parts to support the machines still in operation across the UK, Netherlands, Czech Republic and Spain. These include the Barcrest, Red and Vivid brands for Horizon, Genesis and Rio cabinets. Barcrest’s after-sales team will now be dedicated to supplying spares and technical support for its range of digital products, which include Triple 7, Triple 7 Encore and Interplay. Barcrest and Games Media’s Chris Sullivan said: “Following the decision to focus on our digital serverbased supply business, we have reached a point where we can confidently hand over the after-sales of our analogue business to a trusted supplier like E-service.”

September 2012 PAGE 26

SANDS CHINA HAS CONFIRMED IT HAS

A king’s random “The Shuffle King’s shuffle is governed by a random number generator. In order to further increase the randomisation, the cards are completely shuffled on two separate occasions. The whole shuffle process takes 58 seconds.” ERIC WALLUSCHNIG.

like clockwork. We rely upon the Shuffle King to help us provide optimal service to our customers. With the Shuffle King, APEX gaming has introduced a competitively priced electronic card shuffler to the market and has a satisfied customer in King’s Casino.” Eric Walluschnig, Sales Manager for the Shuffle King at APEX gaming, added: “Receiving such a warm recommendation from King’s Casino is comparable to having won an oscar for electronic card shufflers. We have brought a tried-andtested product to the market. Alongside several casinos in Germany, King’s Casino in the Czech Republic is very pleased with its performance.”

TCSJohnHuxley supports coming of the new ICE age TCSJohnHuxley is supporting ICE Totally Gaming with a stand presence comprising some 500sq.m. The return to the ICE show floor represents a powerful endorsement of the creative opportunities offered to exhibitors at ExCeL London, which will host the world’s most complete gaming expo across February 5-7 2013.

compelling way. We will be going to ICE in February full of confidence that we will be able to communicate our products, our values and our vision in a contemporary, business-friendly venue. We look forward to being part of the next important chapter in the life of this world class exhibition.”

Explaining the high profile presence at ICE, Tracy Cohen, TCSJohnHuxley Marketing Manager said: “We are fully behind the move to what is a modern venue, which has been specifically designed to host large scale, international business events such as ICE Totally Gaming. By working together over many years, the stakeholders in ICE have succeeded in building what is an internationally respected and extremely powerful brand. The move to ExCeL allows TCSJohnHuxley to represent our brand in a creative and

Kate Chambers, Portfolio Director for ICE Totally Gaming added: “I’m confident that ExCeL is a venue that the gaming industry will love. It offers superb facilities for visitors within its 100-acre waterfront campus and allows stand designers to really reflect the energy and creativity, which is at the heart of the gaming industry. This is an extrovert industry and I believe that ExCeL provides a stage for the business to reflect its credentials and also the power of its personality.”

been awarded an extension to develop the land on a plot called Parcel 3, but said it expects to pay a penalty for the delay. The land has been earmarked for Sands’ biggest Macau project to date at a cost of US$5bn. The government has extended the deadline from April 2013 to April 17, 2016. Work has yet to start on the new resort which will target the mass-market and include ‘family-oriented’ facilities. David Alec Andrew Fleming, Sands China’s Company Secretary, said: “The deadline for the completion by Sands China of the development of Parcel 3 in Cotai, Macau was April 2013 and the company intended to apply for an extension from the Macau Government of that deadline. On July 13, 2012, the Macau Government informed us that, by a decision of the Secretary for Transportation and Public Works, the extension of the construction period relating to Parcel 3 was authorised up to April 17, 2016. We were also informed that we will be notified about the penalty amount which shall be payable by us due to the construction delay.” Grant Govertsen, an analyst at Union Gaming Group, said the extended timeframe was the minimum needed. “There was no way that Sands was going to meet the deadline,” he said. “It takes three years to build an integrated resort. There may even be some upside surprises if Sands manages to finish the Parcel Three project by 2016.” Sands Cotai Central opened in April with its initial 1,800 hotel rooms set to increase to 6,400 rooms. Parcel 3 is expected to contain an integrated resort that will be connected to The Plaza Macau and the Venetian Macau, and is set to house over 4,000 hotel rooms with a target audience of middle-class families from China.

DURING THE OLYMPIC GAMES IN London, Union Jack Bunnies from the Playboy Casino in London were at Luton airfield to greet Olympic VIPs flying in to city. At the private air field Playboy Club London partnered with private jet company Jet Logic to provide a very special welcome to London’s Olympic Games.

News INTERNATIONAL UPDATE

Twin Mendoza development THE SUPERINTENDENT OF CASINOS (SCJ) has authorised a change in the share structure of Chile’s second most profitable operator; Casino Rinconada located in the Los Andes Province of central Chile's Valparaíso Region. Enjoy currently owns 70 per cent of total shares in Casino Rinconada, which boasts 856 slots along with 50 table games. Salguero Hotels Delaware has 29.99 per cent of the shares whilst Salguero Hotels Corporation holds a minimal 0.01 per cent. The SCJ has agreed to make changes to its bylaws in order to let the three companies behind Rinconada SA Casino operator restructure the ownership. Whilst new shareholders will not be allowed to invest in Casino Rinconada, a new private limited company will be established called Real Estate Enjoy Santiago, who will own and operate the casino. Enjoy Santiago Real Estate will now oversee the third stage in the development of the project located in the commune of Rinconada, which requires additional investment to be completed. Enjoy also operates casinos in Chile in Antofagasta, Coquimbo, Viña del Mar, Santa Cruz, Pucón and Puerto Varas. The SCJ has also reported that during the first half of 2012, the 17 casinos in operation generated gross gaming revenues of US$ 278.2m from 3,384,479 visits, with average spend per head coming in at $40.38. The operating results show that half of the gross gaming revenues grew 12.4 per cent over the same period of 2011, from US$247.5m to US$278.2m, due primarily to an increased number of visits, which increased by 6.4 per cent. Monticello Grand Casino accounted for 27.2 per cent of the market total, generating $75.6m, followed by 12.5 per cent from Casino Rinconada with $34.7m and Marina del Sol who with GGR of $34.3m accounted for 12.3 per cent.

IGT IS TO PREMIERE ITS HOT ROLL Triple Double Diamond and Super Times Pay at City Center Rosario, Argentina, adding to the 2,800 state-of-the-art slot machines and 80 game tables. Both Hot Roll Triple Double Diamond and Super Times Pay slot machines offer payout features with awards that are nine and 10 times the winning combinations. These games define performance by delivering 1.5 times zone average on casino floors. Romina Freijomil, City Center Rosario marketing manager, said: “We’re thrilled to bring Hot Roll Triple Double Diamond and Super Times Pay video slot casino games to our players. These hot new games will be a great addition to our slot floor because they give our customers the unique entertainment gaming experiences that only IGT can provide.”

Two huge casino resorts are planned for the Mendoza region of Argentina by Grupo Torcello Grupo Torcello, a design, development and investment company based in Buenos Aires, is to spend US$78m building a fivestar hotel casino close to the airport of Mendoza, one of the major cities in central Argentina, with the aim of opening in 2015. The 13,000sq.m. project, to be developed in the Nobel industrial park north of Mendoza, will house an American hotel chain, conference rooms, an auditorium, a casino and a shopping center, in the region of Las Heras. Carlos Corengia, in charge of the Directorate of Investment, said: “The project will have a strong impact on the area as this year the growth of tourists arriving at the airport increased by 30 per cent with most of the businessmen who landed doing business in the industrial park.”

“The initial capital will be US$500m with construction being completed in four stages.” JULIO TORCELLO, President of Grupo Torcello.

The project has been approved between the district of Mendoza and Torcello

investment group. One of the details written into the contract dictates that all materials must be bought in Las Heras, further boosting the economy. The same company is committed to another resort casino development hotel in Uspallata, ina scenic location close to the Andes. The Uspallata Forum will be the first hotel of its kind in the area, which aims to provide a luxury service to tourists and businessmen arriving in the province by aeroplane. Julio Torcello, President of the developer of both projects, met with the mayor of Las Heras, Ruben Miranda, and said that the initial capital will be US$500m with construction being completed in four stages.

South Point first operator Macau openings approved for Net poker slow GPI revenues Keen to lead the Nevada poker revolution, South Point Casino has become the first operator to gain public approval by state gaming regulators. The Nevada Gaming Control Board approved South Point Poker to be a future operator, manufacturer and service provider for Internet poker within state boundaries. “South Point Poker is optimistic it will be the first to take real-money bets later this year,” a spokesperson for the operator said. South Point launched a freeplay site in autumn 2011. It has also developed patentpending technology for geolocation and will allow online poker cash deposits and withdraws at its in-person cage.

The board also approved Monarch Casino and Resort and Global Cash Access as a service provider, joining International Game Technology, Bally Technologies and Shuffle Master as service providers. More approvals are expected to follow soon. Global Cash Access has formed a partnership with New York-based Live Gamer, a wallet, analytics and media provider to the social gaming world. Global Cash Access CEO Scott Betts, said: "We don't know where Internet wagering is going to go. And we don't know who the players will be long-term. Will players in the social gaming space move into the wagering space? It could happen. If it does, [Live Gamer has] a tremendous customer portfolio."

Having a good quarter has come back to bite Gaming Partners International with less sales to Macau casinos due to fewer new openings forcing a decline in revenue for its second quarter results. GPI, a specialist in casino currency and table gaming specialist, saw second quarter revenue fall to $13m due to a $1.9m decrease in sales of Europeanstyle casino chips for Asian casinos. Significant sales in the second quarter of 2011 were driven by Galaxy and Sociedade de Jogos de Macau building new venues in Macau. This resulted in a $0.8m decrease in sales of RFID solutions this time round, offset by a $0.6m increase in sales of Americanstyle chips in the US, particularly by sales of Paulson chips to casinos opening in New Jersey and Ohio. An increase in net income for the second quarter of 2012 was primarily driven though by a reduction in expenses due to the settlement of certain litigation and a reduction in income taxes.

September 2012 PAGE 27

News INTERNATIONAL UPDATE

Wolves belatedly at the door Wolverhampton in the UK begins the tender process for its small licence casino project Long-awaited plans for the UK’s first racino could yet be developed in Wolverhampton with councillors agreeing to launch the formal tender process for its ‘small’ casino licence. Wolverhampton Racecourse, which was once confirmed as the preferred option from a list of five companies keen to develop the project back in 2009, has confirmed it will be in the race for the licence. Owned by Arena Leisure the venue would create 280 jobs. Kate Hills, spokesperson for Arena Leisure, said: “We will be putting in our application and we are keen to progress.” Arena Leisure was granted a three year extension last year to develop its £23m project following delays to the casino licence be awarded. Having been approved at a council meeting, the formal application process will now be staged in August. The City Council was awarded a small licence back in 2008 for a casino with 80 slots with a jackpot of £4,000. Leader of the council Roger Lawrence said: “Jobs and the regeneration benefits are part of the criteria in the application process. They are part of what we have to

FOLLOWING A SUCCESSFUL FIRST collaboration, whereby Abbiati Casino Equipment originally supplied a complete turnkey solution for Northern Cyprus’ Kaya Artemis Resort, the Italian solution provider has once again supplied to the casino a selection of brand new tables. Kaya Artemis Resort & Casino has extended its gaming space with specially designed Baccarat style Punto Banco tables, which were made to attract Chinese clients.

UK small casino licences were granted to Bath and North East Somerset, Dumfries and Galloway, East Lindsey, Luton, Scarborough, Swansea, Torbay and Wolverhampton.

balance in making a decision. These sorts of ventures create jobs and if we look at one that has opened in Newham in London, they can have a positive regenerative impact. It has taken a long time to get to this stage because the guidance was slow. We had to make sure we avoided any legal challenges.” Large licences were granted for new casinos in Great Yarmouth, Hull, Newham, Middlesbrough, Solihull, Milton Keynes, Leeds and Southampton. Small casino licences to Bath and North East Somerset, Dumfries and Galloway, East Lindsey, Luton, Scarborough, Swansea, Torbay and Wolverhampton.

Loto Quebec select DTS-V Mannhein casino gets the ‘no’ vote Blackjack DigiDeal system The Baden-Württemberg state government has voted against allowing a casino licence to be developed in the city of Mannhein, the second-largest city in Baden-Württemberg in south western Germany, after Stuttgart. A casino in what is nicknamed ‘the city of squares’ due to the grid-like layout of its streets, would have been the fourth in BadenWürttemberg following those in Stuttgart, Baden-Baden, and Konstanz. The Baden-Württemberg's casino company, Spielbankengesellschaft, had put forward proposals for a new licence back in March with the full backing of the Mayor of Mannheim Dr. Peter Kurz, who said: “A casino in Mannheim would have been financially beneficial for the city and would have been good for the hotel and catering trade."

September 2012 PAGE 28

TCSJohnHuxley recently installed the first DigiDeal DTS-V Blackjack tables for Loto Quebec’s Salon de Jeux Quebec and Salon de Jeux Trois-Rivieres.

The DigiDeal Digital Table System is a range of multiplayer card game products, which feature digital game play but utilise a live dealer/host to retain the live game feel. The DTS platform is played with virtual chips and also employs money-handling capabilities like ticket-in, ticket-out with the option to operate in hosted, semi-hosted or fully automated mode. The management team at La Societe des Loteries Video du Quebec who operate the electronic gaming halls have

chosen to host the tables allowing players to interact with a person as they would in a live game scenario. This is the first-of-its-kind in an electronic gaming hall for Quebec and as a result the reception from players has been very positive. Sylvain Lachapelle, Marketing Project Manager, Société des loteries vidéo du Québec, said: “We are happy to announce that we have installed Classic Blackjack games on the DTS-V platform, in our two gaming halls, Salon de jeux de Québec and Salon de jeux de TroisRivières. We hope that this new dynamic way of playing a great traditional casino game will help us diversify our gaming offer and bring new clients to our facilities.”

The Abbiati design team worked closely with casino management and architects to craft tables that would match perfectly with the newly designed areas and compliment the Kaya Artemis Resort & Casino’s 5-star atmosphere and environment. The Kaya Artemis Resort and Casino is designed to reflect the original architecture of the Temple of Artemis and is a one-toone scale of the building, while offering the highest level of service and comfort for its guests. Abbiati’s products were selected using top quality materials, with the tables all designed in Abbiati’s super deluxe and extra deluxe style and realised with materials such as mahogany. Together with the gaming tables Abbiati Casino Equipment also supplied game related customised layouts and a wide range of accessories for Punto Banco and Midi Punto Banco.

THE SUZO-HAPP GROUP HAS BEEN acquired by Acon Investments, a Washington DC-based private equity firm. Pfingsten Partners, the previous private equity owner, will maintain a minority interest along with current management. The company will continue to be led by President and CEO James Brendel and other members of the existing management team and staff who will focus on global growth in the Gaming, Amusement and Industrial markets. James Brendel said: "The entire management team is excited about our partnership with Acon Investments. Under this new ownership, Suzo-Happ will continue to grow as a global company and provide quality, value, and satisfaction to customers, suppliers and employees.” Ken Brotman, Founding Partner of Acon, added: “The company has demonstrated solid performance through its long-tenured relationships with its customers and has built a solid foundation, which will ensure Suzo-Happ Group continued success. Customers see value in breadth of product, distribution excellence along with global engineering and manufacturing and we see continued opportunity to expand this concept across multiple end markets and geographies.”

News INTERNATIONAL UPDATE FUTURELOGIC HAS

Wetumpka’s Creek makeover A tribal casino in Alabama is due for a major transformation into a deluxe resort destination Plans have been unveiled to turn Wetumpka's Creek Casino into a deluxe resort that will attract tourists from around the country to the picturesque river town outside of Montgomery. PCI Gaming Authority (PCIGA), the gaming enterprise owned by the Poarch Band of Creek Indians, announced construction has already begun on Wind Creek Wetumpka. It is slated to open in May of next year. “We have set very high standards for our Wind Creek Casino and Hotel brand,” said Jay Dorris, President of PCIGA. “This is one of the most beautiful settings imaginable for this kind of first-class resort, and we want it to offer the same kind of quality experience that people have come to expect from Wind Creek in Atmore, which is one of the few hotels in our state with a Four Diamond rating.” The new resort will include a 20-storey hotel tower with 285 luxuriouslyappointed rooms and suites, all of which will overlook the Coosa River. The

“We have seen Wind Creek in Atmore have a very positive ripple effect on the economy, and we look forward to seeing other businesses in the Wetumpka community grow and prosper because of this development.” BUFORD L. ROLIN, Chairman, Poarch Tribal.

property will feature a 90,000sq.ft. gaming floor with more than 2,500 electronic gaming machines, a resort pool, and entertainment rooms suitable for large parties and corporate events. Wind Creek Wetumpka will also feature a number of dining choices including a grill, a coffee shop, a snack bar, a fine dining restaurant, and a buffet that overlooks the Coosa River. Like its predecessor, Wind Creek Casino and Hotel in Atmore, the property is expected to be an economic engine in the surrounding area. It is estimated that 1,200 workers will be hired over the course of construction. Currently, Wetumpka's Creek Casino employs 400 full-time employees with benefits.

US slot replacement cycle

BetClic Live Casino gathers real momentum kicks off in Italy Another sign that US casino the past several years when Evolution Gaming has announced that it has gone live in the Italian market with a localised Live Casino for global client BetClic Everest Group. The launch of the Evolution-hosted BetClic Live Casino service in Italy follows the exclusive worldwide agreement between Evolution and BetClic Everest Group. Under the agreement Evolution operates as the exclusive supplier of Live Casino solutions for all of the Group’s 12 million customers in 100 countries. Alessandro Onano, Marketing Manager at BetClic Everest, said: “Thanks to live casino we can offer our players as exciting an experience as a real casino, awaiting the launch of virtual slots at the end of the year. Evolution's platform is one of the richest and more exciting in the market, and we are sure that players looking for the feeling of a real card table direct from their house will enjoy it.”

September 2011 PAGE 30

markets are bouncing back from the economic downturn has been delivered by the Roth-Fantini Quarterly Slot Survey with existing casinos now more willing to spend to replace old slot machines. Whilst slot sales have been boosted by the spate of casino openings in the United States, as government’s look to address their dwindling coffers by raising more gaming tax, the news that the replacement cycle is also gaining momentum is a far better indicator of the state of the industry. Figures collated show that North American casino managers intend to replace 8.6 per cent of their machines this year. That is up from seven per cent in the first quarter. And it is above

low replacement sales have been a drain on slot machine manufacturer profits.

added two new team members to its Operations and Customer Services staff in Europe, Middle East, and Africa. The new hires; George Hoskins and Lorna Strawbridge will be instrumental in the company’s continued expansion of ticket-out and couponing solutions across the EMEA countries. George Hoskins joins FutureLogic as Operations Manager for EMEA. In this new role and reporting directly to the company’s Managing Director, John Edmunds, Mr. Hoskins will be responsible for supply chain management, inventory control and site management at FutureLogic Europe. FutureLogic’s new Sales and Support Coordinator, Lorna Strawbridge will be responsible for supporting the entire sales process from purchase order to delivery. She reports directly to the Sales and Marketing Manager EMEA, Anette Jauch.

GAMING Laboratories International has expanded its Global Professional Services group with the appointment of widely respected Information Systems Security (ISS) consultant, Robert Lavin, as Manager of Global Professional Service. Mr. Lavin will join GLI’s Professional Services office in Moncton, New Brunswick, Canada, and will serve GLI’s global clients. GLI Canada CEO Salim Adatia said, “I am very pleased with this expansion. Adding Robert to our existing talent pool gives GLI’s Global Professional Services group an even wider breadth of expertise and knowledge required to optimally service the consultancy demands of our valued clients, both in the gaming industry and in areas beyond gaming.”

INTERNATIONAL BANK Survey results were especially encouraging for industry giants IGT and Bally Technologies. Survey participants bought 37 per cent of their slot machines in the second quarter from IGT, a four-point gain. Bally accounted for 19 per cent of sales, a three-point improvement over the previous 12 months. WMS, the third largest American slot manufacturer, got a 17 per cent share. Another trend is the rise of manufacturers such as Konami Gaming, a subsidiary of Japanese consumer electronics giant Konami Corp, which has become a significant player.

note validator manufacturer Innovative Technology (ITL) has appointed Lina Kazantseva, Business Development Manager Gaming, Amusement and Vending. Well known in the Industry, Lina brings with her over eight years of experience in the cash handling sector. A native Russian Lina will be based out of Innovative’s German office and focus on existing and new customers in Russia and Eastern Europe. Sales Director, Marcus Tiedt, said: “With this appointment, ITL strengthens its sales expertise in Russia and Eastern Europe. Lina’s experience will be invaluable to bring our products to our new and existing Gaming, Amusement and Vending Customers.”

News INTERNATIONAL UPDATE SEVEN COMPANIES HAVE SHOWN AN interest in developing casinos as part of the Russian gambling zone earmarked for Vladivostok in the Primorsky Territory in the Far East. However, reports in the Russian media that they have already committed to a combined investment so far of US$625m are jumping the gun a little. Alexander Chkheidze, Deputy General Director, Nash Dom Primorye, said: “These seven companies they are writing about signed contracts with CJSC Nash dom – Primorye in 2011, before the Request For Concepts was issued. Although there are seven of them they represent three groups of investors. After the issuance of RFC we were contacted, visited and hosted some casino-resort operators, but we did not receive any formal concepts yet.” Home to the port city of Vladivostok, Russia's Primorsky Territory, is a mountainous region bordering China and Korea. State-owned Nash Dom Primorye, invited companies to present plans for their developments with the lure of attractive rental agreements and a near zero tax on GGR. Details have only been revealed for two of the seven companies with First Eastern Gambling Company, a Russian company, promising to invest US$30m, whilst an operator from Cyprus will invest US$200m. The plan is for 12 casinos by 2016. The deadline for submitting bids is September 21, at which point the government will review the proposals and begin talks with potential investors by the end of October.

THE PURSUIT OF excellence has seen the Suzo-Happ Group grow to become a leading supplier of components and spare parts to the gaming industry. This drive for has been further exemplified by the creation of a new Customer Service Department. Harald Wagemaker, Sales Director of Suzo-Happ EMEA, explained the establishment of the new Customer Service Department, “The multi-faceted market demands change over time. Our customers are growing in their international successes and it is our task to ensure that our service mirrors this. We therefore made the decision to implement this brand new department. Now customers can channel their enquiries through one department. We believe this will add further impetus to our professional customer service”. Vanessa Meijer-Groeneweg will lead the Customer Service Department. Ms. MeijerGroeneweg is a loyal employee with already 11 years’ service for the company. Her previous position was in sales with responsibility for the Benelux countries. “Vanessa has vast experience supporting our clients. She was the ideal candidate for this position and her friendly, focused approach is a great asset,” commented Mr. Wagemaker.

South Point rides Bally high Bally Technologies has partnered with South Point Casino to implement iVIEW DM and EBS Bally Technologies has secured its first iView install in Las Vegas with South Point Casino launching iView DM and Elite Bonusing Suite solutions, meaning it can now offer a suite of interactive, floorwide player-bonusing applications such as instant slot tournaments, Virtual Racing and U-Spin real-time bonusing. Celebrating the launch of the technology, South Point hosted a series of weekly Virtual Horse Racing events throughout the months of July and August. South Point patrons who are members of The Club at South Point and earn 25 points on their player’s club cards within two hours of each race, will be able to participate in the virtual races that enable them to select and root for their favourite horse from a field of eight. The virtual-racing events are available on all of the South Point’s gaming machines – without interrupting game play.

“It is especially exciting that casino patrons in the Las Vegas valley can now experience the fun of events like Virtual Racing.” RICHARD HADDRILL, CEO, Bally Technologies.

Casinos could feature in Punjab amusement zone Punjab could be become the third Indian state to offer casinos with deputy CM Sukhbir Badal telling the state's infrastructure development agency Punjab Infrastructure Development Board (PIDB) to develop a Las Vegas strip-like casino at an amusement park in Mattewara village near Ludhiana. The PIDB informed that the 30 to 50 slot casino would also have table games and would be an integral part of a recreational amusement zone project near Ludhiana, likely to be built by US-based parks company Six Flags, and also boasting a horse racing track and a golf course. “The purpose is to increase the tourist footfall in the state,” PIDB Managing Director Anurag Aggarwal said. “Our team has just returned from Goa after studying casinos. We're going to seek more advice and help

on legal, technical and operational details from Sikkim and Goa governments.” The three-man team held meetings with Goa chief secretary P K Shrivastav and special secretary Mohan Lal. The Punjab government must now debate the opportunity of amending the Public Gambling Act, 1867 in its next Assembly session. Punjab Finance Minister Parminder Dhindsa commented: “The process is in the initial stages. Casinos will certainly be a big revenue generator. The purpose is not to create forced taxation here. We only want to encourage local tourism because when you see the locals from here going to Nepal or Hong Kong, they spend huge money to enjoy these games. Times have changed. But we agree, there might be some criticism as well.”

“Our mission is to provide the highest quality service to our players and give them a rewarding gaming experience, and we have shown that once again as the first casino in Southern Nevada to offer the excitement of Bally’s iView DM and Elite Bonusing Suite solutions,” said Michael Gaughan, owner of the South Point Hotel, Casino & Spa. “We like to stay at the forefront of gaming technology, and we are confident we will continue to build our player loyalty with this investment while offering our guests something completely new to the market.”

PromoNet passes SMS integration FutureLogic’s PromoNet intelligent promotional couponing solution has passed the tests performed by Bally Technologies’ Integration Center. According to Bally’s certification letter, the PromoNet solution can successfully integrate with the Bally SMS (Slot Management System) and CMS (Casino Management System). This certification assures Bally customers that the PromoNet solution successfully passed Bally Integration Center testing. John Hilbert, Vice President Systems Technology and Compliance Officer for FutureLogic said: “With the ability to access the player-tracking system data in real time, PromoNet offers casinos the unique ability to run player-specific promotions and deliver coupons based on player information such as birthdays, country of origin, and Player Club anniversary.”

September 2012 PAGE 31

News INTERNATIONAL UPDATE

Illegals blamed for closure The President of Puerto Rico’s PRHTA blames illegal casinos for the closure of El Conquistador The El Conquistador hotel casino is to close on September 30, putting up to 150 people out of work, with market experts warning it could mark the start of a wave of several further casino closures. The president of the Association of Hotels and Tourism of Puerto Rico (PRHTA), Ismael Vega, said: "We are all struggling to stay afloat, some more than others. The proliferation of illegal casinos, coupled with the reduction of income and high operating costs, has seen many hotels walking a financial tightrope.” The closure will see the loss of 56 direct job but many more such as musicians, food vendors and security will be affected. The 10,000 square foot casino, featuring 233 gaming machines and six table games, as well as 10 restaurants, two bars and a hotel with 984 rooms, had tried to reduce operating costs by reducing its opening hours to between 5pm to midnight. It also operated El Tesoro de Cofresi, Puerto Rico’s first, and only,

GLI submissions top the 400 mark Gaming Laboratories International (GLI) has received nearly 200 submissions for testing in the first three weeks since the company was named a “Registered Independent Testing Laboratory” by the State of Nevada Gaming Control Board. The submissions include every type of gaming product, from iGaming to sports book devices and systems, as well as slot products and management systems. The devices and systems are being tested at GLI’s 86,000sq.ft. laboratory in Las Vegas, where more than 100 of GLI’s 750 employees are located. “We have increased our staff, capacity and lab size to ensure the influx of new submissions is met with the industry-leading quality, integrity and turnaround times that regulators, suppliers and operators in 455 jurisdictions expect from GLI,” said GLI Senior Director of Engineering, Ian Hughes.

September 2012 PAGE 32

MOUNT AIRY CASINO RESORT HAS

The illegal casinos which operate with just slot machines are quite visible being located in shopping malls across the island, offering the same services as their legal counterparts such as music and food.The Department of Finance and Justice is working to close down the illegal operations, seizing over 2,000 slots last year. However, it ran out of space to continue storing them.

multi property mystery jackpot. The Caribbean venue is not the first to close in recent times, with Casino Gran Melia shutting up shop in Rio Grande in March. “Although we are all in the same situation, we recognise that casinos in hotels outside the metropolitan area, such as those in Rio Grande, Humacao, are affected to a greater extent by the illegal casinos," Mr. Vega explained. “They are not regulated or pay the high operational costs that we have to pay, but share the same customers.” Puerto Rico has approximately 7,000 slot machines in casinos hotels with the island’s Treasury Department claiming that another 75,000 could be in operation illegally.

Joa Casino opens with SPIELO system solutions The new Joa Casino de la Seyne, which opened to the public in July, is fully equipped with Crystal.net on 75 slot machines and seven electronic roulette machines. The solution includes Crystal.net casino floor network and applications, and Galaxis modular system solutions including Star Slots, Star Tables, Star Cage and FloorMaster monitoring tool. Joa Group is the third largest casino operator in France, with 20 casinos and more than 2,000 slot machines and 80 tables in operation, as well as restaurants and bars. France is one of the largest and most sophisticated casino markets

in Europe with around 200 casinos and revenues in excess of €2.3bn. Didier Tomas, Spielo International’s Casino Systems regional sales manager, said: “It’s a great honour for Spielo International that Joa Group has once again chosen our systems solutions, including our innovative applications and Crystal.net technology for their new casino in La Seyne sur Mer. This decision is a clear indication that they put their players first, and demonstrates that our customers recognise the value and power of our comprehensive and flexible systems solutions.”

implemented a US$2m enhancement of its gaming floor, introducing five new table games to its mix and upgrading 200 slot machines. Mount Airy Casino Resort's new slot machines which have proven the most popular include Batman, Dark Knight, Ghostbusters, Wizard of Oz, Leprechaun's Gold, Breakfast at Tiffany's, Hangover, Battleship and Clue. Mount Airy is also set to debut the new Michael Jackson penny slot machine in coming weeks which features original Jackson songs and video to entertain players. "As part of our commitment to provide patrons the hottest games in the market, we've replaced basic products with the most popular, up-to-the-minute offerings," explained John Culetsu, Mount Airy Casino Resort Executive Vice President and General Manager. "We responded to customer feedback by re-energising the allure of our gaming floor." In addition to the Big Six Wheel and Spanish 21, a variation of Blackjack, the newly introduced tables include a line-up of poker offerings: Texas Hold 'em, Mississippi Stud and Crazy for Poker. The new tables join Mount Airy's existing table games roster which features Blackjack, Craps, Midi Baccarat, Roulette and more. "Poker has proven to be incredibly popular at Mount Airy and we've already expanded that area to include a brand new poker room on the casino's second floor which is now open 24 hours," added Mr. Culetsu. "We also are a part of Bravo Poker LIVE, a mobile app which allows players to follow nationwide poker events, promotions and tournaments. In addition, our BadBeat Poker Jackpot has paid out close to $1m to date." These new offerings join the already 2,000-plus existing slots on Mount Airy Casino Resort's 65,144 square foot gaming floor, which offers something for every type of player from penny machines to high limit stakes. "We offer something for every level of gaming enthusiast at Mount Airy," Mr. Culetsu said. The venue, located 75 minutes from New York City and set in the serene and picturesque Pocono Mountains, now offers guests 2,075 of the hottest slot machines and more than 70 table games including blackjack, roulette, craps, baccarat and poker.

News INTERNATIONAL UPDATE

Holland Breda rebirth delay Holland Casino’s Breda location will have to wait for renovation plans to come to full fruition

INTERBLOCK HAS BEEN HEAVILY

Holland Casino’s planned renovation of its casino in Breda, in the south of the country, has been put back to 2014, having originally been scheduled for some time early in 2013. The operator said that it didn’t want to begin a major renovation during the financial crisis. Spokesman Hans van Kastel explained that visitor numbers were down as people did not have as much leisure spend. He added that whilst Holland Casino made a modest profit in 2011, it had made a loss in 2010. “We want to develop Breda once the economic situation improves,” he explained. “When the time comes we want to do it quickly.” Earlier this year Holland Casino unveiled the spectacular redevelopment of its licence in the seaside town of Scheveningen. This followed on from extensive renovation work in both Amsterdam and Rotterdam. In Scheveningen, the focus was very much on attracting the leisure spend of a younger crowd whilst still appealing to its existing customers.

1,500 slots make L’Auberge debut Pinnacle Entertainment will unveil L'Auberge Casino & Hotel Baton Rouge when the 1,500 slot, 50 table property officially opens to the public. The grand opening of the premier property will feature memorable entertainment, dining experiences and an unveiling ceremony capped off with a stunning fireworks display. L'Auberge Baton Rouge will provide a best-in-market casino entertainment complex featuring an expansive single-level, 74,000sq.ft. casino; nearly 1,500 slot machines; 50 table games, including a poker room; a 12-story hotel with 205 guest rooms and a rooftop pool; four dining outlets; a unique casino bar with breathtaking views of the Mississippi River. Pinnacle owns and operates six casinos, located in Louisiana, Missouri, and Indiana, and a racetrack in the US state of Ohio.

September 2012 PAGE 34

“Together with the casinos in Amsterdam and Rotterdam, Holland Casino Scheveningen provides the blueprints for the renovation work that will be done at our other casinos.” DICK FLINK, Chairman, Holland Casino.

Jelle van Battum, Marketing Manager for Gaming for Holland Casino, said: “We feel that the renewed casino Scheveningen very much reflects our vision of tomorrow’s casino. Compared to 10 years ago, this venue very much offers a variety of choices. Naturally gambling is the most important one, but there are multiple F&B concepts, from full scale dining to quick bites and from a lounge environment to regular bars. Also, we have created a separate section, the Energy Zone, where people can play in an upbeat surrounding, with DJ’s or live music, bar and low limit gaming.”

French operator Groupe Partouche takes to Bath French operator Groupe Partouche is to enter the landbased casino market in the UK as the operating force behind the ‘small’ licence in Bath, a historical city in Somerset in the south west of England. Global Gaming Ventures, a group comprising Partouche, has been awarded the ‘small’ licence in Bath, by the Bath & North East Somerset Council’s Licensing Committee for their proposals at the former Sawclose Clinic and Gala Bingo Hall, Sawclose, Bath. The project will be developed by Deeley Freed Estates who has a long and distinguished record of delivering quality projects in the West Country. It will bring to fruition 80 full time casino jobs and 120 construction jobs. The council will receive a £250,000 one-off and a minimum £15,000 per

month once the casino opens. The project also has potential for a four-star boutique hotel with a minimum of 65 rooms, subject to planning permission. Councillor Nathan Hartley, said: “This is a positive step forward towards developing one of the key sites in Bath city centre.” Tony Wollenberg, Chairman of Global Gaming Ventures concluded: “This award validates a long held belief on the part of GGV and Groupe Partouche that their proposals for a casino and ancillary facilities at Saw Close are best placed to bring substantial additional benefits to Bath, which is one of the most attractive visitor destinations in the UK. We very much look forward to working with the Council and our developer partners, Deeley Freed, in realising this ambition.”

involved in one of the most prestigious casino inaugurations of recent times with a spectacular Interblock Organic Island multigame environment spread over all three levels of London's lavish Hippodrome Casino. To create a G4 Organic Island environment through different sections of the casino, Interblock used the G4 Organic Live Card 06 with three Stand Alone units of Roulette and Dice games, Organic Live Roulette, four Single wall PIDs, Stand Alone PIDs, and connected it all with 51 play stations in black-gold design in the theatre layout. The main features of Organic Island are flexibility and multi-game options. Practically the only limit to Organic Island is customer's imagination, when deciding the number of play stations and generators they would like on the floor. Miha Miklavčič, Sales Director for Europe at Interblock, said: “Interblock is very proud and excited to be part of this phenomenal project and believes that The Hippodrome Casino will set new standards in the gaming industry. After developing the best possible concept together with The Hippodrome Casino team of gaming experts, we have developed a site-specific multi-game environment that addresses different type of players in different areas of the casino, but connects all the Organic PlayStations in one gaming environment. The current Organic Island at The Hippodrome Casino is a clear showcase of what’s possible if you use the latest technology and the brightest ideas.” Joze Pececnik, Chairman of the Board at Interblock, added: “We are very proud to be part of this really elite name in the gaming industry and we are grateful for the opportunity they have given us. I respect Simon Thomas not only as a business partner, but as a man, who had a vision, a business idea, which brought UK’s market great new potentials in which he believed right to the very end. And giving Interblock a chance to be actively involved in developing and designing part of the casino floor, where Interblock products are installed, is also a great honour.”

ARISTOCRAT’S TARZAN LORD OF THE Jungle video slot game is continuing with its incredibly frequent hitting jackpots with a stunning $959,961.43 dropping at The Venetian Las Vegas. The jackpot is the 14th time the top progressive jackpot has been hit on Tarzan Lord of the Jungle since the game was released last year, and is the first in Las Vegas. Tarzan Lord of the Jungle has paid lucky players more than $5m in top jackpot awards since its debut.

Insight BOYD GAMING Las Vegas business stabilised with net revenues of $55.9m for the second quarter 2012, compared to $56.6m in the second quarter 2011. In the Midwest and South region, net revenues were $233.7m, up 28.6 per cent from the year-ago with Delta Downs, Treasure Chest and the IP produced solid results during the quarter. Atlantic City continued to struggle with Borgata's net revenues coming in at $175.4m, down $7.4m from the second quarter 2011. However, Borgata continued to lead the Atlantic City market by a wide margin, increasing its market share during the quarter, and Boyd expect the property to deliver a strong performance during the summer season.

boyd by success

Boyd Gaming turns a profit in the second quarter despite another Las Vegas downturn

Results in the Midwest and Southern regions helped American operator Boyd Gaming turn a profit in the second quarter despite continual concerns in the struggling locals market in Las Vegas. Net revenues came in at US$615.2m for the second quarter, marking an increase of 7.1 per cent from US$574.4m during the same quarter in 2011. Revenues were up to $438.7m, representing an increase of 12.4 per cent from the year-ago period, driven by results in the Midwest and South region, while a weaker performance in Nevada negatively impacted results. Borgata, the company's 50 per cent joint venture, reported second-quarter 2012 net revenues of $175.4m, down $7.4m from the second quarter of 2011. Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: "The results for the second quarter clearly were not in line with our expectations or the guidance we provided on our last earnings call. We have seen several consecutive quarters of encouraging trends in the business, both in Nevada and in the Midwest and South. There

las veGas business stabilised with net revenues of $55.9m for the second quarter 2012.

were no signs that these trends would change in a material way. Starting in May, we began to see some weakness in economic trends, both locally and nationally. Manufacturing, job creation and consumer spending all started to slow. The slowdown in economic activity clearly showed up in our business in May and June and impacted our overall results. During the second half of the quarter, business trends began to weaken, and that clearly contributed to softness in our results. We remain encouraged by results at our Midwest and South properties, where we maintained or grew share in each of our markets. This bodes well for our acquisition of Peninsula Gaming, which is on track to be completed in the fourth quarter." In the Las Vegas Locals segment, secondquarter 2012 net revenues were $149m, down $2.9m from the second quarter of 2011 although the company’s Downtown

"The agreement with Sunrise positions us to take advantage of a development opportunity in an attractive location. The project would be in an ideal location in Broward County, adjacent to two attractions that already draw substantial visitor volumes. We are equally excited by our agreement with Wilton Rancheria. We look forward to working with them to develop a gaming complex southeast of Sacramento." KEITH SMITH, President and CEO, Boyd Gaming.

The operator continues to make progress toward closing the acquisition of Peninsula Gaming, which will add five properties to its portfolio: the Kansas Star Casino, Hotel and Event Center in Mulvane, Kansas; Diamond Jo Casino in Dubuque, Iowa; Diamond Jo Casino in Worth County, Iowa; Evangeline Downs Racetrack and Casino in Opelousas, Louisiana; and Amelia Belle Casino in Amelia, Louisiana. Boyd also announced that it has reached separate development agreements for new projects in Broward County, Florida and Sacramento County, California. In Florida, it has entered into an agreement with Sunrise Sports Entertainment, the operator of the BankAtlantic Center, a major entertainment venue in south Florida and home to the NHL's Florida Panthers. This agreement provides Boyd the opportunity to take advantage of the potential of expanded gaming in south Florida at the site of the BankAtlantic Center. The BankAtlantic Center is the largest indoor arena of its kind in Florida, hosting more than 200 events annually. It is located directly across from Sawgrass Mills, the sixth-largest shopping mall in the country. Boyd has also reached an agreement with Wilton Rancheria, a federally-recognised tribe located about 30 miles southeast of Sacramento, California, to develop and manage a gaming entertainment complex. The deal is subject to the receipt of all required local, state and federal approvals, a process we believe will take approximately 24 months. “While it is early in the process, these two agreements provide exciting longterm growth opportunities for the company,” Mr. Smith said. September 2012 PAGE 37

Insight SWITZERLAND

New Grand Casino Basel boss oversees the implementation of server-based gaming Former Crans-Montana boss Timothy Cullimore is back in Switzerland as General Manager of the Tranchant-owned Grand Casino Basel, located in Switzerland’s third biggest city where the French, German and Swiss borders meet. One of the first changes he will oversee is the implementation of Switzerland’s first server-based gaming set up with IGT’s sbX being installed and prepared for their server-based launch.

basel adds spice with sbG Games

Having spent the best part of the last decade running London’s Ritz, Brussels’ Grand Casino and the casino in CransMontana, the 53-year-old British-Swiss dual national, is more than happy to be back in familiar climes. “It feels great to be back in Switzerland, although I had enjoyed the charms of rural Oxfordshire for five years and enjoyed that very much too,” he said. “I already knew the Grand Casino Basel from before and knew that it was one of the best casinos in Switzerland. What I didn’t know about was the developments they had made since I was last here. They’ve built a fantastic 166 room hotel adjoining the casino and a great events hall where we have concerts for up to 600 people.” Mr. Cullimore has extensive knowledge of the Swiss market. Prior to managing Crans Montana he worked as a slot manager in the old style Kursaal Montreux. He followed this up with an appointment as an advisor to the Swiss Federal Gaming Board when the new style casinos were first brought in back in 2001. The pace of development in the Swiss gaming sector has been impressive. “The market has obviously developed at a very quick rate,” he explained. “The business plans that I had created for Crans-Montana 10 years ago were soon overtaken. The success has been September 2012 PAGE 38

“We are currently looking at a five year plan for the casino, to know what the casino needs to be for the next five to 10 years. It is clear that the economic situation in Europe will not change for the better overnight but we must hope for stability at least.” TIMOTHY CULLIMORE, General Manager, Grand Casino Basel, Switzerland.

phenomenal. On the down side there has a been a big increase in taxation in recent years, with no consultation, which took the whole industry by surprise, and the severity of the legislation covering social responsibility and anti-money laundering is beginning to hamper growth within the industry.” Located just three minutes’ drive away from the EuroAirport Basel and only five minutes away from the Basel city centre, the casino offers 301 slots, 15 table games, four bars, a restaurant and two event halls. Mr Cullimore said there is no need for any quick-fix solutions at the casino although the demands of the market have seen several recent changes on the slot floor. “There is a great group of managers and staff here so I am not coming in to put out any fires. It is refreshing to be able to look at an operation without thinking about all the tiny things that occupy so much of your time when you do startups,” he explained. “Modifying and improving incrementally is what is required here.” Since Basel first opened its doors eight years ago, the sector has of course

changed due to the global downturn in the economy. Basel has also been faced with new competition from the Lucien Barrière property in Blotzheim, France, as well as the strong Swiss Franc which has hampered leisure spend from the Euro Zone. As such the casino has just installed 50 IGT sbX, server-based gaming machines as it looks to bring its customers more slot choice without increasing the number of terminals. “It will take time to get them functioning as server-based machines,” Mr. Cullimore explained. “Some extensive testing needs to be done as we are the first in Switzerland to have them, but they look very promising. We have also installed some new EGT machines which look great and have wonderful graphics. The final piece in the jigsaw will be a Doggy Cash jackpot from SPIELO which has shown to be popular in other jurisdictions. This should be up and running in mid-August so we have high hopes for that. We are currently looking at a five year plan for the casino, to know what the casino needs to be for the next five to 10 years. It is clear that the economic situation in Europe will not change for the better overnight but we must hope for stability at least.”

Insight CAESARS FERRIS WHEEL

missinG linq on the las veGas strip Caesars Entertainment plans to operate the largest Ferris wheel in the world, the High Roller Even with no new casino openings scheduled for the coming year, Las Vegas refuses to stand still with Caesars Entertainment being given the green light to build the biggest Ferris wheel in the world as part of its spectacular The Linq project on The Las Vegas Strip. The operating giant has received the Amusement and Transportation System (ATS) permit from Clark County, Nevada, allowing project officials to construct all elements of the High Roller, soon to be the largest observation wheel in the world, eclipsing both the London Eye and Singapore Flyer. The High Roller will reach 550 feet and be the focal point of The Linq, a fully funded $550m retail, dining and entertainment district located at the 50-yard line of the world-famous Las Vegas Strip. The Linq’s Executive Project Director David Codiga, said: "This permit represents a significant milestone in the development of the High Roller wheel project. We have successfully satisfied Clark County's requirements to proceed with erecting the structure and look forward to the day the High Roller makes its inaugural rotation." The final milestone before the wheel September 2012 PAGE 40

"We are enhancing the allure of the resort experience by bringing both visitors and locals something new and dynamic. The Linq will cater to a wide variety of audiences and will serve as a location for a wide range of functions – be it a business meeting, bachelor party, first date, or ladies night out. We are creating an experience that currently does not exist within the market. The development will re-define the center Strip." GREG MILLER, Senior Vice President of Development, Caesars Entertainment.

welcomes its first passengers is the official Certificate of Operation, which will be issued once the wheel is completely constructed, tested and commissioned. Early site civil work began on The Linq last November, but Las Vegas visitors and residents will notice a steady increase in construction activity later this summer as crews work to erect the High Roller's 3.5m pound steel structure. The 520-foot diameter wheel, situated north and south (parallel to Las Vegas Boulevard), will feature 28 glass-enclosed cabins that will unveil broad views of the famed-resort city in the 30 minutes it takes to complete one full revolution. Each cabin will accommodate up to 40 people and will be available for individual or group experiences. Caesars Entertainment officials have already received scores of inquiries from soon-to-be brides and grooms interested in hosting nuptials at 550 feet. "We are enhancing the allure of the resort experience by bringing both visitors and locals something new and dynamic," said Greg Miller, senior vice president of development for Caesars Entertainment. "The Linq will cater to a wide variety of audiences and will serve as a location for a wide range of functions – be it a business meeting, bachelor party, first date, or ladies night out. We are creating an experience that currently does not exist within the market. The development will re-define the center Strip."

Comprised of diverse retail, dining, and entertainment experiences, The Linq will span more than 200,000 sq. ft. of gross leasable area and is planned to appeal to the region's growing Gen X and Gen Y clientele, aged 21 to 46, whose market share is estimated to grow to 52 per cent of Las Vegas visitor spending by 2015. Owned and operated by Caesars Entertainment, the mid-Strip attraction is designed as a destination in its own right and is being created to revitalise the center-resort corridor. An estimated 20.4 million people pass in front of this space each year.

we are creatinG an experience that currently does not exist. linq will re-define the center strip.

Caesars is also making simultaneous upgrades to three, large mid-Strip resorts. On The Linq's north side, an engaging guest walk path will lead from the Carnaval Court outdoor plaza at Harrah's Las Vegas through the Imperial Palace Hotel & Casino to The Linq. A pedestrian connection will also be built from The Linq into Flamingo Las Vegas on the south. Additional enhancements will completely transform the facade, porte cochere, casino and hotel reception areas of the Imperial Palace. Improvements to resort guest service areas will be introduced in phases.

Insight CHILE

chile freezes out licences No extensions have been granted to Chile’s casino current licence holders prior to 2005 The Chilean Ministry of Finance has now confirmed that there will be no extensions granted to those casinos in operation prior to the 2005 revamp of the sector, but that the communes in which the old properties are located will retain a licence. Casinos in Arica, Iquique, Coquimbo, Vina del Mar, Pucon, Puerto Varas and Puerto Natales will all be affected by the switch over. Operators Enjoy and Dreams account for more than 60 per cent of the old style concessions. The Ministry is keen however to ensure that there is no gap in the operation of a casino in any commune. By law, the socalled ‘local casinos’ still operating in the country under the previous legislation, will have to operate under the new rules as of the start of 2015. With licences set to run out in 2015, municipalities must surrender their licenses to the Superintendencia de Casinos Games (SCJ) to compete in a new bidding contest. The mayors of those municipalities affected have stressed the economic impact of not having a casino in operation in their localities for any length of time. The mayor of Pucon, Edita Mancilla said that the casino generates taxes of $1,600m each year, representing 35 per cent of its total budget. Under the new rules, however, only 20 per cent of September 2012 PAGE 42

“The law states that local casinos must close on January 31, 2015. It implies that the new SCJ tender will be launched on January 1 2016. The problem is that if a new investor comes on board, the building work takes time, so there will be a period when those casinos will probably be closed.” FRANCISCO JAVIER LEIVA, former Superintendent, Superintendencia de Casinos Games (SCJ).

licences set to run out in 2015, must surrender their licenses to compete in a new biddinG contest. revenues generated by the casino will be shared between government regional and municipality. The Treasury is now working on a project to minimise any impact by restricting invitations to bid to only districts where there is already a casino. A spokesperson for the Ministry of Finance confirmed: “The city casinos end on December 31, 2015, they will be no more. This is a blow to the municipal coffers, so we are trying to create a system in which the municipalities that have casinos will continue, and then gradually they will be incorporated into the general law of casinos.” According to the former superintendent, Francisco Javier Leiva, the proposal is virtually complete and awaiting presidential approval. It sets out a new bidding process led by the Superintendent, while maintaining the current locations. He said: “The law states that local casinos must close on January 31, 2015. It implies that the new SCJ tender will be launched on January 1

2016. The problem is that if a new investor comes on board, the building work takes time, so there will be a period when those casinos will probably be closed.” The new casino sector in Chile was launched in 2005 with the approval of Law N° 19995. The three years between 2005 and 2008, saw 18 of the new casino licenses, the maximum allowed by the legislation, handed out. In 2011, 15 of the 18 new casinos were operating, located in Antofagasta, Calama, Copiapo, Rinconada, San Antonio, Santa Cruz, Mostazal, Talca, Pinto, Talcahuano, Los Angeles, Temuco, Valdivia, Osorno, and Punta Arenas. Whilst in April and May of 2012, casinos in the cities of Coyhaique and Castro opened their doors to the public, the other casino, which was set to open in the city of Ovalle, was not developed after Casinos Austria International pulled out of the project. The Casino Gaming Superintendence of Chile is to initiate a new process to choose an operator for that license in the first two months of 2013. A report from the Superintendence recently detailed that the 15 casinos in operation at the turn of the year had a total of 8,705 slot machines. The main manufacturers are Bally, with an 18.9 per cent market share, WMS with 18.6 per cent, Spielo with 18.4 per cent, IGT with 16.9 per cent and Aristocrat with 10.6 per cent. The industry generated revenues of US$515m in 2011. Since the start of 2011, the country’s slot total has reached 9,203.

Insight CAESARS US Harrah's Entertainment, the company famously rejected an opportunity to buy the Macau gaming sub concession now controlled by Wynn Resorts for $900m. “Big mistake,” Mr. Loveman said to Bloomberg Businessweek at the time. “I was wrong, I was really wrong. You had to have a kind of intuitive courage. I'm not well-suited to those kinds of decisions.” In September 2007, Caesars invested $577.7m to buy a 175-acre golf course on Macau's Cotai Strip with the aim of one day transforming the land into a hotelcasino destination. That aim doesn’t look like coming to fruition any day soon, leaving Caesars with a huge bill to pay. Caesars Golf Macau accounts for five per cent of the city’s land. Whilst it can’t develop a casino on the land, Caesars may one day hold a winning hand but only if development continues at such a pace that land is at a premium.

caesars’ below par performance A mis-guided investment prevents Caesars conquering the downturn as its Macau golf course proves a costly bogey

Caesars Entertainment saw losses widen to double what analysts had estimated in its second quarter with casino revenue deteriorating between the first and second quarter as the economy softened again. However, the US giant is still paying for a land grab in Macau five years ago without which its Q2 results would have been nearly in line with analysts’ expectations. The US$101m Macau charges reduced Caesars' income from operations by nearly 65 per cent to $81.8m. Results fell well short of Wall Street expectations with losses increasing to $241.7m in the three months ended June 30, compared with a loss of $155.5m in the same period last year, whilst revenue increased two per cent to $2.17bn from $2.16bn. The increase was due mainly to improved revenues from the company's international and online operations, including Playtika, which was acquired during 2011. These helped offset lower casino revenues in several US regions, primarily Atlantic City. Gary Loveman, Caesars’ Chairman and CEO, said: “I think the world since April or May has gotten more difficult. There’s a trepidation on the part of consumers to spend at the rate they have historically. After a strong first quarter, difficult economic conditions led to lower visitation in several regions, impacting our core operating results in the second

quarter. We saw weaker results in much of our core business amidst a different macro environment. While we’re pleased to see visitation and occupancy in Vegas hold up during the quarter, gaming revenues were lower. In the Midwest, gaming results were slightly weaker, and Atlantic City continued to be a very challenging place and declining visitation and over-capacity continue to characterise that region.” Despite the challenging environment, Mr. Loveman pointed to ‘considerable progress in expanding Caesars’ distribution network’ as being a highlight. “We're optimistic about and committed to our capital efficient growth and investment strategy,” he explained. “While we invest in our future, we're also maintaining a high level of discipline around our operating expenses. Our strategic imperatives are to expand our distribution network into higher growth markets, both on land and online, leverage our scale to drive efficiency in the way we conduct our business and attract best-in-class talent, invest in our core brands to increase their relevance and reach and further strengthen our capital structure and balance sheet.” However those aims are still being offset by the company’s gamble on Macau, a territory for which it has no operating licence. In its previous incarnation of

“I think the world since April or May has gotten more difficult. There’s a trepidation on the part of consumers to spend at the rate they have historically. After a strong first quarter, difficult economic conditions led to lower visitation in several regions, impacting our core operating results in the second quarter. We saw weaker results in much of our core business amidst a different macro environment.” GARY LOVEMAN, Chairman and CEO, Caesars Entertainment.

There was plenty closer to home to keep Mr. Loveman happy though. "We made significant progress during the quarter in expanding our domestic distribution," he continued. "Our alliance with Rock Gaming opened Ohio's first casino, Horseshoe Cleveland, and is ahead of schedule on construction of Horseshoe Cincinnati, which is expected to open early next year. Horseshoe Cleveland has drawn larger than expected crowds and enrolled more than 50,000 new members in our Total Rewards loyalty-program during the quarter. “In New England, our alliance with the Suffolk Downs racetrack in East Boston announced plans to apply for a license to build a Caesars-branded property to serve the millions who live in or visit the historic region.” On July 31, the Maryland Video Lottery Facility Location Commission granted a license to a Caesars-Rock Gaming consortium to build and operate a 3,750 VLT facility in Baltimore. “We’re pleased to have been awarded the license," Mr. Loveman explained, “and look forward to building a unique entertainment experience that will attract customers from across the country. The development of Harrah's Baltimore is part of our plan to develop casinos in urban areas that integrate into and support the surrounding communities. In Las Vegas, we will begin taking reservations in October for the Nobu Tower at Caesars Place, and expect to announce some of the key anchor tenants for the $550m Linq retail, dining and entertainment experience across from Caesars on the Las Vegas Strip.” September 2012 PAGE 45

Insight MACAU The decline in net revenue was primarily attributable to lower group-wide rolling chip volumes, partially offset by strong improvements in the mass market table games and gaming machine segments, particularly at City of Dreams. However a year-on-year improvement in net income was primarily a result of improvements within the mass market gaming segments, reduced non-operating expenses, including lower net interest costs and one-off costs associated with the refinancing of the City of Dreams Project. Mr. Ho explained: “The results delivered in the second quarter of 2012 highlight the strong year-on-year improvements in operating fundamentals of our mass market segments, with our mass market table games operations providing us with a more stable and profitable gaming mix, particularly at City of Dreams, driving group-wide Adjusted EBITDA and cash flow. In addition to the recent slow-down in the market-wide rolling chip segment, our rolling chip volumes also continue to be impacted by our table optimisation strategies, which we are optimistic will generate improved future group-wide table yields across our rolling chip and mass market table games segments, giving us greater flexibility to participate in the changing gaming landscape in Macau and drive long term and sustainable improvements in future operating fundamentals.”

liGhts, camera and more action

Melco Crown hopes that Studio City will brighten results as the company looks to invest US$2.5bn in the new resort project With revenues across the board plateauing for Macau-operator Melco Crown, the headline news in its second quarter results lay with its stalled Studio City project where it has now been granted all necessary approvals to invest US$2.5bn in developing its next resort. Featuring 1,600 five-star hotel rooms, 18,560sq. m. of retail space and up to 500 additional gaming tables focused on the mass-market, Studio City could still come with a sting in the tail. “We are very confident we will be having gaming as part of this exciting integrated resort,” Lawrence Ho, Co-Chairman and Chief Executive Officer of Melco Crown Entertainment, said, still unable to 100 per cent guarantee the casino element of the project. “We’re delighted to have received the revised formal land grant approval and permit to restart construction from the Macau Government, enabling us to move forward with the development of our exciting Studio City Project. The property's location is one of its key competitive advantages. Not only is Studio City directly adjacent to the increasingly important Lotus Bridge September 2012 PAGE 46

immigration center. And it also has direct access to one of only three light rail casino stops in Cotai, and it enables to book in the North and the South of the Cotai strip.” He described the project as a large-scale integrated entertainment, retail and gaming resort which will include significant gaming capacity, five-star hotel offerings and various entertainment, retail outlets to attract a diverse range of customers. Its focus will be on the mass market segment in Asia and, in particular, from Greater China. "We are grateful that the Macau Government has provided us with this unique opportunity to further expand and diversify the leisure and tourism offerings available to visitors to Macau, ensuring the long term success of the region as a leading tourism destination in Asia,” Mr. Ho added. Melco Crown Entertainment saw revenues drop slightly in the second quarter of 2012 with GGR of US$938.5m, representing a slide of two per cent compared to the same period in 2011.

“In addition to the recent slow-down in the market-wide rolling chip segment, our rolling chip volumes also continue to be impacted by our table optimisation strategies, which we are optimistic will generate improved future group-wide table yields across our rolling chip and mass market table games segments, giving us greater flexibility to participate in the changing gaming landscape in Macau." LAWRENCE HO.

Melco crown also had good news on the stalled Studio City project. City of Dreams was a success for the company posting GGR of US$684.2m compared to US$607.9m in the second quarter of 2011. The property’s EBITDA was also up by 22 per cent, driven by improved mass market table games and gaming machine volumes, a substantially improved mass market table games hold percentage as well as a higher rolling chip win rate. Mass market table games at City Of Dreams saw drop increase by 10 per cent to US$822.5m whilst slot handle was also up by 28 per cent surging to US$727.8m during the quarter. The picture wasn’t quite as rosy as Melco Crown’s Altira property with GGR falling to US$208.5m from US$311.5m in the 2011 quarter. EBITDA dropped by 64 per cent due to a lower rolling chip win rate together with reduced rolling chip volumes, as well as higher wage costs. Tables were down six per cent but at 97 per cent, occupancy rates were in-line with the comparable period in 2011. Melco Crown also operates 2,100 slots through its Mocha Clubs operations. Revenues were up eight per cent to US$35.1m in the second quarter of 2012.

Insight AUSTRALIA

ambitious plans for queensland

Australian billionaire Clive Palmer has unveiled ambitious plans for a Queensland casino An eccentric Queensland billionaire has presented spectacular plans for a proposed casino complex including a hovercraft station, an international airport, a convention centre, a water park, a beachside amusement park, a wildlife park, an aquarium and a 1,000 room hotel at his Coolum Palmer Resort on the Sunshine Coast, north of Brisbane. Clive Palmer, who has made his money from mining, has even registered a trademark for the name Coolum Casino and the domain name www.coolumcasino.com.au.

The blueprint, pieced together by a team of international consultants, features a 20storey sky needle, a giant Ferris wheel similar to the London Eye and a monorail linking the attraction directly to the Sunshine Coast Airport. The plan is to ferry up to 400 passengers at a time via hovercraft from Brisbane to the islands of Moreton Bay. Mr. Palmer said 9,000 locals would be employed at the new complex which would be a huge boost for the regional tourism industry, breathing new life into the sector, which has struggled to since the floods and cyclone Yasi. However, his plans would need state approval and new regulation issuing a licence for the area. Mr. Palmer said he expected to invest

we estimate this proJect and its flow on effects could Generate more than 9,000 Jobs for the sunshine coast.

around A$2.5bn with the land still needing to be bought, a purchase that would include state government land on the Coolum beachfront. He believes the project will generate $100bn in gaming tax for the state each year. With half an eye on how Singapore deterred locals from gambling too much, Mr. Palmer said a $100 entrance fee for locals would be put in place to minimise risk to Australians. “We've got to ask ourselves: with what we've got in Queensland, why it is that year in and year out the number one holiday destination for Asian tourists is Hawaii?’ he said. “I believe there is strong willingness from people on the Sunshine Coast for a major job-creating project like this to happen. There haven't been any tourism developments in Queensland since the 1970s and 1980s and we are looking to raise the bar again.” Mr. Palmer stressed the plans were for community consultation and did not

constitute an outright development application.

“We'll be consulting the whole community and we plan to have meetings on the Sunshine Coast with the residents. We'll give them a chance to comment on it. We've just got to work out how many people are in favour of it and how many people are not.” CLIVE PALMER. “I think he's very serious about this. I welcome his enthusiasm for the region, but it's a lot of conceptual ideas at present and needs a lot of work and consultation. Until something concrete is presented to council, it would be presumptuous of me to give an opinion.” MARK JAMIESON, Coast Mayor.

“The new airport will be capable of taking A380s and 747 Jumbo jets from Singapore, Beijing and Tokyo directly to the Sunshine Coast,” he added. “We estimate this project and its flow on effects could generate more than 9,000 jobs for the Sunshine Coast region during construction. Hawaii and other Pacific nations have taken all the real tourism growth out of the Australian and Queensland economies. We have not been able to compete with the beachfront development at Waikiki in Hawaii or with Fiji and other destinations because of restrictions. As a consequence of this, Queensland jobs and families have suffered as have our children’s future and the state’s revenue. It’s time we made a change and reclaimed the state’s mantle as Australia’s and the world’s premium tourist destination.” “The theme park has been designated for an 80 acre area and our options include family oriented attractions,” Mr. Palmer added. “We also plan to build a convention centre, which can host 5,000 people and have underground parking for up to 3,000 cars.” Local media has labelled Mr. Palmer as something of an eccentric following previous rumoured projects such as wanting to clone dinosaurs in a real life Jurassic Park, which he denied, and building a Titanic II. Coast Mayor Mark Jamieson added: “I think he's very serious about this. I welcome his enthusiasm for the region, but it's a lot of conceptual ideas at present and needs a lot of work and consultation. Until something concrete is presented to council, it would be presumptuous of me to give an opinion.” September 2012 PAGE 47

Insight SOCIAL MEDIA & GAMING

mGm resorts launch myveGas MGM Resorts launches into the ‘freemium’ sector with its new Facebook destination, myVegas MGM Resorts has entered the social gaming space with the launch of myVEGAS, a Facebook destination for the latest breed of social entertainment, in a partnership with PlayStudios, a new game development company focusing on freeto-play games of chance. myVEGAS delivers a new level of authenticity and play value as gamers play gambling games, unlock and explore a virtual Las Vegas and earn real-world rewards to be spent in real casinos. Bill Hornbuckle, MGM Resorts International's Chief Marketing Officer, said: "We have actively watched the explosion of the social gaming landscape and evaluated the options for extending our brands through these increasingly important channels. In partnership with PlayStudios, we have created a platform that will engage and entertain existing MGM Resorts customers, attract new ones and allow us to strengthen our brands in September 2012 PAGE 48

myveGas is the intersection of GamblinG and social GaminG on facebook and captures the true essence of las veGas.

a new and relevant fashion.” Andrew Pascal, founder, president and chief executive officer of PlayStudios, previously served as president and chief operating officer of Wynn Las Vegas and Encore. He said:"myVEGAS is at the intersection of gambling and social gaming. With the emergence of Facebook as a leading gaming platform, we saw an opportunity to offer deeper and more engaging game play that captures the true essence of Las Vegas.” PlayStudios marks a return to Mr. Pascal's

entrepreneurial roots, where Pascal founded and led two Silicon Valley-based startups: Silicon Gaming and WagerWorks. PlayStudios secured the exclusive social gaming and mobile rights for Las Vegas' premier properties: ARIA, Bellagio, MGM Grand, Mandalay Bay, The Mirage, Monte Carlo, New York-New York, Luxor, Excalibur and Circus Circus.

We have actively watched the explosion of the social gaming landscape and evaluated the options for extending our brands through these increasingly important channels.” BILL HORNBUCKLE, Chief Marketing Officer, MGM Resorts International.

myVEGAS provides access to a diverse array of chance-based games, combining established gambling formats with immersive and entertaining social game mechanics and storylines. The initial suite of experiences featured in myVEGAS includes slot and table games. The myVEGAS entertainment destination will continually evolve as new games and game categories are introduced. myVEGAS players will earn Loyalty Points as they spend time playing the portfolio of games. These Points may be redeemed for real-world rewards. The myVEGAS Loyalty Program will feature offerings from all of the participating MGM Resorts International properties. Rewards will range from choosing the song for the Fountains of Bellagio or diving with the sharks at Mandalay Bay's Shark Reef Aquarium to gourmet dinners, luxurious hotel stays, Cirque du Soleil show tickets and access to Las Vegas' hottest pools and nightclubs. Hundreds of thousands of discrete prizes will be awarded to myVEGAS loyalists, amounting to millions of dollars in value.

Insight MARYLAND LIVE!

maryland live! fears sixth sense Maryland Live! flies through first month, but warns that sixth casino could hurt tax returns Maryland Live! Casino has paid more than US$23.7m in gaming taxes to the State of Maryland after its first full month of operation but has warned that a sixth casino in the region could risk the health of the entire Maryland sector. July 2012 taxes were based on the State's 67 per cent share of $35,408,769.62 in gaming revenue generated by the facility, a win per machine per day of approximately $351.54. Maryland Live! Casino also paid out more than $195.6m to casino customers through the month, including $8.7m in jackpots of $1,200 or higher. A delighted Joe Weinberg, Managing Partner of the casino’s owners; The Cordish Companies, said: "Our revenues continue to be in line with our projections. Of great significance, the State's overall July casino revenues clearly demonstrate oversaturation is already a serious problem for Maryland. Even with Maryland Live! only partially open and Baltimore City not open at all, July revenues at Hollywood Casino Perryville were down 32.4 per cent as a

maryland live! paid out more than $195.6m to casino customers in July, includinG $8.7m in Jackpots of $1,200.

result of competition from Maryland Live! and the Perryville facility is located over 50 miles from Maryland Live! The July numbers reinforce it is premature for the State to consider an expansion of gaming before ensuring that Maryland can actually support the five existing licenses. Maryland Live!'s results show approximately 50 per cent of its customer base is from the District of Columbia, Virginia, Prince George's and Montgomery Counties, markets located within 30 miles of Maryland Live! Actual data clearly shows the State risks undermining the health of the entire Maryland gaming industry by adding a sixth mega casino in Prince George's." "Prior to adding another massive casino

“Prior to adding another massive casino to the BaltimoreWashington corridor, common sense dictates such a drastic change can only be made based on actual performance data after all five existing authorised facilities are open and stabilised.” JOE WEINBERG, Managing Partner, Cordish Companies.

to the Baltimore-Washington corridor, common sense dictates such a drastic change can only be made based on actual performance data after all five existing authorised facilities are open and stabilised. Maryland casinos are paying the highest tax rate on slots in the country, which rate cannot be sustained with massive new capacity added to the 40-mile corridor encompassing Prince George's, Anne Arundel and Baltimore City. The best and fairest approach to maximizing gaming taxes for the State is to maintain the tax rate at current levels and add table games to the five existing sites. That is the course of action that will most benefit the State of Maryland and its citizens, show Maryland is a reliable business partner, and ultimately provide the highest tax revenues to the State," concluded Mr. Weinberg. The new $500m plus gaming and entertainment destination, located between Baltimore and Washington, at Arundel Mills in Hanover, opened Phase One of the project on June 6, 2012. With Phase Two construction ahead of schedule, the property recently unveiled a newly-expanded portion of the casino floor, complete with 531 additional slot machines and electronic table games. The new amenities provide more entertainment options for guests as Maryland Live! Casino works towards the completion of the third largest commercial casino in the United States. By mid-September, Maryland Live! will celebrate the completion of the two million sq. ft. casino with the addition of the final 1,043 slots and electronic tables games, including a High Limit slots room. September 2012 PAGE 49

Insight SOCIAL MEDIA & GAMING use social media effectively?

brushinG up social skills A new series of workshops have been designed by social media experts, Love Social Media, to help casino operators engage with this new medium and with your customers During the Olympic games in London the London Eye was transformed into a giant twitter mood wheel. Every evening the London Eye transformed into a circle of light representing the sentiments on twitter about London 2012. The London Eye would shine up in blue for positive moods and red for negative moods. Most of the time, the London iconic Ferris wheel was primarily blue. Can you imagine what something like this would do for your casino? A big twitter mood board in the centre of your casino showing how happy your casino guests are. Are you ready to take up that challenge? Would you be happy to accept that sometimes the board can be red? Its not just twitter that’s making the headlines. Mr. Bean was the most tweeted subject during the London Olympics ceremony. But did you know that 1 hour of video is being uploaded on youtube EVERY SECOND? And 2 billion items are liked on Facebook EVERY DAY. Do you use Google maps when you need to know where you’re going? Well, you’re not alone. Google maps takes people on 2 billion miles of travel every year. As I talked about in last month’s article about social media, the opportunities for casinos are immense. Casinos use facebook to promote their events and have their customers engage with exciting content like casino news, new games, poker tournaments, competitions and so on. Casinos use Twitter to improve customer service. And the advanced casinos use Youtube to showcase their casino to prospective guests. But be honest, maybe you are confused about Social Media and have some questions you need answers to. - Are you lost on how Twitter and Facebook can help your casino win new customers? - Are you thinking “Can Casinos actually September 2012 PAGE 50

MARC CAMPMAN, Social Media Playmaker. Marc Campman is an expert in social media for business. He lectures and presents about today’s best social media marketing plays and shares his experience with businesses, helping them to start conversations, create communities, advance ideas and seed discussions. You can read his blog on WWW.MARCCAMP MAN.COM WWW.LOVESOCIAL MEDIA.COM

- Are you wondering how casinos actually grow their customer base through social media? - Have you already set up social media channels for your casino but wonder what to do next? To help you understand what you can achieve with social media we teamed up with G3i and have put together a two-day workshop “An Introduction to Social Media for Casinos”. This is your opportunity to prepare yourself for the future and take advantage of everything social media has to offer you. Here is a quick overview of what you will learn in this exciting workshop: This Social Media for Casinos workshop will give your casino the necessary kickstart to use social media effectively. This workshop is for marketing staff in your casino and everybody else in your casino that is interested in learning how to enhance relationships with existing customers, grow their customer base or improve customer service. After this Social Media workshop you will: • Have a thorough and practical understanding of all aspects of social media • Receive an overview of how casinos can benefit from social media • Have learned about how other casinos have successfully implemented social media • Get the skills to develop an integrated presence on Twitter, Facebook, Youtube, Pintrest and other relevant social media networks • Gain experience in publishing your own casino blog to start creating content and spread your social media presence • Understand how to integrate these social media networks with your existing web site • Receive numerous examples of successful social media campaigns run by casinos to grow their fan base on facebook and twitter

Social Media. We love it because it changes the way businesses connect with their customers, governments engage with their citizens or casinos extend their gaming experience online to reach new players. We share our passion in social media with people across the world. Love Social Media Training provides you this Social Media for Casinos training across Europe and at your casino. Wherever you are. I will be your instructor and I have an extensive gaming and casino background. Our training programmes are of the highest quality and they ensure it’s a pleasure for you to attend and learn with us. We also offer you free of charge retake of the workshop, within 6 months of your original training date. If there’s something you forget or just need refreshing. That’s the Love Social Media “Guarantee of Learning”.

this ‘social media for casinos’ workshop will Give your casino the necessary kickstart to use social media effectively. By attending this workshop you will also get free access to our Love Social Media online training classes. Online classes on Facebook, Twitter, Youtube, Blogging and many more classes to be added in the future. This free membership offers you: - 24/7 online access – anytime, anywhere - Clear and easy lessons, focused on video tutorials and guided assignments to get results step-by-step - Strategies and advice targeting business owners - Answers to your questions when you need them (email support) - Ongoing and updated content

• Have the tools in place to measure results of your social media efforts

- Short video tutorials

• Understand how to measure Return on Investment for your casino.

- Money of future Love Social Media training classes

The workshop is hosted by Love Social Media. And as our name implies, we love

Love Social Media will support you all the way in your social media endeavours.

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Insight SOCIAL MEDIA & GAMING

social + mobile + cloud = recipe for success? Cozy Game’s Rob Wheeler takes a critical look at the formula for Social Gaming success and questions the prescribed industry model

If only it were that easy! In order to be successful operators entering the Social Gambling market will need a specific strategy and the ability to provide leading games content online and on mobile with the ability to facilitate hundreds of thousands of concurrent players. Let’s break the above equation down and go through each ingredient in detail starting with “SOCIAL”. First and foremost the operator has to have a specific strategy and audience in mind. Whether it is a completely new brand detached from the operators’ online real money gaming brand launched in order to generate a brand new revenue stream, or launching their existing real money brand into soon to be regulated markets to build player databases prior to regulation, or the trial of a brand new game mechanic in the social gambling space, or as a clear cross marketing tool to educate players on particular games and game play with a view to converting them to real money players over time, operators need to be specific. It is a competitive market and with umpteen casinos due to launch in facebook in the next six months you need a clear strategy and clear differentiation in order to be successful. A site that purports to be all things to all people will fail.

September 2012 PAGE 52

ROB WHEELER, Commercial Director, Cozy Games. Having worked in the gaming industry for the last nine years, Rob has played an integral role at a number of highly respected gaming companies including IGT Interactive (formerly WagerWorks) and Virtue Fusion. He recently joined Cozy Games as commercial director and is primarily responsible for the development of commercial relationships with new and existing customers.

The successful social gambling game has to engage the player and be an exciting, interactive and fun experience with a certain “moorish” quality to it (think cashew nuts). It maybe stating the obvious but you want the player to come back for more, you want the player to have enjoyed the experience enough that they convert and purchase virtual currency in order to progress within the

it is a competitive market and with casinos due to launch in facebook in the next six months you need a clear strateGy.

game structure and make their association with the game official. They are proud of the level they have achieved and want their newly found status to be recognised in the particular community they are playing in. Players want a rich playing experience, they want to be entertained, they want the gameplay to be interactive

and they want the ability to interact with other players within the community and within the game. In a real money slot game: the theme, the game maths, the game speed, the second screen bonus features, the sound, the sound announcement devices, the win animation and the subtlety of this mix would define the success of that specific game in engaging and drawing the player in to the game play with a heavy weighting on the intricacies of the maths model as the players play more in search of winning hard cash. In the social game the above facets are all still very important but there is no cashing out, therefore whilst there is an emotional thrill to winning, it is only one contributing factor. The players expect active interaction within the game, challenges within the game, reward in meeting the challenge and making the next level, increasing their status and progressing within the social hierarchy within that specific game and playing community. OK, let’s move on to “MOBILE”. Social gambling or gaming is played on social networks, predominantly facebook currently. Therefore it follows that where ever a player can access facebook from you want them to be able to access your

Insight SOCIAL MEDIA & GAMING

game. This is key to maintaining and growing your player base - keeping the community alive and intact at all times in order to build player liquidity. There are a lot of statistics out there about the uptake of smartphones and tablet devices and the paradigm shift that is occurring as players migrate from traditional PCs and Laptops to iPads, iPhones and Androids: one in every two minutes of UK mobile internet is spent on facebook; mobile use of social networks is up 80 per cent on last year in the UK alone. When provisioning the game on mobile the objective is to provide continuity of offering to the player; tablets and smartphones are getting better but there are still many constraining factors: device screen size, general usability, the quality of the 3G or 4G network (depending on location and territory)… The first thing to make sure is that you are provisioning the game correctly in order to deliver the best possible playing experience. Time on device on mobile is a lot shorter than online and therefore it is critical you reach the player effectively in that given time frame or you will lose them and they may well not come back. There has been an exponential increase in the number of social gambling players, now running at circa 60 Million, you need to able to capitalise on that. You also need to be able to reach your chosen audience across

There has been an exponential increase in the number of social gambling players, now running at circa 60 Million, you need to able to capitalise on that. You also need to be able to reach your chosen audience across multiple device types, so make sure your chosen platform can provision for all popular mobile and tablet devices.

the converGence between GamblinG and social GaminG is happeninG, it’s now fact, take your pick of the multimillion dollar acquisitions. multiple device types, so make sure your chosen platform can provision for all popular mobile and tablet devices. Right, the third and final part; “CLOUD TECHNOLOGY”. Quite simply if you want to compete with the likes of Zynga, who according to my phone right now currently have over 292,000 concurrent players enjoying Texas Hold’em Poker then you are going to need a Cloud Based Technology solution. A scalable hardware infrastructure model that facilitates tens of thousands of concurrent players will no longer be sufficient. A Cloud Based solution that enables operators to scale in line with demand catering for hundreds

of thousands of concurrent players will be crucial to their success. It has the added benefit of substantially reducing capital expenditure and infrastructure costs. MMORPG (Massively Multiplayer Online Role Playing Games) and the Video Games Industry (see XBOX Live for example) already make use of the Cloud Technology. SUCCESS? With a specific strategy, compelling social games content and a scalable offering real money gaming operators will be well positioned to launch successful social gambling operations. The marketing prowess of a top tier real money gaming operator coupled with a significant budget for marketing and game development makes for a powerful combination. The much mooted convergence between gambling and social gaming is happening, it’s now fact, take your pick of the multimillion dollar acquisitions this year for confirmation. Who are we to disagree with International Game Technology and Caesars Entertainment, there is business to be had. Now it is really going to get interesting, how the two industries actually interact with each other to drive gaming forwards will be fascinating, get involved and be a part of it. September 2012 PAGE 53

Insight ARGENTINA

intractable

The threat of nationalisation sparks a local and international casino split that has wide reaching effects, not least for the Argentinean gaming exhibition, SAGSE Following Argentina’s decision to nationalise the Spanish majority stake in the YPF oil company, previously owned by Repsol, much of the Spanish-owned casino sector is now waiting to see if the same happens to them. The threat of nationalising the casino industry is very much on the cards having been touted by Argentina’s President Cristina Kirchner. Many licences are coming up for renewal in the next few years, only adding to the opportunity for the state to step in. The AFIP (Administración Federal de Ingresos Públicos) of Argentina has added to the drama by requesting casinos and bingo halls across the country to supply data on their slot turnover to the government. The government has the right to automatically nationalise all casinos with congressman Mario Daniel Caputo recently drafted legislation that would give the state “exploitation, regulation, September 2012 PAGE 54

control and administration” of gaming in the state, whilst banning “privatisation, awarding and outsourcing under any conditions.” Mr. Caputo said: “From the Chamber of Representatives of the Province of Buenos Aires, it is essential to revise the whole system to bring the regional government a legal instrument that enables to take the most of the resources generated by the games of chance.” A bill would need to been drafted and approved by local legislative leaders. The nationalisation of YPF has concerned investors but is said to be popular in Argentina with locals. The same situation is developing with the casinos. The AMS Union which represents casino workers in Buenos Aires is very much for the nationalisation. The General Secretary of the union Roberto Paez, said: "We believe gaming should be state-owned. The state is able to take over. The nationalisation needs to be discussed with

“From the Chamber of Representatives of the Province of Buenos Aires, it is essential to revise the whole system to bring the regional government a legal instrument that enables to take the most of the resources generated by the games of chance.” MARIO DANIEL CAPUTO, Congressman.

the threat of nationalisinG the casino industry is very much on the cards havinG been touted by arGentina’s president kirchner. any conclusions carried to politicians. We have our point of view, but we have no connection with private bingo. The nationalisation means that all companies that today have some share of a casino concession would automatically have to go. The full nationalisation means that the provincial government would handle everything, including slot machines.” Whilst some legislators are looking to nationalise the gaming business in the province of Buenos Aires, Casino del Tigre is believed to have offered local

Insight ARGENTINA Codere’s second quarter revenues and ‘continued to generate notable revenue growth and profitability.’ Revenues grew 25 per cent to €160m . Codere’s CFO Angel Corzo added: “This strong performance reflects a significant increase in wpd which reached €¡300 in the quarter, an increase of 18 per cent over Q1 2011. The wins continue to benefit from unmet demand, economic growth and inflation in the country. Revenues in the quarter were also boosted by a 10 per cent increase in the number of machines installed primarily as a result of the relocation of the Mar del Plata hall. Mar del Plata opened in February with approximately 400 machines, 200 more than the hall which it replaced.”

government US$400m to extend its operating licence past the designated 2013 expiration. Trilenium, the owner of Casino del Tigre since 1999, wants to receive an automatic 15-year extension to its operating permit with no need for a competitive bidding process in exchange for an immediate fee of $1.1m followed by 60 instalments taking the total to $400m. Trilenium, a partnership between Boldt Company and Sociedad Comercial del Plata, has operated the Casino del Tigre since 1999. The venue offers 1,900 slots, 74 table games, seven restaurants and a theatre. Its owners are also arguing that the government has already broken its contractual agreement as despite being granted an exclusivity licence, several bingo halls have been established in its ‘zone.’ Governor Daniel Scioli is believed to have offered a similar cash for licence offer to bingo operator Codere who runs 14 of the 46 bingo halls in the province. That deal would see Codere pay $136m for a 15year extension to all of its licences. Codere runs three bingo halls in La Matanza and two others in Moron and

San Miguel. Codere’s Lily Arteaga, Director of Investor Relations, added: “Our current expectation is that our bingo licences will be renewed as they mature in 2013 and 2014. Having said that, this is could change depending on how the Governor wants to look at it. We have one renewal due in 2013 and four in 2014 and that is our best estimate at this point. Regarding the framework which will be used, we believe the framework is now in place and that the framework should be maintained. “However the governor has not yet defined the framework. The regulator is the Province of Buenos Aires not the public administration, not the federal governments. To the best of our knowledge, there are no conflicts existing between the provincial government and the Government of Spain. So from that perspective we do not believe that it would have any interference in that process. There is no relation between the specific relation with Repsol and our case in which we are one of several operators in the Province of Buenos Aires and the only Spanish one in that province.” Argentina accounted for 40 per cent of

“Our current expectation is that our bingo licences will be renewed as they mature in 2013 and 2014. Having said that, this is could change depending on how the Governor wants to look at it. We have one renewal due in 2013 and four in 2014 and that is our best estimate at this point. Regarding the framework which will be used, we believe the framework is now in place and that the framework should be maintained.” LILY ARTEAGA, Director of Investor Relations, Codere.

Lily Arteaga added: “For the past nine years the Argentine economy experienced very healthy growth rates, supported by high commodity prices and government policies which incentivised consumption. This has resulted in very high inflation, which has not translated into commensurate devaluation, as the government has taken specific measures to control the exchange rate. In pursuing this objective, since October 2011, the government has implemented measures to protect the foreign currency reserves, including controlling the purchase of foreign currency. The stricter controls have affected all Argentine and foreign companies, including Codere. In light of this situation, our liquidity needs for 2012 are completely covered without requiring any additional monies to be repatriated from Argentina this year,” she added. “While each situation is different, and we cannot predict the effect of further measures, or the duration of the current controls, it is not the first time we have lived through this type of situation in Argentina. We entered the market in the late 80s and therefore operated through the 2001 devaluation, during which time there were also stringent capital controls. As such, over the last 25 years of successfully operating in the country, the company has demonstrated its strong capacity to adapt to changing environments.” Rival operator Cirsa said in mid-July that whilst it was aware of recent reports in the Argentine media regarding the mindset of some Argentine politicians to nationalise the gaming sector in Argentina, it had not been contacted by any government officials regarding a change in ownership to its operations. Cirsa has conducted business in Argentina for over ten years under concessions approved by the Argentine gaming regulator. Its operations include casinos in Buenos Aires and Rosario, in partnerships with local Argentine companies. September December 2011 2012PAGE PAGE55 55

Insight DRGT EXPANSION

true Global vision DRGT’s global expansion plans include a new subsidiary in Peru and offices in Austria

DRGT powered by SiP is taking the systems market by storm. The new, innovative, customer-friendly systems solutions are being welcomed by operators all around the world. Its success is testimony to the fact the true innovations always find a market if they bring real benefits to users. These benefits are clear and unique. The DRGT philosophy is to bring solutions that are customer-friendly to the market. Systems solutions remain a highly complex part of the industry. Taking this complexity and making it simple for operators to use – that is true innovation. Suddenly systems are no longer a necessary headache but a welcome marketing tool that opens up a new world of opportunities for operators. Be it simple accounting, or a whole range of solutions such as cashless, bonusing, jackpots – operators know that they are investing in a future-proof solution. Thus, the DRGT systems solutions can be expanded upon at any time. The operator decides what is and when it is required. Naturally a major bonus of working with DRGT is that the systems solutions are serverless. This means working with systems becomes child-play. No expensive servers, no expensive IT personnel are required. This opens the door to systems to the complete market – not only to large operators but to the smallest as well. And DRGT solutions grow with your requirements. September 2012 PAGE 56

JURGEN DE MUNCK, CEO and co-founder of DRGT powered by SiP. “It was and remains our firm belief to revolutionise the systems market. Systems need to be created for the customer. Complexity needs to be translated into simplicity for everyday use. Suddenly operators see systems as a beneficial tool, even a friend. A whole world of possibilities opens up. The fact that we are serverless and can connect all slots has freed up systems to the complete market.

A further major bonus is that DRGT systems work with all slots – from the oldest to the newest. Operators no longer are faced with the choice of parting from popular older, reel-based slots. With DRGT, these can stay on the gaming floor where they belong. And DRGT has the necessary solutions to make sure that these slots continue to bring enjoyment and satisfaction to players, for example by including and connecting a ticket printer for ticket-in, ticket-out even if these slots do not have the mechanical space and technical capability to originally include the ticket printer. With DRGT, this is not a problem. The marketing element of DRGT solutions is yet another major benefit. DrScreen allows messaging and advertising to be targeted directly at the slot machine. DRGT makes use of the video screens within the slot machine – thus no further investment is required for another screen here. Operators can create the right messages for a whole range of players. Players react much more positively to information that has been created especially for them. The door to new opportunities is wide open for in Peru. The new requirement for slots to be networked for accounting purposes has created massive new demand for systems. DRGT has already signed contracts with over 50 casinos in

Peru. Naturally, DRGT has also invested in the necessary structure and has already a whole-owned subsidiary in Peru with a current staff of over ten highly qualified people. The rise in demand meant that the former offices in Graz, Austria, could no longer cater for this growth. This was foreseen already at the end of last year by the management board and in April the Austrian team moved to new, larger and more modern premises within the UniCredit Tower. The Austrian team covers a full floor within this building. The new premises are strategically located, just round the corner from Graz airport. Jurgen De Munck, CEO and co-founder of DRGT powered by SiP, is very pleased with the company progress. “It was and remains our firm belief to revolutionise the systems market. Systems need to be created for the customer. Complexity needs to be translated into simplicity for everyday use. Suddenly operators see systems as a beneficial tool, even a friend. A whole world of possibilities opens up. The fact that we are serverless and can connect all slots has freed up systems to the complete market. We will continue to invest in our structure with new global subsidiaries and more staff to ensure that operators around the world can make full use of the DRGT benefits”.

Online SPORTS-BETTING (collusion, tournaments, chat, etc.) so in reality these products could be skinned and delivered out of a box. Acquiring and retaining customers was the only thing to be done. Over time it was clear that every partner had to be evaluated in depth, as a large database was not always key to success. Adding a sportsbook to the managed service offering was never really considered whilst suppliers had good performing casino and poker products. So if you want to launch an online sportsbook, add an online sportsbook to your existing gaming operation or add additional markets to an existing sportsbook what are your choices today? Well you do it in-house and either develop software in-house or you buy / lease software from others or you take a form of managed service either in full or in part. If you do it in house you have to support it with the resources above or take feeds from one of the various providers. You can take a skin from one of the existing operators like 888 has done from BlueSq, but you will lack differentiation from your supplier and why would you partner with a competitor?

meet your Goals

If you haven’t yet considered adding a sports-book to your portfolio - now’s the time

Running a successful online sportsbook operation takes a lot more resource than many imagine. You require odds compliers and traders who specialise in different sports and whilst some may be able to handle more than one sport, horse racing is a full time job. Understanding the customers is also key to success and requires people quickly identifying each and every punter (some maybe professional, others ‘arbers’ and others may be working for competing bookmakers). Adding in todays must-have product, “inrunning betting”; having people available 24/7 to cover multiple events around the world further added to the resources required. By the nature of the product, customers of sports betting websites will look for value, which in turn means attractive odds. This means that offering the same as everyone else is not going to cut it especially as a new entrant. The betting exchanges provided an alternative for a while, but they have stagnated somewhat. With BOG (Best Odds Guaranteed) being offered by many bookmakers, taking an early price on an exchange is risky unless you know the market. Given the exchanges are also now taking away profits from the better

customers, the bookmakers with a good sportsbook offering have the ideal opportunity to win back some of those lost customers. In addition to the above you need the infrastructure to support the product and this includes, exceptional software and IT, payment processing and fraud prevention, licencing and customer services. All of this is on top of the marketing you will need to do to drive customers to your site. If you don’t have the budgets to do this yourself you will have to go down a B2B managed service / white-label route. Managed service gaming companies have been around for some time now and originally many focused on online gaming as opposed to sports betting due to the added complexities of running a sportsbook. In its infancy managed service gaming (casino and poker originally, with bingo added later) was offered to everyman and its dog with some form of database. It was supposedly the responsibly of the partner to provide the customers whilst the managed service operator serviced them with the product, the licencing, payment processing and customer services. The product tended to run itself. An online casino didn’t need any servicing as such and any good poker (and bingo) provider would also provide a good level of product servicing

Richard Hogg has been involved in online gaming since 1999. In a career that has spanned across three decades and multiple continents, he has overseen the induction of many brands and products into various market places. He is currently CMO for Betting Promotion, leading market makers in the betting industry, rh@bettingpromotio n.com Betting Promotion is a sponsor of MIGS in Malta, September 11-12.

If you choose one of the odds suppliers you need to understand how they derive their odds and how successful they are. Can they offer a tailored solution for you? You may only want basketball, you may only want in-running or you may want to work to 6% margins as opposed to others working to 8% in your jurisdiction. Can they understand your customer and provide them with a bet to suit your requirement – you may want to restrict some whilst let others on for what they want. Betting Promotion offers content and risk management services for its B2B clients. Having been trading for nearly 10 years and having huge liquidity of their own, Betting Promotion is ideally positioned to assist in this side of any sports betting business. Betting Promotion market-make on the exchange sites. We provide them with prices and are not dependent on their prices. We do not take their prices and over round. We can set margins differently for each and every client we have, and maybe extract more margin for existing bookmakers. We also help with in-play markets where bookmakers may not have the resources or ability to make profitable markets. We firmly believe we are able to put out the right odds for the right market. So my recommendation to anyone looking to sports betting is to research the market, your players and your partners! Whatever you decide Betting Promotion is in a position to be able to assist you. September 2012 PAGE 57

Insight WILLIAMS INTERACTIVE

back in the Game

The formation of Williams Interactive is a game-changer for WMS Industries as the company establishes its gaming content across leading-edge online, mobile and interactive platforms for the benefit of land-based casino operators Changes are afoot within WMS Industries. Renowned as a market leader and innovator in the field of slots gaming, the most recent announcements from the Illinois-based company have centered upon online gaming acquisitions, social media partnerships and operator-focused interactive platform launches. The news in July that the company has chosen to bring its online wagering, social, casual and mobile gaming resources under a single iGaming umbrella organisation, Williams Interactive, is the culmination of this flurry of activity. Slot innovation remains a fundamental component of the WMS Gaming September 2012 PAGE 58

Orrin Edidin, President and CEO, Williams Interactive. “Up to this point we have been flying under the radar in the interactive space, which has not been unintentional.”

portfolio, but it's no longer the sole focus. While delighting trade show audiences with stunning presentations of new slots concepts, the pipeline between trade events and gaming floors significantly constricted for WMS over the last 18 months. A backlog of innovative games caught in a testing bottleneck, a lack of strong math/core games and capital constraints at the customer level has impacted negatively on WMS. In response, the company has redefined itself as a provider of leading gaming content across the widest possible spread of media. Slots are now just one channel amongst a range that encompasses online, mobile, social, casual gaming, VLTs, server-based, AWPs and every new platform and

channel currently in development. G3 interviewed WMS Industries President Orrin Edidin at G2E Asia, who presented the past and future of the company in frank and compelling detail. WMS is to present more distinct maths models at G2E in October than the company has brought to the combined exhibitions over the last three years. At the same time, as the convergence of online, land-based, casual and social gaming continues to accelerate at a tremendous pace, WMS is finally showing its hand in the interactive space too. The key element that binds these three sectors together is content WMS' content. "We see online, landbased and social media as simply different distribution channels," stated Mr. Edidin. "Up to this point we have been flying under the radar in the interactive space, which has not been unintentional. We believe that customers are now used to the concept

Insight WILLIAMS INTERACTIVE

we see online, land-based and social media as simply different distribution channels. of casual play-for-fun as well as playfor-real gaming, and we want to be their interactive supplier in that space. We are offering a full suite of managed services, supplying everything our customers need to provide online interactive gaming to their players, or supply lite packages to suit their individual needs and ongoing strategies. We are forming alliances for server integration, forging deals with pre-existing sites to have access to our games, and offering our own distinct platform solutions."

Williams Interactive is the vehicle for the growth, development and execution of the company’s online wagering, social, casual and mobile gaming initiatives. As such, the company’s structures have changed to reflect this, with Mr. Edidin promoted to the new position of President and Chief Executive Officer of Williams Interactive. In his new role, he will lead the company’s efforts to leverage its product development expertise, content and already comprehensive iGaming capabilities to capitalise on the emerging industry’s potential growth opportunities by supporting casinos’ participation in these new distribution channels. Williams Interactive will integrate under a unified organisational structure the company’s extensive array of interactive gaming operations and development initiatives in the rapidly growing online wagering, social, casual, and mobile gaming distribution

“WMS is a games company. We recognise our competencies and we understand what we do best. We are not a B2C company and we are not looking to compete with our customers. The acquisition of Jadestone, a leader in its field, enables us to expand the offline/online experience of players with WMS' compelling gaming content.” Orrin Edidin, President and CEO, Williams Interactive.

channels. Williams Interactive is expected to facilitate the continued expansion, evolution and extension of WMS’ interactive businesses. One of such businesses, the acquisition of Jadestone in May, provides WMS with access to 15 million players, the ability to integrate with existing online providers and offer its gaming content to the widest possible distribution channels. "We are integrating our content with all the current online providers, ensuring that we cover the 'entire wheel'" described Mr. Edidin. "WMS is a games company. We recognise our competencies and we understand what we do best. We are not a B2C company and we are not looking to compete with our customers. The acquisition of Jadestone, a leader in its field, enables us to expand the offline/online experience of players with WMS' compelling gaming content." September December 2011 2012PAGE PAGE59 59

Insight WILLIAMS INTERACTIVE In addition to the Jadestone acquisition, WMS Gaming also recently revealed the launch of Facebook game Lucky Cruise, which saw over a million active users subscribing to the site in a single month. Mr. Edidin makes very clear that Lucky Cruise from WMS's perspective is not a financial proposition, but rather proof of content. "Providing gaming content in the social space is a completely new for us," stated Mr. Edidin. "The hooks that attract players are very different. We've had to modify our content to appeal to this audience, but it has been both rewarding and very successful. It means that in US jurisdictions we can provide webbased casual play tools, all with appropriate branding, all linked to our customer's database. Lucky Cruise has registered over one million users to the website, and has become a tool that we can add to our customer's arsenal, taking players from land-based gaming, through to online, social/casual/free and play-for-money branded website gaming." Following hot on the heels of the formation of Williams Interactive, it’s first launch is Jackpot Party, a social casino on Facebook. Drawing slot content from WMS, the Jackpot Party social casino offers a library of exclusively authentic, classic Las Vegas-style casino slot entertainment; something of a first for Facebook. The beta launch of the Jackpot Party social casino includes six of WMS’ most popular slot themes – Zeus II, Invaders from the Planet Moolah, Brazilian Beauty, Reel Rich Devil, Jungle Wild and Fortunes of the Caribbean – that utilise gaming action featured in several of the company’s player-favourite game families – G+(R), Hot Hot Super Respin, Cascading Reels, Spinning Streak and Money Burst. Many more of WMS’ exciting game themes are scheduled to be added to the Jackpot Party social casino. Additional recent announcements from WMS have further expanded its online offer for US operators through an agreement with 888.com, in which, WMS will market and distribute 888’s world-class online poker solution to land-based casino customers in legal venues in the United States, initially with a play-for-fun offering. WMS will serve as the exclusive provider of 888's online poker solution to casino operators in the US, with certain limited contractual exceptions. In addition, the deal will also facilitate September 2012 PAGE 60

the creation of an interoperable platform that will enable an integrated experience between 888's poker solutions and WMS’ online casino solutions incorporating WMS content and capabilities, providing for play-forfun and wagering solutions. Defining the philosophy driving these announcements, Mr. Edidin summarised: “A global migration toward content convergence and multichannel distribution is rapidly underway. Having anticipated the convergence of land-based casino gaming with online, social, casual and mobile gaming, we set out several years ago to prepare WMS to benefit from these exciting new opportunities. We have developed and acquired the appropriate experience and skills needed to help our customers prepare for the convergence in their businesses with a broad set of value-added solutions, products and managed services.” The inevitable expansion of the online gaming market in the US is likely to prove to be very disparate, with stateby-state regulation creating a

"Providing gaming content in the social space is a completely new for us," stated Mr. Edidin. "The hooks that attract players are very different. We've had to modify our content to appeal to this audience, but it has been both rewarding and very successful. It means that in US jurisdictions we can provide web-based casual play tools, all with appropriate branding, all linked to our customer's database.” Orrin Edidin, President and CEO, Williams Interactive.

a Global miGration towards content converGence is rapidly underway. smorgasbord of contrasting and conflicting legislation. Mr. Edidin's view is that we're unlikely to see federal legislation governing online gaming in the US as part of overarching regulatory control. As a result, suppliers will need the flexibility to satisfy a multitude of different requirements. What works in one state won't necessarily work in another. "It's likely that individual states will need to pool liquidity and therefore it's crucial that we are in a position to integrate with both current and future systems," stated Mr. Edidin of WMS' interoperability objectives. "We see ourselves as both a games company and an integration company. We want

Insight WILLIAMS INTERACTIVE

access to systems, just as our customers want access to WMS content. We need as much of the distribution channel as possible, while continuing to concentrate all our energies on creating compelling games. In essence, we are going back to our roots; providing a unique gaming experience that engages across every gaming system and platform." In the online gaming space outside of the US, WMS is concentrating its efforts in the European sector, with the UK considered a major focus as the most mature 'legal' market for online gaming, with the emphasis resolutely on 'legal.' While market expansion will be dictated at the legislative and regulatory level, it's customer demand that is really driving WMS’ interactive games development. "Right now there isn’t a customer I talk to that doesn't want to hear about our interactive plans. This isn't a solution that we're pushing onto the market; most people agree that interactive gaming will continue to grow and our aim is to be an important contributor,” stated Mr. Edidin. “Everyone on the land-based

side is looking at the online space. As a games company we’re here to help our customers exploit every channel. We faced a learning curve on the technical and analytics side online, which is why the acquisition of companies like Jadestone have helped speed us to market. There are others out there, and we are evaluating those that can help us to truly achieve leadership in the online space. Somewhere between our managed services and game server integration you are going to see a huge proliferation of WMS content. It’s an exciting time.” WMS has been very careful to set-up a management structure which, despite the company's interactive gaming ambitions, is not going to become distracted from its core land-based offer. “We simply want access to the all those pipelines, which means that we're not just delivering amazing new titles with our next level of CPUNXT3, but offering our enormous library of games to our online customers too,” confirmed Mr. Edidin. “We are very mindful of not taking our eyes off our core competencies, which means that

“Williams Interactive enables us to efficiently integrate our Atlanta-based online development resources, Indiabased systems and software capabilities, Chicago-based online development studio and engineering staff, our UK-based operational center, our Sweden-based online development and operations center and our Iowa-based Phantom EFX development team for social, casual and mobile gaming entertainment.” Orrin Edidin, President and CEO, Williams Interactive.

we are structuring the business to maximise our ability to leverage proven content across all channels. We want our customer to succeed in the online space and we're offering them with the tools to ensure their business capitalises on every opportunity.” Mr. Edidin concluded, “Creating a single organisation to unify the company’s efforts in online wagering and interactive gaming distribution channels, while drawing upon our extensive existing library of great gaming content, will better enable WMS to participate in the many highmargin opportunities this content convergence offers. Williams Interactive enables us to efficiently integrate our Atlanta-based online development resources, India-based systems and software capabilities, Chicago-based online development studio and engineering staff, our UK-based operational center, our Sweden-based online development and operations center and our Iowa-based Phantom EFX development team for social, casual and mobile gaming entertainment.” September 2012 PAGE 61

Focus HOHENSYBURG CASINO

hive of industry WestSpiel’s Spielbank Hohensyburg sparkles once more following a major refurbishment that re-establishes it as one of Germany’s most prestigious venues

What is probably the best recognised casino in Germany – Spielbank Hohensyburg in Dortmund – has underdone a major facelift to put it firmly back on the German casino map. The location in Dortmund is excellent, located atop a hillside, offering a panoramic view of its surroundings. The casino was inaugurated in June 1985 and soon became the most successful casino in Germany. Spielbank Hohensyburg belongs to the WestSpiel group, the largest casino group in Germany, which registered a September 2012 PAGE 62

DIETER LENNARTZ, Head of Classical Gaming, CLAUDIA KÖNIG, Head of Sales and Gastronomy, intepreter and REINHARD WEHNER, Head of the Slot Department.

turnover of €109m in 2011 (which relates to approximately 25 per cent of Germany’s entire turnover from casinos). WestSpiel operates seven casinos and two dependencies (slot halls) in Germany. The new concept in Dortmund is based on four pillars: open architecture with a large mixed gaming area, enhancing the status of classical games, a new ‘trendy’ weekend club and top gastronomy/ catering. The grand opening ceremony, including a VIP Gala for the opinion

more than €8m has been invested in the refurbishment of dortmund’s casino hohensyburG, which took eiGht months to complete. leaders of the region and for the public, took place on August 24. More than €8m has been invested in a refurbishment that took eight months to complete. The casino remained open during process – highlighting the skilled German planning. The exterior of the casino has remained untouched, but visitors will see dramatic alterations inside the casino. The design of the casino is over three floors, with each floor sporting a different theme. “Spielbank

Focus HOHENSYBURG CASINO

Hohensyburg is Dortmund’s crown jewel,” explained Franz Hirthammer, Managing Director at Spielbank Hohensyburg. “In recent years, we have faced serious competition from Internet gaming and commercial AWP gaming. Therefore, we decided on a powerful and highly innovative relaunch to strengthen our market position. This thrilling mixture of countless games, a variety of classy events and a first-rate cuisine is unique.” The former classical gaming area on the

top floor welcomes players with a generous range of mixed gaming: 35 gambling tables and 150 slot machines of the latest generation. The stylish design unites table and slots together. It has been standard in Germany to separate these two forms of gaming in the past. In previous years ID control was necessary only for classical table gaming. Now that ID control is required for all types of gaming, the two can be mixed together. The Horus Bar stands in the middle of this floor, the immediate eye-catcher and

“In recent years, we have faced serious competition from Internet gaming and commercial AWP gaming. Therefore, we decided on a powerful and highly innovative relaunch to strengthen our market position. This thrilling mixture of countless games, a variety of classy events and a first-rate cuisine is unique.” FRANZ HIRTHAMMER, Managing Director, Spielbank Hohensyburg.

the natural social meeting point. “It appeals to all our guests, no matter what passions they have,” explained Mr. Hirthammer. You enter the new gambling area and face a huge shining bar. It’s an ideal starting point to jump from black jack or roulette to the slot machines, observe the games, chat with friends, play the electronic multi roulette, try your luck on the American Roulette close by or simply celebrate your recent win.” The resurgence of classic gaming with 35 gambling tables on level 2 is a striking change. Besides American roulette, black jack, poker, and French roulette; baccarat is enjoying a real renaissance. “Baccarat fans travel long distances to play at Hohensyburg since the game is very rarely offered in Germany. For this special target group, Dortmund becomes a centre of attraction,” explained Dieter Lennartz, Head of Classical Gaming. “We feel guests’ want classic gambling in proper attire. We want to set benchmarks here.” The former ‘Las Vegas World’ on the middle level has also undergone a complete redesign. Next to the 150 slot machines on the top level, here another September 2012 PAGE 63

Focus HOHENSYBURG CASINO

160 slot machines have been installed. For each of the slot machines more than 1km of cable was laid. The gaming software has been updated and thoroughly tested and new security features installed – essential for a statecontrolled institution. Alongside the slots, a real first for German casinos is the debuting of TCSJohnHuxley’s TouchTable MultiPLAY System, an electronic multi-roulette game for up to seven players. “Our goal has been to introduce brand new technologies within the casino refurbishment; to bring the classical and slots closer together. The TCSJohnHuxley touchscreen multiroulette is the ideal solution and has already proven itself to be very popular. Community gaming is today’s trend and September 2012 PAGE 64

“The TCSJohnHuxley touchscreen multiroulette is the ideal solution and has already proven itself to be very popular. Community gaming is today’s trend and here the players all place their bets on the same touchscreen.” REINHARD WEHNER, Head of Slots, Spielbank Hohensyburg.

here the players all place their bets on the same touchscreen. The TouchTable MultiPLAY System unites classical and slots gaming. Players who want to converse with each other like to play on this system. Thus, we have catered to yet another type of player. Our guests can look forward to play slot machines with reels as well as new video slots operated by touchscreen. The highest standards in computer technology including amazing image resolution and lots of interactive features provide real fun for our players,” said Reinhard Wehner, Head of Hohensyburg’s Slots Department. “We have been delighted with the performance of MultiPLAY HD Auto since being installed,” commented Tim Klok, Senior Business Development Manager,

TCSJohnHuxley. “While delivering the many benefits of electronic gaming, such as increased profitability and reduced time between games, MultiPLAY does not strip away the core essence of live gaming that players enjoy. This makes it the perfect product for the German market as it increases its focus on innovative electronic gaming products.” Spielbank Hohensyburg is the first casino in Germany to site the Organic G4 from Interblock. This 30 position electronic multi-roulette system takes a dominant position in the elegant slots area on the top floor. This is a major installation for Interblock in the German casino market and the casino management is very pleased in relation to the integration of the Organic design with the new casino

Focus HOHENSYBURG CASINO

theme. It’s a highlight that has been coupled with a unique jackpot system for the Organic. The ‘Mystery Plein Jackpot’ was developed by Mr. Wehner. To date it is standard in German casinos to payout 35 times the win on plein – as the stake itself stays with the house. Casino Hohensyburg has taken part of the plein and invested it into the ‘Mystery Plein Jackpot’. Every player who wins plein on the Organic G4 system has the chance to win this jackpot, which is paid out at least once per day. “This brings even more added excitement to what is a very eye-catching and premium design,” enthused Mr. Wehner. The entrance area (lower level) of the Hohensyburg Casino has been

transformed from an electronic casino to a vibrant weekend club with integrated gambling, offering a varied programme like live gigs, DJ performances or themerelated events. Gaming entertainment is provided by 60 slot machines and on two black jack and two roulette tables (playable with small bets). The culinary highlight of the casino is the highly awarded restaurant ‘Palm Garden’, noted as being one of the best restaurants in the whole of Germany. In the open kitchens, the locally well-known 25-yearold chef, Michael Dyllong, celebrates ‘Fine Dining’ par excellence - a light menu of freshly prepared seasonal and local ingredients. Spielbank Hohensyburg is an excellent location for special events and parties (e.g. weddings). It has

“While delivering the many benefits of electronic gaming, such as increased profitability and reduced time between games, MultiPLAY does not strip away the core essence of live gaming that players enjoy. This makes it the perfect product for the German market.” TIM KLOK, TCSJohnHuxley

numerous rooms of differing sizes to cater for small to large events. These facilities have also undergone refurbishing. For example, the main event room has had new sound technology invested to the sum of €250,000 to create a very special enviroment for visitors. The refurbishment of Spielbank Hohensyburg has added fresh sparkle to the German casino market. The interaction between different types of catering and events and the amalgamation of table and slots gaming sees management enthused about the future of this dynamic gaming location. The hope is that the casino will quickly return to the forefront of German casino gaming and the evidence suggests that it will. September 2012 PAGE 65

Focus UNITED KINGDOM

dcms committee supports chanGe Calls for change in the gaming sector in the UK are coming not only from operators, but recent reports from the Culture, Media and Sport Committee suggest that new thinking is needed

The UK’s existing casino sector, numbering some 140 properties, is being unfairly disadvantaged by the 2005 Gambling Act, leading to a lack of investment in the existing business. The claim, from a report carried out by the Culture, Media and Sport Committee, says that along with the effects of the smoking ban, the economic downturn and high taxation, the uneven playing field, pitching the new-style small and large licences against the existing licences, has led to job losses and closures. September 2012 PAGE 66

It wants the machine to table ratio to be even across the whole sector with the aim of making the existing businesses and the future small licences more viable. The report said: “We see no logical reason for maintaining different regulatory regimes and believe that 1968 Act Casinos should be given the same freedoms as new ones. There is now a two-track system for casinos, with existing 1968 Act Casinos unable to modernise and take advantage of the allowances granted to new small and large casinos. However, as the

There is now a twotrack system in the UK for casinos, with existing 1968 Act Casinos unable to modernise and take advantage of the allowances granted to new small and large casinos.

development of these new casinos has been so slow following the Act, with only one large casino having opened to date and two more having been permitted, there is currently no way of assessing what impact allowing 1968 Act Casinos the same freedoms would have.” It accused the Act of creating a situation where the small casino model is not considered financially viable. “This is partly because a small casino must possess a larger floor-area for table play than a large casino in order to maximise its machine allowance,” it explained. “Not one small casino has been developed. It was not Parliament's intention in 2005 to make small casinos completely unviable.

Focus UNITED KINGDOM The National Casino Industry Forum (NCiF) criticised the decision to allocate 10 of the 16 new casino licences to areas where 1968 Act Casinos were already in operation. This, it said, led to many licences not being utilised as they would either not be economically viable in competition with existing casinos or because casino operators of 1968 Act took up licences with no intention of constructing a casino which would compete with their existing businesses. The NCiF also argued that investment in the casino industry ‘collapsed’ following the Act partly due to this overlap in permitted areas between the 1968 Act provisions and those of the new Act and called for existing licences to become portable between permitted areas. They argued that this would allow them to move existing unprofitable casinos into areas where they would be economically viable.

the delays in licensinG for new small and larGe casinos are siGnificant and the result of an overly complex and bureaucratic process.

In total 16 local authorities were granted permission by the Casino Advisory Panel to host a new small or large Casino but whilst 68 local authorities originally applied in 2006 for permission to have either a new small or large casino, only one has so far opened.

We recommend that the Government introduce a single ratio of five machines to one table for both small and large casinos. Local authorities should have the power to increase the number of machines permitted per table if they wish to do so and an operator requests it.” In total 16 local authorities were granted permission by the Casino Advisory Panel to host a new small or large Casino but whilst 68 local authorities originally applied in 2006 for permission to have either a new small or large casino, only one has so far opened. The report stated: “The process of casino licensing created by the Act is complex,

expensive and ambiguous. Only one licence was subject to a proper competition and is operating. Of the remaining nine, two local authorities have just begun their process, three have gone to legal challenge, four licences have been granted but have not been developed and of that four only one is in a genuine development process. The delays in the licensing process for new small and large casinos are significant and the result of an overly complex and bureaucratic process imposed on local authorities. Insufficient guidance was provided by central Government to the licensing authorities which has led to increased consultation and administrative costs.”

“The stated aim of the Government; to test the impact of the new casinos, would be almost impossible to implement in a timely and cost effective manner due to the impracticality of identifying whether any increase in problem gambling was caused by the new casinos as opposed to the presence of any other forms of gambling including online,” the Committee said. “The Government should reconsider its plans to test the impact of the new casinos. Given that casinos have some of the most comprehensive measures for tackling problem gambling and in the light of some of our other recommendations we believe that casino operators will already be doing enough to enable the industry to grow safely.” hiGh tax kills super-casino ambitions The Culture, Media and Sport Committee report suggests that the opportunity to introduce so-called super casinos into the UK has ‘passed’ claiming there is a general reluctance to even discuss the possibility of reintroducing a statutory instrument to permit them following the September 2012 PAGE 67

Focus UNITED KINGDOM government’s dramatic U-turn during the enactment of the 2005 Gambling Act. Despite the domestic sector still holding the view that regional casinos are a sound business concept capable of generating ‘visitation and leisure spend unachievable by other means,’ the report suggests that the tax situation in the UK makes them potentially unworkable. “In the UK, higher-level casino duty rate is 50 per cent and we were told that no resort complex would be able to offer a rebate to attract the high-rollers at that level,” the committee stated. “The operators said that London casinos currently attracted business from highrollers because they were in London for other business. We were told, however, that realistically London was now the only place within the UK which might be attractive to operators as a site for a

a casino duty rate at 50 per cent means that no resort complex would be able to offer a rebate to attract hiGh-rollers. regional casino because of its size, number of visitors and the wider entertainment available there.”

One Minister argued: “I think it would be a huge mistake for us to try and rerun the 2005 Act without enough facts, because all you would get is whoever has the best hotline into the largest circulation daily newspaper having a competing dialogue via megaphone, which is what happened then.” Gala’s Chairman Emeritus Neil Goulden added: “People are a little scared to put their head above the parapet [on the issue of regional casinos] because I think a few people carry the scars. From a personal point of view, I think that a regional casino could well be a good thing but I don't think anyone in the current industry is going to put their head above the parapet and push for it.” The Culture, Media and Sport Committee reports said: “The current wariness of casino operators about re-entering the debate on regional casinos has partly resulted from the confusion created after the passage of the 2005 Act and the misjudged process for selecting a location.” September 2012 PAGE 68

However it states that the main reason making regional casinos unattractive is the UK's comparatively high rate of casino duty. “We recognise that changing this would be extremely contentious and is unlikely to be considered in the near future. The opportunity to establish one or more regional casinos in the UK has passed and, without a change in the political and economic climate, is unlikely to reoccur.” british binGo welcomes 15 per cent binGo tax The report by the Culture Media and Sport Select Committee investigating The Gambling Act 2005 states that ‘bingo should be taxed in line with other forms of gambling at 15 per cent’. The Report firmly acknowledges bingo’s position as soft gambling and supports the original vision, set out in the 2001 Gambling Review Report, that bingo clubs be maintained as social, soft gambling, environments. In acknowledging that the bingo sector remains highly taxed in comparison with other sectors, the Report recommends that Treasury make an assessment and investigate the position within the next financial year. Paul Talboys, Chief Executive, The Bingo Association said: “We are pleased that the Select Committee has recognised that bingo should be taxed at 15 per cent, bringing it in line with the other forms of gambling in the UK. We remain convinced that a fair tax regime which supports UK jobs and stimulates local economies can only be achieved by introducing a single rate of tax for all products governed by The Gambling Act. In moving forward to create a sector with a genuinely ‘level playing field’ it will be essential for all involved, that the DCMS and Treasury, who are responsible for creating the framework (regulatory and tax) that the industry operates within, work together in a co-operative and considered manner.” report calls for Greater casino freedom The final significant element in the report by the Culture, Media and Sports Committee concerns FOBTs. The Report states that British casinos should be allowed to operate up to 20 Fixed Odds Betting Terminals as part of a shake up proposed by the Committee, which also says greater power should be given to local councils. The committee slammed the Gambling Act 2005 saying there were ‘numerous inconsistencies’ and that it had already become out-dated. Whilst central regulation should provide high standards of protection, local councils should be

Focus UNITED KINGDOM “People are a little scared to put their head above the parapet [on the issue of regional casinos] because I think a few people carry the scars. From a personal point of view, I think that a regional casino could well be a good thing but I don't think anyone in the current industry is going to put their head above the parapet and push for it.” NEIL GOULDEN, Gala’s Chairman Emeritus.

able to decide if they want more casinos or not. The report stated: “Both the 1968 and 2005 Act provisions successfully prevented casinos from proliferating or clustering. However, there is no evidence that allowing local authorities to decide independently whether or not they wish to have a casino would lead to a significant increase in the total number of casinos. The decision as to whether a casino would be of benefit to a local area should be made by local authorities rather than central diktat. Any local authority should be able to make the decision as to whether or not they want a casino. The portability of these licences would be constrained by the existing 'triple lock' contained in the Gambling Act: the need to obtain local authority approval, a premises licence and planning permission.” With regards to FOBTs, it said that licenced betting offices and casinos are

currently allowed a maximum of four FOBT terminals, with stakes of up to £100 and a jackpot of £500. As the most regulated gaming sector, casinos should be permitted to operate as many as 20 such machines, according to the committee, who added that operators across the sector should be charged lower fees by the industry regulator, the Gambling Commission. John Whittingdale, Tory chairman of the committee, added: “Gambling is now widely accepted in the UK as a legitimate entertainment activity. The ‘reluctantly permissive’ tone of gambling legislation over the last 50 years now looks outdated.” He said that the majority of the opposition against the act focussed on the introduction of ‘super casinos.’ He concluded that there was ‘little enthusiasm’ within the industry for such large-scale gambling venues under the current climate.

“We are pleased that the Select Committee has recognised that bingo should be taxed at 15 per cent, bringing it in line with the other forms of gambling in the UK. We remain convinced that a fair tax regime which supports UK jobs and stimulates local economies can only be achieved by introducing a single rate of tax for all products governed by The Gambling Act. In moving forward to create a sector with a genuinely ‘level playing field’ it will be essential for all involved, that the DCMS and Treasury, who are responsible for creating the framework (regulatory and tax) that the industry operates within, work together in a co-operative and considered manner.” PAUL TALBOYS, Chief Executive, Bingo Association. September 2012 PAGE 69

Interview FRANCESCO CORALLO

Gladiator Games

An investigation into corrupt banking officials has embroiled Italy’s largest concessionaire, BPlus, in a gambling scandal of monumental proportions. In an exclusive interview with G3, Francesco Corallo defends himself and his company The Bancao Popolare di Milano (BPM) former president, Massimo Ponzellini, is currently under investigation and house arrest in Italy in relation to €2.5bn in deteriorated loans made during his term of office. The investigation goes back several years and includes intercepted phone conversations, the seizure of computer records and individual testimonies. As part of the investigation an arrest warrant has been issued for the owner of Italian concessionaire, BPlus, Francesco Corallo, in relation to a loan, granted by the Bancao Popolare di Milano to BPlus in October 2010 for €45m, following an initial tranche of €105m in 2009. A resident of St. Maarten in the Dutch Antilles, Francesco Corallo was declared a fugitive by the Italian authorities when they were unable to contact him in relation to the warrant issued in May of this year. At the time of the arrest warrant being issued, Mr. Corallo was not present in Italy. He is not an Italian citizen and he does not live in Italy. The Italian press paints a picture that Mr. Corallo fled upon knowledge of the arrest warrant being issued; however, he was not in the country at the time and the Public Prosecutor of Milan was well aware of the fact. It is no secret that Mr. Corallo lives in St. Maarten where he owns a number of casinos. As it stands, the arrest warrant issued by the Italian authorities requires Mr. Corallo to be held in custody whilst the criminal investigation is undertaken, which could take up to a year. At present, Mr. Corallo has not returned to Italy. The Office of the Public Prosecutor of Milan did not try to contact Mr Corallo before the arrest warrant was issued. The September 2012 PAGE 70

Public Prosecutor, however, knew the identity of Mr. Corallo’s Italian lawyers at all times and could have contacted Mr. Corallo through them if they had wished. The Public Prosecutor finally served the arrest warrant upon Mr Corallo’s Italian lawyers on June 25, 2012. The Italian media maintain that BPlus received €105m in cash and that this sum remains unaccounted for, stolen or has been used for a purpose other than that which was agreed with BPM. However, the investigation in Italy does not focus on the first tranche of the loan granted in October 2009, but on the second tranche granted in October 2010 (of €45m). According to BPlus, BPM were aware that the loan was to be used to purchase the VLT licences and to be paid to the Italian State, and that the loan was secured by the licenses that were purchased. The loan from BPM was used to acquire 11,953 VLT licences from AAMS (the governing authority of gaming in Italy) at a cost of €15,000 per VLT licence, paid directly to AAMS. The Italian press has, understandably, had a field day with the story, which has all the elements needed to sell tabloids. Multi-million banking fraud, bribery allegations, associations with gambling companies, tax havens, arrest warrants and fugitives. However, the crux of story begins with the loan application itself. The Bank of Italy claims that Bancao Popolare di Milano should not have granted Atlantis World the loan in 2009, with prosecutors claiming that bribes were promised to Massimo Ponzellini and a series of other bank employees and associates to secure the loan. A police statement outlines: “Milan prosecutors

At the time of his arrest warrant being issued, Mr. Corallo was not present in Italy. He is not an Italian citizen and he does not live in the country. It’s not the case that Mr. Corallo fled Italy upon knowledge of the arrest warrant being issued; he was not in the country at the time.

suspect that huge loans were granted partly ‘through the falsification of evaluation procedures at the bank’ and given in exchange for €5.7m in bribes.” The bribes are supposed to be a cumulative amount alleged to have been paid by all those entities that have been connected to BPM and Mr. Ponzellini, including other gaming companies and Italian organisations, such as Capgemini, Energreed and Almaviva. The claim against Atlantis World and Francesco Corallo states that he and his company ‘improperly stole the bank’s

Interview FRANCESCO CORALLO BPlus has been a British-based firm since it was incorporated. BPlus collects and pays to the Italian State approximately €90m in gaming taxes every month. BPlus in addition pays corporate tax on its income to the Italian State, making the company the second biggest corporate tax payer in Italy after the car giant, Fiat. The Italian press has focussed upon investigations conducted into tax evasion in 2010 and related raids on Mr. Corallo’s property in Rome, despite the fact that he and his company were exonerated. The fact that Mr. Corallo’s father was formerly convicted of corruption charges in Italy has fuelled press links to organised crime and removed any aspect of considered analysis from the coverage. Investigations into Mr. Corallo and his company have been formally conducted and concluded as part of the concessionary licensing process and something that both he and Atlantis underline in their defence. The Italian press are fascinated by the amount of money generated by the gaming industry in Italy, through the 10 concessionaires, illustrating stories with tables depicting revenues for each of the companies involved. The fact that each company pays enormous taxes to the treasury appears lost in the current scandal, which is first and foremost a banking, not gaming one. In an exclusive interview, G3 questioned Mr. Corallo in relation to the allegations made against him, BPlus and Atlantis World. His answers are printed here unabridged or edited due to the legal issues involved in the case. WHAT WERE THE CIRCUMSTANCES CONCERNING THE ISSUANCE OF THE BPM LOAN – WAS IT REJECTED? WAS PRESSURE EXERTED OR WAS THIS A NORMAL LOAN? It is worth knowing that B Plus (or its predecessors) has had a banking relationship with BPM since about 2004, long before the arrival of Mr Ponzellini as Chairman of the bank in April 2009.

money, issued false invoices and laundered the money received through its gambling business.’ Subsequently, Mr. Corallo, has conducted a series of interviews in the Italian press seeking to address all the claims made against him, not least his status as a fugitive. Mr. Corallo states that the loan with Bancao Popolare di Milano was a regular business loan, just as the bank’s lending during the same period to Gmatica and Sisal were part of the VLT licensing process instigated by the Italian gaming monopoly, AAMS. The loan was secured at the time against €250m of collateral and did not pose a risk to BPM. To date,

BPlus has re-paid €75m of the loan with Bancao Popolare di Milano earning €7m in interest payments as part of the process. Atlantis World Group, parent of BPlus, is Cyprus-based, having moved the company’s HQ from the Dutch Antilles to comply with Italy’s 2010 Law of Stability, which forced Italy’s gaming concessionaires to ensure they are located with the European Economic Area. Claims that Atlantis and BPlus are located in tax havens have been disputed by Mr. Corallo, who has confirmed the relocation of Atlantis to Cyprus and maintained that

BPlus collects and pays to the Italian State approximately €90m in gaming taxes every month. BPlus in addition pays corporate tax on its income to the Italian State, making the company the second biggest corporate tax payer in country after the car giant, Fiat.

After the Abruzzo Decree of April 2009, which legalized the use of Video Lottery Terminals, B Plus made an application to BPM for a loan in order to fund in part the purchase of the VLT licences (with B Plus using its capital to pay the remainder of the licence fee). This loan application was approved by the Board of Directors of BPM. This loan was not unusual as every concessionaire obtained loans from major and respected banks to finance their own purchases of the VLT licences which included Uncredit, Deutsche Bank and Royal Bank of Scotland. The loan received from BPM was used for the purpose of buying 11,953 VLT licences September 2012 PAGE 71

Interview FRANCESCO CORALLO from AAMS (the governing authority of gaming in Italy) at a cost of €15,000 per VLT licence. B Plus obtained funding from BPM for the VLT licensing fees in October 2009 (€60 million) and October 2010 (€45 million). B Plus paid a standard interest rate (Euribor plus 2 percentage points), paid standard costs associated with the loans (loan examination fees, pre-amortization interest, etc.), and provided significant and valuable security in terms of an assignment of the VLT rights valued at €179,295,000 and the assignment of additional credits in the amount of €33 million. B Plus has already repaid €75 million of the total loan (of €105 million) and has never defaulted on a repayment obligation and B Plus continues to honour its obligations despite the accusations levelled at me and my company. It is also very important to understand that B Plus has also paid total interest and fees to date on the loan amount of over €7.5 million which I believe makes B Plus one of the bank's most profitable client relationships. This is not a situation where BPM has a bad loan on its hands or where there can be any suggestion that financially the decision to issue the loan was a mistake. It is surprising, in light of this fact, that the Public Prosecutor is focusing on whether loans to B Plus were appropriate, when we understand that BPM has over EUR1.3 billion of bad loans with other parties according to a Bank of Italy report on the bank. Absolutely no pressure was applied by myself or B Plus to BPM in respect of the loan which went through an internal BPM credit approval process which was documented and was ultimately approved by the Board of Directors of BPM. The loan has proved to be very good business for BPM, was secured by a substantive guarantee and they have made a significant profit from the commercial arrangement. I am at a loss to understand, how, in circumstances where BPM has not suffered a penny of loss from its relationship with B Plus and, in reality, has made a healthy gain, there can be any suggestion that I or my company have behaved improperly. BPM in fact continues to profit from its relationship with B Plus as B Plus is continuing to make its loan repayments in full together with interest. So that the reader can understand, I am being accused of an offence under Article 2635 of the Italian Civil Code which reads as follows: art. 2635 civil code Breach of fiduciary duty following bestowal or promise of benefits The directors, general managers, managers September 2012 PAGE 72

the italian press has had a field day with the story, which has all the elements needed to sell millions of tabloids. responsible for compiling the company's financial statements, auditors and liquidators who, following the bestowal or promise of benefits, commit or omit acts in breach of the duties inherent to their office, causing harm to the company, shall be punished with up to three years' imprisonment. The same penalty applies to those who give or promise to give the benefit. The penalty is doubled if it involves companies with securities listed on regulated Italian markets or the markets of other European Union Member States or available to the public for the purposes of article 116 of the legislative Decree of 24 February 1998, no. 58.

“The allegations made against me by the Public Prosecutor are to this day not entirely clear or coherent but in short what we understand him to be alleging is that I bribed Mr Ponzellini, the former Chairman of BPM, to manipulate internal loan approval procedures so that B Plus could obtain a loan which it otherwise would not have obtained from the bank. First, to be clear, there is not a shred of evidence in the Public Prosecutor's case against me that I paid any bribes to Mr Ponzellini.” FRANCESCO CORALLO, B Plus, Atlantis World.

The claim shall be brought on the complaint of the victim. It is important to note that for there to have been an offence under this Article it is essential for the alleged victim (ie BPM in this case) to have suffered harm. Whilst I have not paid or promised any bribes which would trigger this offence, it is clear from BPM's press release of 29 May 2012 published in response to the arrest warrant issued against me, Mr Ponzellini and Mr Cannalire that BPM has not suffered any economic harm as a result of the provision of the loan to B Plus. BPM has publicly stated for the record in its press release that: ‘At present and according to available information, it is believed that this event [the financing of B Plus] will have no economic impact on the bank.’ Without harm being suffered by the victim, there is no offence under Article 2365. YOU HAVE SPOKEN OF DOCUMENTS THAT REFUTE THE ALLEGATIONS – COULD YOU OUTLINE THOSE FOR OUR READERS? The allegations made against me by the Public Prosecutor are to this day not entirely clear or coherent but in short what we understand him to be alleging is that I bribed Mr Ponzellini, the former Chairman of BPM, to manipulate internal loan approval procedures so that B Plus

Interview FRANCESCO CORALLO 2004 the Atlantis Group needed to meet certain criteria set by AAMS which included having experience as a gaming operator and manager of network systems and showing a track record of earnings including total sales at least equal to €30 million in the two year period from 2002 to 2003. The Atlantis Group met all AAMS' suitability requirements and as a result was granted one of the concessions to operate the legal gaming systems on behalf of the Italian State and collect the gaming tax. THERE SEEMS TO BE A GREAT AMOUNT OF DETAIL CONCERNING MEETINGS WITH MASSIMO PONZELLINI AND YOURSELF – THERE ALSO APPEARS TO BE ALLEGATIONS THAT PONZELLINI WAS ACTING ON ATLANTIS' BEHALF TO PUSH THROUGH THE LOAN APPLICATION, WHICH ACCORDING TO THE BANK OF ITALY, SHOULD NOT HAVE BEEN GRANTED. MEETING WITH A BANK TO DISCUSS A BUSINESS LOAN IS COMMON PRACTICE, SO DO THE PROSECUTORS HAVE EVIDENCE THAT THERE WERE INCENTIVES PAID OR PROMISED?

could obtain a loan which it otherwise would not have obtained from the bank. First, to be clear, there is not a shred of evidence in the Public Prosecutor's case against me that I paid any bribes to Mr Ponzellini. Secondly, there is no evidence that the bank manipulated or overlooked the loan approval process so that B Plus could secure a loan and that I pressured BPM to do so. The documents from BPM's own files point to the contrary and demonstrate that the loan to B Plus was properly considered and ultimately approved by the Board of Directors. My lawyers have now obtained depositions from members of the Board of Directors at the time the loans were approved that confirm that no pressure was applied by Mr Ponzellini (or B Plus) with respect to the loans and that the credit approval process was properly undertaken; they also have a report prepared by BPM and filed with the Bank of Italy in July 2011 that was approved by Directors of BPM that makes the following conclusions about the loan to B Plus: "the evaluations carried out led to a positive conclusion regarding the sustainability of the business supported by, in addition to the numbers, a largely positive historical relationship corresponding to its everyday activity" and that "positively regarded were the business model adopted, the

there is no evidence that the bank manipulated or overlooked the loan approval process so that b plus could secure a loan. guarantees acquired/requested and the contractual covenants signed, which brought the overall risk profile within an acceptable range for the Bank." BPM have also now recently disclosed a report conducted by a major external independent auditor to review BPM's customer file with B Plus, which was commissioned by BPM before the arrest warrant was issued, that does not contain any suggestion that the loan approval process was manipulated with respect to B Plus. These are but a few examples of documents that prove that the case against me is entirely misconceived and should never have been brought in the first place. It is also worth noting that in order for B Plus to qualify as a concessionaire in

“In order for B Plus to qualify as a concessionaire in 2004 the Atlantis Group needed to meet certain criteria set by AAMS which included having experience as a gaming operator and manager of network systems and showing a track record of earnings including total sales at least equal to €30 million in the two year period from 2002 to 2003. The Atlantis Group met all AAMS' suitability requirements and as a result was granted one of the concessions to operate the legal gaming systems on behalf of the Italian State and collect the gaming tax.” FRANCESCO CORALLO, B Plus, Atlantis World.

I met with Mr. Ponzellini on three occasions in Rome. The first meeting was at Mr Ponzellini's request after April 2009 and Mr Ponzellini's appointment as the new Chairman of the bank as he wanted to meet the ultimate owner of one of BPM's biggest client. The second meeting was again at Mr Ponzellini's request because he wanted information and documentation concerning the corporate structure of the Atlantis Group of companies which I duly provided. The third meeting was at my request because I wanted to know why BPM was not providing assistance in relation to the tender process for the renewal of the concession with AAMS which was due in October 2011. BPM, as B Plus' bank, needed to provide certain confirmations with respect to the existing bank guarantee as part of the tender process and BPM had delayed in providing what should have been very simple assistance. B Plus also sent a letter to BPM formally recording the contents of my complaint after that meeting. These meetings were perfectly natural and ordinary meetings as between a bank and its customer; I have nothing to hide as there was nothing secretive or improper about these meetings. The Public Prosecutor has absolutely no evidence that any money was paid to Mr Ponzellini or that he personally benefited from BPM's relationship with B Plus because no such payments were made. The Public Prosecutor has sought to rely on a loan given by B Plus to a company called M2 Pictures in the amount of €1m as evidence that bribes were paid to Mr Ponzellini simply by virtue of the fact that September 2012 PAGE 73

Interview FRANCESCO CORALLO a Mr Cannalire, with whom Mr Ponzellini is connected (which is very much public knowledge), is a shareholder of M2 Pictures. Yet, the Public Prosecutor's own expert has confirmed that on an analysis of M2 Pictures' accounts there are no disbursements of money that are not specifically referable to the company's line of business. M2 Pictures is a legitimate business which markets and distributes films in Italy http://www.m2pictures.it/. The money loaned by B Plus to M2 Pictures was used to purchase rights in certain films. For example, M2 Pictures has acquired the film rights to Warrior, Spiders, Chernobyl Diaries and Frozen amongst others. The loan from B Plus to M2 Pictures has been characterized by the Public Prosecutor as anomalous and having no commercial value because B Plus did not claim interest on the loan. That is a complete mischaracterization and misunderstanding of the loan arrangement and another critical mistake by the Public Prosecutor. The loan arrangement is a profitable and entirely legitimate piece of business for B Plus (and M2 Pictures) for the following reasons: 1. The loan arrangement gives B Plus a right to a 10 per cent share of M2 Pictures' profits, and in any event, a guaranteed minimum annual payment of €60,000 starting in the 2012 fiscal year (the practical equivalent of a minimum interest rate of 4.8 per cent per annum); 2. the full repayment of the principal amount by 2015; 3. B Plus does not bear any of M2 Pictures' losses; 4. B Plus received personal guarantees from two of the shareholders of M2 Pictures in respect of the loan, Marco Dell'Utri and Rudolf Gentile (who had both previously set up and sold a successful film distribution company called Moviemax). As one can see, no reasonable, objective and rational person could conclude that the loan amount was a bribe in circumstances where the loan is to be repaid together with a healthy return on the loan and there is no evidence whatsoever that this money has been used for anything other than proper business purposes. Q. IF THE LOAN WAS SECURED AGAINST €250M – WHY IS THE BANK OF ITALY MAINTAINING THE POSITION THAT THE LOAN SHOULD NOT HAVE BEEN GRANTED? IN HINDSIGHT, WITH THE REPAYMENTS September 2012 PAGE 74

MADE, IT SEEMS TO HAVE BEEN ACTUALLY GOOD JUDGMENT? Good question. I agree, and as I have already stated, BPM's loan to B Plus has been very good business for the bank. I should clarify for you that the Bank of Italy did not say that the loan to B Plus should not have been granted. The Bank of Italy reached the conclusion that the second tranche of the loan showed "inconsistencies and little in-depth examination" because "specifically there was no discussion regarding the important implications brought by recent changes in the law (Law 220/2010) that impose more stringent requirements for concessionaires of that type of activity, among which is the obligation that the parent entity be registered in non blacklisted countries". For your information, BPM submitted a formal response to the Bank of Italy's Report, explaining among many other things, its “positive historical relationship” with B Plus, the factors that “brought the overall risk profile within an acceptable range for the Bank” and the fact that Law 220/2010 (the Stability Law) was not yet in effect at the time of the October 2010 loan. It is important to understand that a fundamental plank of the Public Prosecutor's case is that Mr Ponzellini

“BPM submitted a formal response to the Bank of Italy's Report, explaining among many other things, its “positive historical relationship” with B Plus, the factors that “brought the overall risk profile within an acceptable range for the Bank” and the fact that Law 220/2010 (the Stability Law) was not yet in effect at the time of the October 2010 loan.” FRANCESCO CORALLO, B Plus, Atlantis World.

manipulated the credit approval process with respect to the second tranche of the loan to B Plus because of the existence of the Stability Law and B Plus' alleged failure to comply with it. It appears to be the Prosecutor's case that had the Stability Law been properly considered with respect to B Plus the loan should not have been granted. However, the terms of the Stability Law did not apply at the time of either the first tranche or second tranche loans. The Stability Law came into force on 1 January 2011 - several months after the second loan was issued and over a year after the first loan was granted - having been published for the first time in the Official Gazette on 21 December 2010. The relevant section of the Stability Law which it has been alleged B Plus failed to comply with stipulated that the Head Office of the ultimate owner of a concessionaire company had to be based in a territory that was deemed not to have a favourable tax system (the Residency Requirement). The Residency Requirement not only was not effective as against B Plus at the time the second loan was issued or when the Bank of Italy produced its report, but B Plus (and the Atlantis Group) had already long complied with this provision by the time it did become applicable to B Plus which was not until 10 October 2011. This is because existing concessionaires did

Interview FRANCESCO CORALLO not need to comply with the Residency Requirement unless they were entering into a competitive tender process. The renewal tender process for the licence rights for gaming licences did not commence until the aforementioned date. The Atlantis Group had realigned its company ownership structure so that its Head Office was not located in Sint Maarten but located in Cyprus by June 2011 in full and timely compliance with the Stability Law.

“The Public Prosecutor's case against me is confused and confusing. However, I am not aware of any allegation or charge that I or B Plus bribed Mr Guido Marino. There appears to be an imputation in the Public Prosecutor's case that I bribed Mr Milanese to ensure the legalisation of VLTs in the Italian market; but the Public Prosecutor has to date not produced a single piece of evidence to support the allegation that bribes were paid to him.” FRANCESCO CORALLO, B Plus, Atlantis World.

This is a very serious and calamitous error by the Bank of Italy. Yet it was this conclusion that prompted the investigation by the Public Prosecutor into BPM and Mr Ponzellini's relationship with B Plus and myself. This error has unfortunately filtered through to the Public Prosecutor's case against me. Despite the very clear position on the law showing that the Public Prosecutor (and the Bank of Italy) is absolutely and undeniably wrong in relation to the application of the Stability Law, the Public Prosecutor has yet to acknowledge that B Plus in fact complied with that law presumably because such an admission would completely undermine his case against me. This is a blatant and surprising error and one the Prosecutor has to this day entirely failed to acknowledge. THERE IS AN ADDITIONAL SUGGESTION – WHICH APPEARS UNRELATED TO ANY OF THE ALLEGATIONS, THAT ATLANTIS WAS INSTRUMENTAL IN THE CHAMPIONING OF VLTS IN THE ITALIAN MARKET, WITH ALLEGATIONS THAT INDIVIDUALS (GUIDO MARINO) WERE BRIBED TO HELP INFLUENCE THIS PROCESS. WHAT REALLY LIES BEHIND THESE ALLEGATIONS AS LOBBYING FOR THE INTRODUCTION OF VLTS IS HAPPENING IN EVERY MARKET RIGHT NOW? The Public Prosecutor's case against me is confused and confusing. However, I am not aware of any allegation or charge that I or B Plus bribed Mr Guido Marino. There appears to be an imputation in the Public Prosecutor's case that I bribed Mr Milanese to ensure the legalisation of VLTs in the Italian market; but the Public Prosecutor has to date not produced a single piece of evidence to support the allegation that bribes were paid to him. The allegation is complete nonsense and untrue. If the Public Prosecutor checks the Chamber of Deputies' website, which is publicly available, he will find that Mr Milanese has never made a single intervention on the subject of gaming. He has never raised a question, motion, interrogation and he has not sponsored any bill. The only incidental involvement Mr Milanese has had with gaming was

when the Chamber of Deputies addressed the approval of the Stability Law in which Mr Milanese acted as referee. The Stability Law was introduced, in my view, to target B Plus and me; not to help my business. So it is difficult to understand how it can be alleged that Mr Milanese was assisting B Plus when he participated in and did not object to the introduction of legislation that the Public Prosecutor's case claims B Plus had failed to comply with and which was patently 'AntiCorallo'. It makes no sense. The Abruzzo Decree was introduced because the money generated by the Italian State from the issuing of VLT licences (to concessionaires) was to be used to rebuild the region of Abruzzo following the terrible earthquake of 6 April 2011 which tragically killed 308 people and devastated the area. However, the legalization of VLTs was already envisaged by the Italian State as far back

for the record, to the best of my knowledGe, mr milanese had no hand in the passinG of the abruzzo decree.

as 2004 when the original tender to be a concessionaire took place. B Plus therefore did not need to lobby for its introduction. For the record, to the best of my knowledge, Mr Milanese had no hand in the passing of the Abruzzo Decree. The Italian State has received €180 million from B Plus with respect to the VLT licences it acquired which the Italian State declared it would use to help restore the Abruzzo region. And to be clear, my company is not the only one to have benefited from this Decree, there are nine other concessionaires – indeed, any company could have participated for the tender for the licences. Finally, it is worth noting that before the Abruzzo Decree was enacted B Plus and the other concessionaires operated on the understanding that the right to operate VLTs (albeit at this point VLT machines were not formally legalized by the Italian State although such a prospect had been envisaged by the Italian State) was incorporated as part of the original 2004 tender process and licence fee. In light of this it is hard to understand why it would be in B Plus' interests to have legislation introduced that:

1. required B Plus to pay €15,000 per licence, when in fact my company had operated on the basis and understanding that it had already acquired those rights as part of the 2004 tender process (with no further payments due); 2. effectively approved the VLT machines that were already in existence at one of B Plus' main competitors, whilst B Plus and other concessionaires had to locate and develop new technology in order to comply with AAMS' requirements for operational VLT machines at significant expense. The legislation put competitors at an advantage rather than B Plus. The reality is that in my view the recent gaming legislation is 'Anti-Corallo' and has been tailored to target my interests with a view to pushing B Plus out of the gaming market in Italy. COULD YOU EXPLAIN FOR OUR READERS WHAT IS THE 'ANTI-CORALLO LAW' AS OUTLINED IN A RECENT INTERVIEW YOU GAVE TO THE ITALIAN FINANCIAL PRESS WHO ARE THE INTERESTED PARTIES SEEKING TO SMEAR YOU AND B PLUS? I have already mentioned the Stability Law. Of the ten concessionaires, the only company whom the Residency Requirement impacted was B Plus. After fifteen years of my company being based in Sint Maarten, this law forced me to restructure my company in circumstances where B Plus had paid the relevant taxes to the Italian State and collected gaming tax for it. Another law was also introduced which I believe was specifically targeted against me. On 2 March 2012 the Italian Government issued Decree Law 16/02 which contained a new provision that required the directors and shareholders of the concessionaire companies to show that their wives/spouses and relatives "until the third degree of kinship" (ie uncle/aunt-niece/nephew) complied with anti-mafia checks. As a result of this Decree, even if a director or shareholder's relative to the third degree of kinship (including wife, father, mother, uncle, aunt, niece or nephew) had a criminal conviction (or was even being investigated) in relation to certain criminal offences then the concessionaire's licence would be revoked. This obviously would have been problematic because of my father's historic criminal conviction from 1983. This part of the Decree was plainly unconstitutional and a flagrant breach of the European Convention on Human Rights; it was ultimately amended pursuant to the conversion law of Decree September 2012 PAGE 75

Interview FRANCESCO CORALLO 16/12 which removed the requirement for checks to be carried out to the third degree of kinship because it was so obviously unlawful. In my view, there are still parts of this gaming legislation that are unconstitutional and I will challenge them in the courts at the appropriate time, if required. At this stage, because of the ongoing criminal investigation, I am not able to go into detail about the facts that demonstrate that certain parties have deliberately sought to manufacture and engineer this baseless criminal investigation against me to further their own interests and agenda. We are continuing to gather evidence to show their role and involvement and will present it in court at the appropriate time. But in circumstances where BPM has suffered no financial harm as a result of its banking relationship with B Plus, and indeed continues to greatly benefit from that relationship, it is difficult to understand why I am being victimised and this trumped up case has been brought against me by the Public Prosecutor. BPM has publicly confirmed that the loan to B Plus has caused it no economic harm. In light of the fact that many banks, including BPM, have underperforming or non-performing loans it is strange to me that the loan to B Plus, which has proved to be great business for BPM, is under investigation.

“I have no criminal record and the only blemish to my name is that my father was convicted decades ago for an offence with which I had absolutely no connection. I have not had any association or contact with my father for many years (a fact verified by the Court of Rome and by Enrico Bellavia, the National Anti-Mafia Prosecutor) and I believe it is unfair for the sins of the father to be visited on the son. That is not how a fair-minded society should operate.” FRANCESCO CORALLO, B Plus, Atlantis World.

WHAT IMPACT WILL THIS HAVE UPON B PLUS AS A CONCESSIONAIRE IN THE ITALIAN GAMING MARKET? COULD YOU LOSE YOUR LICENCE? The effect of this investigation is that B Plus could ultimately lose its gaming licence in Italy if I am convicted. However, B Plus and I will take all steps to fight both the baseless criminal charges and any attempts made to revoke B Plus' licence.

YOU APPEAR TO BE HAVING TO EXPLAIN EVERY RELATIONSHIP BOTH YOU AND ATLANTIS HAVE HAD WITH GOVERNMENT, LEGAL AND BUSINESS CONTACTS – IS THIS A WITCH HUNT? As I have indicated, I believe that there are parties that are trying to damage both myself and B Plus. They want to ensure that B Plus is removed from the Italian gaming market. For the record, I have no criminal record and the only blemish to my name is that my father was convicted decades ago for an offence with which I had absolutely no connection. I have not had any association or contact with my father for many years (a fact verified by the Court of Rome and by Enrico Bellavia, the National Anti-Mafia Prosecutor) and I believe it is unfair for the sins of the father to be visited on the son. That is not how a fair-minded society should operate. I do not have any special link with the old or new Government in Italy. I, of course, like any other successful businessman working in Italy, know people in the political, legal and business world. But my relationships are entirely normal and proper.

September 2012 PAGE 76

“The charges against me are baseless. Although I am being persecuted in Italy I will continue to fight to clear my name and to preserve B Plus' business in Italy which provides jobs there, where it pays income tax, collects significant amounts of gaming tax for the Italian State and carries out its business lawfully.” FRANCESCO CORALLO, B Plus, Atlantis World.

These charges have already caused B Plus significant financial harm, are impacting B Plus' business relationships with third parties and are causing significant damage to its reputation. B Plus and I will look to be compensated with respect to this harm in due course. It is also of great concern to me that if B Plus loses its licence the jobs of 200 of its employees will be lost in Italy; it may also result in thousands of further job losses across Italy as a result of the collateral damage caused by B Plus ceasing to operate. As a matter of principle, I will do everything I can to ensure B Plus continues to operate in circumstances where I am entirely innocent of the allegations made against me so that the business that I have worked hard to grow from scratch is not destroyed and so that the livelihood of B Plus' employees is not ruined because of this unjustified vendetta against me. I am also concerned, bearing in mind the

present economic climate, that the Italian State could lose €90 million per month in gaming tax that B Plus collects for the Italian State simply because certain parties are seeking to promote their own interests and agenda at B Plus' expense and ultimately to the detriment of the Italian State and its people. This should not be allowed to happen in a democratic society and I for one will fight against this injustice using all the legal tools I have available to me. WHAT ACTIONS ARE YOU TAKING TO DEFEND YOUR POSITION AND THAT OF YOUR COMPANY AGAINST THESE ALLEGATIONS? In Italy, my legal team is taking all possible steps to fight the charges against me. B Plus and I will also take all necessary steps to pursue third parties, including those that have conspired to injure B Plus to prove that the allegations against me are completely false and to seek compensation for the loss it has suffered and I have also sustained, including loss suffered as a result of any attempt to revoke B Plus' gaming licence with AAMS. The charges against me are baseless. Although I am being persecuted in Italy I will continue to fight to clear my name and to preserve B Plus' business in Italy which provides jobs there, where it pays income tax, collects significant amounts of gaming tax for the Italian State and carries out its business lawfully.

Preview G2E LAS VEGAS

drivinG innovation Bally Technologies is roaring into the 2012 Global Gaming Expo packing a lot of power under the hood – new games, systems, and interactive solutions all designed to rev up casino operators’ revenue and operating efficiency New this year at G2E Las Vegas, Bally is to unveil two more powerhouse brands: NASCAR and Pawn Stars. Visitors can look for them under the flag, ‘Driving Innovation’. it’s full-throttle ahead with world-class licensed brands NASCAR PROGRESSIVE VIDEO SLOT The NASCAR Progressive video slot features a lineup of who’s who in racing royalty – Dale Earnhardt, Jr.; Jimmie Johnson; Kevin Harvick; Jeff Gordon; and Clint Bowyer. NASCAR is delivered on Bally’s ALPHA 2 Pro Series V22/32 cabinet available with both a lifechanging wide-area progressive top jackpot award and stand-alone versions for non-WAP jurisdictions. Players select their favourite driver and the game screens change to reflect that driver’s team colours and branding. Players root for their driver in this high-octane experience featuring three bonuses: The Pit Stop Bonus, Burnout Free Games, and the Green Flag Bonus. The game features Bally’s new U-Race play mechanic as the player’s selected car races around the track at the world-famous Daytona September 2012 PAGE 78

International Speedway; with dynamic racing video and a display tracking the car’s position on the track, the excitement builds to a rousing finish, where larger credit amounts are awarded for first, second, or third place. VIRTUAL RACING NASCAR Bally extends its NASCAR lineup to Bally Systems with a new Virtual Racing NASCAR application for the Elite Bonusing Suite. This fast-paced, floorwide community-bonusing event for iVIEW and iVIEW Display Manager (DM) brings the sights, sounds, and thrill of NASCAR racing to casino floors as players select one of eight famous NASCAR drivers - Dale Earnhardt Jr.; Jeff Gordon; Jimmie Johnson; Kevin Harvick; Matt Kenseth; Mark Martin; Clint Bowyer; and Martin Truex Jr. Players root for their driver as the cars race around the track, with the action showcased on the iVIEW screens and CoolSign-enabled displays throughout the casino resort. Players who select winning drivers win a casinoconfigurable prizes – ranging from free play, to merchandise, to food-andbeverage, entertainment, and amenity awards. It’s a thrilling new experience,

Bally Technologies: NASCAR PROGRESSIVE VIDEO SLOT

NASCAR is delivered on Bally’s ALPHA 2 Pro Series V22/32 cabinet available with both a life-changing wide-area progressive top jackpot award and stand-alone versions for nonWAP jurisdictions.

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Preview G2E LAS VEGAS

Bally Technologies: CASH WIZARD TIKI MAGIC

Bally Technologies: BEACH BOYS

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Available on the Pro Upright V22/22 Wheel cabinet, the game begins when a player chooses their favourite character from the show. Selling and negotiating adds excitement in this game highlighted by the Negotiation Bonus, where players choose one of five items to sell and then negotiate with the Pawn Stars for credit awards. With its giant wheel, free games, 11 wheel-bonus prizes, wilds, pick-‘em features, and iDeck, this game promises to be as popular as the show itself. power new versions of hot shot progressive, cash wizard DUAL-WHEEL HOT SHOT PROGRESSIVE A new double-wheel version of the Hot Shot brand features an immense 42-inch vertical display, twin gigantic wheels, touch-activated interaction, five-level progressives, free games, wilds, and a third multiplier wheel inside the lower wheel. The Game-in-Game and U-Spin play mechanics deliver a player-favourite experience in a whole new way on this game featured on Bally’s soaring new Pro V22/42HD cabinet.

Bally Technologies: PAWN STARS VIDEO SLOT

CASH WIZARD TIKI MAGIC Other premium games in Bally’s G2E lineup include Cash Wizard Tiki Magic, the next game in Bally’s Cash Wizard series. Featuring Bally’s new 1080p highdefinition screen on the Pro V22/32 cabinet, Tiki Magic introduces the U-Drag play mechanic, three base-game bonuses, and two new Wizard Bonus Bet features, plus plenty of interactive fun Cash Wizard’s new friend Ms. Magic. for-sale content driven by trailblazing play mechanics The Pro Series cabinets’ for-sale game

Bally will showcase its full suite of interactive solutions at G2E, including the Bally Mobile platform for concierge casino apps and mobile websites.

bally interactive provides a single view of the player Bally’s Internet and mobile solutions are designed to give casinos a single view of the player across online, mobile, and traditional land-based gaming platforms. At G2E 2012, Bally will showcase its full suite of interactive solutions including the Bally Mobile platform for concierge casino apps and mobile websites; its open iGaming platform that enables casinos to deliver play-for-free and wager-based poker, table games, video slots, and sports betting and choose from best-of-breed content; and a library of interactive games based on proven casino-gaming content. September 2012 PAGE 79

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innovative spirit

At G2E the Novomatic Group of companies, including AGI, Octavian, Astra, AGI Africa, S. American subsidiaries and partner Reel Games, will present on booth 2654 what’s new, what’s most impressive and what’s a must-have in the world of gaming The product presentation at booth 2654 will comprise all of the latest Novomatic gaming highlights and attractions live on site for show visitors to examine and test. Product specialists from AGI and partner Reel Games, plus many South-American subsidiaries, including AGI Argentina, AGI Gaming Colombia, Crown Gaming Mexico, Crown Gaming Paraguay, Crown Gaming Peru, Novo Gaming Chile and Octavian de Argentina as well as from UK subsidiary Astra Games and AGI Africa will be ready and happy to explain all features and functionalities. Most of the games on the Novomatic booth will be shown in the two most popular Novomatic cabinets: the grand casino slant top NOVOSTAR SL and the very latest upright attraction Super-V+ Gaminator III. Extra wide screens for an

a spectacular ranGe of novoline Games and systems will be on show in las veGas: sinGle Games, multiGames and multiplayers.

Classic Lines, Multi-Lines, Power Lines, Fruits and Specials. The show machines will be connected to a Rise of the Dragon mystery progressive jackpot for extra jackpot thrills. The latest Super-V+ Gaminator multi-game mixes (numbers 61, 62, 63, 64, 66 and 67) will present a multitude of different game themes and concepts to appeal to the widest range of player preferences. The incomparable ‘Marilyn’ will have her own prominent show performance in Las Vegas with a selection of Marilyn-themed Coolfire II single games: Hollywood Stars, Marilyn Blue Star, Marilyn Red Carpet, Marilyn’s Diamonds and the Poker highlight Marilyn’s Poker Gold will all feature strongly in combination with the Marilyn Flexi-Link Community Jackpot. A bank of NOVOSTAR SL2 slant tops will also present a selection of the latest Coolfire II single games: Bee Wild, Costa del Cash, Northern Light, African Simba, Treasure Gate and Happy Serengeti.

in-depth gaming experience, elegant style and top quality design make these cabinets attractive highlights on every casino floor and provide the perfect housing for an ultimately thrilling game library.

Also on show will be the Novomatic Reel Tournament. This exciting marketing tool for all sorts of casino promotion programmes brings a special competitive gaming thrill to any slot floor. It allows operators to offer their guests - via just the push of a button - live tournaments in real time on an unlimited number of connected Super-V+ Gaminator machines featuring the Super-V+ Gaminator multi-game mix T1. The system’s tournament controller makes it possible for the operator to choose from a variety of games and to offer different win modes, tournament settings and valuable promotional extras; without any software changes or game down time.

And hardly a game will be missing from the Las Vegas show floor! The PremiumV+ Gaminator multi-game mix comprises a total of 41 Coolfire II games that are presented to the guest in five colour-coded logical categories for best game recognition and guest orientation:

A spectacular range of NOVOLINE games and systems will be on show in Las Vegas: Single games, multi-games and multiplayers. The NOVO LINE INTERACTIVE games cover a great variety of thrilling themes, with 5-50 lines and innovative mathematical concepts for

September 2012 PAGE 80

Novomatic: PINBALL ROULETTE

“The Las Vegas show is traditionally one of the most important events of the annual show calendar and especially with this earlier and generally more convenient October date we expect to see a great number of business partners, customers and also new contacts in Las Vegas.” JENS HALLE, Managing Director AGI.

octavian will demonstrate the casino manaGement system acp (accountinG control proGressives system) live at the show. gaming fun, gaming thrills and gaming excitement on every floor. The system is server-based ready, providing an ideal basis for a later connection to a server based gaming environment. The 17 NOVO LINETM INTERACTIVE single games presented at the show in Las Vegas will be shown in the NOVOSTAR SL2, Novo Super-Vision and the SuperV+ Gaminator III cabinets. Among them is a bank of machines that will be linked to the brand new Magic Joker Jackpot - a

Preview G2E LAS VEGAS

currency affairs

Gaming Partners International is to show its full range of casino currency at the forthcoming G2E

Novomatic: SUPER-V+ GAMINATOR III

thrilling card-animated multi-level progressive mystery jackpot novelty – and a completely new game with an innovative skill feature that will celebrate its world premiere at the Las Vegas show. The NOVO LINE Novo Unity II multiplayer installation will be positioned around one fully automated Novo MultiRoulette wheel and will comprise the entire range of Flying (fully animated) electronic multiplayer game versions as well as a slot mix. All games will be available on each of the connected player terminals (NOVOSTAR SL1 and NovoBar). A further attraction in Las Vegas will be a selection of Ultimate 10 multi-game mixes that combine the technological benefits of Coolfire II with the hugely cost effective price structure of the former Coolfire I platform: offering new technology within an extremely attractive cost structure for maximum customer value. Octavian will present a range of 12 thrilling single games with promising names such as Triple Force, Smart Robots, Bug’s Buck$ or Sea Hunters and a variety

Novomatic: NOVOSTAR SL3

of innovative game concepts and rewarding bonus features. Octavian will also demonstrate the casino management system ACP (Accounting Control Progressives System) live at the show. The ACP system is modular and thus highly ‘tuneable’ to the requirements of operators and the pertaining regulations in various jurisdictions and has proved highly popular, particularly in SouthAmerica. Jens Halle, Managing Director AGI sees excellent business opportunities in Las Vegas: “The Las Vegas show is traditionally one of the most important events of the annual show calendar and especially with this earlier and generally more convenient October date we expect to see a great number of business partners, customers and also new contacts in Las Vegas. “As we are now intensifying our commitment to the US and Latin American regions, I am very positive that 2012 will be an excellent show for Novomatic, for our colleagues from Octavian and also a real ‘breakthrough’ event for our partner Reel Games.”

G2E 2012 is almost here, and Gaming Partners International is looking forward to exhibiting our full range of casino currency solutions and table game products. Additionally, we are anxious to highlight three new casino currency options including a brandnew Paulson chip design that we’re sure our American customers in particular will be enthusiastic about. Since the 1960s when we first introduced Paulson clay chips to Las Vegas casinos, Paulson chips have set the standard for casino currency throughout North America and are recognized worldwide as the poker chip of choice. With their iconic look and feel, Paulson chips have withstood the tests of time, and at G2E we will debut an innovative new design that will enable casinos to better differentiate their high and low denomination chips. Watch for details! We will also feature our new B&G Premium Chips that provide casinos with the ability to create a unique chip that incorporates their logo or other key element into the mould. B&G Premium Chips can also incorporate an extensive variety of security features to create more secure chip that discourages counterfeiting. Our third featured currency product is our B&G J2 jeton: a groundbreaking product that combines the aesthetic and security features of European-style jetons with the easy handling of American-style chips. Featuring colour edge spots that allow easy identification in racks or stacks, J2 jetons can include a wide range of decal and printing options not available on traditional jetons. We will also highlight several new currency security features including 4C-UV, a cutting-edge product that incorporates a fullcolour image or photograph into the decal. An invisible chip authentication feature revealed by a standard UV detector, 4C-UV is easy to detect by dealers and other casino personnel. For more information, stop by booth #4441 or visit www.gpigaming.com. September 2012 PAGE 81

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absolute return

TCSJohnHuxley is back at G2E in Las Vegas with a host of hi-tech gaming innovations

TCSJohnHuxley is pleased to be exhibiting at this year’s G2E show in Las Vegas. After a break of three years, the company will once again be showing its industry leading products such as Chipper Champ2, traditional high quality gaming tables, Roulette wheels, number displays and gaming layouts as well as a host of new innovative products. Cath Burns, TCSJohnHuxley Group CEO comments, “We are delighted to be back at G2E for 2012. We are focused on providing world class products that meet our customer requirements for a global market and this expo provides the perfect showcase for us.” She continues, “As part of our Group strategic plan going forward, we are committed to listening to our customers and developing new and exciting products for the future. We’re undoubtedly a company with a worldwide reach, but we aim to think global and deliver local.”

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Casino Technology: PENTHOUSE SLOTS

Casinos Technology’s Penthouse Slots expand to include multigames at G2E The Penthouse Slots series from Casino Technology is now offered as a multigame set, featuring collection of glamorous, entertaining games.

TCSJohnHuxley are currently streamlining and enhancing the core product range

supernova bonus system is a proGressive and Game bonusinG system that delivers added value to live roulette.

with an emphasis on innovation. Products such as Supernova Table Bonus System, Gaming Floor Live and Tablet Roulette all feature heavily in this and will be key products on show at G2E. Gaming Floor Live is a real-time game optimization system designed to maximize key performance areas and profitability across all games. Unlike any other product on the market, the system automatically captures live table game data, which in turn provides vital information to maximise turnover, maintain house advantage, reduce operating costs and understand opportunity costs. With the power to monitor pits remotely with local area network or wide area network September 2012 PAGE 82

TCSJohnHuxley: SUPERNOVA ROULETTE connectivity, casino management can now measure key performance areas across their live tables. Supernova Bonus System is a progressive and game bonusing system that delivers added value to live Roulette. The system drives increased revenues by adding higher levels of player excitement and loyalty to all of your live games. This makes it the worlds first progressive system for local and networked game applications that can be used on any live roulette table. One of the most exciting things about Supernova is that it can potentially be applied to any game. Having listened to the needs of casino operators, the latest Supernova development link Roulette tables together. In addition, multi-level event based and mystery prizes can be employed even on games that don’t normally run progressive jackpots. To see the world’s best table game products, visit the TCSJohnHuxley stand No. 3817 at G2E (on Harmon and Tropicana Avenue aisles).

“As part of our Group strategic plan going forward, we are committed to listening to our customers and developing new and exciting products for the future. We’re undoubtedly a company with a worldwide reach, but we aim to think global and deliver local.” CATH BURNS, TCSJohnHuxley Group CEO.

At the forthcoming G2E 2012 the Penthouse Slots series will be demonstrated as a fully completed range of casino equipment, including game titles, branded cabinets, multiplayer platform and themed jackpot system. The games are accommodated in the Sensational Plus slot machine, whose design will enchant at G2E, further enhanced with new themed toppers, extending possibilities for customisation and an original layout for every location. Alternatively the games are also offered in the patented Casino Technology grand piano multiplayer station, PLAYME, also available in branded Penthouse designs. New to the line is the themed Penthouse Slots mystery progressive multi-level Jackpot. Created by the award winning team of graphic specialists the visualisation features a bevy of beautiful girls, which are starring the different jackpot levels. With the new developments in the Penthouse Slots series Casino Technology provides fully featured experience to casino players with larger opportunities for fun and entertainment. Those capabilities will be demonstrated at G2E 2012 in Las Vegas, Booth No 1665.

Preview G2E LAS VEGAS

not a soft option

The combination of EASITRAX Soft Count and MEI SC Advance will take centrestage at G2E

a whole new world Merkur Gaming readies its unique range of games and cabinets for G2E Las Vegas

Merkur Gaming will once again have a strong presence at the upcoming G2E. The gaming solutions continue to expand and remain extremely focused on player experience. These solutions will be on display at stand number 2665. “Today more than ever it is essential to have a strong partner at your side with a proven track record. The Gauselmann Group is family-owned and familymanaged and thus the management team is completely focused on this long-term strategy of bringing the right gaming solutions to each individual market,” said Thomas Niehenke, COO, Gauselmann Group. “The numbers mirror this goal – global turnover topped €1.7bn in 2011 and the number of our staff is over 6,300. We place utmost priority on R&D as the Gauselmann Group plays a leading role in international gaming.” This focus on marrying new ideas and technologies will be on display at the G2E. A fine example is the sheer size of the games collection that includes a strong variety of different themes, gripping features, thrilling free games and unique win-line concepts. Thus, players can find the right game that suits them amongst such diversity. Merkur Gaming Spokesman of Executive Management, Mr. Rolf Falke, explains a classic example of Merkur Gaming catering for local gaming needs. “We at Merkur Gaming understand how important culture and local tastes are. Naturally we have an abundant games collection that reaches out internationally to players. Our strategy is to combine these global games successes with local games. Our

Cantinflas game is a perfect example. Cantinflas was a much-loved actor and comedian in Latin America, the so-called ‘Charlie Chaplin of Mexico’. We have played a major role at the Latin American exhibitions this year and each time our expectations for this game were exceeded. Naturally we are now developing further games around the Cantinflas theme.”

The Merkur Gaming games feel right at home with its cabinet choice. These stylish, durable and ultra-modern cabinets combine the latest technology with the highest quality standards that offer maximum player convenience. The Evolution cabinet is a slant top that caters for special casino flair. The Privilege cabinet is the new wide-screen upright cabinet that includes two 22” monitors for optimum game presentation. The innovative prowess is exemplified in the Highflyer cabinet. This unique cabinet is a real ‘made in Germany’ innovation as the second, upper monitor seems to float in mid-air. The design of the Highflyer has been such a hit that Merkur Gaming can even offer the cabinet design with just the lower monitor. This cabinet is called the Uno. Merkur Gaming has proven experience and success in the VLT/SBG market and is a major player in the VLT markets in Italy, the Czech Republic and Slovakia. Peter Amling, Managing Director at Merkur Gaming, explains: “VLT/SBG technology is complex and many facets must be perfectly mastered. Gaming and technology must flow together. The amount of development work required to master this technology can be daunting. Not for Merkur Gaming. As the international subsidiary of Germany’s Gauselmann Group, Merkur Gaming fulfils all the requirements to ensure the long-term success in VLT/SBG.”

MEI will return to G2E this year with its most comprehensive cash management solution ever – the combination of SC Advance and EASITRAX Soft Count. By networking the slot floor to the soft count room, these award-winning products raise the bar for value and performance expectations and maximise profitability.

Merkur Gaming will be joined by two further sister companies in Las Vegas. GeWeTe – a leading manufacturer of change machines in Germany – will be exhibiting its extremely wide range of money changing and payment systems. edict egaming is the specialist for online gaming platforms and focuses on the development and technical operation of online casino solutions and system platforms in the gaming market. The edict team will be present on the Merkur Gaming stand alongside GeWeTe.

SC Advance evolved from the winning CASHFLOW SC note acceptor, applying new technology and market knowledge to make a great product even better. It features enhanced recognition technology, faster bill-to-bill speed, improved barcode recognition and the increased capacity to accept up to 100 different currencies and denominations. SC Advance also has the industry’s best acceptance rate for valid street-grade notes, including those that are wet, crinkled or torn. The popularity of MEI products like SC Advance reflects the importance operators place on value-added payments systems. As the leading global manufacturer of automated payments systems, MEI has sold more than five million note acceptors and six million coin mechanisms worldwide, achieving a 70% ship share for three consecutive years in the US. Recent property wins include Revel Atlantic City, the Hippodrome Casino in London, and multiple sites in the Asia-Pacific region – LVS blocks 5 and 6 in Macau, both Singapore properties, and Bloomsbury in Manila. MEI has also enjoyed success in the VLT market, earning a ship share of 100% in the Alberta Lottery, over 60% in the Atlantic Lottery, nearly 80% in Illinois, and an increasing presence in Manitoba. Because enhancements are localised to the acceptor head, SC Advance can easily upgrade legacy CASHFLOW SC units so MEI customers can yield the most value from their previous investments. Thanks to its ability to work simultaneously with an existing CASHFLOW SC field base, operators have the luxury of updating the slot floor at their own pace as capital becomes available. Intelligent support tools will sense the product version and run the appropriate software. More MEI customers are now also implementing EASITRAX Soft Count, a product extension that expands the reach of note acceptors from the slot floor into the soft count room. The addition of EASITRAX to SC Advance or CASHFLOW SC creates a comprehensive software/hardware system designed to streamline the cash management process. Since it was introduced in 2008, EASITRAX Soft Count has been installed in nearly 80,000 games worldwide, a number projected to surpass 85,000 by the end of 2012. September 2012 PAGE 83

Preview G2E LAS VEGAS

spellbindinG showcase

Rhonda Whittaker gives G3 the lowdown on Spielo International’s G2E exhibit

In DEAL OR NO DEAL Join’N Play 2, the game is now quicker, bigger, and better. The guaranteed bonus hits more frequently, every eight minutes, for even more excitement. It keeps the same stressfree eligibility and easy bonus qualification that thrilled players in the original. Mystery bonuses occur more frequently as well, including brand new free spins that sweeten the deal. Occasionally, the community bonus becomes a Super Bonus, where the top briefcases have their values doubled, leading to much larger banker's offers and wins. This sequel is truly our biggest deal yet!

AT ICE IN LONDON, WALTER BUGNO PROMISED A SPECTACULAR EXHIBIT AT G2E, ONE THAT WILL ESTABLISH SPIELO'S GAMING CREDENTIALS FOR THE FUTURE WHAT CAN WE EXPECT? It’s our mission to have more people playing our games than ever before, anywhere, anytime, on anything. At G2E 2012, we’re showing visitors how we plan to do this. Among the highlights at our booth this year, we’re featuring exciting new licensed titles based on a non-traditional media property; the sequel to our most successful North American community game, called DEAL OR NO DEAL™ Join’N Play™ 2; our first title featuring Episodic Gaming; our vision of cross-platform convergence; our award-winning online product suite; casino systems modules designed to help casino operators attract, bonus and reward their players; and much more.

spielo will be showcasinG a demonstration across a converGence of platforms that provides players with a seamless experience.

Among SPIELO International’s new content-driven titles for the International casino market, Egyptian Gold is the company’s first progressive link using Episodic Gaming. As the player progresses through the game during one session, he or she can save and reactivate their achieved status during the next play session. The player unlocks more features and additional bet options for more action become available. When he or she reaches the highest status, an additional award is randomly revealed by Tutenkhamon. Egyptian Gold offers a 5Level Progressive Playoff, where the player can win multiple progressives.

SPIELO International: MERMAID’S SPELL

IS SPIELO GOING TO SHOW ITS HAND AT G2E IN OCTOBER? SO FAR THE COMPANY HAS BEEN KEEPING ITS CUTTING EDGE PRODUCTS UNDER WRAPS? Absolutely. We’re going to be revealing our newest licensed titles prior to the show – we’re thrilled about these products and we think players will be, too. Stay tuned!

WILL WE SEE THE FULL INTEGRATION OF SPIELO'S GAMING DIVISION, PRODUCTS SPANNING ALL THE DIFFERENT PLATFORMS? SPIELO International will be showcasing how it truly speaks gaming with its multichannel offering. GTECH G2, the iGaming arm of the group, will showcase its award-winning product suite. SPIELO International will also be showcasing a demonstration across a convergence of platforms that provides players with a seamless experience across online gaming, the VLT environment and the commercial casino. An episodic gaming promotion concept encourages players to piece together different elements of a promotion across the platforms to win a prize. Unique to the industry, the concept also includes an app that allows players to see their reward accrual progress on demand.

WHAT WILL DEFINE THE PRODUCTS FROM SPIELO AT THE STAND THIS YEAR? Regardless of the channel or platform, SPIELO International understands that all players want one simple thing: great content. At G2E 2012, SPIELO International will be showing more entertaining games than ever before. Because content is our key focus, our motto this year is We Speak Gaming.

WHICH ARE YOUR STANDOUT PRODUCTS THE ONES VISITORS TO G2E SIMPLY CANNOT MISS? Hot on the heels of the success of DEAL OR NO DEAL Join’N Play in North America, SPIELO International has amped up the deals and the excitement with DEAL OR NO DEAL Join’N Play 2. The successor has all the features that players love – the time-based bonus, the player-

September 2012 PAGE 84

friendly community aspect, the use of strategy, and the broad appeal to both entertainment-seekers and gamblers.

Mermaid’s Spell is an intriguing rapid hit 8-level linked progressive multigame that will mesmerise players. Featuring three distinct titles – Great Reef, Magic Lagoon, and Bay of Fortune - Mermaid’s Spell enables players to select ‘enchanted symbols’ for respins and increased chances at the progressives. Fiveof-a-kind line wins trigger the corresponding progressive. Players can choose their volatility by seeking their favourite progressive level.

Visitors to the show will also get a sneak peek at Mega Kong, the exciting new follow-up to the widely successful KING KONG CASH. In addition, Mermaid’s Spell is an intriguing rapid hit 8-level linked progressive multi-game that will mesmerise players. Featuring three distinct titles – Great Reef, Magic Lagoon, and Bay of Fortune - Mermaid’s Spell enables players to select “enchanted symbols” for re-spins and increased chances at the progressives. Five-of-a-kind line wins trigger the corresponding progressive. Players can choose their volatility by seeking their favourite progressive level. KITTY CASH is the latest addition to SPIELO International’s ATRONIC multilevel progressive links, and features the cuddly cats from the internationally recognised brand, the Artiest Collection’s “THE CAT,” all on the state-of-the-art OXYGEN cabinet. On top of the two supporting game titles, this purr-fect multi-level progressive features two bonus rounds: the Mystery Cat Bonus and the KiTTY CASH Bonus. SPIELO International has expanded its successful multi-game solution, diversity, with the introduction of Magic Maroon

Preview G2E LAS VEGAS and Sweet Sunshine. Each edition offers players a choice of core game titles in addition to top performing, stand-alone DOGGIE CASH progressive titles and at least one classic, low-line game. Extremely volatile versions of a topperforming game complete the offering in each suite, while Sweet Sunshine offers the added choice of Master Roulette. On top of those titles, SPIELO International is presenting a wide range of new core games with unique and innovative features. SPIELO International’s Casino Systems Division will also be presenting its wide range of powerful GALAXIS casino systems management solutions at G2E Las Vegas with a special focus on modules designed to help casino operators attract, bonus and reward their players. A wide choice of bonusing tools is available including numerous mystery jackpot templates with Star BONUS FEVER to bonus and reward players, and target specific player groups when the conditions on the floor warrant it. Two of the newest tools, OnTarget FEVER and TimeBomb FEVER, permit operators to optimise promotions by allowing laserlike targeting of player segments with features of GALAXIS Star MARKETING. SPIELO International is presenting its full suite of cashless solutions at G2E including cash wallet (magnetic stripe card), qpon cash (ticketing) and chip cash (smartcard). As one of the few gaming suppliers with a full cashless suite of solutions, it offers real choice to operators and can provide considerable cost savings with cash wallet at a tenth of the cost of a smartcard. WILL WE SEE PRODUCTS FOR ALL MARKETS OR A CONCENTRATION ON NORTH AND SOUTH AMERICA? SPIELO International is a truly global company, and while the show is focused on the Americas, we will be showing our newest products for international markets, too. WHAT IMPRESSION DO YOU WANT VISITORS TO G2E TO LEAVE WITH HAVING WITNESSED THE EXHIBITS? We think visitors will be impressed by the breadth and depth of our offering across all gaming channels; the powerful entertainment value of our games; our vision of convergence across gaming channels; and the experience and expertise that our people demonstrate when it comes to specific markets and player behaviour within those markets. When visitors leave booth 1265, we believe they’ll understand exactly what we mean when we say We Speak Gaming.

the fast track

A growing reputation in Europe and South America is driving global success for EGT Euro Games Technology has the reputation of one of the fastest growing companies in the gaming industry. Sleek design and cutting-edge technologies combined with innovative ergonomics have become the trade mark of the company. It has become a tradition for the company to surprise its present and future customers by presenting brand new products at the largest gaming exhibitions. EGT’s presentation at this year’s G2E gaming show in Las Vegas will definitely satisfy all customers’ expectations. The visitors will have the opportunity to enjoy the new sleek and brilliant P – 22/22 Slant Top and Upright Cabinets from the Premier Series. By designing these extremely advanced gaming devices the company has taken into consideration important psycho-physical factors, using their 10 years’ experience in the manufacturing of gaming machines. The cabinets combine the privileges of cutting-edge technology and the latest innovations in the field of ergonomics. In addition to the new cabinets, EGT will present its brand-new Premier Multi-2 Multigame which comprises a great choice of attractive high-quality games and are driven by the technologically advanced Exciter II Platform. EGT will impress its visitors with another attractive product – the Vega R8 Electronic Roulette. This sophisticated Multi-Wheel supported product supplies 8 comfortable player stations, with conveniently sized 22" wide-screen monitors and is compatible with EGT’s Roulette Center and Live Roulette Wheels by TCSJohnHuxley, Cammegh and Abbiati. The Vega R8 Electronic Roulette will definitely make an impression of exclusivity and high class technology which guarantees that the player will enjoy placing bets and partake in the roulette game to the maximum. EGT’s triumph at G2E Las Vegas will be completed by the United Mystery Jackpot System. This system proves to be a really valuable asset in every casino because of its multi functionality. The United Mystery Jackpot System can be connected to more than 100 machines of any brand and features three levels of jackpot.

the Genius bar Inspired’s ‘Server-Based Geniuses’ will be demonstrating the new Core Edge at G2E

“Inspired’s Vegas booth is about more than a new killer slot game. We have a very powerful technology platform behind all of our products and we are focused on demonstrating the advantages of this technology to new operators. We have killer games too, but we release them throughout the year with the click of a button via our SBG platform. We have been part of many success stories for wide area networked gaming – in the UK, Italy, Colombia and Mexico – and believe many more markets could adopt this approach for the benefit of players, operators and governments.” LUKE ALVAREZ, CEO Inspired Gaming.

Inspired Gaming Group (Inspired) is preparing for a technology-focused G2E Vegas. Inspired’s ‘Server-Based Geniuses’ will be on Booth #3965 answering questions about distributed gaming, demonstrating the benefits of the Open SBG Core platform and unveiling a new version called Core Edge. New for G2E Vegas 2012 will be Inspired’s Multi-Game Bar, which allows a range of games (including Virtual Sports, slots and live wheel E-Roulette) to be played on a bar top terminal that is powered by a new Core Edge version of the Open SBG Core platform. The Core Edge system delivers all the proven configurability of the Core platform in a low cost, flexible and compact form factor. It is ideal for casino operators wanting multiple games in a flexible form factor, and lottery or arcade operators wanting low cost, multi-game devices in street venues. Inspired will also be launching an upgraded version of its Virtual Motor Racing with enhanced graphics and live backgrounds. Seven Virtual Sports are available for every market from high street lotteries or resort casinos, to online and mobile sportsbooks. Over 20,000 venues around the world are live with Inspired’s Virtual Sports, having realised the value of an additional revenue stream with unlimited races that can be scheduled to suit any venue. The fastest selling electronic roulette of 2012, Inspired’s Sabre Multi-Win Roulette, will feature on three stands at G2E Vegas: Inspired (#3965), DigiDeal (#4365) and TCSJohnHuxley (#3817). Easy Bet features, record incomes and the ability to connect terminals to any combination of four wheels (including auto and live) are making Sabre Multi-Win Roulette the top choice for casinos looking to upgrade their current E-Roulette offering. September 2012 PAGE 85

Products NEWS AND UPDATES Land-based

COMPONENTS offer our players the best content with maximum convenience, and the smartphone sports solution from Betware is a great step in that direction. The initial results look very promising indeed”.

Danske Spil/Betware

SMARTPHONE SUITE www.betware.com The Danish Lottery Danske Spil (www.danskespil.dk) has launched a Smartphone Suite including Lotto, Instant and Sports Games, on the Betware platform, which opens up a new distribution channel for Danish players, focused on smartphone gaming. “We are very satisfied with this product launch and can already see that our players are adopting it quickly. Going forward, we expect to continue adding the popular scratch games through all our distribution channels, where mobile is taking an increasingly important role,” commented Jens Aaløse, Managing Director of Danske Licens Spil. Mobile sports betting gives Danske Spil the opportunity to move the game right to players’ fingertips while they are watching their favourite sports event and is well suited for live betting. Mr. Online

CASINO APPS

Aaløse added: “We want to reach out to all demographics of players, whether that is the mobile, desktop or retail player. Our strategy is to Online

CASINO GAMES

For smartphone users (iPhone, Android), the Betware Smartphone Suite has been designed to fully benefit from all the capabilities of modern smartphones, such as shaking the iPhone to select random lotto numbers or swiping a finger over the screen to “scratch”-off instant tickets. Stefan Hrafnkelsson, Betware’s CEO, concluded: “We are excited about this launch, especially after the successful introduction of smartphone Lotto for the Icelandic National Lottery in 2011, and are confident that this launch will positively influence the Danish gaming market. The expansion of mobile technology opens up new opportunities for players, and we at Betware are always focused on offering our customers top-class products that are in line with latest market trends." Online

CASINO APPS

Playtech

Scientific Games

Aristocrat Technologies

PADDY POWER APP

CA$HINO ON EDGE

DIAMOND DESTINY APP

www.playtech.com

www.barcrest.com

www.aristocrat.com.au

Playtech has launched a collection of nine casino games, including roulette, blackjack and slots, on the mobile platform of Paddy Power, one of its top licensees.

Barcrest is looking to strengthen its online gaming presence with a deal to integrate its games onto the GTS Enhanced Gaming Engine (EdGE) platform developed by Gaming Technology Solutions. Owned by Scientific Games Corporation, Barcrest is looking to release games on the platform in both the UK and international regulated jurisdictions.

Aristocrat’s Diamond Destiny, a four-Level Progressive Jackpot with two exciting bonus features, is now available as a play-for-fun download at itunes as an app for iPhone and iPad.

The move, which Playtech says makes it unique in offering a complete cross-platform solution, also marks the first major collaboration between Playtech and its newly acquired subsidiary Mobenga, a company specialising in mobile sportsbooks. Through Playtech's mobile betting channels and cross-product opportunities, a wide range of choices have become available to players, eliminating the need for different mobile applications. Another implication of this development is that those who download the mobile application will automatically have access to Playtech's complete suite of products, regardless of which channel was originally chosen. Even more importantly for operators is that Playtech provides a special functionality allowing cross-selling. Daniel Orkan, Head of Mobile, said: “The launch is a milestone, not only in terms of merging Playtech and Mobenga's expertise, but also for our operators who can now access new streams of revenue through our ever expanding cross-platform solution. We expect this venture with Paddy Power to be a great mutual success, setting the stage for future developments with Playtech's mobile platform.”

September 2012 PAGE 86

Two of Barcrest’s most popular games, Rainbow Riches and Ca$hino, will be the first to be deployed via the GTS platform, which provides content to leading online gaming operators such as Gala Coral and 888.com. Following the initial launch, Barcrest plans to make more of its content available on the EdGE platform throughout the year. Barcrest’s Alex Stephens said: “Interactive gaming is a key area that we are committed to growing and GTS is perfectly positioned to help us expand our game distribution to new high-profile online gaming operators.” Steve Schrier at GTS, said: “Barcrest has a great reputation throughout the industry for providing quality games that are relevant to the consumer. We believe our customers will benefit as more of Barcrest’s content is made available to the internet gaming marketplace.”

The game, a fun throwback to an old school traditional slot theme filled with Cherries, Bars and 7s, is the 16th slot title that has been converted into an app. Aristocrat’s apps have had more than 475,000 downloads so far. Aristocrat Director of Mobile Development Scott Milford, said: “We are very happy with our latest mobile release, Diamond Destiny. This new game is a first for us on a couple of fronts. To begin with, Diamond Destiny is our first app to use standalone progressive meters. Second, and perhaps more notably, Diamond Destiny is our first app patterned on Aristocrat’s popular Viridian Hybrid Stepper platform. Our Viridian Hybrid line was introduced late last year, and the games have been generating an incredible amount of player attention. It made sense for us to start bringing these popular games over to the mobile space. Casino patrons have responded really well to Diamond Destiny and to the hybrid Steppers in general, so we expect this will be a hit with our mobile customers.”

Products NEWS AND UPDATES

three time’s a charm

Abbiati styles individual products for Moroccan, Swiss and British casinos

Abbiati Casino Equipment has always been appreciated for its ability to customise any type of product following a customers’ requests, using fine sophisticated materials that imbue its creations with a unique charm and beauty. As a testimony of that stands the fact that Abbiati has done other three important supplies of gaming tables to some of the best known and renowned casinos. The three customers in question are Casino Medrisio based in Switzerland, Colony Club from London and Tanger Malabata Casino based in Morocco. Casino Admiral Mendrisio is a classically designed building located in Switzerland closed to the Italian border. A decade after the initial equipping of the casino by Abbiati for its opening, the casino has decided to add to their gaming offer with new tables styled to match the originals. The Midi Punto Banco tables manufactured in Corian Blu cobalt, Corian Antarctica and 100 per cent leather represented the perfect solution for a such a stunning location, whose aim is to enchant players. Colony Club, one of the high-end London casinos, situated in Mayfair area, asked Abbiati to replaced their existing tables in the elegant VIP area. The Roulette and Cards games tables were realised with customised design, researched materials and dedicated finishing. The tables were manufactured in a fine natural mahogany and traditional English leather, in way to perfectly suit with the fabulous and magnificent club’s venue designed to welcome the most demanding customers.

The imposing Mövenpick Hotel & Casino Malabata Tanger is situated in Morocco and it was opened over 10 years ago when it was fully equipped by Abbiati. This year it was decided to add to their number of poker tables with the casino once again selecting the Italian company to design new gaming tables, which would follow the same style line. One level fine mahogany borders and vinyl upholstery are just a few of the characteristics of these tables, manufactured following the specific requests of the customer.

Abbiati Casino Equipment points out the strongest part of the company: its ability to provide all demanding customers with gaming equipment of high quality, using prestigious materials and following the value of the Made in Italy, which has characterised this company. September 2012 PAGE 87

Products NEWS AND UPDATES Land-based

COMPONTENTS

Mobile

iBrand Gaming

Bally Technologies

RCM06 REEL CONTROLLER

MOBILE APPS

www.ibrandgaming.com iBrand Gaming is now the global distributor for the RCM06 USB / Serial reel controller board developed by e2c. iBrand Gaming will be working to promote the GLI approved RCM06 USB/ Serial gaming reel controller board throughout the UK and European markets. The board utilises e2c’s powerful iSocket client middleware to provide the best in class gaming reel control functions and is designed to work with the Quixant range of gaming controllers or any other PC gaming control board. The RCM06 USB / Serial reel controller board is ideal for game development houses that are looking to develop hybrid (reel / video) games for the UK, Spain and other markets that require traditional reels to be used with PC gaming technology. The reel controller board supports up to 6 stepper motor based reels including all unipolar reel types. A development kit is available that includes unique software tools thus providing a quick time to market

APPLICATIONS

www.ballytech.com Bally Technologies has announced that the Apple and Android mobile applications it created for 7 Cedars Casino in Sequim, Wash. are now available, along with a new mobile website also created by Bally Technologies. solution. "I'm delighted with the agreement we now have with e2c and being able to offer the RCM06 reel controller" stated iBrand Gaming's John Malin. "By adding this controller to our product portfolio we are able to further enhance our total product offering and solution packages and can further the development of our customer’s design.” Dr. Donny McDonald, founder/CEO of e2c, stated that “iBrand Gaming is an excellent partner for e2c’s reel control solutions, given their close co-operation with leading European gaming machine manufacturers. After many successful deployments in the USA class II market, we are very excited about being able to offer this technology to the wider market.”

Land-based COMPONENTS

“We make a continuous effort to provide our guests with the highest level of service possible,” said Judy Walz, Marketing Director at 7 Cedars Casino. “That effort includes offering them the best tools and technology on and off our property to enhance their experience at 7 Cedars. Our new apps deliver convenience, information, and entertainment through a host of easy-to-use features that we can’t wait for our guests to use and enjoy.” Anyone can download the apps, which are available in the Apple iTunes store and in Google Play.

Online

SLOTS GAMING

Suzo Happ

EMEA EXPOS www.suzohapp.com The new owner of the Suzo-Happ Group – ACON Investments – has already sent out a strong message to the management team – to continually invest in the strengths that have made the SuzoHapp Group the largest and most importance component supplier in the gaming and amusement markets. One such strength is the closeness the team has to the market – working directly together with the manufacturers and operators. This puts Suzo-Happ in a unique position. New technology can only be implemented when it is seen as a benefit. The dual work with the manufacturers and the end users simplifies and speeds up this process. Thus, the Suzo-Happ Group plays a key role in the gaming and amusement industry. This dedication will be exemplified at the forthcoming exhibitions in Bulgaria, the Czech Republic, Italy and Romania. Suzo-Happ will be exhibiting at the Entertainment Arena Expo in Bucharest in Romania between 12th and 14th September and at the Forbes in Prague, Czech Republic, between 26th and 27th September. In October the European team will have a stand at the Balkan Entertainment and Gaming Expo (BEGE) in Sofia, Bulgaria, between 16th and 18th October. Mr. Harald Wagemaker, Sales Director for SuzoHapp for EMEA, explained, “We are investing in exhibiting at the local gaming shows as we have a whole world of solutions for manufacturers and operators. Furthermore, we will also be focusing on what made Suzo-Happ strong – the amusement market”.

September 2012 PAGE 88

Net Entertainment

JACK HAMMER 2 www.netent.com

The European arm of the Suzo-Happ Group was founded back in 1955 and the major focus for the first decades was on the amusement market. The gaming market has grown tremendously since the 1990’s. Today, Suzo-Happ is going back to its roots to provide the solutions for the amusement market as well as the gaming market at the local exhibitions. “Alongside the gaming product solutions, we will be exhibiting our extensive amusement range that includes classic products such as pool cues and darts”, Mr. Wagemaker continued. Suzo-Happ will be exhibiting yet again just why the company is such an innovative power in the industry at the forthcoming ENADA Rome in Italy that will take place between 17th and 19th October. “We look forward to greeting visitors at the forthcoming European exhibitions”, concluded Mr. Wagemaker.

Net Entertainment has announced the release of its latest video slot, Jack Hammer 2: Fishy Business, the follow-up to the hugely successful Jack Hammer. Jack Hammer returns in a new slot that features an impressive 99 bet lines, and a thrilling Free Spins game. The popular Sticky Win feature from the original game remains and Random Wilds during Free Spins makes for a superb new addition to the game play. The game features the same cartoon-like graphics and retro animations as the original while the characters continue their adventures among the glamorous and gritty underworld. “Given the popularity of Jack Hammer, it was logical to ask the developers to work on a sequel,” comments Per Eriksson, President and CEO of Net Entertainment. “Jack Hammer 2: Fishy Business™ is a worthy follow-up and new developments such as the Random Wild gameplay suggest it’s going to be a hugely popular game with our partners and players.”

Products NEWS AND UPDATES Online

FREEMIUM WEBSITE showcase the very latest JPMi content: “We’ve just included the three very latest Max Power titles, Turbo, Criss Cross Cash and Eldorado. The Max Power games are feature rich multi stake games offering multiple win lines and an exciting new progressive jackpot feature,” he revealed.

JPM International

JPM INTERACTIVE www.playjpm.com JPM Interactive has launched a new website www.playjpm.com, where games can be enjoyed on a play for free basis. The site will provide a fascinating insight into the world of JPMi games with a range of popular traditional titles available for players plus new and exciting content. JPMi's Andrew Davies explains: “JPMi is a unique content provider. We have a 40 year heritage during which we’ve entertained players with a succession of iconic titles. The JPM formula of lo- tech AWP style games serves-up fun and entertainment for the casual player, whilst at the same time delivering depth and engagement to the core player. "Many leading operators have discovered that our games bring an added dimension to the online player experience, broadening the player base, extending player lifetime and reducing the level of intimidation sometimes experienced by new players.” JPMi’s own development team is busy repurposing an impressive back-catalogue of 300 or so classic

JPMi’s site has clearly been designed to attract regular repeat visits. In addition to gleaning up-tothe-minute information about the latest games, visitors may take part in tournaments and promotions.

titles, many of which will be familiar to online players who’ve enjoyed them in other land based environments. This new website www.playjpm.com has been designed with ease of navigation in mind. Games are split into categories and the player may play for free, or alternatively, click through to numerous leading casinos and sportsbooks where they can enjoy the full gaming experience and play for real. According to Andrew Davies, www.playjpm.com will

JPMi will be making full use of a variety of new media to promote the site and its games to a wide audience which, in turn will elicit crucial feedback from players. Said Andrew Davies: “Ultimately the success of a game is judged on its revenue earning capability. Game statistics are hugely important to a developer but social media also generates a good deal of semantic data. "We anticipate www.playjpm.com developing a substantial presence on a variety of forums and will ensure that the appropriate analysis tools are in place to monitor and understand exactly what is being said so that our clients can be the ultimate beneficiaries", he promised.

Index SUBSCRIPTIONS

Abbiati Gaming Equipment

43

WWW.ABBIATI.COM

Amatic Industries

33

WWW.AMATIC.COM

G3 US MARKET REPORT Gaming Publishing’s G3 US Market report examines the states of casino play across the USA. Investigating the gaming markets in California, Delaware, Florida, Illinois, Massachusetts, Nevada, New Hampshire, New York and Texas, both historically and in relation to current and future changes, the G3 US Market Report gives a clear summary of the opportunities and the disruptions taking place in US marketplace. The report covers both land-based and online gaming developements with expert interviews from all spectrums of the gaming: AGA President, Frank Fahrenkopf, Williams Interactive CEO, Orrin Edidin, Congressman Jon Porter (ret) and more...

APEX Gaming Technology

5

WWW.APEX-GAMING.COM

Austrian Gaming Industries

11

WWW.AUSTRIAN-GAMING.COM

Bally Technologies

IFC

WWW.BALLY-TECH.COM

Cammegh

15

WWW.CAMMEGH.COM

Casino Technology

39

WWW.CASINO-TECHNOLOGY.COM

DRGT

89

WWW.DRGT.COM

Eurocoin

41

WWW.EUROCOIN.CO.UK

FutureLogic

DOWNLOONAED

23

WWW.FUTURELOGIC-INC.COM

Gaming Laboratories International

TO IPAD, IPH OR IPOD TOUCH

21

WWW.GAMINGLABS.COM

Gaming Partners International

19

WWW.GPIGAMING.COM

G2E Las Vegas 2012

IBC

WWW.GLOBALGAMINGEXPO.COM

Greentube

G3I APP - IPAD, IPHONE AND IPOD Gaming Publishing launched its G3i App in August 2011. The first to launch a magazine App, the response has been overwhelming, as the App now provides readers with instant access to their favourite gaming magazine wherever and whenever they want. The App is available as a free download from the Apple App Store, with users able to view the latest issues of the magazine at their convenience on their device of choice. Download your copies today.

8

WWW.GREENTUBE.COM

Inspired Gaming Group

77

WWW.INGG.COM

MEI Global

6

WWW.MEIGROUP.COM

Merkur Gaming

35

WWW.MERKUR-GAMING.COM

Net Entertainment

WWW.G3NEWSWIRE.COM

41

WWW.NETENT.COM

A dynamic daily news website that simplifies the reading of news by headline, region and industry; thumbnails of every story encapsulate the content of the article for a focused user-friendly experience. The result is the fastest delivery mechanism for both 'relevant' gaming news items.

Patir Design

13

WWW.PATIR.DE

PST Seating

69

WWW.PSTSEATING.COM

Shuffle Master

OBC

WWW.SHUFFLEMASTER.COM

SPIELO International

29

WWW.SPIELO.COM

G3 MARKET REVIEW - EUROPEAN GAMING STATISTICS

Suzo Happ

Gaming Publishing produces its G3 Market Review in January each year. A combination of our market reports from the year with the latest, up-to-date statistics regarding casinos, slot halls, bingo, arcades and betting sites across Europe. Including 20 different countries and further in-depth market analysis, the G3 Market Review has become an essential guide to the European gaming market, while in recent years we have expanded our reach to include continental gaming reports covering South America, South East Asia and Africa. To view the latest reports visit www.G3imagazine.com.

TCSJohnHuxley

25

WWW.TCSJOHNHUXLEY.COM

VNE

87

WWW.VNE.IT

WMS Gaming

17

WWW.WMS.COM

SUBSCRIPTIONS EDITORIAL

ADVERTISING John Slattery T: +44(0)7917 166471 E: [email protected]

7

WWW.SUZO.COM

James Slattery T: +44(0)7917 166471 E: [email protected]

Jennifer Pek T: +44(0)161 7248716 E: [email protected]

Lewis Pek T: +44(0)1942 879291 E: [email protected]

Karen Southall T: +44(0)1942 879291 E: karensouthall @gmail.com

Disclaimer: All contents© Gaming Publishing Limited 2012. No part of this publication may be reproduced in any form without the express permission of the publisher. While we make every effort to ensure that everything we print in Global, Games and Gaming (G3) is factually correct, we cannot be held responsible if factual errors occur. Advertisements are accepted by us in good faith as correct at the time of going to press.

Phil Martin T: +44(0)161 2366669 E: [email protected]

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