OFFICIAL MAGAZINE
GLOBAL GAMES AND GAMING MAGAZINE I FEBRUARY 2015 I WWW.G3NEWSWIRE.COM I WWW.G3-247.COM INTERNATIONAL GAMING NEWS I KNOWLEDGE I STATISTICS I MARKET INFORMATION I DIGITAL AND PRINT
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Chile
WWW.G3-247.COM - THE GAMING MEDIA VAULT
Chile’s Enjoy unveils plans for ambitious 1 expansion into new gaming markets
2
andorra
The 16th smallest country in the world plans to draft new gambling legislation
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Bermuda
Bermuda has approved new laws that will allow the introduction of three casinos 3
Baltic gaming special report Latvia, Lithuania and Estonia in detail
6
maCau
Las Vegas Sands receives final government 4 6 approvals for its Parisian Macao
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Contents feBruary 2015
03 08 04 06
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WWW.G3-247.COM SOUTH AMERICA NEWS 01: Mexico Mexican gaming organisation, aspJac, expresses doubts about the efficacy of the country’s newly approved gaming act
EMEA NEWS 03: NortherN irelaNd the rank Group has revisited its proposed casino for Belfast, delivering an even bigger project for the city
– G3Newswire pg 10
– G3Newswire pg 16
02: chile chilean gaming operator, enjoy, has unveiled plans that could see the expansions of ambitions into new areas
04: spaiN the enormous casino and resort project planned for vilaseca and salou in spain, BcN world, moves to the second stage s.
– G3Newswire pg 12
– G3Newswire pg 18
02: chile the president of chile has finally declared that the country’s municipal casinos will be granted a further two year extension
05: cyprus the cypriot cabinet has presented a bill governing the establishment, operation and monitoring of cyprus’ first casino
– G3Newswire pg 14
– G3Newswire pg 20
NORTH AMERICA NEWS 06: Nevada Global cash access has completed the us$1.12bn acquisition of the slot maker Multimedia Games holding company
ASIA & OCEANIA NEWS 09: sri laNka the sri lanka presidential election could spell the end for crown’s attempts to develop a $us400m colombo resort
– G3Newswire pg 36
– G3Newswire pg 44
07: the BahaMas Baha Mar has set a date for the opening of the us$3.5bn luxury gaming resort to paying guests of March 27, 2015
10: philippiNes universal entertainment corp and kazuo okada have been cleared of all charges relating to illegal payments to regulators
– G3Newswire pg 38
– G3Newswire pg 46
08: New york New york’s Gaming facility location Board awarded three casino licences rather than four - but that could change
11: arMeNia storm international has a opened its latest luxury casino in armenia in the Multi Grand hotel in the capital, yerevan
– G3Newswire pg 40
– G3Newswire pg 48
G3Newswire.com delivers daily international gaming industry news and information, with the G3Newswire newsletter circulated three times per week to a 8,000+ database of gaming industry influencers
MARKET REPORT Baltics Market report the latest set of G3 market reports detailing each of the gaming sectors of lithuania, estonia and latvia – G3-247 Market report pg 68
socci play for GaMBliNG Mecca sochi, home to the 2014 winter olympics, is gearing up to be a new gambling hub for southern russia with putin’s blessing – insight pg 52
coNNectiNG the dots G3 speaks to Jan hagelberg, the director of digital channels for ray about the creation of a seamless brand experience – interactive pg 102
STUDIO CITY MACAU Melco crowN reveals studio city Melco crown entertainment has unveiled details of its entertainment and leisure destination resort in Macau: studio city – insight pg 50
Gaming Publishing Samson house, 457 manchester road, manchester m29 7Br, united Kingdom
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Comment feBruary 2015
Travelling through France a couple of years back on an operator roadtrip, it was startling to find out just how many land-based casinos had burnt their fingers dabbling in the online sector. Lured by the promise of easy riches and headline figures showing the stratospheric rise of online gaming, most had invested in ventures that had quickly burned through marketing budgets, attracted little national attention and left a very sour taste in the mouths of operators. It’s a story that’s familiar right across Europe, with land-based operators extremely wary of the ‘opportunities’ that online gaming presents. Many straightforwardly believe in the cannibalisation argument, that it’s taking money from a different pocket of the same player, while others have sought to embrace online only to have chased a model that results in lots of money invested with little return. But that was then, and once bitten shouldn’t make twice shy. The offer to land-based operators has shifted significantly. No one is promising riches beyond measure, but instead realistic goals to expand your local gaming brand and connect with players wherever and whenever they choose to play, be that for real money or purely social play. In this month’s issue we discuss the current opportunities to take help landbased operators take their brand, their customer service and gaming experience into social, pay for fun and real money gaming. None or looking to deliver the moon, but nor are they going to break the bank. Instead, operators have the ability to extend their NO ONE IS reach, to deepen their connectivity with the playPROMISING er and drive promotions and repeat play and visitation through an online presence that’s tailored to RICHES BEYOND the kind of offering that you’d like to deliver.
MEASURE, BUT INSTEAD REALISTIC GOALS TO EXPAND YOUR GAMING BRAND
Moving into online shouldn’t be something that frightens land-based business, rather it’s something that should scare those that don’t take the opportunity. An entertainment business that doesn’t offer a multitude of touch points with its present and future customer base is only looking to isolate itself from current and future growth but read the articles and see for yourself.
editorial
advertisiNG
editor Lewis Pek
[email protected] +44 (0) 1942 879 291
commercial director John Slattery email:
[email protected] +44 (0)7917 166471
News editor Phil Martin
[email protected] +44 (0)161 236 6669 associate editor (MalaGa) Karen Southall
[email protected] consultant John Carroll (BillerBeck)
[email protected] correspondent James Marrison
[email protected] contributors Daniel Lindsay David Addison Bepi Mottes Rory Shanahan
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advertising executive James Slattery email:
[email protected] +44 (0)7917 166471 productioN
sub editor Lisa Nichols senior designer Gareth Irwin production Manager Paul Jolleys subscriptions Manager Jennifer Pek commercial administrator John Pek
Faster Higher Stronger Gaming solutions from online’s most agile software and content developer
gameaccountnetwork.com London | Las Vegas
Stand: N2-310
Events feBruary 2015
February 3-6 2015
ICE Totally Gaming 2015, London
Location ExCeL London Exhibition Centre, London, United Kingdom Organiser Clarion Events Fulham Green, Bedford House 69-79 Fulham High Street London
February 20, 2015
Georgia Gaming Congress, Georgia
Location Tbilisi, Georgia Organiser Smile Expo 11/10 Letnikovskaya Str Moscow Russia 115114
Contact: Lyudmila Machuskaya Tel: +7 495 212 1128 Email:
[email protected] Web: www.g3congress.ru/en
March 3-4, 2015
Irish Gaming Show, Dublin
Location Red Cow Moran Hotel, Dublin, Ireland Contact Susan Feery Organiser Gaming & Amusement
Publications 8 South Ring Business Park Kinsale Road, Cork, Ireland Tel: +353 21 431 6776 Email:
[email protected] Web: www.irishgaming.ie
March 17-19, 2015
iGaming Asia Congress, Macau
Location Grand Hyatt, Macau Organiser Beacon Events 20/F Siu On Centre 188 Lockhart Road Wanchai
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United Kingdom SW6 3JW Contact Gareth Dedman Tel: +44 (0)20 7384 8120 Email:
[email protected] Web: www.icetotallygaming.com
Hong Kong Tel: +852 2219 0111 Email:
[email protected] Web: www.igamingasiacongress.com
March 18-19, 2015
FADJA Peru 2015, Lima
Location Atlantic City Convention & Entertainment Center, Lima, Peru Organiser 3A Productions Amador Merino Reyna Street No 307
March 18-19, 2015
Caribbean Gaming Show & Summit 2015, Puerto Rico
Location San Juan, Puerto Rico Organiser CGS Group Investments LLC Southeast Financial Center 200 South Biscayne Boulevard, Suite 2790
Miami, Florida United States FL 33131 Tel: +1 305 394 9292 Email:
[email protected] Web: www.caribbeangamingshow.com
March 18-20, 2015
ENADA Spring, Italy
Location Rimini Fiera, Rimini, Italy Organiser Rimini Fiera Spa Via Emilia 155 Rimini, Italy 47900
Of 602 San Isidro Lima Peru 27 Tel: +51 1 716 2728 Email:
[email protected] Web: www.fadja.com.pe
Contact: Sonia Bodellini Opening Times: 10am-6pm Tel: +39 0541 744250 Email:
[email protected] Web: www.enadaprimavera.it
March 24-26, 2015
FER-Interazar 2015, Spain
Location Juan Carlos I Exhibition Site, IFEMA, Madrid – Spain Organiser Zarkia Hispania SL, c/Marques de la Ensenada, No 4 c/Marques de la Ensenada, No 4-
4a, Madrid, Spain 28004 Opening Times: Tues 11:30-20:00 Wed 10:00-20.00 - Thurs 10:0015:00 Tel: +34 91 310 1072 Email:
[email protected] Web: www.ferinterazar.com
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G3Newswire south aMerica News
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new Bill is causing controversy mexican gaming organisation, aSPJaC, expresses doubts about the efficacy of the country’s newly approved gaming act Mexico - Legislation
De acuerDo con los Datos proporcionaDos por el Instituto Provincial de Juegos de Azar del Neuquén (IJAN), los casinos de la provincia de Neuquén generan ahora más dinero que todas las agencias de lotería juntas, acaparando el 60% de los 17 millones de pesos (2 millones de dólares estadounidenses) generados cada semana por el juego. Los datos recopilados por el instituto muestran que los locales mueven cerca de 894 millones de pesos anuales divididos entre agencias de loterías, casinos y salas de tragaperras. la empresa chilena Del sector Del juego Enjoy podría expandir próximamente sus operaciones en Latinoamérica. El Director general de Enjoy, Gerardo Cood, afirma que la empresa se ha recuperado de las dificultades sufridas en 2013, cuando Chile impuso la prohibición de fumar. En consecuencia, la empresa busca expandirse a nuevos mercados de la región como el colombiano. la exposición latinoamericana De juegos De Azar (ELA) se celebrará de nuevo en México, según un anuncio reciente efectuado por los organizadores, Expoazar S.A. De acuerdo con la declaración, aunque no hay todavía una fecha definitiva, «la exposición se celebrará probablemente en mayo de 2016», si bien todavía está por decidir el emplazamiento del evento. Después De muchos meses De DeBate, se espera que la Presidenta de Chile, Michelle Bachelet, pueda finalmente firmar la legislación que prorrogue las licencias de los casinos municipales por otros dos años. La nueva ley afectaría a los siete casinos que operan en las municipalidades de Arica, Iquique, Coquimbo, Viña del Mar, Pucon, Puerto Varas y Puerto Natales. se han cerraDo Dos granDes salas De tragaperras en lo que parece el comienzo de la aplicación de medidas enérgicas al sector de las tragaperras en Panamá. Clasificados como Tipo C en la legislación panameña sobre el juego, las salas de tragaperras han generado en el pasado cuantiosos ingresos al gobierno y proliferado rápidamente en los últimos años. Sin embargo, su expansión ha sido más pronunciada en áreas más pobres y cada vez hay más indicios que señalan que el gobierno está a punto de abordar el problema el rank group ha revisaDo su casino propuesto para Belfast y entregado un proyecto todavía mayor mientras discutía la introducción de una nueva legislación con los concejales de la ciudad. Aunque Rank todavía no ha encontrado un emplazamiento para su proyecto de 18 millones de libras, confirmó tenía puestas sus miras en el centro de la ciudad y el barrio Titanic Quarter, subrayando que su propuesta duplicaría los puestos de trabajo previstos en un principio. un jugaDor De casinos online alemán ha siDo procesado y multado por un tribunal de Múnich por jugar reiteradamente al blackjack online en un sitio no identificado en el extranjero. Al pintor y decorador de 25 años le fue impuesto el pago de una multa de 2100 € (2489 $) y confiscados unos beneficios de 63 490 € (75 258 €), en el primer caso de este tipo en Alemania y probablemente en todo Occidente.
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President of Mexican gaming organization ASPJAC (Asociación de Permisionarios y Proveedores de Juegos y Sorteos, A.C) Alfonso Pérez Lizaur (right) has expressed his growing concerns over a number of articles in the latest draft of Mexico’s new gaming laws as recently approved by the Chamber of Deputies. According to Mr. Lizaur, the main problem is that the new legislation stipulates that companies which are licensed to operate must update their licences. “I worry about two or three things about the new legislation, as companies in the sector where rights which have already been acquired could be affected,” he said. This could be a flashpoint for controversy in the future and could lead to several legal challenges whereby operators go to local court for stays of closure - something that has happened several times in the past over recent years. “We could go back to the situation we had during many years, of fighting and differences," said Mr. Lizaur. In consultation with its legal department Mr. Lizaur concluded that those casinos which had already been granted permission to operate via local courts “could easily win” if they sought legal protection of their licences which would erase the progress achieved by the new bill and would gen-
erate conflict within the industry on a large scale. “The new gaming law is an extraordinary achievement and I applaud the work of the Interior Ministry (SEGOB) and the Directorate General of Gaming (DGJS), but as in all things there is always room for improvement,” he said. However, Mr. Lizaur said that the Senate could well modify these more controversial provisions in the new bill. The House of Representatives finally approved the new Federal Betting and Raffles Law in December last year. The new law aims to regulate the gaming industry more efficiently, safeguard the rights of players and make the licensing process more transparent. The new law has been the result of many months of work by the special committee first convened to look into the issue back in April 2013. The committee made up of 11 deputies was charged with looking into how licenses had been granted by the Interior Ministry (SEGOB) after growing reports of corruption and allegations that former members of SEGOB had trafficked licenses.
Almost two million dollars gambled a week in Neuquén ARGENTINA According to data provided by Neuquén’s Provincial Institute of Gaming (IJAN), casinos in the province of Neuquén now generate more money than all of the lottery agencies combined taking 60 per cent of the $17 million pesos (U.S$2m) generated weekly by gambling.
Provincial Director of Lotteries and Quiniela, explained that 60 percent is returned to the customer in prizes while the remaining fees are destined for everyday running costs of the gaming institute and the financing of social welfare projects.
Data collected by the institute found that combined, locals gamble around $894m pesos a year divided between lottery agencies, casinos and slot parlours. Combined money generated from casinos and slot parlours stood at more than $544m pesos in 2014 with the IJAN collecting around $98m in tax from a total of nineteen gambling establishments in the province.
“Via law 2571 which was passed in 2010,” he said, “today the IJAN is not only an instrument of administration and gambling control in the province, but also provides and generates solutions for locals,” he said adding that since the creation of the Institute a total of $214m pesos have been transferred from gambling to social welfare programmes. This includes $114.7m pesos which has been earmarked exclusively for education.
In 2014 a total of $350m was gambled in lottery agencies. With income tax set at 18 percent of total profits Antonio Reus,
In addition, all casinos and games rooms must pay provincial and municipal taxes according to their income. Ricardo Pullella,
Provincial Director of Slot Parlours and Casinos, said that 20 percent of their revenue in taxes are earmarked for the municipalities where they are located. Tax collection and efficient running of the industry, he said, has also been aided by an online system of monitoring of all gaming systems which is carried out in real time. The rise in gaming in the province has been the cause of some controversy of late. In May 2013 Union members and local politicians called for the nationalisation of casinos in the province while later in the year a number of lawmakers considered restricting opening hours for bingo halls, casinos and slot parlours. However both proposals have become stalled and gaming in the province looks likely to continue to rise in 2015.
G3Newswire south aMerica News
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enjoy targets colomBia anD peru Chilean gaming operator, enjoy, has unveiled ambitious plans to expand its operational reach into new markets Chile - Operations
el mes pasaDo, el goBierno rumano siguió adelante con la legalización sobre el juego online con dinero real. Rumanía lleva ofreciendo servicios de juego online desde 2010, pero con las normativas modificadas, los operadores de juego pueden ahora ofrecer sus servicios de juego a jugadores, siempre que se cumplan ciertos requisitos. el consejo De ministros chipriota ha presentado en el Parlamento un proyecto de ley para regular la creación, operación y monitorización del primer casino de Chipre. El proyecto ya ha sido revisado por la oficina del Fiscal General, junto con los reglamentos derivados que pronto llegarán a la Cámara. El Ministerio de Energía, Comercio, Industria y Turismo está invitando ahora a las partes interesadas a presentar sus observaciones sobre las normas del borrador, que se han publicado en el sitio web del ministerio. jens halle ha asumiDo la responsaBiliDaD sobre las actividades de ventas y distribución internacionales en calidad de Director general de Merkur Gaming, filial del Grupo Gauselmann. el comité legislativo De anDorra acaBa De completar el borrador de un proyecto de ley que allanará el camino a la presencia de un casino local y al juego online en el pequeño país pirenaico, situado en la frontera entre Francia y España. el congreso De las BermuDas ha aproBaDo nuevas leyes que suponen la apertura de la isla a la introducción de tres casinos. La ley establece que no habrá más de tres casinos operando a la vez, pero que la Comisión del Juego en Casinos podrá elegir más de tres emplazamientos como ideales para un casino. Baha mar, el nuevo complejo De 3500 millones de dólares, abrirá una nueva era de lujo, glamour, juego y emoción a las Bahamas cuando el 27 de marzo de 2015 abran sus puertas a los clientes el Baha Mar Casino & Hotel, Rosewood at Baha Mar y SLS LUX at Baha Mar. Grand Hyatt at Baha Mar abrirá poco después. la elección Del nuevo presiDente De sri lanka podría poner punto final a los intentos del operador australiano Crown de poner en marcha un casino de 400 millones de dólares en la capital, Colombo. El presidente electo, Maithripala Sirisena, ha prometido rechazar las licencias para casinos presentadas por Crown Resorts, presidida por James Packer, y el promotor local John Keells Holdings. universal entertainment corp ha siDo exculpada de haber realizado presuntos pagos ilegales al organismo regulador filipino PAGCOR para facilitar el desarrollo de sus complejos Manila Bay, de 2000 millones de dólares. las vegas sanDs ha anunciaDo que la filial con participación mayoritaria de la empresa, Sands China, ha recibido las autorizaciones del gobierno de Macao necesarias para completar la construcción de su complejo integrado de temática parisiense de 2700 millones de dólares.
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Chilean gaming company Enjoy could soon be expanding its operations in Latin America. General Manger of Enjoy, Gerardo Cood (right) says that the company has recovered from the difficulties of 2013 when Chile imposed its smoking ban. The smoking ban, which went into effect on March 1 2013, banned smoking in closed areas such as pubs, nightclubs restaurants and casinos. With a smoking rate of 40 per cent Chile has the highest percentage of smokers in Latin America. Enjoy was the first in Chile to open specially designed outdoor smoking space on its premises. According to Cood the company has also, after major restructuring of its executive staff and a focus on customers with a higher spend, is now in a position to look into other markets in Latin America. Average expenditure rose 20 per cent in its facilities in Enjoy in Santiago while revenue at the end of 2014 increased 17 per cent and its EBITDA 168 percent compared to 2013. As a result the company is looking to possibly expand in the region into new markets for the company such as Colombia. “I do not see a future with much growth in Chile because it is already a mature market,” Cood said “and for that reason the company could benefit from the expansion into other well regulated markets such as Colombia and Peru.
“We are exploring options in 2015. We have nothing signed nor are we in talks with anyone. It’s an alternative that is based on the knowledge that I have of these markets and what I’ve seen looks very attractive,” he said. “To achieve higher occupancy in my current hotels and casinos we could generate sales offices in Peru, Colombia and even in Ecuador. So we are leveraging the infrastructure but without over investing, to fill up places more with the best customers who spend more,” he said. Enjoy is the leader of the Chilean casino industry with around 37 per cent of the market and recorded sales of US$325m in 2012. The company operates over 6,000 slot machines, 274 tables and 860 bingo seats in Chile. In Chile the company operates seven casinos. It also operates two other casinos in Argentina and Uruguay. The company’s improved outlook has also helped by its recent purchasing of the Conrad hotel and Casino in Punta del Este, the largest in South America. In May 2013 the Uruguayan government approved a deal where the operator of the Conrad hotel and casino in Uruguay switched from Baluma SA to Enjoy SA meaning that Enjoy took control over the Conrad.
ELA to be held in Mexico again due to new gaming reforms
Deputies, will usher in a new era in the gaming market and open the market up to foreign investment.
MEXICO The Latin American Gaming Exhibition “Exposición Latinoamericana de Juegos de Azar” (ELA) will once again be held in Mexico, according to a recent announcement by organisers Expoazar SA.
Although reform is a step in the right direction for the industry the new act was repeatedly delayed due to more pressing matters such as electoral and anti corruption reforms.
According to the statement, although there is no definite date yet, “the expo will probably be held in May 2016,” although the venue of the meeting has yet to be decided. However, it is believed that the event could be held either in Mexico City, or in tourist hotspot Cancun. The expo will, according to the statement, be viable once again due to Mexico’s new gaming act which will, “completely change
the prospects of the industry for the better,” as it gives the “green light for live play and is a perfect location for big business.” Earlier in 2014 the organisers of the event launched an online survey to probe views on the feasibility of staging the fair for 2014 or postpone it until 2015. The last event was held in May in 2012, but the conference has not been held since due to low number of exhibitors and visitors as many operators began to leave the Mexican market due to lack of a clear legal framework in which to operate, amidst concerns of growing corruption and lack of transparency in the industry. It is believed that Mexico’s new Gaming Act, which was approved recently by Mexico’s Chamber of
The new act enforces a number of player protection measures including the obligation on operators to report all bets which exceed 30,000 pesos (around US$ 2,000) to the Treasury, a measure which is designed to curb gambling addiction. The new law also puts an end to the “umbrella” licences whereby operators have been able to operate a number of slot parlours and sports betting shops under a single licence. Instead, each casino or gaming establishment will be issued a single licence per gaming establishment.
G3Newswire south aMerica News
www.g3newswire.com mexico - 15 per cent of slots operate illegally According to the President of The Association of Gaming Equipment Manufacturers (AGEM) 15 per cent of the 90 thousand slot machines operating in Mexico are operating illegally. According to Carlos Carrión the rise in illegal gaming in Mexico is due to the fact that Mexico lacks proper safeguard controls when it comes to the certification of equipment imported from abroad. According to calculations by AGEM, in Mexico electronic gambling machines generate around US$1.6bn a year with manufactures earning around 20 per cent of this amount around $U.S328m. According to Mr. Carrión, used slot machines in Mexico using pirated software are widely available. However, machines using pirated software leads inevitably to falling standards within the industry and can lead to host of problems including start up problems, system error problems and wrong pay outs to players. AGEM is now waiting for the Senate to pass Mexico’s new gaming bill. This week it was revealed that the new gaming law could be up for debate as early as next month. The new law includes a number of provision which would ensure that equipment brought in from abroad is properly regulated and certified and will by overseen by a new Institute of Gaming within the Interior Ministry (SEGOB) . In addition to the licences slot machines in Mexico there are, according to estimates by the General Directorate of Gaming (DGJS), between an estimated 70,000 and 75,000 slot machines operating illegally throughout Mexico located in grocer’s shops and other small businesses such as chemists and convenience stores. Last year the government launched the beginning of a crackdown on illegal slot machines and destroyed around 5,000 illegal slot machines in a campaign to combat illegal gambling. To combat the phenomenon, which has spread widely over the last five years, SEGOB also launched a public awareness campaign last year on national media. With the motto “Addiction Is No Game” the campaign asks the public to report the location of any illegal slot machine to the government via a confidential telephone line. It is hoped that the new gaming act if approved by the Senate next month could lead to a much wider crackdown on illegal gaming. peru - king kong cash pays out wap jackpot A regular customer at the Money Money Casino won the first Wide Area Progressive (WAP) jackpot on GTECH ‘s KING KONG CASHTM in Lima, Peru late last year, a little more than three months after the game’s installation. The player won the prize of approximately US$9,000 after triggering the KING KONG CASH Bonus while playing max bet. "Never in my life have I won a WAP jackpot. It's an indescribable feeling to know that I was the winner of a prize between several casinos," said the anonymous winner. Staff at the Money Money casino joined in the happy event, saying that they never imagined the progressive would hit so soon. Money Money Casino is operated by the Nevada/Alpamayo Group, which operates more than 10,000 slot machines in 113 casinos across Peru, and the KING KONG CASH WAP is installed across 11 of the group’s casinos. GTECH ś KING KONG CASH WAP is available in Peru exclusively at casinos operated by the Nevada/Alpamayo Group.
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presiDent set to allow extension The President of Chile has finally declared that the country’s municipal casinos will be granted a further two year extension Chile - Legislation After many months of debate, it is expected that the President of Chile, Michelle Bachelet (right) could finally sign legislation which will extend the municipal casino licences for a further two years. The new law would affect the seven casinos operating within the governing municipalities of: Arica, Iquique, Coquimbo, Viña del Mar, Pucon, Puerto Varas and Puerto Natales. According to parliamentary sources, the new legislation could be presented to Congress in February. Members of the Chilean Gaming Control Board (SCJ) have met with the Secretary of Treasury, Alejandro Micco, and the Minister General Secretariat of the Presidency, Ximena Rincón, in order to clarify the final details of the new bill. The issue is a vital one for the municipalities where they are located as they provide a significant share of funding locally. In the case of the case of Viña del Mar, for example, the casino provides 50 per cent of the municipal budget. The new bill would extend municipal licenses for a further two years until the end of 2017 in order to give the municipalities time to prepare for the new bidding process and find alternative ways to raise funding once the casinos fall in line with the other casinos in the country and come under supervision of the SJC. In that period the casinos will continue to pay the same amount of its annu-
al income to the municipalities where they are located. Meanwhile, new details have emerged as to the licensing process once the municipal licenses expire. According to the Mayor of Pucon, Carlos Barra the new law would state that casinos will remain in the cities where they are located and significant resources will be guaranteed to the city. Similar statements were also made by the Mayor of Viña del Mar and President of the Association of Municipalities of Casinos Games, Virginia Reginato who has been spearheading the campaign to allow for an extension of the municipal licences. “This vital problem will be resolved soon and we shall soon know the final contents of the project that President Bachelet sends to Congress. We are certain and have total confidence that the President will keep to his word and addressees this enormous danger that now lurks in these seven districts,” she said. The issue of the municipal casinos has become increasingly urgent of late with local lawmakers concerned that they will soon lose out on millions of dollars of tax revenue from casinos located within their jurisdictions.
Crackdown on slot parlours begins in earnest in Panama PANAMA Two large scale slot parlours have been closed down in what looks likely to be the beginning of a crackdown on the slot parlour industry. Categorised as Type C in Panamanian gaming law slot parlours have in the past have generated sizeable revenues for the government and have proliferated rapidly in recent years. However, their expansion has been most pronounced in poorer areas and there have been growing reports that the government has been poised to tackle the issue. This was after recent statements by the Gaming control Board (JCJ) that it considers Type C machines, to be the main causes of pathological gambling, since they are located in nearby low income neighbourhoods. The Panamanian Gaming Control Board (JCJ) closed two Type C slot parlours, one located in the city of El Valle de Anton and the
other in the city of Penonomé, in the province of Cocle, for failure to comply with the terms of their licences. The Gaming Board has announced that a number of closures are likely in the coming weeks both in Panama City and the rest of the country. Type C slot machines may only pay a maximum of US$200 per machine in prizes and have been an increasingly important source of funding over recent yeas. According to the Ministry of Finance, Type C slots generated US$10.6m from January to November of this year in gaming tax revenue to the state. However, Executive Secretary of the JCJ, Eric Rivers told press that it was “time to put our house in order ”going on to say that: “There have been many excesses in this economic activity and nobody has done anything about it, but the Gaming Control Board
will not allow this situation to continue. Slot parlours that do not comply with the provisions of laws will be closed,” he said. According to the President of the Association of Managers of Gaming (ASAJA), Antonio Alfaro, Panama has seen a rapid growth of slot parlours which are operating without a licence. In 2012 there were an estimated 4,000 type C slot machines operating throughout Panama but there could now be as many as 8,000 to 9,000 located in economically depressed areas. Alfaro has called on the JCJ to issue a resolution so that all casinos nationwide must take part in self exclusion programmes in the future. The issue is significant as Panamanian Gaming Law was specifically designed so that it would improve tourist infrastructure and attract tourist but with the rise of slot parlours in poorer neighbourhoods there is increasing evidence that it is locals rather that foreigners who continue to play.
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rank DouBles Belfast efforts The rank Group has revisited its proposed casino for Belfast, delivering an even bigger project for the city Northern Ireland - Licensing
aus Daten, Die vom argentinischen neuquén Provincial Institute of Gaming (IJAN) geliefert wurden, geht hervor, dass die Kasinos in der Provinz Neuquén inzwischen mit einem Anteil von 60 Prozent an den wöchentlich im Bereich des Glücksspiels erwirtschaften $ 17 Millionen Pesos (US $2 Mio.) mehr Geld als alle Lottoannahmestellen zusammen generierten. Die vom Institut erfassten Daten ergaben, dass sich die jährlich von einheimischen Spielern ausgegebenen $ 894 Mio. Pesos auf Lottoannahmestellen, Kasinos und Spielhallen verteilen. Das chilenische glücksspielunternehmen Enjoy könnte seine geschäftlichen Aktivitäten in Südamerika schon bald ausdehnen. Der General Manager von Enjoy, Gerardo Cood sagte, dass sich das Unternehmen von den Schwierigkeiten des Jahres 2013, als Chile das Rauchverbot erteilte, erholt habe. Nun möchte das Unternehmen möglicherweise in der Region in neue Märkte wie zum Beispiel Kolumbien eintreten. Die süDamerikanische glücksspielmesse „Exposición Latinoamericana de Juegos de Azar” (ELA) wird laut einer kürzlich veröffentlichen Ankündigung des Organisators Expoazar SA erneut in Mexiko stattfinden. Obwohl noch kein definitives Datum feststeht, soll „die Messe” nach dieser Ankündigung „wahrscheinlich im Mai 2016 stattfinden”; der Ort der Veranstaltung muss noch festgelegt werden. nach vielen monaten Der DeBatten wirD erwartet, dass die Präsidentin von Chile, Michelle Bachelet, endlich ein Gesetz unterschreiben könnte, durch welches die städtischen Kasinolizenzen um weitere zwei Jahre verlängert werden. Das neue Gesetz würde die sieben Kasinos in den Gemeinden Arica, Iquique, Coquimbo, Viña del Mar, Pucon, Puerto Varas und Puerto Natales betreffen. Zwei grossräumige spielsalons wurDen im Rahmen einer Aktion geschlossen, die wohl der Beginn harter Repressionen gegen die Spielsalonbranche in Panama sein dürfte. Die nach dem Glücksspielgesetz Panamas als Typ C kategorisierten Spielsalons stellten in der Vergangenheit eine beachtliche Einnahmequelle für den Staat dar und haben sich in den letzten Jahren schnell verbreitet. Diese Ausbreitung war jedoch in ärmeren Gegenden besonders stark ausgeprägt und es gab vermehrt Berichte darüber, dass die Regierung bereit sei, das Problem in Angriff zu nehmen. Die rank group hat ihren plan für ein kasino in Belfast noch einmal überarbeitet und präsentiert nun ein noch größeres Projekt, nachdem die Einführung neuer Gesetze mit den Stadträten diskutiert wurde. Zwar hat Rank noch keinen Standort für das £ 18 Millionen teure Projekt genannt, aber es wurde bestätigt, dass das Unternehmen das Stadtzentrum und das Titanic-Viertel ins Auge gefasst habe und man betonte, dass damit zweimal so viele Arbeitsplätze geschaffen würden als zunächst geplant. ein Deutscher online-kasinospieler wurDe wegen fortgesetzten Online-Blackjackspielens auf einer nicht genannten Offshore-Website belangt und von einem Gericht in München zur Zahlung einer Geldstrafe verurteilt. In dem ersten Fall dieser Art in Deutschland und möglicherweise in der gesamten westlichen Welt musste der 25-jährige Maler/Dekorateur eine Strafe in Höhe von € 2.100 ($ 2.489) zahlen. Darüber hinaus wurden seine Gewinne in Höhe von € 63.490 ($ 75.258) konfisziert.
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The Rank Group has revisited its proposed casino for Belfast, delivering an even bigger project, as it discussed the introduction of new legislation with city councillors. At a previous meeting in September Councillors remained on the fence over the proposal with a ‘no decision’ ruling although Social Development Minister Mervyn Storey, of the DUP, remains firmly against casinos being introduced into Northern Ireland. Whilst Rank has not identified a site for its £18m project it confirmed it was eying the city centre and the Titanic Quarter, highlighting that its proposal would create twice as many employment positions as first envisaged. The overall development would include a gaming floor, restaurants, bars, a theatre and a hotel all under one roof Rank has previously said it would deliver 200 jobs but now pitches that as twice the amount. It would also hand over £80,000 each year to a charity focussing on problem gamblers. Alliance councillor Tom Ekin said in principle he supported the idea adding that if it was done right it would be a great asset to Belfast. Dunlewey Addiction Services stated: “We see no issue with casinos providing they have robust protections systems in place that will protect those individuals who are at risk of problematic gambling.”
Social Development Minister Mervyn Storey said in a statement to the BBC: “In December 2012, the Northern Ireland Executive agreed that the current law on casinos should remain unchanged for the present. “I see no compelling reason to revisit this issue at this time.” Rank Group, which operates 55 casinos in Britain, would need to see a change in legislation in order to operate a casino. Dan Waugh from Rank previously said: “We believe we could bring something to Belfast, which doesn’t exist, and would attract people into the city centre for fun and entertainment. We have a range of measures to protect our consumers including research, education and support services. We are realistic, but optimistic over this proposal. It is a proposal that has a lot of public support and we think the scale of investment and jobs we are offering should be taken seriously.”
Germany a German online casino player has been prosecuted and fined by a court in Munich, Germany for persistently playing online blackjack on an unnamed offshore site. the 25-year-old painter-decorator was ordered to pay a fine of €2,100 ($2,489) and had winnings of €63,490 ($75,258) confiscated, in the first case of its kind in Germany, or possibly anywhere in the west. the ruling could prove to be a landmark legal precedent, with huge repercussions for the grey online gaming market and the thousands of Germans who play online.
GameAccount completes NetEnt integration for Italy ITALY GameAccount Network has announced the integration of its market-leading platform with Net Entertainment NE AB, a development which enables NetEnt to offer its PC and mobile content to leading operators in Italy. As a result of the agreement NetEnt has confirmed that a selection of its’ best-in-class games is now live and available to Eurobet’s player base in Italy. Heralding the agreement, Björn Krantz, Chief of GMO and MD at NetEnt Malta Ltd said: “I am very
pleased that we now have our integration completed with GameAccount Network, and it has been a great team effort from both organisations. I am very excited that Eurobet is now going live with a wide selection of our best-in-class games, and I am confident that Eurobet and its players will now be able to enjoy the very best player experience that exists on the market today. As we have previously announced, SNAI and SISAL are also waiting to go live with NetEnt´s games over the GameAccount Network platform, and their commercial launch will
be announced separately.” Dermot Smurfit, CEO of GameAccount Network added: “We are delighted that our integration with NetEnt will allow Eurobet and our other operating partners in Italy to realise the benefits of an even stronger portfolio of content delivered by GameAccount Network. We often talk about the importance of delivering great games that people enjoy playing; this commitment and strategy is clearly demonstrated here. The GAN team looks forward to demonstrating the full breadth and capabilities of our gaming software and online content to an international gathering of gaming professionals at the ICE exhibition taking place at London’s ExCeL Centre.”
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Bcn worlD is firmly on track The enormous casino and resort project planned for Vilaseca and Salou in Spain, BCn World, moves to the second stage Spain - New projects
im vergangenen monat hat Die rumänische Regierung einen weiteren Schritt bezüglich der gesetzlichen Regelung von Online-Glücksspielen mit Echtgeld getan. Rumänien bietet seit 2010 Glücksspiel-Service für OnlineServices an - nun jedoch mit abgeänderten Vorschriften. Online-Glücksspielanbieter können Spielern jetzt ihren SpielService anbieten, sofern ein paar Auflagen eingehalten werden. Das kaBinett Zyperns hat jetZt im parlament eine Gesetzesvorlage eingebracht, nach der die Einrichtung, der Betrieb und die Überwachung des ersten zypriotischen Kasinos geregelt werden sollen. Die Vorlage wurde bereits von der Generalstaatsanwaltschaft geprüft und die damit einhergehenden Regulierungen werden schon bald dem Parlament vorgelegt werden. Das Ministerium für Energie, Handel, Industrie und Tourismus ruft jetzt die betroffenen Parteien dazu auf, ihre Stellungnahmen zu den auf der Webseite des Ministeriums einzusehenden Regelungsentwürfen abzugeben. jens halle hat als ceo Der Tochtergesellschaft der Gauselmann-Gruppe, Merkur Gaming, die Verantwortung für die internationalen Verkaufs- und Vertriebsaktivitäten übernommen. Der gesetZgeBungsausschuss von anDorra hat jetzt den Entwurf eines Gesetzes fertiggestellt, das den Weg für eine herkömmliche Spielbank sowie für das OnlineGlücksspiel in dem winzigen Pyrenäen-Staat an der Grenze zwischen Frankreich und Spanien ebnen soll. Das unterhaus Der BermuDas hat neue gesetZe beschlossen, um den Betrieb von drei Kasinos zu ermöglichen. Dieses Gesetz besagt, dass nicht mehr als drei Kasinos gleichzeitig in Betrieb sein dürfen, dass aber der KasinoGlücksspielausschuss mehr als drei Standorte wählen kann, die sich für ein Kasino idealerweise eignen. Baha mar, Der neue $ 3,5 mrD. teure stanDort wird eine neue Ära des Luxus, des Glanzes und der Spannung auf den Bahamas einleiten, wenn dort am 27. März 2015 im Baha Mar Casino & Hotel, Rosewood in Baha Mar und SLS LUX in Baha Mar die ersten bezahlten Gäste willkommen geheißen werden. Kurz darauf wird auch das Grand Hyatt in Baha Mar eröffnet werden. Die wahl eines neuen präsiDenten in sri lanka könnte das Aus für das Bestreben des australischen Betreibers Crown bedeuten, einen $ US 400 Mio. teuren Kasinostandort in der Hauptstadt Colombo einzurichten. Der neu gewählte Maithripala Sirisena hat versprochen, die Erteilung von Lizenzen für Kasinos, die von James Packers Crown Resorts und der lokalen Bauunternehmer John Keells Holdings beantragt wurden, zu verweigern. universal entertainment corp wurDe von Dem Vorwurf entlastet, illegale Zahlungen an PAGCOR, die Regulierungsbehörde der Philippinen, geleistet zu haben, um die Entwicklung des US $ 2 Mrd. teuren Manila Bay Resorts voranzutreiben. Das unternehmen las vegas sanDs teilte mit, dass die in seinem Mehrheitsbesitz befindliche Tochtergesellschaft, Sands China, die Genehmigungen der Regierung von Macau erhalten hat, die erforderlich waren, um den Bau des US $ 2,7 Mrd. teuren integrierten, Paris-ThemenResorts zu vollenden.
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The BCN World tourist project planned for Vilaseca and Salou, Spain as part of the existing theme park, continues on track and is currently adapting to new circumstances that have taken place in recent months. Specifically, the Government of the Generalitat of Catalonia continues to develop the Urban Master (PDU) Plan linked to the site included in the Recreation Center and Tourism (CRT) in Vilaseca and Salou, whose final approval the Generalitat estimated at approximately 12 months and is conditional to the start of construction of the complex. On November 27, Veremonte and its partners (Melco and Hard Rock) won three of the four prequalifications of the Economics Department of the Generalitat de Catalunya in the tender for developing casinos in the territory of Vilaseca and Salou. Validation involved technical and financial certification for a total amount of €1,200m, demonstrated by bank accreditation. Additionally, Value Retail, another operator linked to BCN World recently confirmed an investment in the project of €200m.
The definition of the urban master plan is intended to prequalify companies linked to BCN World who are continuing to work on the design of each of the integrated resorts. Currently, Veremonte has decided not to exercise the option on the grounds of La Caixa, which expired in 2014. Once the conditions of the Urban Master Plan and casino licenses contest are known, the shortlisted companies will compete to implement their projects. To do this, they should have acquired the land required for the construction of their project. Meanwhile, BCN World continues to receive interest from new groups of investors and operators, confirming its strategic direction and viability to become a major leisure complex in Europe. To date, the BCN World project includes Veremonte companies, Melco, Hard Rock, Caesars, Value Retail, Melia and Port Aventura.
Romania last month the romanian government progressed with the legalisation of real money online gambling. romania has offered gambling service for online services since 2010, but now with modified regulations, online gaming operators can now offer its gaming services to players, as long as a few stipulations are met. the legal framework now being offered allows operators to be legally licensed by romania law which is operated by the romania government. with the issuance of licenses, players are now protected, and the control on minor gambling can be monitored closely. odette Nestor, romania’s National office of Gaming’s president commented stating,
Heber launches new controller range with Taiwan’s Ganlot UK AND TAIWAN Heber, one of the leading independent suppliers of gaming controllers, has announced its collaboration with Ganlot, a wholly owned subsidiary of Portwell Inc and a world leader in PC technology, headquartered in Taiwan. The first fruits of this agreement will be the release of a new range of high performance, low cost gaming controllers, to be revealed at the ICE Totally Gaming 2015 at stand N1-252 on 3-5 Feb 2015 at the ExCeL Centre in London. Les Ashton-Smith, Managing Director of Heber, said that “Heber has been working with Portwell for a number of years now on individual projects and
has been very impressed with both their technical expertise and commitment to quality and service, matching our own demanding standards, service values and ideals.
highly successful Pluto range of embedded gaming products. With our PC knowledge and manufacturing capacity and Heber’s gaming I/O technology, we will provide the best possible solutions to the worldwide gaming market.” Ganlot has extensive partnerships with many top device manufacturers to ensure that the latest technology is always available to the gaming market.
This collaboration with Portwell’s subsidiary Ganlot will bring together a breadth of skill and knowledge to enable the creation of fantastic next generation products for the gaming industry of the future.”
Ganlot’s renowned technology and service ensures that all their products are built to the highest standards and have already established a reputation for reliability in operation.
Ken Guan, CEO of Ganlot commented in relation to the Heber deal: “We are very pleased to have started this collaboration with Heber, who are very well known in the industry for their
Ganlot Inc., a new Portwell company, aims to provide integrated casino, lottery and amusement solutions combined with comprehensive support and service to the industry.
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cyprus casino Bill presenteD The Cypriot Cabinet has now presented a bill governing the establishment, operation and monitoring of Cyprus’ first ever casino Cyprus - Legislation The Cypriot Cabinet has now presented a bill governing the establishment, operation and monitoring of Cyprus’ first ever casino, to parliament. It has already been checked by the Attorney-general’s office, with the accompanying regulations to reach the House soon.
Bosnia anD herZegovina – cassino Duga Cassino Duga in Srebrenik city in Bosnia and Herzegovina, has installed the latest Interblock’s G5 Mini Star Roulette. The casino has been in operation since 2007. After a substantial period researching the roulette market, Senadin Ćosić, CEO at Cassino Duga, decided to installed the latest Interblock’s G5 Mini Star Roulette in his casino. The product met Mr. Ćosić’s very specific requirements, which were needed to place the product with Cassino Duga. Mr. Ćosić commented:“I am happy to say that also our players are very satisfied with the new G5 Mini Star Roulette and they are especially enthusiastic about Golden Chip Jackpot, statistics and other features on the Roulette.” Klemen Caleta, Regional Sales Manager at Interblock, added: “We are very proud to welcome Cassino Duga within our Interblock family. The newest G5 Mini Star Roulette is a perfect match for this venue. We believe this is only the start of Mini Star Roulette’s success in this region.” romania – everymatrix signs up with prolexic EveryMatrix is now delivering services with the global leader in DDOS and Mitigation services Prolexic. This service will not only benefit the EveryMatrix network but enhance the protection of all clients and operators that use the EveryMatrix product portfolio. Prolexic Technologies is the world’s largest, most trusted distributed denial of service (DDoS) protection and mitigation provider. Able to absorb the largest and most complex DDoS attacks ever launched, Prolexic protects and restores mission-critical, Internet-facing infrastructures for global enterprises and government agencies within minutes. EveryMatrix is always looking to invest in enhancing our product offering so that EveryMatrix clients get the best possible service protection. spain – maria jose gallarDo joins euromat María José Gallardo joins the European Gaming and Amusement Federation (EUROMAT) as a member of the Spanish Association of Gaming Machine Businesses (FACOMARE). María José Gallardo is Vice President of the R. Franco Group. EUROMAT is an influential forum for representation and cooperation within the entertainment industry, and is particularly relevant a time when new regulations are being developed and implemented in many European countries while at the same time the European Union is demanding regulatory harmonisation, as gaming is not the subject of European regulation, but the sole responsibility of the Member States.
The Ministry of Energy, Commerce, Industry and Tourism invited interested parties to submit their comments on the draft regulations, which have been posted on the ministry’s website. The Ministry said: Following a relevant Council of Ministers decision dated 10.12.2014, the bill “Law to Regulate the Establishment, Operation, Function, Control and Supervision of a Casino and Relevant Matters of 2014” has been presented to the House of Representatives for enactment. The relevant Regulations have been drafted and, following the completion of legal review by the Office of the Attorney General, will be presented to the House of Representatives for enactment.
Media reports out of Cyprus have linked names such as Caesars Entertainment, Genting and Las Vegas Sands to the process with 13 companies currently interested in the project. The operator will be allowed to select which district the resort will be located in, which is seen by some as an avoidance tactic by the government. It will be given a 30-year license, with a guaranteed monopoly for the first 15, in exchange for 15 per cent of the casino’s annual gross revenues. The annual gaming license will cost €2.5m for the first four years of operating, then €5m for the next four.
The Ministry of Energy, Commerce, Industry and Tourism invited interested parties to provide comments relating to the draft Regulations before midnight January 16 2015. A summary of relevant
The operator is also expected to be allowed two satellite casinos alongside the larger resort style licence, which must have at least 1,000 slots and 100 tables alongside 500 hotel rooms.
Czech Republic the authorities in the czech republic are to treat alcohol and gambling as illegal drugs following amendments in the national strategy in the anti-drug policy. the strategy has been to replace the word ‘drugs’ with ‘addictive substances and gambling.’ it wants to make accessibility to gambling harder and bring in tougher regulations and measures to lessen both the supply and demand of gambling. National anti-drug coordinator Jindřich vobořil said access to gambling was much higher in the czech republic compared to other countries. in 2013 there were 7.5 gambling machines per 1,000 inhabitants in the czech republic. in slovakia that figure was 3.7 in slovakia. it was three in Germany, 0.6 in poland and 0.3 in austria. online bets with licensed gambling operators in czech reached 14bn kč. about the same amount is spent on foreign gambling websites. a report that led to the recommendations stated that 170,000 adults could become problem gamblers. the effectiveness of the strategy is to be evaluated in March 2019.
Google faces fine as President Putin cracks down on online RUSSIA Russia’s Federal Antimonopoly Service has fined Google $1,600 for allowing gambling ads to be placed on the Google search engine available to Russians. The watchdog imposed the fine due to ‘the distribution of gambling, their organisers and related services in the Google search engine on the territory of the Russian Federation.’ The fine comes as Russian
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comments was then posted on the Ministry’s website at the end of the process.”
President Vladimir Putin clamps down on online gaming, signing a bill into law toughening penalties for illegal gambling business. Current laws look to crackdown on illegal gambling businesses that generate profits of more than 1.5m rubles ($26,500). The new legislation will see the operators of unauthorised Internet gambling sites face up to 240 hours of community service, restriction of freedom of up to
four years or a prison sentence of up to two years. It will impose fines of between $5,300 and $8,850 or an amount equal to the operator’s income for a period of one to three years. It will also introduce fines for unlicensed sports betting in regions outside of the gambling zones.
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montenegro – hit extenDs BiDs for maestral ALTA Skupina and its subsidiaries (ALTA) have been appointed by the seller, HIT d.d. Nova Gorica, Slovenia, to act as its exclusive financial advisor and to carry out a formal sales process of the Maestral Resort & Casino. The deadline for prospective bids had sought to be concluded in 2014, but ALTA extended the deadline to Friday, January 16, 2015.
anDorra plans its first casino The 16th smallest country in the world is due to create its own casino legislation aimed at promoting a rise in tourism Andorra - Legislation
Maestral Resort & Casino is a 4+* luxury hotel with casino, congress, wellness and restaurant facilities. The casino covers 1,000sq.m. with 130 slot machines, three electronic roulettes and 18 gaming tables. The hotel offers a total of 214 rooms, among which 18 apartments range from 36sq.m to 154sq.m. germany – jens halle is ceo at merkur gaming Jens Halle has assumed responsibility for international sales and distribution activities as CEO at the Gauselmann Group subsidiary Merkur Gaming. “Mr. Halle’s long-standing focus on the global casino business has enabled him to have the right vision with such experience so as to further develop our products mainly overseas outside of Europe in a truly sustainable way. We have gained an esteemed expert who will continue our growth from the past years and indeed further expand this”, stated Paul Gauselmann, Chairman of the Gauselmann Group, and Jürgen Stühmeyer, Sales Director of the Gauselmann Group. “I have been able to establish a long-standing relationship with the Gauselmann entrepreneurial family through my activities thus far in the industry. I am now all the more looking forward to the promising collaboration at Merkur Gaming. The development know-how and the long-standing wealth of experience at the Gauselmann Group offers great potential and diverse development opportunities for our partners abroad,” Mr. Halle said. spain – pascual appointeD new coo of coDere The Codere Group, a Spanish multinational in the private gaming sector, has appointed Alejandro Pascual as its new Chief Operation Officer (COO) of Codere Europe, a strategic position for the company, which is committed to growth in this region for the coming years. Mr. Pascual will be responsible for Codere’s business in Italy and Spain, two European countries in which the group is already active but into which it is hoping to expand. He has worked for Codere since 2000, first as Director of Administration before moving into various management positions in the company’s Italian division.
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The legislative committee of Andorra has now completed the draft of a bill that will pave the way for a land-based casino and online gaming in the tiny Pyrenees country, located on the border between France and Spain. The Minister of the Presidency, Antoni Riberaygua, enigmatically stated that the opening of the gam-
bling market in Andorra will be achieved ‘gradually, but immediately.’ He hopes the addition of a casino will boost tourism in the principality, which sees over 10m visitors each year. Mr. Riberaygua commented: “It should be clear that visitors should always be attracted by the tourist attractions that the country offers, and not by its gambling establishments. That’s why only one casino would be allowed to operate in Andorra.” The move to allow online gaming is a bid to increase tax revenues. Foreign operators will be asked to submit applications for online gambling licenses early this year.
Germany edict egaming Gmbh recently signed a deal with the international casino software provider everyMatrix. the edict Game Bridge, a newly developed remote game server will deliver the famous Merkur slots via an api to the everyMatrix game portfolio. “we are very pleased with this new partnership. the operators using the everyMatrix software will benefit from the Merkur slot games and the unique player experience that our games offer,” comments dominic-daniel lienard, ceo of edict. the edict Game Bridge currently offers 10 Merkur slots to large sports betting or casino operators. among the games are top titles as “double triple chance”, “Magic Mirror” and “221B Baker street”. the partnership with everyMatrix is the first that edict has signed with a B2B casino software provider.
Paf acquires the Italian online gaming company Winga ITALY The Åland gaming company Paf has entered the Italian market by acquiring Winga. The Italian online operator Winga offers casino, poker and bingo products at winga.it and via the television channel Winga TV. Winga operates within the regulated Italian gaming market using local gaming licences. The company, which is headquartered in Milan, was founded in 2010 and currently has 27 employees. In 2014 Winga’s revenue was about €10m. The acquisition means that Winga becomes a subsidiary of the Paf Group. Winga’s activi-
ties will continue to operate under the Winga brand and online at winga.it. “The acquisition of Winga is part of our strategy of continued internationalisation and expansion. We see great potential in Winga’s well-established operational base in combination with Paf’s international industry experience and broad range of products. As a first step, we will expand Winga’s product range to include additional casino games and betting in the next few years,” says Anders Ingves, CEO of Paf. Winga has broadcast daily games
programmes on its own television channel Winga TV since 2011 with a focus on casino games. The channel’s output is strongly linked to the gaming offers on winga.it. The TV channel is available through the Italian digital terrestrial television network and via online streaming. “It’s exciting and challenging to lead Winga into a new era. Our market niche within casino TV in combination with Paf’s international gaming expertise makes me confident that together we can grow the business in Italy over the next few years,” commented Assen Diakovski, CEO of Winga. Paf has acquired Winga from Buongiorno SpA, an Italy-based multinational group of companies who focus on multimedia and digital entertainment.
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olympic set to expanD into malta estonia-based operator, olympic entertainment Group, is to enter the malta market with its largest ever casino| giBraltar – paf anD sunBorn to open casino The Åland-based gaming company Paf and the Finnish hotel company Sunborn are in the process of opening an international casino on board the floating five-star superyacht Sunborn Hotel in Gibraltar. The casino, to be named Casino Sunborn, will offer visitors over sixty slot machines, four roulette tables and four card tables. Subject to the granting of a licence and regulatory approval, the planned opening date is in April. The casino is a joint proposal between Paf and Sunborn and will be located aboard the 142-metre-long seven-story-high Sunborn Hotel superyacht in Ocean Village Marina in downtown Gibraltar. In addition to the international Casino Sunborn and 189 fivestar hotel guest rooms, the Sunborn Hotel in Gibraltar also offers a range of high-class restaurants and bars, an exclusive spa and pool area, a modern conference centre and a superb sundeck.
Malta - New operations Baltic-born operator Olympic Entertainment Group has confirmed it is to enter the Malta market where it will build its largest ever casino. Covering close to 2,700 sq. metres, the casino will be called Casino Malta by Olympic Casino and will be opened in the second half of 2015 at the Malta InterContinental Hotel. It will feature more than 250 slots, close to 30 casino and poker tables as well as sports betting and bar area. OEG will invest up to €7m in the new casino. The new casino will be established in cooperation
with Maltese hotel and entertainment enterprise Eden Leisure Group and OEG will start to operate the casino under a management agreement. Olympic Entertainment Group (OEG) is beginning the provision of casino management services in Malta. For the Malta operations subsidiaries OEG Malta Holding Limited and OEG Malta Gaming Limited have been established in Malta. OEG owns directly or through subsidiaries 100 per cent of the Maltese subsidiaries’ shares. OEG Malta subsidiary has concluded an agreement for the provision of casino management services and related service to Maltese company Casino Malta Limited and associated companies. As part of the transaction OEG acquires through OEG Malta Holding Limited subsidiary 1 preferred share of Casino Malta Limited. The preferred share does not confer the right to vote.
"The opening of the Casino Sunborn in Gibraltar with Sunborn signifies that Paf's land-based activities are now taking a big and exciting step into Europe, just like Paf.com online. The casino will also be a good base for creating synergies with our internet-based business. Our hope is that Paf's nearly 50-year experience in the gaming industry combined with Sunborn’s knowledge of the international hotel industry will contribute to a unique casino experience for visitors," says Anders Ingves, CEO of Paf. Recruitment for the Gibraltar Casino Sunborn will commence with croupiers, managers, cashiers and security staff being employed. south africa – egt completes premier install Euro Games Technologies has installed its P24/24 Up slot machines from the Premier series in the Emperors Palace Hotel Casino Resort situated close to the O.R. Tambo International Airport in Johannesburg. The installation of eight cabinets marks its entry in the South African market. The P24/24 Up performed ahead of expectation for the operator paving the way for further installations of EGT’s products. Steve Diversi, Director of Custom Gaming Solutions, the distributor of EGT for South Africa commented: “Both Custom Gaming Solutions and EGT are very pleased with reception the machines have received to date. The newly delivered bank to the main floor of Emperors is proving to be incredibly popular with the customers. Peermont Global, the hospitality and gaming company, operating the resort, is extremely satisfied with the P24’s so far. This new installation increases the number of EGT’s products on Emperors gaming floor, adding Premier machines to the previously owned Vega Vision Up cabinets.”
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Stuttgart and Baden-Baden welcome latest IGT Avatar slots GERMANY On December 13, 2014, slot enthusiasts in Germany celebrated the arrival of IGT’s James Cameron’s Avatar Treasures of Pandora Video Slots at Casino Stuttgart and Casino BadenBaden. The award-winning slots transport players to Pandora through best-in-class content, gripping graphics and prolific payouts. The landmark installations will mark the first time IGT’s Premium Plus content is available for play in the region. “We could not be more excited about putting the Avatar games on our casino floors,” said Otto Wulferding, CEO of the BadenWürttembergische Spielbanken
GmbH & Co. KG. “With the global appeal of the Avatar brand, coupled with the rich gaming experiences that these games offer players, we are confident these machines will be a great enrichment for our casino floors.” “The introduction of IGT’s Premium Plus portfolio in Germany represents a pivotal step in further propelling gaming entertainment in the region,” said Sabby Gill, IGT SVP International Sales. “IGT is deeply committed to our customers and their players in this region and placing titles such as Avatar gives operators a tool to drive coin-in and elicit player excitement.”
Greece the privatisation of opap, the former state betting agency, “is not a done deal,” according to Greece’s main opposition radical left coalition (syriZa) leader alexis tsipras. “for us, the national crime of privatising opap, especially under the scandalous terms this was done with, is not a done event,” tsipras told the national federation of lottery agents about the 2013 privatisation. “a government based on syriZa will not say ‘Que sera, sera’,” he added and asserted his party’s government would never allow the rampant creation of casinos. it’s not all bad news for opap however, as the eu general court upheld its right to an 18 year exclusive licence to operate 35,000 video lottery terminals from the Greek government, which had been challenged as ‘illegal state aid,’ by the country’s casino operators.
ceo stoss affirMs that casiNos austria reMaiNs iN the Black Casinos Austria boss, Dr. Karl Stoss, claims his company is in rude health, despite a tumultuous 12 months The head of casino operator Casinos Austria, Karl Stoss has sought to repudiate claims by Rudolf Kemler, the head of state asset managing company ÖIAG (Austrian Industrial Holding AG), about the alleged need for a restructuring of Casinos Austria. In an interview in the Austrian press, Dr. Stoss noted that ÖIAG itself was in need of reorganisation, but that his own firm was operating well, as the 12 casinos yielded in 2014 2.5 per cent more than in 2013 and the lottery business had grown nearly two per cent, while VLT growth topped 15 per cent. In 2013 Casinos Austria was affected by the licence revocation in Argentina, leaving the firm with an immense loss, but the rise in online gambling fortunes has allowed Casinos Austria to grow revenue by 2.5 per cent to a record-high €3.52bn. The firm has referred the Argentinian case to the arbitration court of the World Bank in Washington (claiming US$250m in damages) The firm was also unlucky in Russia last year, as Russia banned private lotteries as of July 2014, which included Casinos Austria’s lottery in
Russian republic of Bashkortostan. This year the company will launch a casino in Georgia (Batumi) on the Black Sea; it has already started a new business in Macedonia involving video lottery terminals (VLT) and has signed a management contract for a casino near the Greek border. With regard to the suspended sale of Australian assets to Hong Kong investor Tony Fung, Dr. Stoss said that the competent authorities would close the proceeding in question in February or March 2015. He added that Mr. Fung had approached Casinos Austria (not the other way round) to acquire the casino in order to put into motion his plans for an A$8.1bn investment in Queensland and needed a permit to proceed with his megaresort. Dr. Stoss is optimistic that Mr. Fung will approach CA to operate the casino on his behalf. However, in Austria the firm is having a rough time having failed to obtain new casino licences for Vienna and Lower Austria, but having invested nearly €10m in Austria in 2014 and a further €20m this year, Dr. Stoss is optimistic about Casinos Austria’s domestic future. “Casino Bregenz, the No.1 casino in the country, has been expanded in 2014 and begins the second stage of construction. At Kärntner Straße in Vienna we opened a new restaurant and will continue to
Insight casiNos austria expand there and in Velden, while the largest chunk is the rehabilitation of the site at Klessheim Palace in Salzburg. And at the beginning of 2016 we will open a new casino in Zell am See. Our strategy is to increase efficiency, reduce costs and strengthen sales. In 2015 we will offer new games and continue to expand our restaurants further.” It’s not all positive news, as Casinos Austria is also taking legal action against the Swiss-German casino project at Schwarzenberg Palace in Vienna, claiming that the proposed project does not meet the geographic diversification requirements as prescribed by the Gaming Act. Casinos Austria is also awaiting a change of owners as central bank OeNB, holding a third of Casinos’ shares via subsidiary Münze, wants to sell those assets. However, Dr. Stoss dismissed rumours about another shareholder, Raiffeisen, who is thought to be mulling the sale of Casinos Austria shares. Dr. Stoss’ own contract is due to expire in 2016 and when asked if an early departure might be on the cards, he replied: “I’m incredibly happy in this job and I have an insanely great team. But I'm a realist. In 24 months a lot can happen. There will be changes in 2015 by the owners and there can of course lead to a change in management. We will see.”
Insight alfastreet
alfastreet - expaNdiNG iN the riGht directioN Renowned for its hi-tech, high quality multi-player product range, Alfastreet is venturing into new product sectors at ICE, bringing the same level of excellence Looking back, 2014 was a very important year for Alfastreet as many projects were in need of completion by year end. Most of the projects were focused upon launching several new products, some radical departures from Alfastreet’s established Alfastreet’s electronic table games product line. ICE 2015 in London will be a great opportunity to present this new product line and position the company on a different competitive level. The new product line will open new markets for Alfastreet and build upon the potential of existing ones. Alfastreet’s brand name and its market reputation is already showing results as first orders are in, despite the fact that the new products have yet to be revealed. Regardless, Alfastreet will make sure that the quality and the performance of all of its products are impeccable and that customer satisfaction remains top priority, as it has been for the past 20 years. 2 6
The new developments that we are about to release will open many new doors for us and will also help us enter a new level of manufacturing. I am more than positive that Alfastreet will gain more ground in the 2015. Due to the additional product lines, Alfastreet needed to reconfigure its manufacturing facilities. A considerable upgrade was completed in 2014 across most departments, but mainly in the production, development and storage capabilities. This change was needed to enable Alfastreet to satisfy ongoing demand for their established products and to prepare and accommodate a new product line. Albert Radman, Sales Director for Alfastreet commented: “We are honestly happy to undergo such expansion in these (still) tough times. Our products are always popular in many countries around the world and we are happy to keep up with the demand. The new developments that we
are about to release will open many new doors for us and will also help us enter a new level of manufacturing. I am more than positive that Alfastreet will gain more ground in the 2015 and make another step towards reconfirming its leading position in the world of the electronic table games. Our team is motivated and eager to contribute everything they can to this one goal that we have.”
More than a transaction. A connection. The real moment of truth on the gaming floor is when a player gives you the money. Only the money is not being handed out to you. It is handed out to us. From the moment that currency touches our JCM Global bill validator, we are responsible for providing an effortless, accurate transfer of cash into play. We accept your customer’s wager with reliable grace and efficiency, just the way you would personally. We are your representative on the gaming floor. This philosophy has earned JCM Global its position as the industry leader for both OEMs and operators — with more bill validators in play than all other brands combined. And now, we are about to reveal how a simple cash-in can lead to a level of player engagement that goes beyond the transaction. We’re going to help you make connections.
Insight e-GaMiNG
iNterNatioNal expaNsioN delivers positive results The Czech-based server-based gaming specialist, e-gaming, is making a big impact in international markets with its innovation technology and game content
In November 2014, e-gaming installed its first systems in casinos and Class C operations in Panama, where players reacted very positively to this new product. Offering a complete Spanish library of games and with the specific development of special theme games for Latin America, e-gaming expects installation of even more terminals across this continent in 2015.
In the Czech Republic and Slovakia e-gaming is one of the region’s market leaders and is aggressively expanding in the Balkans region too, adding new countries to its portfolio whereby e-gaming operates its SBG system independently or in collaboration with local partners.
Once again at ICE 2015 E-gaming will present a host of new developments. The new Upright cabinet with two 23ins. screens with LED technology and ‘hype’ design will be on display to visitors.
e-Gaming, a specialist in SBG systems, started in 2005 in the Czech Republic when the Czech government allowed the operation of Server Based Gaming. Now nine years later and having constantly improving systems and software e-gaming has become a serious player in this region and abroad. Macedonia was one of several countries in 2014 where e-gaming installed a large quantity of terminals having received approval from testing laboratories. Another target was the southern market of Spain, in which e-gaming began SBG operations with the Palomares family and industry veteran Antonio Duran, whereby they have already installed hundreds of units. e-gaming was the first manufacturer to received the complete approval of its SBG system from a laboratory in Spain and, as a result, its order book for 2015 is already overflowing with substantial installations planned for the market. e-gaming’s range of titles continue to perform exceptionally well, thanks to a steady stream of systems approvals from the autonomous communities across Spain. For more than a year, e-gaming has also been present in Mexico and has sited a significant 2 8
Once again at ICE 2015 e-gaming will present a host of new developments. The new Upright cabinet with two 23ins. screens with LED technology and ‘hype’ design will be on display to visitors. quantity of machines in some of the best casinos in the country. Results from the terminals have shown them to perform above the gaming average and several deals have been signed with important market players. e-gaming predicts further growth in Mexico in 2015 now that the new law has passed and operations will be better monitored in future, which will allow long-term investments.
A variety of new games will also be showed to the public for the first time alongside the existing library of titles developed during 2014, games which already been proven to perform successfully in the field. e-gaming’s latest version of its online platform will also be shown during ICE. The new platform is available in several languages as part of a very flexible platform that’s applicable for all online casinos no matter where they are located. The new platform has a variety of casino table games, poker and a complete library of video slots from e-gaming. With this new flexible platform it is also possible to offer third-party game content, giving online operators greater choice in the games they offer from a wide selection of developers. The new platform is already live in European markets, with e-gaming offering game content to several Belgian online casinos. Every online slot from e-gaming can be played on a multitude of devices, including laptops, PCs, tablets and smartphones.
Insight suZo-happ/traNsact tech
a perfect partNership for a perfect solutioN The teaming of Suzo-Happ and TransAct Technologies is the perfect combination to bring the attributes of Epicentral to market Suzo-Happ is the global leader to the gaming industry for spare parts and components. SuzoHapp has development departments around the world, constantly looking to bring new innovations to market. The large manufacturing site in China has enough capacity to adapt to increased demand for new solutions. Suzo-Happ acts as master distributor and increasingly as exclusive distributor for a number of industry greats. The ‘best-in-class’ product range from A to Z of gaming requirements is provided with a dedicated service with a multi-lingual sales and support team in Europe.
Gary J. Parkin of Transact and Harald Wagemaker of Suzo-Happ Harald Wagemaker leads the EMEA sales team as Executive Vice President Sales & Marketing of Gaming and Casino EMEA. The team spends a great deal of time visiting customers and indeed has created a structure to best serve the market. 2014 was an exciting year with much growth both internally and via acquisition. 2015 promises to be at least as exciting as 2014. The new year will begin with Suzo-Happ officially becoming the exclusive distributor for TransAct Technologies for Europe as well, so completing the global map. As a leading supplier of engineered component solutions for gaming customers worldwide and with a European sales and marketing team of over 70 professionals with offices in seven European countries, Suzo-Happ is uniquely positioned to further enhance TransAct’s distribution network in the European marketplace. The Epic 950 printer from TransAct is the perfect solution for ticket-in, ticket-out (TITO) applications. Currently installed in over half a million slots in casinos throughout the world, its success stands out significantly in Europe. For example, the Italian VLT (video lottery terminal) market and the British FOBT (fixed-off betting terminal) market use TransAct printers exclusively. These two markets are probably the largest markets for TITO printers in the industry the fact that both use only TransAct printers speaks to TransAct’s commitment to unsurpassed product quality and customer support. The beauty of the Epic 950® is not only its proven reliability and ease of integration but also the almost limitless marketing possibilities. Tickets and vouchers can become eye-catching branding tools when used to deliver personalized 3 0
promotional coupons and bonuses. To ensure consistent delivery of the coupon the 950 employs its patented TicketBurst™ technology, making sure each ticket is dispensed perfectly each and every time – thus eliminating any ticket or player interference. The Epic 950 can be complemented to include Epicentral, TransAct’s software system that
In the first 90 days after installing Epicentral, management at the Hippodrome Casino registered a 60 per cent increase in players club registrations. prints targeted promotions and bonuses right at the slot machine, directly to the player. Connected directly to TransAct’s ServerPort device inside the slot machine, Epicentral drives increased revenue and an enhanced customer experience. Epicentral also has the ability to connect to all existing slot machines, regardless of manufacturer, so compatibility with a property’s current slot floor is never an issue. Players are rewarded with tickets (defined by the casino operator) that offer a world of possibilities, such as bonus spins, free food or show tickets. Direct marketing doesn’t get any more direct. An especially compelling coupon or voucher can have an overwhelmingly positive effect. It could, for instance, persuade customers to visit the casino on a more frequent basis. For example, in
the United States the BlueWater Resort and Casino in Arizona saw a 27% increase in new club enrollments in the first two months of using the Epicentral promotion/bonusing system (as compared to the previous six month average). Today well over 10,500 slot machines across 11 casinos are running Epicentral – a number that is quickly growing. The first casino in Europe to introduce Epicentral was The Hippodrome in London. The Epicentral Hippodrome results speak for themselves –in the first 90 days after installing Epicentral, management at the Hippodrome Casino registered a 60 per cent increase in players club registrations, a 37 per cent average increase in weekday afternoon slot handle and a 14 per cent increase player average time on device. What’s more, food and drink promotional coupons naturally have had a positive effect on the bars and restaurant. Due to Epicentral’s unparalled flexibility casinos can choose any number of different promotions to run concurrently. At present, The Hippodrome is running six simultaneous coupon promotions. Harald Wagemaker sums up the major opportunities that casinos can make use of with the Epic 950 and Epicentral, “The results from Epicentral are extremely convincing. This is a true win-win for both the operator and the player. That explains why we are so keen to really focus on Epicentral in 2015. Our dedicated sales and service team has excellent connections with casinos throughout Europe and we deeply believe in the value of Epicentral. ICE will be an ideal opportunity for the European Suzo-Happ team to introduce the Epic 950 and Epicentral to our customers.”
Insight GaMeaccouNt Network
searchiNG for the stroNGest operator at ice GameAccount Network (GAN) the leading developer and supplier of enterprise-level B2B gaming software and online gaming content, is issuing a challenge to find gaming's strongest operator at ICE. In keeping with its 'Faster, Higher, Stronger' stand theme, the company is putting up a special trophy for the ICE visitor who records the highest score on a traditional fair ground style strength machine which has been sourced specially for the duration of ICE. Explaining the promotion, GameAccount Network Commercial Director Daniel Lindsay said: "We are going to ICE on the back of what was a transformational 2014, underpinned by our ability to deliver powerful gaming solutions and thanks to our agility as a smaller, fitter company - deliver them extremely quickly and effectively."
Simulated Gaming has the potential to be the online phenomenon of 2015 and we are going to ICE in confident mood on the back of hugely successful showings at both G2E Las Vegas, and G2E Asia GAN will be using ICE primarily to showcase the huge strategic and commercial benefits of its unique Simulated Gaming offering to landbased casino operators. Explaining the benefits Lindsay said: " It (Simulated Gaming) is a social 3 2
gaming product off Facebook which allows players to purchase virtual credits enabling them to play their favourite slot and table games on a website which may be connected to a landbased casino. It's perfect for land-based casinos that want to offer a form of online gaming in an environment prior to real money gaming legislation being in place. Our patented iBridge technology allows for an integration into the landbased casino management system which, in turn, allows rewards to be made to players who buy credits online if they have a land-based loyalty card – and where allowed. "Simulated Gaming drives incremental revenue in three main ways. Firstly and obviously, a stream of players buying virtual credit packages online to play slots and table games. Secondly, in doing so, it re-activates lapsed land-based players and drives them back to the land-based venue for gaming and associated in-venue activities. Finally, it generates new land-based players who may have played online and want to visit the bricks and mortar site. There is a classic accelerator effect for the casino as well as a brand new revenue stream." The international make-up of the ICE visitor base is a major attraction for the company which has a clear global vision: "One of our main strategic aims lies in continuing the penetration of our free to play slots product in north America" said Lindsay. "However, outside of that, we will be launching in Australia later this year and in the real money regulated markets we will continue to develop our business by providing the very best in breed games for our operating partners. Asia remains a very inter-
esting market despite the complexities, the sheer scale of the opportunity there means it can't be ignored." He added: "Our main challenges, and these aren't unique to us, are dynamic regulations and the somewhat stuttering nature of the roll-out of real money gaming in the US. However, this is also a very positive note for GameAccount as in fact, our free to play solution can be offered without the need for real money regulations to be in place." It's not just land-based casino operators that are being targeted by GameAccount as Daniel Lindsay explained: "We constantly search for, and are approached by new content developers looking to get their games online. We offer a quick and efficient route to market, which means these companies can get reach to market in a short time frame and exposure of their games with some of the biggest regulated and licensed operators globally. Content is King and we have what we believe is the strongest portfolio of casino and slot games in the market." He concluded: "The key business objectives are to drive our Simulated Gaming products globally, help land-based content developers move their games online in a quick and cost efficient manner, continue to build on our very strong position in the regulated Italian market – where we will be adding new operators in 2015 – and deliver best-in-breedcontent wherever our Internet Gaming System is deployed. Simulated Gaming has the potential to be the online phenomenon of 2015 and we are going to ICE in confident mood on the back of hugely successful showings at both G2E Las Vegas, and G2E Asia."
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gca completes multimeDia Buy Global Cash access has completed the uS$1.12bn acquisition of the slot maker multimedia Games holding Company Nevada - Gaming Suppliers
selon les Données De De l’institut Des jeux De hasard de la province de Neuquén en Argentine (IJAN), les casinos de la province de Neuquén génèrent plus de bénéfices que l’ensemble des agences de loterie, représentant 60% des 17 million de pesos (2 millions de dollars US) générés tous les mois par l’industrie du jeu. Les données collectées par l’institut révèlent que combinés, les habitants de cette province dépensent environ 894 millions de pesos par an entre les agences de loteries, les casinos et les salles de machines à sous. la société chilienne De jeux enjoy pourrait bientôt étendre ses activités en Amérique latine. Le directeur général d’Enjoy, Gerardo Cood, a déclaré que la société s’était remise des difficultés qu’elle avait rencontrées en 2013 lorsque l’interdiction de fumer dans les lieux publics avait été imposée au Chili. Dans ce contexte, la société examine les possibilités d’étendre ses activités dans la région à de nouveaux marchés comme la Colombie. le salon suD-américain Des jeux De hasarD, « l’Exposición Latinoamericana de Juegos de Azar » (ELA) sera une nouvelle fois organisé au Mexique, comme l’a récemment annoncé son organisateur, la société Expoazar SA. Selon une déclaration faite par les organisateurs, et même si la date n’a pas encore été définitivement fixée, « le salon se tiendra probablement en mai 2016 », sachant que sa tenue a été décidée. après De nomBreux mois De DéBats, on s’attenD à ce que la Présidente du Chili, Michelle Bachelet, signe finalement un texte législatif qui permettra de prolonger les licences municipales des casinos de deux ans supplémentaires. La nouvelle loi concernerait les sept casinos implantés dans les municipalités autonomes de : Arica, Iquique, Coquimbo, Viña del Mar, Pucon, Puerto Varas et Puerto Natales.
Global Cash Access has completed the acquisition of Multimedia Games Holding Company. This transformational combination creates a uniquely diverse organisation that will leverage cash access and compliance solutions with leading slot gaming experiences to enhance the full enterprise value proposition to casino operators. “This marks a great milestone as two organisations, with differentiated product and service offerings, unite to create a full-service solution for casino operators to optimise cash-to-the-floor solutions with player-proven slot gaming products that focus on retaining and acquiring new casino players,” said Ram Chary, Chief Executive Officer and President of GCA. “Much has been accomplished by many people in enabling this transaction to close, and now we are excited to begin merging two passionate employee cultures into one powerful organization focused on customer service, operational efficiency and gaming innovation.” Mr. Chary added: “This acquisition is unique in
comparison to other recent transactions in the gaming industry. Our distinct businesses have very little operational duplication and our combined organisation will establish an industryleading model with respect to recurring revenue contribution. We are immediately focused on benefiting from revenue synergies that exist by leveraging Multimedia Games’ full product portfolio across our widely licensed footprint and existing customer relationships, while also executing on cost synergies that have already been identified.” The company will remain headquartered in Las Vegas, Nevada, and will continue to leverage MGAM’s existing technology and manufacturing facilities in Austin, Texas.
Nevada a court filing from caesars entertainment operating co. has revealed over 50 creditors are owed substantial sums as the company moves to apply for chapter 11 bankruptcy protection. the loans are predominantly unsecured, meaning that they’d be the last to be repaid in any bankruptcy proceeding. the list includes clark country where caesars’ palace is located on the strip (owed us$46.9m), Gordon ramsay (the celebrity chef is owed $307,479), charlotte hornets (the basketball team is owed $393,750), Bally technologies ($757,241), aristocrat technologies ($521,932) and international Game technology ($28.5m).
Deux importantes salles De jeux équipées De machines à sous ont cessés leur activité, dans ce qui pourrait être le début d’une série de mesures prises contre l’industrie des salles de machines à sous au Panama. Classé dans la catégorie C par la loi régissant les jeux de hasard au Panama, les salles de machines à sous ont généré des revenus confortables pour le gouvernement par le passé et se sont rapidement développés ces dernières années. Leur développement a toutefois été plus marqué dans les régions plus pauvres et les signes se sont multipliés indiquant que le gouvernement allait se saisir de ce problème. le groupe rank a revu sa copie concernant son projet de casino à Belfast, en proposant un projet encore plus ambitieux, après avoir discuté de la mise en œuvre d’une nouvelle loi avec les conseillers municipaux. Alors que Rank n’a pas encore identifié de site pour son projet de 18 millions de livres sterlings, la société a confirmé s’intéresser au centreville ainsi qu’au quartier de Titanic, soulignant que sa proposition pourrait créer deux fois plus d’emplois que le premier projet envisagé. un joueur allemanD De casinos en ligne a été poursuivi et condamné à une amande par un tribunal de Munich (Allemagne) pour avoir joué de façon répétée au blackjack en ligne sur un site offshore anonyme. Dans ce premier cas de ce genre en Allemagne, et vraisemblablement dans le monde occidental, le peintre-décorateur, âgé de 25 ans, a été condamné à une amande de 2 100 € (2 489 $) et s’est vu confisqué ses gains d’un montant de 63 490 € (75 258 $).
Bermuda has moved from a tourism industry leader to an industry outsider.”
Bermuda approves new laws introducing three casinos BERMUDA The Bermudan House of Assembly has approved new laws opening the island up for the introduction of three casinos. The law states that no more than three casinos can be in operation at any one time but that the Casino Gaming Commission can choose more than three sites as being ideal for a casino. Tourism Minister Shawn
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Crockwell, who presented The Casino Gaming Act 2014, said casino gaming was right for Bermuda and that the majority of Bermudians backed the legalisation of gaming in Bermuda. “The bill represents a significant and critical adjustment to our tourism product and Bermuda as a destination,” Mr. Crockwell said. “In the past 30 years,
Shadow Immigration Minister Walton Brown said there should be more than just three casino licenses issued at any given time and was critical that stand-alone casinos were not being allowed. “I appreciate the concept is to facilitate the development of hotels, we certainly need more hotels but this excludes the possibility of a stand-alone casino. In this legislation there is absolutely no opportunity whatsoever for there to be a casino to be in a venue that is not a hotel. I would encourage the Minister to contemplate some kind of amendment going forward.” Shadow Tourism Minister Zane DeSilva questioned what would happen if all three licences were in operation but then a worldclass casino operator wanted to come to Bermuda to build an integrated hotel and casino.
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Baha mar reveals opening Date Baha mar has set a date for the opening of the uS$3.5bn luxury gaming resort to paying guests of march 27, 2015 The Bahamas - Operations
le mois Dernier, le gouvernement roumain a fait évoluer la législation destinée à régir les jeux d’argent en ligne. En Roumanie, des services de jeux de hasard en ligne existent depuis 2010, mais grâce à ces réglementations modifiées, les opérateurs de jeux en ligne peuvent désormais proposer leurs services aux joueurs, tant que certaines dispositions sont respectées. le gouvernement chypriote a présenté une proposition de loi au parlement destinée à réguler l’implantation, l’exploitation et le contrôle du premier casino chypriote. La proposition a déjà fait l’objet d’un avis favorable du bureau du procureur général, permettant ainsi de présenter ces nouvelles réglementations rapidement à la chambre des députés. Le Ministre de l’énergie, du commerce, de l’industrie et du tourisme invite maintenant les organisations intéressées à soumettre leurs commentaires par rapport à ces nouvelles réglementations publiées sur le site web du Ministère. jens halle a pris ses fonctions De ceo chargé des ventes à l’international et les activités de distribution de Merkur Gaming, une filiale du groupe Gauselmann. the comité législatif D’anDorre a amenDé la proposition de loi qui devrait ouvrir la voie aux casinos en dur et aux jeux de hasard en ligne dans ce petit pays situé dans les Pyrénées, sur la frontière entre la France et l’Espagne. la chamBre Des Députés Des BermuDes a approuvé de nouvelles lois ouvrant la voie à l’implantation sur l’île de trois casinos. La loi stipule qu’il ne peut y avoir plus de trois casinos en exploitation, mais que la Commission des Jeux de Casino peut choisir plus de trois sites comme étant idéaux pour une une implantation d’un casino. Baha mar, le nouveau complexe hôtelier ayant coûté quelques 3.5 milliards de dollars US, marquera une ère nouvelle du luxe, du glamour, du jeu et de frisson aux Bahamas lorsqu’il accueillera ses invités rémunérés le 27 mars 2015 au Baha Mar Casino & Hotel, Rosewood à Baha Mar et SLS LUX, également situé à Baha Mar. L’hôtel Grand Hyatt ouvrira ses portes à Baha Mar peu de temps après. l’élection D’un nouveau présiDent au sri Lanka pourrait mettre un terme à la tentative de l’opérateur australien Crown de développer un complexe hôtelier doté d’un casino pour quelques 400 millions de dollars US dans la capitale Colombo. Récemment élu, Maithripala Sirisena a promis de « revenir sur » les licences accordées au casino proposé par Crown Resorts de James Packer et le promoteur local John Keells Holdings. universal entertainment corp a été lavé De tout soupçon dans l’affaire concernant les versements illégaux présumé qui auraient été effectués au profit du régulateur philippin PAGCOR afin de faire avancer le développement de son complexe hôtelier de Manila Bay d’un coût de 2 milliards de dollars US. las vegas sanDs a annoncé que sa filiale Sands China, dont elle détient la majorité, a reçu le feu vert du gouvernement de Macao nécessaire pour achever la construction de son complexe hôtelier d’un coût de 2.7 milliards de dollars US conçu sur le thème de « Paris ».
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Baha Mar, the new $3.5bn resort, will introduce a new era of luxury, glamour, gaming and excitement to The Bahamas when it begins hosting paid guests on March 27, 2015, at Baha Mar Casino & Hotel, Rosewood at Baha Mar and SLS LUX at Baha Mar. Grand Hyatt at Baha Mar will open shortly after. “Baha Mar will bring a new level of sophistication and resort experience to one of the most soughtafter travel destinations in theCaribbean with its March 27 opening. We are thrilled to welcome our first guests to ‘The New Riviera’ in time for the peak spring travel weeks,” said Paul Pusateri, chief operating officer for Baha Mar. Baha Mar will feature 2,200 luxury guest rooms across four hotels – Baha Mar Casino & Hotel, Rosewood at Baha Mar, Grand Hyatt at Baha Mar and SLS LUX at Baha Mar – along with the Caribbean’s largest casino, a 100,000sq.ft.t masterpiece featuring a full array of the latest slots and table games. In addition, the resort’s TPC at Baha Mar Jack Nicklaus-designed golf course, ESPA spa, pools, beach experiences, and many restaurants and luxury shops will be part of the highly anticipated resort experience upon opening. Baha Mar’s vision will truly only come to life once the first guests sleep in its hotels, dine at its restaurants, snorkel at the reef, lounge at the Cabana Club, play at the casino, dance in its clubs until dawn—and experience the true soul of The Bahamas with impeccable service and hospitality. “This dream has been years in the making, and on US ainsworth Game technology has launched players paradise social casino. the new players paradise casino premieres with 10 popular land-based slot titles including: dragon lines, diamond chief, Mustang Money and Jade tiger with more titles slated to be released in the near future. ainsworth’s ceo danny Gladstone comments: “we are very excited to launch players paradise casino and introducing ainsworth’s popular land based casino games to existing fans and new audiences on facebook. players paradise casino is available for free on facebook.
March 27, 2015, it will finally become a reality,” said Tom Dunlap, Baha Mar’s President, about the resort’s opening date announcement. Baha Mar also recently launched a new digital campaign with its short-film, ‘The Voyage,’ that debuted on an updated website (www.bahamar.com) on January 5. Capturing the iconic ambiance and travels that inspired Baha Mar, the film portrays the resort’s future as the world’s next great destination. The new Baha Mar site also allows for enhanced hotels and amenity research, comparison and booking, making it easy to plan a memorable stay at the mega resort. After years of planning and building, it is not surprising that Baha Mar has a series of opening celebrations, including a Ribbon Cutting Gala and a Grand Opening Event scheduled for April and May 2015, respectively. Produced by Jamie King and Emilio Estefan, two of the leading names in music and entertainment—the events promise to be a celebration of sophistication and style spanning several days and combining both private and public festivities. Baha Mar will also kick off Riviera Summer, a four-month celebration with entertainment events from Memorial Day weekend to late September.
GLI receives Kansas Racing & Gaming Commission contract KANSAS Gaming Laboratories International (GLI) has received a new contract from the Kansas Racing and Gaming Commission (KRGC) to serve as a certified testing laboratory for state-owned casino gaming in Kansas. This new agreement extends and builds on the working relationship GLI has enjoyed with KRGC since the inception of state-owned casino gaming in Kansas, allowing GLI to continue its uninterrupted level of service to KRGC, the State of Kansas and the gaming public. GLI’s highly efficient global compliance processes provide KRGC with access to the most thorough,
cost-effective product testing system in the world, allowing for the fastest access to markets without compromising the quality of testing. To provide KRGC with the highest quality of service, GLI has created a dedicated KRGC Compliance Team that is on call 24 hours daily to provide customer service relating to its work for KRGC. “Since 2006, we have worked closely with KRGC to assist in its mission of ensuring the integrity of gaming in Kansas. We are thrilled to extend our relationship with the State of Kansas, and we look forward to many more productive years working together,” said GLI President/CEO James Maida.
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new york mulls fourth licence new York’s Gaming Facility location Board awarded three casino licences rather than four - but that could change New York - Licensing
us – Bmm testlaBs win kansas racing contract BMM Testlabs has been awarded a contract to provide gaming laboratory testing services for the Kansas Racing and Gaming Commission. Travis Foley, EVP Operations – BMM Americas, commented: “We are very pleased to confirm that BMM has been awarded a contract and would like to thank Executive Director, Richard Petersen-Klein; General Counsel, Judith Taylor; Director, Dennis Bachman; and Director, Brandi White for their diligence throughout the RFP process. Mr. Foley added: “We are very pleased to see Kansas recognize the value of creating a multi-lab environment. Multiple independent laboratories, while working together, can ensure a higher quality of testing services, competitive pricing, add transparency and enable more timely delivery of competitive products to the market place. BMM is looking forward to providing the highest quality testing and certification services within Kansas.”
us – oneiDas plans ‘wiZarD of oZ’ casino The Oneida Indian Nation, owner of the Turning Stone Resort Casino in Verona, has announced plans to expand its Upstate New York operations with a new $20m, 67,000 sq. ft. casino in the Village of Chittenango. Paying homage to the community’s identity as the birthplace of L. Frank Baum, author of “Wonderful Wizard of Oz,” Yellow Brick Road Casino will feature more than 430 Vegasstyle cash slot machines, a 500 seat bingo hall, two casual dining options, a country-western bar, and a general store. The new facility will complement existing Oneida Nation businesses and bring diversification to guests, appealing to locals interested in the excitement of slot machines and bingo, while grabbing a quick, casual meal. Yellow Brick Road Casino is projected to open in spring 2015. “Our expansion with this new casino is yet another opportunity for the Oneida Nation to create more jobs for Central New Yorkers, to invest in our region’s economic growth, and to improve and diversify our guest experience,” said Oneida Nation Representative and Nation Enterprises CEO Ray Halbritter. “The Yellow Brick Road Casino will create numerous construction jobs for our local trade workers and more than 250 permanent positions once it opens. We’re also excited to help bring a fresh vitality to the area by investing $20m in local businesses and converting an under-used shopping center into a new modern casino, featuring a oneof-a-kind tourist experience that is unique to Chittenango.” The Oneida Nation has enlisted Hayner Hoyt Corporation of Syracuse for general contracting and construction management for the new casino project and Hnedak Bobo Group, visionaries for Hard Rock Café New Orleans and the upscale Westin Memphis Beale Street Hotel, for the design work of Yellow Brick Road Casino.
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The New York State Gaming Facility Location Board is backing Governor Andrew Cuomo’s (right) suggestion that a fourth casino licence should be awarded, allowing for a tender for the ‘true’ Southern Tier region. The board voted 5-0 to prepare a new request for a tender to be launched specifically for the Southern Tier. Four casino licenses were originally approved for New York’s three state regions: the Albany-Saratoga area, the mid-Hudson Valley and Catskills region, and the Finger LakesSouthern Tier. The board recommended licenses for projects in the Catskills, Schenectady and the Finger Lakes but withheld the fourth license. New York State Gaming Commission Chairman Mark Geran said: “The intent of the gaming statute was to benefit economically distressed Upstate areas experiencing high levels of unemployment. Clearly, the Southern Tier meets this criterion. A process to generate new proposals focused on the Southern Tier may create an additional opportunity to identify an appropriately structured and capitalized gaming facility that could bring the region important economic development and employment.” Kevin Law, Chairman of the Gambling Facility Location Board, said: “We are willing to entertain the governor’s request to issue a new Request for Application for this region, given the recommendation of Lago in the Finger Lakes region could encourage proposals from new applicants in the Southern Tier region. However, the Board will not consider opening up either the Catskills/Hudson Valley Region or the Capital Region to additional Applications. I am sympathetic to the economic struggles facing the Southern Tier. If private individuals and private companies are willing to invest their own money, I am open minded. What I’m not open minded about is simply recommending the same application that we’ve already passed on.” Currently only one applicant has lodged its interest in applying for a license close to the Pennsylvania
border but state officials are confident more applicants will come forward. That applicant; Tioga Downs racino in Nichols, failed to excite the board first time round with its plans to add a second restaurant, miniature golf and batting cages to its existing racino. Owner Jeff Gural said he would now submit a revised proposal. Other regions who also missed out on the casino opportunity are though up in arms. Orange County Legislature Chairman Stephen Brescia has criticised the Gaming Board for limiting the location of the fourth casino to the Southern Tier. “Newburgh has the highest crime rate in the state, its unemployment rate is among the highest , and its poverty rate unacceptably high,” Mr. Brescia said. “To say the Newburgh region should not have an opportunity to compete for the fourth license makes no rational sense. I believe the Newburgh region should have a chance to compete.” Legislator Christopher Eachus agreed saying: “It is wrong to limit an economic opportunity as big as a casino license to just one struggling region while telling Newburgh residents simply to drop dead. The siting committee should do its job and evaluate on the merits whether the Binghamton area southern tier is worse off than the Newburgh region, and whether a proposal in the Binghamton area would be better than one in the Newburgh area. To do otherwise smacks of favouritism not rooted in a fair process on the merits.”
Ontario mayor wants to offer free alcohol to casino players CANADA Niagara Falls Mayor Jim Diodati wants Ontario casinos to be able to offer free alcohol to combat falling attendance and dwindling profits. He highlighted that Seneca Niagara Casino in Niagara Falls, New York is already offering free alcohol as well as smoking. The Seneca’s website states: “While you are gaming at Seneca Niagara Casino & Hotel, all bev-
erages received while playing any slot machine or table games are available at no cost to you.” Visitation has dropped at Ontario’s casinos from 16,717,060 in 2010 to 13,943,101 in 2014 with GGR dropping by $101m during the same time. Mayor Diodati said: “We’re getting beat at our own game. There
are solutions to our problems, but you cannot be afraid to fail. Doing nothing is not a solution. This is not a time to turtle.” Greg Medulun, Director of Communications for Fallsview Casino and Casino Niagara, said: “Being able to provide complimentary alcohol would certainly eliminate one of the competitive variables that we have with the neighbouring US casinos, but a 5,000-7,000 seat entertainment centre is the amenity that we are after. A new entertainment centre attached to Fallsview Casino would transform our business.”
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the positive effects of gaming The american Gaming association has revealed figures from a commissioned report into the positive impact of gaming Nevada - Economic Study
us – suZo-happ promotes BrenDel to chairman Suzo-Happ has announced a new leadership structure to reflect the growth and diversification that the company has successfully achieved over the last few years.
Oxford Economics examines the vast, positive economic impact of the gaming industry on Nevada’s economy, including the stat that the US gaming industry employs more people than the air transportation industry.
President and CEO, James Brendel, has been elevated to Chairman of the Board of Suzo-Happ effective immediately. He will relinquish his day-to-day responsibilities as President and CEO allowing him to focus on the strategic direction of the company. Matt Brown, Marcel Oelen and Ron Partridge will report directly to the Board of Directors. Mr. Brown, who will continue as the Company’s Chief Financial Officer, will work directly with the Company’s Asia Pacific and Global Bill-to-Bill leaders. Mr. Oelen will continue as Managing Director responsible for the company’s interests in Europe, Middle East and Africa. Mr. Partridge will continue as President, Americas responsible for the Company’s interests in North and South America.
The American Gaming Association (AGA) has released a first-of-its-kind study, which measures the industry’s significant ripple effect on the supply chain, including local businesses. Oxford Economic’s study found that Nevada’s gaming industry contributes more than $53bn to Nevada’s economy, supports approximately 425,000 Nevada jobs and more than $18.8bn in income, and generates $7.9bn in tax revenues to local, state and federal governments.
us – novomatic strengthens its americas team Rick Meitzler moves from his current position as VP of Sales-North America to become President of NOVOMATIC Americas Sales, LLC. Furthermore he takes over the position as Senior Vice President for North America, thus encompassing NOVOMATIC’s expansion into both US and Canadian markets. Meitzler will also have responsibility for such additional business areas as Cruise Lines and the important Caribbean market. Meanwhile, Lawrence Levy will change from his present post as General Manager, Crown Gaming Peru, to become NOVOMATIC’s Senior Vice President for Central and South America, taking up additional responsibility for the Group’s many subsidiary companies throughout the region. Both Mr Meitzler and Mr Levy will report directly to the NOVOMATIC Board of Directors. us – interBlock appoints new gloBal ceo John Connelly has been appointed as Interblock’s Chief Executive Officer. Mr. Connelly’s extensive background in the Gaming Sector, within both the US and International markets, will help provide Interblock the necessary leadership needed to increase the company’s market position, revenue and profitability in the years to come. “John Connelly will bring vision, focus and a wealth of experience to Interblock’s continuation of our great success story and I ‘m confident that with John’s leadership our expectation for the future will be achieved,” said Joc Pececnik, Interblock Owner and Chairman of the Board. “I am honoured to be given this opportunity to join such a dynamic and ambitious organisation, with a clear and focused mission to provide the casino sector with the necessary products to remain competitive.” Mr. Connelly said. “I look forward to working with Interblock's dedicated team employees to expand upon their achievements, through new
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“This study shows that gaming is driving big results in Nevada,” said Geoff Freeman, President and CEO of the AGA. “However, given increased competition and changing consumer demands, our future success depends on strong partnerships with policymakers that allow us to innovate, reinvest and create more jobs.” “The research reveals a vast industry that boosts local communities across Nevada by supporting jobs and generating customers for businesses,” said Adam Sacks, Director, Oxford Economics. “The industry also supports a wide range of government services in the state.”
According to a recent poll conducted by respected pollsters Mark Mellman and Glen Bolger, voters across the political spectrum view casino gaming more favourably than ever before. Further, the vast majority recognises that casino gaming creates jobs, strengthens local businesses and benefits communities. Oxford’s study is the first-ever to analyse data from US commercial casinos, tribal casinos and gaming equipment manufacturers, presenting the most comprehensive assessment undertaken of the gaming industry’s economic impact. The study was released by the American Gaming Association as part of its ‘Get to Know Gaming’ campaign. As total casino gaming revenues have reached historic highs, so have total wages paid to casino employees. In order for the gaming industry to continue serving as an economic catalyst, policymakers must work with industry leaders to create policy environments that enable their communities to better compete with other markets, and that help to maximise gaming’s ability to innovate, reinvest and contribute to local communities.
Amaya to buy stock, divest assets and sell Cadillac Jack CANADA Amaya Gaming is to buy back some of its own stock with the plan being to separate its B2B assets to focus on maximising its PokerStars brand. Amaya said it will buy back and cancel up to 5,399,631 common shares, accounting for five per cent of the public float, over the coming year. The company said in a statement: “Amaya believes that its current share price does not reflect the underlying value of the Corporation, and that purchasing shares for cancellation will increase the proportionate interest of, and be advantageous to, all remaining shareholders. The Corporation intends to buy back common shares for cancellation from time to time when it determines the price at which they are trading is undervalued and that such purchases provide the best
use of available cash. The Canadian-based operator and manufacturer has also finalised a plan to sell its B2B poker network Ongame Network to gaming solutions firm NYX Gaming Group. The group advised: “Amaya made a strategic investment in NYX Gaming Group via a subscription of an unsecured convertible debenture, which matures two years after the date of issuance and bears interest at six per cent per annum, payable at maturity. I On December 30, 2014, NYX Gaming Group announced that it had completed its initial public offering and its shares have started trading on the TSX Venture Exchange under the symbol The company is still seeking alternatives to its ownership of the Cadillac Jack B2B land-based slot manufacturer.
Nevada las vegas reached a historic milestone, exceeding 40m visitors for the first time. the tourism industry in southern Nevada continues to expand, achieving 10 consecutive months of visitor volume increases, with many of those months being the best on record. vegas has surpassed its record for annual visitation, drawing more than 40m people in 2014. the previous record was set in 2012 with more than 39,727,000 tourists. “las vegas couldn’t have reached this milestone without the continued investments of our resort partners, and the more than 40m people who came to experience all the destination has to offer,” said rossi ralenkotter, president/ceo of lvcva.
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enD of packer’s sri lanka plan? The Sri lanka presidential election could spell the end for Crown’s attempts to develop a $uS400m Colombo resort Sri Lanka - Casino Operations The election of a new president in Sri Lanka could spell the end for Australian operator Crown’s attempts to develop a $US400m casino resort in the capital of Colombo.
china – recorD monthly Drop across macau Macau’s casinos recorded their worst year in 2014 with revenues falling 2.6 per cent to 351.5bn patacas ($44bn) for the year bringing a decade of explosive growth to an end. Analysts’ worst fears were compounded in December with a record 30.4 per cent monthly drop in Gross gaming Revenues for the month, year-on-year, forcing the annual figure below analysts expectations. Chinese President Xi Jinping’s much publicised efforts to catch ‘tigers and flies’ with his anti-corruption drive has put off VIP play. Analysts don’t expect to see much improvement in Macau’s growth until mid-2015, when new resorts open. Standard Chartered’s Philip Tulk said: “The VIP heyday is over. The anti-corruption crackdown doesn’t look to be a short-term phenomenon. Unless the top end recovers, the new capacity isn’t going to drive gross gaming revenue significantly positively.” There are currently seven new casino resort properties being built in Cotai, all of which are scheduled to open between 2015 and 2017. Galaxy Entertainment will double the footprint of its Galaxy Macau resort by mid-2015 and will be Macau’s next major completed project. Melco Crown Entertainment has said the opening of its Studio City project is also on course for mid2015. Las Vegas Sands will open its US$2.7bn Parisian casino resort, including a scaled version of the Eiffel Tower, in November 2015 with 3,000 hotel rooms. It has requested 450 gaming tables from the government. MGM Resorts plans to double its standing in Macau with the mid-2016 opening of its MGM Cotai project in 2016 with 1,600 hotel rooms, 2,500 slots, and up to 500 gaming tables. Wynn Resorts meanwhile says it will open the $4bn Wynn Palace on Cotai by Chinese New year 2016 with hopes of 500 tables and a 15,000-seat entertainment venue called Wynn Diamond Coliseum. SJM is building on Cotai for the first time with its Lisboa Palace opening in 2017 with 700 gaming tables and 1,000 slot machines as well as approximately 2,000 hotel rooms. Falling revenues wiped away $91.6bn from the market value of Macau’s six casino stocks in 2014. Sands China dropped by $HK208bn or 40 per cent of its value over the year, marking the biggest drop by any of the Macau casino stocks. Melco Crown, who confirmed it would be delisting from the Hong Kong stock exchange, saw its share price fall 35 per cent or $HK61bn. SJM Holdings experienced a 52 per cent loss in value representing a drop of $HK73bn. For some analysts, the success of Macau’s casinos in recent years has emphasised the downward trend in 2014.
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Newly elected Maithripala Sirisena has promised to ‘disallow’ licences for casinos put forward by James Packer’s Crown Resorts and local developer John Keells Holdings. Mr. Sirisena switched from the ruling party in November having previously worked under former president Mahinda Rajapaksa as health minister. The previous government had wanted to double the foreign tourist count to 2.5m by 2016. It had wanted to revamp an entire street along Lake Beira for new casinos, creating Sri Lanka’s own mini Vegas Strip. The plan was to offer 10-year tax breaks on income generated from visitors. Crown has planned to build Crown Sri Lanka, dubbed a must-see landmark resort located on Beira Lake in the Colombo resort district. The 5star facility would have offer approximately 450 rooms and suites, signature dining experiences and entertainment offerings, conferencing and event spaces, gaming areas, retail outlets and a specially designed water feature attraction. John Keells Holdings, Sri Lanka’s largest listed conglomerate, was planning to invest $650m into another resort, marking the largest investment by
a domestic company in Sri Lanka. The resort, which was due to open in 2018, would have included a 900-room luxury hotel, conference venues, a shopping mall, residential apartments, an office complex and a casino. Whilst progress had been brisk throughout 2013, the plans stalled following opposition from Buddhist leaders amid concern over the proposed tax breaks for the project. One analyst said even before the election of the new government: “I don’t think investors thought, and certainly Crown wasn’t selling the idea that this was going to go ahead.”
SJM linked to management of Paradise City in South Korea SOUTH KOREA Reports out of Seoul are stating that Macau-based SJM Holdings has been offered the chance to jointly manage the future casino at Incheon International Airport by its owners and developers; Paradise and Sammy Holdings. None of the parties involved have so far commented on the link. If it were to materialise it would mark SJM’s first move into South Korea and would give Paradise and Sammy access to SJM’s player database for what will be a foreigner-only operation. To be called Paradise City, it will open in the first half of 2017 at the airport’s International Business Center on Yeongjongdo Island at a cost of $1.2bn. Construction work began on the resort in November. It will house
160 gaming tables and 350 slots alongside two hotels, a shopping mall and exhibition space. Hajime Satomi, Chairman of the Board and Chief Executive Officer for Sega Sammy, said: “We’re convinced that Paradise City will achieve great development and become a driver of South Korea’s tourism industry as a major presence in the northeast Asian region along with Incheon International Airport, which is growing in stature as an Asian hub airport. In 2017, we promise to open Paradise City as a world-class site that will excite and amaze everyone.” Phil-Lip Chun, Chairman of Paradise, added: “We will build a true integrated resort that meets today’s needs while giving sincere consideration to culture, arts and people’s daily lives.”
Philippines Mid-december Melco crown entertainment confirmed the soft opening of city of dreams Manila. opening at a cost of us$1.3bn, the casino has 365 gaming tables, 1,680 slots, 1,680 electronic table games and around 946 hotel rooms in three hotels. But the gaming floor will only constitute a part of the resort. the operator has teamed up with the ault Group, the nightclub consulting firm, bringing the world-renowned nightclub brands; pangaea and chaos, into the fastgrowing philippine market. renowned for pioneering the “ultra-lounge” concept in the 90’s, pangaea has become a staple for those familiar with its intimate and sophisticated club set.
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universal cleareD of illegality universal entertainment Corp and Kazuo okada have been cleared of all charges relating to illegal payments to regulators Philippines - New projects Universal Entertainment Corp has been cleared of making any alleged illegal payments to Philippines regulator PAGCOR to smooth the development of its US$2bn Manila Bay Resorts.
sri lanka – egt anD Ballys colomBo install Euro Games Technology has entered a new market in Sri Lanka with Ballys Colombo casino becoming the first local operator to discover the potential of EGT’s progressive jackpot system Egypt Quest. The casino, located in the heart of the capital city, near the beautiful Beira Lake, has been offering five-star entertainment since 1995. It is part of the gaming Bally group led by investor Dhammika Pereras. The casino was traditionally table games oriented, predominantly offering roulette. Now it is gradually introducing slot machines. The casino opted to install eight P-24/32V Up EQ cabinets. This is expected to be followed by more jackpot and standalone solutions. A spokesperson for EGT said: “The Egypt Quest system succeeded in gaining the preference of Ballys Colombo casino because of its reliability and its bonus game with wild venture thematic unfolding in a world of heated sand and ancient artifacts. While enjoying it, together with a multigame mix of high visual performance, the players are on their way to win one of the four levels of jackpot: Bronze, Silver, Gold and Platinum. Since the installation the EGT cabinets had a busy time, being occupied most of the day. The immediate feedback received highlighted their good performance, pleasing look and feel, and enjoyable experience of the multigame variety.” macau - sanDs china ceo surprise retirement Sands China, the largest foreign casino operator in Macau, has announced the retirement of Edward Tracy as President and CEO ahead of the opening of a new resort. The appointment will take effect March 6, the Hong Kong-listed company controlled by billionaire Sheldon Adelson said in a stock exchange filing. Tracy, 62, has been leading the company for more than three years and will stay on as a consultant, it said, adding he had no disagreement with the company. It is expected the Sheldon Adelson will take over as Sands China CEO. Mr. Adelson said in a separate e-mailed statement that the management change comes as Sands prepares to open, as early as this year, its fifth casino in Macau. It is one of the first new projects to open after the city suffered its first annual drop in revenue as China’s anticorruption crackdown crimped spending by high-end players. New properties are expected to help operators to drive back traffic and boost revenue. 4 6
Universal, led by Kazuo Okada, blamed news service Reuters for the investigation for what it termed ‘partial and inaccurate reports’ and said it would be taking legal action although it has dropped charges against rival operator Wynn Resorts. The company stated: “Universal hereby announces that the Prosecutor of the Philippines has proposed to the Secretary of Justice to terminate the groundless suspicion that our group may have offered bribes to officials of PAGCOR since the Fact Finding Panel consisting of officials of the National Bureau of Investigation and the National Prosecution Service has stated in its final report that there is insufficient evidence to support the suspicion after a yearlong investigation.”
It was unfortunately decided on December 16 not to institute prosecution against Wynn Resorts, for circulation of rumours, Steve Wynn, for circulation of rumours, defamation and harm to public trust, a former official of our group for fraud and professional embezzlement and Mr Shunsuke Yamaoka for defamation and harm to public trust against whom the company had filed criminal complaints or charges with the Tokyo District Prosecutors Office. However, while the civil case the company had filed against a former employee of our group is pending at Tokyo District Court the company will continue investigation, such as collating additional evidence into the outflow of US$30m caused by a former employee of our group.”
Universal has filed pending action against a Japanese subsidiary of Reuters with the Tokyo District Court.
The final point refers to a report in July 2013 when Universal said a former director changed minutes of a meeting to make it look like executives had approved a US$30m payment.
The operator added: “It was decided on December 16, 2014 not to institute prosecution against Mr. Okada, Chairman of the Board of the Company, against whom a criminal complaint and charge had been filed by someone with the Tokyo District Prosecutors Office for bribery to foreign officials.
Mr. Okada, who was once Wynn Resorts’ biggest single shareholder, was forcibly stripped of his 20 per cent of the company by Mr. Wynn amid claims of Mr. Okada making illegal payments and offering gifts to regulators this breaching US anti-corruption laws.
Las Vegas Sands receive final approvals for Parisian Macao MACAU Las Vegas Sands has announced that the company’s majorityowned subsidiary, Sands China, has received the Macao government approvals needed to complete the construction of its US$2.7bn Paris-themed integrated resort. The completion of The Parisian Macao will bring Las Vegas Sands’ total investment in Macao to more than $10bn with
the vast majority of that investment spent building, among other things, expansive retail malls, convention and exhibition space and thousands of hotel rooms. Las Vegas Sands opened Macao’s first integrated resort — The Venetian Macao — in 2007. The 10.5m sq. ft. property was the first truly integrated resort to open since The Venetian Las Vegas, which opened in 1999.
“From the moment we put our first shovel in the ground we have been committed to helping Macao secure its future as a center for leisure, business and entertainment. Our investment has provided tens of thousands of new jobs in areas such as retail, entertainment and hotel operations. We’ve enabled local companies and suppliers to grow their businesses and we’ve helped the government expand its tax base and diversify its economy. The Parisian Macao is 100 per cent consistent with that vision and we look forward to families taking pictures in front of our Eiffel Tower in the near future,” said Las Vegas Sands and Sands China’s Chairman Sheldon Adelson. Parisian Macao will feature more than 3,000 hotel rooms and suites, more than 490,000 sq.ft of retail space, diverse food and beverage offerings, new meeting and convention facilities and a 50 per cent scale replica of the Eiffel Tower.
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storm opens new shangri la x.o. Storm international has a opened its latest luxury casino in armenia in the multi Grand hotel in the capital, Yerevan Armenia - New projects Darren Keane, CEO of Storm International, has personally opened a new VIP casino in a Five-Star Hotel in Yerevan, Armenia.
singapore – tcsjohnhuxley win sanDs awarDs TCSJohnHuxley was proud to accept the Innovation award at the 2014 Sands Supplier Excellence Awards held in Singapore. Among almost 300 vendors that contested in a diverse range of categories, TCSJohnHuxley was one of only seven award winners. The awards are a global initiative, led by Marina Bay Sands’ corporate headquarters in Las Vegas and rewards exemplary providers and suppliers that demonstrate outstanding success in their work. Team members of the integrated resort nominated various organisations that were then placed through two rounds of judging. TCSJohnHuxley was the only winner within the gaming industry. The reward acknowledged TCSJohnHuxley working seamlessly with the integrated resort in areas including in-house innovation, project and product development. “We’re honoured to have been nominated and awarded by such a valued partner for our innovation,” said Tristan Sjöberg, Executive Chairman for TCSJOHNHUXLEY. “We continually strive to provide innovative solutions and unparalleled service to our customers and this award is great recognition of what we’ve worked so hard to achieve.” japan – okinawa rules out casino revolution Okinawa, the southernmost prefecture in Japan, and one of the regions tipped for an integrated Casino Resort in Japan, has pulled out of the race with a change in its prefectural government citied as the main reason. Okinawa Governor Takeshi Onaga only came into office towards the end of 2014 and has always been opposed to casinos. He revealed that the prefectural government would not allocate finance for casino research projects in its 2015 budget. Governor Onaga said: “It [a casino] could have a negative impact on the tourism industry, which has been doing well thanks to the influence of soft power, including nature, history and traditional culture. Gambling addiction is also a concern.” The prefectural government has been studying the impact of casino resort since 2007 with estimates that an integrated resort in the suburbs would create around 54,000 jobs. The Tokyo metropolitan government stated: “We hope progress toward lifting the ban on [integrated resorts] won’t slow down just because of Okinawa’s negative stance.” On a national front, Kazuaki Sasaki a professor at Nihon University College of Economics and a director of the Integrated Resorts Gaming Academy said he expects the casino law to be approved by November 2015 with the IR implementation legislation approved in 2016.
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Storm International, a global developer and operator of gaming and entertainment complexes, opened a new VIP casino under the brand of “Shangri La X.O.” in Yerevan, Armenia. The casino is located within a luxurious five-star hotel and resort complex - the “Multi Grand” - which was recently opened by Storm International’s long term partner in Armenia – Multi Group. “This casino is targeted at the high-roller junket class of players from countries such as Iran, Turkey, UAE and India, who are used to the highest standards of service and security. Invitation only membership and the utmost in privacy have made “Shangri La X.O.” the brand of choice for the most demanding clientele,” commented Mr. Keane at the opening of the new casino. The new casino consists of several private gaming rooms, a bar and a dining area with a total square of 700sq.m. and provides classic table games on eight tables and eight modern slot-machines.
Echo and Crown present Brisbane casino resort plans AUSTRALIA Australia’s big two; Echo and Crown, have now presented their plans to transform Brisbane with the promise for one of the city’s casino licence at Queen’s Wharf in the city centre. Both operators are promising to revitalise large public spaces as part of their bid with water parks, playgrounds, openair amphitheatres and giant screens coming to the fore. Greenland Group and Crown Resorts are proposing to build Greenland Crown; a landmark entertainment and tourism destination with a world-class precinct boasting signature restaurants and bars, festivals and concerts. There will be active waterfront and new public places for the community to enjoy live sports broadcasts, fashion, arts, music, markets and public celebrations. The heritage buildings will also be revitalised and made more accessible to the public. Crown’s plans will include the sky pool park, a huge roof top infinity pool and open-air entertainment arena.
Tropical gardens, which will be available for everyday visitors as will a public garden area with space for up to 8,000 people alongside a ‘waterfall’ bridge linking to a theatre at South Bank. Meanwhile, the Destination Brisbane group, comprising Echo Entertainment, Chow Tai Fook Enterprises and the Far East consortium, have presented plans for a distinctive arc shaped development with sky deck restaurants, bars, five hotels, a river arena, a riverfront moonlight cinema, ‘12 football fields of public event space’ and an underground shopping mall. Echo’s CEO Matt Bekier said: “Our designers and advisers have come up with some fantastic concepts to really activate it with pop-up stores, with entertainment facilities. I think we can bring it to life. But it is obviously the biggest challenge in this precinct.” The winning bid is expected to be announced towards the middle of the year.
South Korea landing international development, a chinese real estate company, is to take over operations of a casino in south korea, marking its third casino investment in the country. it will pay us$112m to take over wealth seed Group, which runs alpensia casino at holiday inn resort in pyeongchang, in kangwon, the province to host the olympic winter Games in february 2018. alpensia meanwhile is the main venue for the 2018 winter olympics and winter paralympics. landing stated: “korea has been the group’s focus of business development and investment since the fourth quarter of 2013. the acquisition offers a valuable opportunity for the group to broaden its market share in the casino industry in korea, and to diversify its investments from Jeju island to kangwon province.
Insight studio city Macau
Melco crowN reveals haNd at studio city Melco Crown Entertainment has unveiled details of its new cinematically-themed gaming, entertainment and leisure destination resort in Macau: Studio City, which will include a Batman themed ride. The US$3.2bn, Hollywood-inspired, gaming and entertainment complex will transport the visitor into a cinematic world with entertainment offerings, delivered by the world’s leading entertainment partners, positioning this new destination resort as Asia’s entertainment capital. Studio City will encompass the pinnacle of international and Asian leisure-destination inspired entertainment, supported and endorsed by icons of Hollywood’s entertainment industry. When completed later in 2015, Studio City’s towering facade will feature a new, iconic, Macau landmark – the Golden Eye – which at 130 meters will be Asia’s highest Ferris wheel. It is inspired by having two asteroids shooting through a Gotham City building. The Golden Eye straddles the two-tower Studio City hotel, set to offer visitors luxurious accommodations and red-carpet ‘star’ service. Comprising the Celebrity Tower and the premium Star Tower, the hotel will offer approximately 1,600 rooms, each designed in Art Deco style. The world’s first Batman film franchise digital ride, DC Comics’ Batman Dark Flight, delivers visitors an exhilarating adventure through the night, in an action-packed motion ride, providing thrill-seekers with a virtual reality Batman experience. Fly through Gotham City, following Batman around the city as he brings some of the most notable Super-Villains from his Rogue’s Gallery to justice. “Studio City will represent Asia’s ‘next generation’ of immersive, world-leading, entertainment-driven gaming and leisure destination experiences, as we work to support Macau’s tourism development and diversification,” said Mr. Lawrence Ho, CoChairman and Chief Executive Officer of Melco Crown Entertainment.
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Kevin Tsujihara, Chairman and Ceo, Warner Bros.
“The Warner Bros. and dC Comics portfolio of properties offers a unique and engaging experience for fans of all ages. We are delighted to collaborate with melco Crown entertainment to bring these characters to a world-class project like macau’s Studio City.”
“It will take the entertainment-inspired leisure destination concept to new levels, in a cinematic setting developed in partnership with the world’s leading entertainment brands, supported and endorsed by many of the legends of Hollywood – including this very special short-film collaboration with Brett Ratner, Martin Scorsese, and superstars Leonardo DiCaprio, Robert De Niro and Brad Pitt.” Melco Crown Entertainment also announced a partnership to bring the unrivalled portfolio of many of the most iconic DC Comics’ Super Heroes and Warner Bros.’ classic characters to life, in collaboration with Warner Bros. and DC Entertainment. “We are also thrilled to announce a collaboration to bring the unrivaled portfolio of some of the most iconic DC Comics’ Super Heroes and Warner Bros.’ classic characters to life, together with Warner Bros. and DC Entertainment,” said Mr. Ho. “Studio City will radically enhance and diversify Macau’s evolving leisure experiences as Melco Crown Entertainment works to anticipate, innovate and ultimately satisfy the ever-growing
needs of the region’s and world’s leisure destination visitors.” The resort will also feature a 30,000 sq. foot funfilled Family Entertainment Center for kids, is packed with many Warner Bros. and DC Comics characters. This family-orientated facility will allow families to shop and dine as well as enjoy an animation academy, a cinema to catch classic and new animated programs and even a memorable birthday party venue with customisable private party rooms. The House of Magic offers guests an incredible live magical experience showcasing the world’s greatest magicians. Designed, curated and hosted by acclaimed illusionist, Franz Harary, The House of Magic features an array of mind-bending shows including Harary’s award winning spectacular, Mega Magic. This amazing mystical journey all takes place in the new Asia capital of magic and illusion arts. Studio City Entertainment Center offers a 5,000seat multi-purpose entertainment center for exciting live concerts, theatrical and top sporting events. The center will be managed by Global Spectrum, which is part of Comcast-Spectacor, one of the world’s largest sports and entertainment companies. Studio 8 is a fully-operational TV broadcast studio, providing visitors with an opportunity to watch the filming of Asia’s top television shows. The resort will further feature Pacha Nightclub, one of the world’s biggest names in nightclubs with venues in numerous major cities, including Ibiza, New York, Dubai, Buenos Aires and Sydney, bringing Ibiza-style nightlife to Macau for the very first time. Studio City is designed to be the most diversified entertainment resort offering in Macau, with more world-class amenities than any integrated resort in the market. It will be the pinnacle of entertainmentdriven leisure destination experiences in Asia.
Insight russia
russia's sochi Makes play as would-Be GaMBliNG Mecca Sochi, home to the 2014 Winter Olympics, is gearing up to be a new gambling hub for Southern Russia, after receiving approval from President Vladimir Putin earlier this year, but some experts are dubious about its chances of success. The problem in finding the right location, coupled with political tensions and competition from both neighbouring countries and other Russian gambling zones may all hinder development. Putin signed the bill creating a gambling zone in Sochi and in the newlyannexed Crimea in July. Gambling was banned in Russia in 2009 apart from in the specially designated areas, where progress so far has been slow. However, authorities are determined to cash in on the newly built infrastructure that was put in place for the Olympic games. In November, they organized Sochi Gaming Week, gathering experts in the gaming industry to discuss the zone's future. US-based casino company Century Casinos CEO Peter Hoetzinger said in a recent interview that it is ready to invest in the new zone, but first wants to find Russian partners and make joint investments The company operates 30 casinos worldwide. "We have operated in the Colorado gaming zone situated within an hour drive of Denver next to the Aspen and Beaver Creek ski resorts. This experience opens up big opportunities for us in Russia," Hoetzinger said. The exact number of gaming licenses was not announced and neither was the location of the new zone, but gaming expert Leonid Obozniy believes that the authorities should not set limits and should create the right conditions for healthy competition among investors. Russian officials were optimistic, with the deputy head of Russia's Union of Tourism Industry Yuriy Barzykin predicting that the first casino will be opened in Sochi in spring 2015. 5 2
Michael Boettcher, President, Storm international
"We must remember that the competition with neighbouring countries, where gambling is well developed (such as Georgia, armenia, Belarus), may create certain problems for the development of gambling in Sochi. ideally, a casino should be situated in the centre of Sochi, on the basis of five star hotels.” However, much of the debate centred on the best location to create a gambling hub, especially given no purposebuilt resorts are planned. Most of Sochi’s infrastructure was created to support the Olympics, with total spending of about $51 billion. Barzykin said the best place for opening a casino would be the Krasnaya Polyana ski complex, about 42 miles from the centre of Sochi and 25 miles from the Sochi International Airport, to which there is a new rail link that was built for the games. "There are completed infrastructure and accommodation facilities, fivestar hotels, at which premises future casinos may be opened," he said. Authorities have said that new gambling facilities will most likely be located in existing premises, with Zhanna Grigoryva, a
representative of the Sochi administration, noting there will be no new largescale construction projects in the city. "This city is already a yearround worldclass resort. The plans to develop the gambling zone do not include construction of new facilities, most likely it will involve reconstruction of the existing ones," she said. Michael Boettcher, president of Storm International which manages gaming and entertainment facilities, agreed that a casino should be opened in a place with the highest concentration of five star hotels, like Krasnaya Polyana with its Marriott and Rixos hotels. However, he also noted the ski resort location was not ideal. He pointed to the seasonality of the resort, the instability of the legal framework, a
Insight russia
small number of players and the remoteness from the city centre and competition as factors that may hinder development. "We must remember that the competition with neighbouring countries, where gambling is well developed (such as Georgia, Armenia, Belarus), may create certain problems for the development of gambling in Sochi," he said. In his opinion, the construction of a gambling zone on the city's outskirts would significantly reduce the profit potential. "Ideally, a casino should be situated in the centre of Sochi, on the basis of five star hotels," Boettcher concluded. First Gaming head Leonid Obozniy was more optimistic about Sochi's prospects, though again stressed that choosing the right location will be key when it comes to the zone’s success.
"Depending on the venue for the gaming zone and the level of completed projects, we can talk about Sochi's competitiveness with casinos in the neighbouring countries, such as Belarus and Cyprus. Sochi stands a good chance to move to the same level, if not higher, and go after the target audience of Turkey, Iran, and perhaps even some of Monaco's audience that can only be attracted by a high level of service and new offers." In his view, the best venue for the zone would be the Olympic village next to the local airport, rather than the Krasnaya Polyana, due to its convenience. At the same time, he admitted that the geopolitical situation may affect the gambling zone's development. And if it keeps worsening it may reduce both the inflow of investors and the zone's popularity among tourists.
Russia’s economy is under pressure from Western sanctions over its alleged involvement in Ukraine, with foreign investment slowing and the rouble dropping more than 40 percent in 2014. Sochi is also situated near the functioning Azov City gambling zone, the single functioning gambling zone in Russia. It brought in about $3.9 million in taxes last year, almost 90 percent of which came from the zone's three casinos. Kazanbased company Royal Time Group announced in November that it plans to build a new resort worth 17 billion roubles there in 2015. According to Russian business daily Kommersant, Royal Time Group is forecasting a sharp increase in the number of visitors to its casino. In 2013, it attracted 400,000 visitors, while in 2014 it is expected to attract over 600,000 people, rising to about 1 million in 2015.
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AGEM MeMBership News
MeMBers News AGEM KEY BOARD OF DIRECTORS ACTIONS:
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MeMBer profile Company – action Gaming, inc./Videopoker.com Web address – www.videopoker.com AGEM Membership level – Silver Company Description - action Gaming develops innovative video poker game content that is distributed to brick and mortar casinos through our partnership with iGT. in addition to our high penetration in the brick and mortar casino space, our popular games are available to consumers in the social arena via iGT's double down Casino, and on the Web at VideoPoker.com - the number one online destination for video poker enthusiasts. What new products, technologies/services will you introduce this year? We will be introducing several new video poker games during the year. They will be highlighted on videopoker.com as they are introduced to the market place. in addition, we all our games will be available for play on mobile devices through our mobile optimised Web site and mobile app. Do you have any newsworthy events to share? action Gaming, the leading developer of the world's most popular video poker content, is bringing its games to mobile. Video poker enthusiasts will soon have the opportunity to play their favorite games on tablets and smart phones. These include all time favourite games like Triple Play Poker, Super Times Pay Poker, and Spin Poker, as well as popular new games like ultimate X Poker, dream Card Poker, and hyper Bonus Poker. Players will have a choice of playing on the mobile Web at VideoPoker.com, or through the VideoPoker.com native app. VideoPoker.com and the native app are free to play and players can practice and play their favourite games, participate in free contests for a chance to win prizes and cash, and improve their play using a proprietary training mode feature. Forthcoming events you will be attending? Some of our games will be featured at iCe in london with iGT
January Board meeting saw the election of AGEM officers: President Tom Jingoli, Konami; First Vice President Dan Savage, Scientific Games; Second Vice President Dave Lucchese, Global Cash Access (GCA) / Multimedia Games; Vice President Of Government Relations Steve DiMasi, GTECH / IGT; Secretary Mark Dunn, Aristocrat; Treasurer Tom Nieman, JCM Global; CoGeneral Counsel Mike Dreitzer, Ainsworth, and Co-General Counsel Harper Ko, Scientific Games. All the officers will serve for a one year term, with the exception of the President who serves for two years. l Approved US$10,000 to renew the Drexel University AGEM Scholarship. Drexel is dedicating its new gaming lab with machines from Bally with additional machines to come from Konami.
eveNts aNd activities RECENT EVENTS:
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AGEM representatives, including President Tom Jingoli and Executive Director Marcus Prater, made a presentation to the Nevada Resort Association on Dec. 16 to introduce Nevada operators to Senate Bill 9, which would allow for variable payback percentages on slot machines. The Nevada Legislature is poised to consider the bill beginning on Feb. 2.
FORTHCOMING EVENTS:
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NCF UK Dealer Championship – ICE Feb 3-5, 2015. The UK leg of the ECA's European Dealer Championship will be held on stand S5-260 at ICE. The event organised by the National Casino Forum (NCF) and ECA will include up to 10 finalists. The winner of the UK competition will be invited to attend the EDC 2015 Finals, which will take place at the beautiful Hit Casino Park, Nova Gorica in Slovenia on May 12-13, 2015.
aGeM iNdex In the final month of 2014, the AGEM Index reported a composite value of 181.84, The December 2014 index represents a decline of 3.74 points (-2.0 percent) when compared to November 2014. Compared to a year ago, the AGEM Index declined 12.11 points (-6.2 percent). The index reported monthly declines for four consecutive months and was down for nine of the past 12 months. In December, Global Cash Access (GCA) completed its acquisition of Multimedia Games Corporation, removing Multimedia Games from the overall index. During the latest period, eight of the 14 global gaming equipment suppliers reported month-to-month gains in stock price, with one reporting a gain of more than five percent. Of the six companies reporting a month-tomonth decline in stock price, two were down by more than five percent.
aGem is an international trade association representing manufacturers of electronic gaming devices, systems, and components for the gaming industry. The association works to further the interests of gaming equipment manufacturers throughout the world. Through political action, tradeshow partnerships, information dissemination and good corporate citizenship, the members of aGem work together to create benefits for every company within the organization. Together, aGem and its member organisations have assisted regulatory commissions and participated in the legislative process to solve problems and create a positive business environment.
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London, 3rd-5th Feb STAND S3-150
Preview ice totally GaMiNG 2015
NovoMatic takes the straiGht liNe to ice 2015 The Novomatic Group teases the unveiling of its much anticipated ‘Curve’ gaming cabinet alongside a host of innovations on its massive ICE stand For anyone and everyone looking to see what’s around the curve for gaming innovations in 2015, NOVOMATIC is heading straight to London in order to present the answer. The Group’s show staging will be simply spectacular – on a booth floor that covers all aspects of the future of gaming for the international markets and their particular segments. From February 3rd-5th ICE – Totally Gaming once more invites the international gaming experts to attend the event that marks the annual starting signal for this rapidly evolving industry. Held once again at the ExCeL Exhibition Centre in the London Docklands the theme for ICE 2015 is DISCOVER – and there will certainly be plenty to discover at the NOVOMATIC booth. The NOVOMATIC Group of Companies’ concerted show staging will again command the show’s most prominent position. The traditional, massive, booth space that has the dimensions of a football pitch provides room for all the Group’s international subsidiary companies and affiliates catering to the various segments of the gaming industry. Live at ICE visitors will discover all the latest innovations of NOVOMATIC. Right at the 5 6
front the Astra Gaming Group (Astra Games, BellFruit Games, Empire Games, Gamestec and Mazooma Games) will welcome the guests, together with the colleagues of Eurocoin from the Netherlands. Then Admiral Sportsbetting and a large NOVOMATIC Interactive area will cover the right wing of the booth – with the varied online/mobile product offerings of companies such as Greentube, iGaming2Go, Mazooma Interactive, Extreme Live Gaming, NOVOMATIC Lottery Solutions and Betware. On the left wing will be the AWP and VLT offerings for the Spanish, German and Italian markets, presented
The evolution of the hugely successful Dominator takes up its twin brother’s successful concept and enhances its attractiveness with its own unique features. by NOVOMATIC Gaming Spain, LÖWEN Entertainment and Crown Technologies as well as NOVOMATIC Italia, respectively. And the main booth section at the top part of the booth features the full range of innovative gaming technologies from Austrian Gaming Industries and Octavian as well as a new NOVOMATIC hospitality area and a plethora of meeting rooms for relaxed
negotiations amidst the busy noise of the show. Visitors are therefore, well advised to give in to their curiosity and head straight for the NOVOMATIC booth where they will be heartily welcomed and greeted with the famous Austrian hospitality while they discover what’s behind the curve… That much can be revealed: Behind the curve is a new cabinet! The evolution of the hugely successful Dominator takes up its twin brother’s successful concept and enhances its attractiveness with its own unique features. It will be launched at ICE with a set of especially developed brand new games, including mystery progressive stand-alone jackpots. Further attractions at ICE 2015 will be an enhanced Panther Roulette with new attractive LED features and the NOVOSTAR V.I.P. II with its impressive large screen, presented in Astra’s own highly successful VIP Wall extravaganza as well as a large range of new games, new mixes and new jackpots. The final preparations are now well under way and the AGI team as well as the colleagues of the various NOVOMATIC Group companies look forward to the show with eager anticipation and are ready to welcome all visitors to the NOVOMATIC world of gaming 2015 at ICE.
Preview ice totally GaMiNG 2015
iNto the lead with xeoN cpu Intel chipsets, and other embedded computing products. Industrial motherboards and modules in a variety of formats will be on display including Mini-ITX, Q7, COM Express and MicroATX.
Advantech-Innocore will showcase the first Intel Xeon capable mothrboard for the gaming industry at the ICE show. As the gaming-focused business unit of the $1bn Advantech Group, Advantech-Innocore stands alone among hardware suppliers. With its own manufacturing plants, global logistics and service centers as well as a leading edge product roadmap, Advantech-Innocore is able to meet the most demanding requirements of our customers in the gaming industry.
Advantech’s growing line of industrial LCD monitor products from ADS (Advantech Display Systems) will also be shown. With screen sizes available from 7 inches up to 55 inches and beyond, the ADS range includes the latest technology products for high visibility, touch screen, sunlight view ability and ruggedization.
At the ICE tradeshow (Advantech Stand N2160), the company will be showing a full range of industrial computing platforms for gaming machines - the field proven DPX Series, as well as a selection of products from Advantech’s other product divisions. Products on display will include platforms featuring the latest AMD, and
The first Intel Xeon gaming board Two new DPX gaming products will be on show, the exciting new DPX-S435 in the S Series range and the DPX-E130 in the E Series range. The DPX-S435 is the first Xeon capable
motherboard for the gaming industry. It features the very latest 4th Generation Intel Core architecture CPUs up to and including Intel Xeon CPUs. The DPX-E130 is a new product targeted at the slot machine market in Italy and ready for the upcoming regulatory changes in that market. Also on show will be the new DPX-S1435 a system level product based on the new DPX-S1000 enclosure.
BriNGiNG world-class service BeyoNd testiNG Gaming Laboratories International (GLI) to demonstrate world-class services beyond testing to ICE London 2015
business in the lottery and gaming industries faster and more effective. Those categories are: Project Management; Governance, Risk and Compliance; Technical Services; and GLI University Training.
Gaming Laboratories International (GLI) is the world’s leading land-based, iGaming and lottery testing laboratory, and from its stand N3-210 at ICE, GLI will discuss its testing services, as well as its many world-class services beyond testing that make GLI the go-to laboratory for regulators, operators and suppliers who want to get more than just testing from their lab. GLI is also the world’s leading gaming consultancy, and GLI President James Maida will offer valuable insights on the panel “How to do Business in Indian Country,” which takes place Tuesday, 3 February at 12:00 p.m. On its stand, GLI will shine a spotlight on its auditing services, which contain a critical package of services ranging from WLA compliance to IT security. These services help regulators, operators and suppliers to improve governance, risk and compliance processes across the entire operation. GLI’s portfolio of auditing services includes: l l l l l
WLA security controls certification WLA responsible gaming certification Enterprise risk management Field audits Internal audit
GLI University conducts training for many groups all over the world. Most recently GLI University completed its first Master’s Level Commissioner Certification Training for the National Indian Gaming Association (NIGA). Next, GLI University will stage the North American Regulators Roundtable on 4 and 5 March in Las Vegas, and then it will produce the European Regulators Roundtable on 28 and 29 May in Rome.
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T processes Network risk assessment l PCI:DSS compliance l Security audits GLI is an associate member of WLA, NASPL, CIBELAE and the European Lotteries. l
The company also boasts an array of exclusive tools that streamline processes and speed time to market. These tools include the award-winning GLI Link, Point.Click.Transfer. SM, Point.Click.Submit.SM, GLI Mobile and the recently released GLI CloudSM.
In addition to auditing, GLI offers its clients an extensive portfolio of services, including lottery testing, gaming device and systems testing, online gaming systems and security testing, rule writing, consultation and professional services.
Land-based, lottery and iGaming stands across the ICE Totally Gaming trade show floor will be populated by devices and systems that have been tested and certified by GLI. In fact, at an average of 120,000 per month, GLI issues more certifications than any other lab for more than 475 global gaming jurisdictions worldwide.
GLI’s professional services division has four main areas, each specifically designed to make doing
Join GLI on stand N3-210 at ICE or visit gaminglabs.com for more information. 5 7
Preview ice totally GaMiNG 2015
coMplete validatioNs raNGe Astrosystems will display the full range of note and coin validation solutions at the ICE Totally Gaming 2015 exhibition The Microcoin and Global Bill Acceptor (GBA) note and coin validators are very well established within many markets worldwide. Manufactured and distributed by Astrosys International Ltd, the versatility of the solutions on offer ensures that a wide range of industries are supported, providing reliable and cost-effective solutions for both the gaming and amusement sectors. Based in Oxfordshire, United Kingdom, Astrosystems Ltd is the regional office of Astrosys International Ltd, focusing primarily on EMEA. The company have been specialists in the currency handling business for over 20 years. Astrosystems will once again be exhibiting at the forthcoming ICE exhibition being held at the Excel Centre in London from 3rd to 5th February
2015 (stand number N3-200). On show will be the Microcoin QL, which offers a high speed multi-coin and token validator, with a significant global presence, being specified as the default product in to some of the most prestigious Casino machines. The product is also recognised in other key markets as one of the best, offering validation speeds of up to 10 coins per second, whilst maintaining a strong protective barrier against fraud attempts. A further option, is the Microcoin SP coin validator, which has proved itself as a very successful coin mech, and is the default product for the pool table industry, in addition to a strong presence in the jukebox and kiddy ride markets. The extremely high levels of reliability from the SP, together with a unique jam release mechanism, have made this a very attractive product to operators and service technicians alike. Additional features include a unique bonus credit system, and remote downloading of firmware and software. As a further optional
extra, the SP can also be fitted with a stylish SP 115mm faceplate which offers a blue illuminated coin slot. To complement the Microcoin products, the Global Bill Acceptors range of note validation products is also truly diverse. The stackerless GBA ST2 bank note reader has been particularly successful in the challenging European gaming and amusement markets. Ease of servicing, along with impressive levels of reliability, has been the key contributing factors. Software and firmware can be downloaded by use of a USB stick, or via ccTalk and RS232 interfaces, which further enhances the simplicity of operation. Alongside the ST2, will be the stacker options – GBA ST1 and GBA ST1C, together with the highly secure and modular GBA GV1 note vault unit. The full range of note and coin validation solutions, available from AstroSystems Ltd and key distributors, are supported by comprehensive customer software packages, and are backed by excellent technical and after sales expertise.
JcM creates Better coNNectioNs at ice show JCM Global creates better connections at ICE 2015 with bill validation technology, printer technology and system solutions At ICE 2015, JCM Global is helping operators create better connections with better, smarter, faster bill validation technology, printer technology and systems solutions. JCM will show its advanced and diverse product portfolio on stand N3-220. The connection begins with JCM’s bill validation technology featuring iVIZION, iPRO and iPRORC. First, iVIZION has the most advanced validation security features and anti-stringing technology available, all with an acceptance rate of 99+ per cent. Secure, flexible and innovative, iPRO has a high first-time acceptance rate, a fast note-to-note acceptance rate, and JCM’s innovative sensing and anti-stringing package. An optional recycling package on the iPRO-RC means less fills less often. Connections are enhanced with JCM’s printer technology and the PayCheck 4, GEN2 Universal, TableXchange and Coupon Express, among others. The GEN2 Universal family of printers is
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compatible with existing gaming platforms (RS232 and NetPlex) as well as the next generation of downloadable, server-based and USB games. GEN2 Universal printers offer compatibility with existing games on the floor. TableXchange brings the convenience of TITO to the table by both accepting and paying out with TITO tickets, allowing full two-way transactions compatible with existing casino TITO systems, increasing convenience for players and streamlining operations by virtually eliminating the need to replenish chips at table games. The connection is completed with JCM’s system solutions, including Dynamic Network Applications (DNA), PromoNet and Ticket2Go. DNA empowers operators and regulators with
real-time health and event monitoring of all peripheral components used inside EGMs, on table games or inside redemption kiosks, utilising either a wired or wireless connection to a local server. Peripherals that DNA can monitor include bill validators, ticket printers, card readers, digital displays and coin acceptors. PromoNet intelligent couponing identifies valuable players, targets carded and non-carded players, links promotions to game-play and delivers them where and when they are needed. Perfect for AWP and low payout markets, Ticket2Go delivers a networked TITO solution and the proven network-less Ticket Payout feature. Multi-lingual and multi-currency, Ticket2Go offers a retrofit ticketing solution for gaming machines that do not support open standard ticketing protocols.
Preview ice totally GaMiNG 2015
latest live casiNo products supported By world-class operatioNal excelleNce Evolution Gaming (stand N5-250), the world leader in video-streamed Live Dealer gaming, will use ICE to showcase not only new additions to its extensive range of Live Casino solutions but also the world-class operational excellence of its solution. Among the many new products on show for online and land-based operators will be: l
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Blackjack Party, an all-new, low stakes online Live Blackjack with unlimited bet behind opportunities, music, a party atmosphere and a chatty TV-style duo of dealer and copresenter Evolution Live Blackjack for Mobile and a preview of the imminent Live Baccarat for Mobile Immersive Roulette Lite, an exciting bespoke variant of Immersive Roulette, Evolution’s Game Of The Year award winner
The Immersive Roulette Lite development will see customisable, multi-camera view Live Roulette tables – offering an immersive playing experience on desktop, tablet and smartphone – made available as an option for Evolution licensees’ own branded dedicated tables. With new Live Blackjack and Live Baccarat for Mobile making their debuts at ICE, Evolution’s Mobile Live Casino, meanwhile, is a complete offering in every sense. The company’s Mobile offering now spans multiple Live Roulette variants, Live Blackjack and Live Baccarat on iPad, iPhone and leading Android tablets and smartphones. In addition, Evolution’s ‘access all tables’ Mobile policy means that all live tables for these games are available to play on Mobile not just one or two tables. Evolution will also showcase its proven, integrated solutions specifically for land-based casinos, including the option to stream live online games from a studio sited within the landbased venue itself. Helen Hedgeland, Evolution’s UK Managing Director, says that alongside new products at ICE, the multi-award winning B2B provider will
“emphasise broader messages such as the scalability and operational excellence of the Evolution Live Casino platform.” Huge scalability, already present in Evolution’s Live Roulette, Live Casino Hold’em and Live Three Card Poker, is demonstrated by Blackjack Party (a low-stakes Bet Behind game with a bubbly TV-style duo of dealer and co-presenter) and by Evolution’s core Live Blackjack, also now with Bet Behind. In both these Blackjack games, massively scalable Bet Behind functionality offers virtually unlimited ability for potentially hundreds of players to ‘bet behind’ the hottest players in the 7 main seats at each table. Hedgeland explains that a look behind-thescenes at Evolution’s Live Casino studios in Latvia and Malta reveals numerous examples of operational excellence: “Our core Evolution Blackjack game, on which Blackjack Party is based, is the ‘world’s fastest, slickest online Live Blackjack’. That’s made possible by the unique combination of software and live dealer bet-monitoring systems used in
our studios. The speed of the game is enlivened still further with ‘Pre-Decision’ betting for players, which cuts out waiting time and boosts the number of games delivered per day for licensees.
“Our core Evolution Blackjack game, on which Blackjack Party is based, is the ‘world’s fastest, slickest online Live Blackjack. ’ Hedgeland also points to the failover systems Evolution has in place. These were put to the test following an explosion at a power station in Malta last August. The incident resulted in a power outage of over seven hours for many of the island’s homes and businesses, yet Evolution’s Malta studio maintained business with “zero interruptions and zero complications.” Hedgeland concludes: “When you consider the 130-plus live tables across our studios, the number of dealers and languages offered, the 24/7 service into multiple markets, the stringent SLAs to which we operate, and the level of customisation and live promotions we offer… it all adds up to a truly world-class, operationally excellent solution for our licensees.”
BriGht Group set to daZZle with MaGNuM at ice show Making the mammoth trip from Oz to London for ICE, The Bright Group hopes to light up the show with its impressive range of casino gaming signage The Bright Group (TBG) is a supplier of the global electronic gaming machine OEM’s and we service all the major players with our own products and also design assistance and knowhow during our customer’s R&D stages. TBG’s direct presence in three countries, Sydney (Australia), Wuxi (China) and Las Vegas (USA), makes us ideally placed to serve the gaming industry's needs from early engineering involvement to finished design for manufacture. With full focus on the gaming market we offer design and manufacturing services from simple wiring harnesses to
complete cabinet assemblies, from generic toppers to custom designed theme based toppers, top boxes and gaming signage. TBG will be exhibiting in ICE 2015 stand number N1-140
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Preview ice totally GaMiNG 2015
latest curreNcy aNd rfid advaNceMeNts Gaming Partners International is looking forward to kicking off 2015 with the ICE show on booth S6-230 GPI will be exhibiting a wide range of high quality casino currency along with our full suite of table game products including our expanded playing card offerings. As a leading industry manufacturer we will be featuring an array of new options designed to provide casino operators expanded chip, plaque and jeton options and other products and solutions that help maximize their table game performance. We celebrate our B&G line’s 90th anniversary with the addition of several new offerings to our B&G currency, including our brand new VSeries chip line. It is an American-style chip composed of a brand new injection material formula that is both stronger and more durable. The line has been designed to offer an unprecedented variety of configurations providing operators more currency options. The V-Series also includes ChipShield as a standard feature. An anti-microbial substance that helps inhibit the growth of stain-causing mildew, ChipShield leaves a cleaner, more sanitary chip surface. For customers who order the V-Series with four or more color shots, the chips come standard with an infra-red security feature exclusive to GPI. We have added two new standard designs including the Dragon’s Eye and our new Ribbon design, available with two different ribbon pattern widths. These new designs, like our
other standard plaque designs, can be designed using several new material patterns and colors. For customers who choose lunettes for their plaques, they now have the option to select from four new Chameleon plaque materials that shift color when rotated, providing a stunning visual effect. These new choices are available in both transparent and opaque options, extending the design possibilities even further. In our commitment to provide customers new options to protect their money, we developed two new currency security feature options. Each can be layered with most of our other currency security offerings to maximize their currency protection. The first is 3-in-1 UV, it is a security taggant that remains invisible under standard UV wavelengths. Since the taggant is added to plastic injection-molded chip materials, it offers quick validation of chips when placed in stacks or racks. It also offers three levels of authentication, including a forensic verification using Scanning Electron Microscopy. We will also be demonstrating SecuriFilm, a new decal security film with a semitransparent hologram-like effect that enables quick authentication. SecuriFilm can be easily authenticated at the table and includes an additional covert security feature enabling a higher level of validation. The feature also adds
to the aesthetic appeal of the decal’s design. Customers can see RFID demonstrations that illustrate our latest RFID products and solutions. In addition to a full and complete line of RFID currency and RFID products, we have developed a variety of RFID solutions that provide valuable efficiencies to help operators streamline their operations on the gaming floor, the cage and back of the house. With the acquisition of Gemaco this past year, we are also now proud to offer our customers the Gemaco branded line of playing cards along with our Paulson cards. The Gemaco branded card line includes two paper stock and two plastic card types. We will be showcasing a full suite of table game products with each table stocked with the essential products required for a live game.
europe's choice iN GaMiNG testlaBs at ice 2015 BMM Testlabs, the world's leading gaming testing laboratory and technical consultancy is pleased to announce that it will be exhibiting at ICE in London BMM will be represented from across the globe at this year's ICE show, with staff attending from its Italian, Austrian and Spanish offices. They will be joined by key leaders from the South Africa, Australia and US businesses. These experienced BMM staff will be available to all ICE attendees throughout the three-day event to offer advice and assistance on compliance, certification, testing and training services for both land-based and iGaming. Kirk White, Executive Vice President & General 6 0
Manager - International commented "BMM has gone through a significant global expansion over the last three years, with specific emphasis in Europe. In 2014 we opened new offices in Vienna and Bologna, employing both local and international staff in those locations. In Europe we are seeing the gaming industry really embrace technical innovation and competition to lower costs and improve efficiencies, and BMM is filling this demand with quality testing, compliance and certification services." Marzia Turrini, SVP - Southern Europe added "BMM Testlabs is ready and able to test online, land-based, social and mobile in European jurisdictions. As a company BMM has been testing and certifying gaming product for over 33 years.
We employ some of the most experienced gaming experts in the industry and our customer service and attention to detail are second to none. I would like to encourage all manufacturers, whether online or land based, to visit the BMM booth at ICE and discover the benefits of partnering with BMM." White continued, "The BMM team is looking forward to sharing our expertise and knowledge with ICE attendees at the 2015 event. As so many manufacturers are now seeing, BMM is the gaming and certification partner of choice in Europe." To find out more please visit BMM Testlabs at booth #N3-420, ICE, February 3-5, 2015.
Preview Gtech: eNd-to-eNd GaMiNG solutioNs at ice GTECH’s Interactive portfolio will span every multi-channel sector at the ICE show with mobile taking a driving seat GTECH, with its Interactive, Betting, Lottery, and SPIELO Gaming pillars, will be presenting its comprehensive portfolio at ICE Totally Gaming Exhibition at the ExCeL exhibition center in London, UK from February 3 to 5, 2015. Featuring the “All Together GTECH” theme, visitors to Booth N3-160 will experience a full array of games, cabinets, systems and interactive solutions. On the interactive gaming side, visitors will be able to experience GTECH’s total iGaming solution, including entertaining interactive casino games, bingo, poker, sports betting, and iLottery products, as well as exciting new mobile additions for players on the go. GTECH´s open architecture platforms allow fast integration of third-party products to easily create a successful online solution tailored to customer needs.
New casino games include favourites from the popular SPIELO casino games library, with many new titles launched for desktop and mobile devices, such as Moving Moments, Goldify, Egyptian Dreams and Treasure Blast. With a strong selection of content, GTECH will illustrate the player journey and convergence from land-based to desktop gaming, tablets and smartphones.
library, and are available across platforms including mobile. Additionally, they offer the ability to monetise social gaming by selling virtual currency for real money.
GTECH’s networked bingo and poker solutions will also be on show. Attendees will be able to test the newly launched, cutting-edge Poker Mac client and app, as well as HTML tablet bingo with user-friendly features that are the result of extensive research and development.
GTECH will also show its market-leading suite of interactive solutions for Lottery markets, including a comprehensive game portfolio of more than 100 eInstant games. GTECH’s mobile first approach will be demonstrated with the latest releases of baseline wagering and a convenience app, featuring a rich suite of player features and functionalities. Key player engagement features such as group play, second chance draws and loyalty will also be presented.
Play for Fun and Social Casino are great tools for operators to build their brand in the interactive arena, helping them to acquire new players, increase player lifetime value, and drive players back to operators’ land-based or real-money offerings. GTECH´s Play for Fun and Social Casino offerings contain a complete mix of games from a large, ever-growing
In addition, WagerWise is GTECH’s new singleintegrated, end-to-end sports betting platform, backed by the comprehensive GTECH Betting Services to provide support across all channels and markets. It allows operators to connect with players anytime, anywhere, on any device, ensuring that they never miss a moment’s excitement.
Preview ice totally GaMiNG 2015
aristocrat adds More ice diMeNsioNs Aristocrat Technologies is planning to take operators on a mind blowing exploration of a new dimension at ICE 2015 (London, 2nd-5th February) with a multi-faceted line-up of gaming operations products spanning a premium collection of licensed brands and linked solutions. S2-250 in the South Hall of the ExCeL Centre will feature major centrepiece attractions recently introduced, due for imminent launch and currently under development for later release to European gaming floors. Taking prime position at the front of house will be three globally renowned brands exclusively hosted on Aristocrat’s new Wonder Wheels dualseat immersive pods. Standing a colossal 3.2m (10.5’) high with game play portrayed on a 55” vertical screen and three mechanical wheels and added effects through the interactive iChair, the Wonder Wheels banks have been optimised for play on Aristocrat’s new, advanced Helix Slant lowboy cabinet and come in both single- and double-faced variations. Pending imminent release in Europe, the first title in the Wonder Wheels series is the Batman Classic TV Series slot game, featuring characters and animations from the original 1960s hit television series, with the legendary Adam West and Burt Ward fending off The Joker, The Riddler and Catwoman. Each playing position has its own mechanical wheel whilst playing this 25-line, 250-credit max bet game in denominations of 1c, 2c or 5c. There’s also a central bonusing wheel for the game-bank, where players can work up to the Single Site Progressive (SSP) Jackpot. Along the way taking in bonus mini-games in which players join the Dynamic Duo in crimefighting exploits against their arch enemies. Follow-up titles in the towering Wonder Wheels range will also be displayed on Aristocrat’s ICE stand. The first involves stepping up to the 1970s to join Superman The Movie. Here players will reach for the heights of the SSP Jackpot on an Xtra Reel
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Power configuration, battling against Lex Luthor and saving Lois Lane across a range of interactive, content-rich bonusing games in familiar settings including the Daily Planet and Fortress of Solitude. Due for release later this year, Aristocrat will also demonstrate the latest developments on its third Wonder Wheels title, themed on the hilarious US movie release, Ted, featuring actors Mark Wahlberg and Seth MacFarlane and a real-life teddy bear. Ted’s close to the knuckle capers helped the film become the highest-grossing Rrated comedy of all time upon its release in 2012, grossing $550M worldwide. Aristocrat has seen huge successes with its Tarzan franchise in North American gaming operations and is now set to see the king of the jungle swing into Europe with the new release of Tarzan of the Apes. Another jackpot attraction, this game features a raft of audio-visual interactive features, including a large animated progressive wheel and four jungle adventurebased mini features. Available in 3 and 4-seat modules, a 55” HD display integrated into signage and interactive iChairs take players deep into these legendary adventures. Another eagerly-awaited arrival, the first link game in Aristocrat’s hugely popular E*Series, Pixie Wishes will be making its first showing in Europe at ICE 2015. Two of this entertainment segment’s most successful games of 2014, Sky Rider Golden Amulet and Silver Treasures are now being boosted with the addition of a multilevel Hyperlink progressive overhead,
accessed by a magical Pixie Wishes 3x3-reel feature awarding jackpots, credit prizes, free respins and an interactive pick-‘em feature. Standalone games also feature strongly amongst Aristocrat’s range of premium licensed games with the content-rich rock masterpiece, The Rolling Stones slot game being joined by another high profile Feature Top Box game, Let’s Make A Deal. Based on the hit US game show, this is pure entertainment American-style, packed with over-the-top features incorporating the host and characters from the show and a five-level jackpot where bigger is clearly better!
Pending imminent release in Europe, the first title in the Wonder Wheels series is the Batman Classic TV Series slot game, featuring characters and animations from the original 1960s hit television series, with the legendary Adam West. “Aristocrat’s gaming operations portfolio has to be the strongest currently in the market, with some of the most widely recognised film, television and music-inspired brands, backed by multi-billion dollar investments already made by the world’s biggest publishing and production houses,” stated Donal Maguire, Sales & Marketing Director - Europe. “With such a range of ready-packaged marketing armoury and arguably the best maths and audiovisual creativity out there today, we are confident that operators will find these compelling opportunities irresistible in the on-going challenge of to sharpen their competitive edge and expanding their player bases.” “We will also be parading some spectacular new future concepts in hardware and software, so fresh in the development cycle, they’ll be up-tothe minute prototypes that will leave stand visitors simply awestruck,” Mr Maguire added, concluding, “This gaming operations segment completes a quartet of ground-breaking new genres for 2015, joining our portfolio of E*Series, J-Series and C-Series games in a total collection that transcends existing boundaries and takes gaming into a whole new dimension.”
Preview ice totally GaMiNG 2015
opeN iNNovatioN drives coMtrade GaMiNG ComTrade Gaming is excited to show its open platform solutions for online, mobile and terminal play at ICE 2015 Comtrade Gaming, an independent technology provider to the gaming industry, will showcase new products and solutions at ICE 2015, which are based on their open platforms connecting online, mobile, and terminal play into a seamless player experience. Online operators will have the chance to see Comtrade Gaming new iCore Engage product designed to empower operators with highly advanced player engagement features like
Universal Free Spins, a Game Offering Engine, and a Bonus Dashboard that analyses performance across all game suppliers. All features have resulted from open innovation cooperation with our clients. The mobile development team will present new HTML5 games, including the latest Live Roulette client with real-time HD video streaming. On the land-based side the latest solutions for gaming machine managment in both casino and distributed environments will be presented, and also central solutions for player
management, responsible gaming, and regulatory control. A demonstration of a newsCore Connect product that enables existing SAS-based systems to communicate with machines through G2S will also be showcased. “Our platforms are designed to provide significant upgrades to current system technologies. It is the starting point of a collaboration with clients to develop new products and features that can help land-based and online operators build unprecedented loyalty with their players,” explained Aleš Gornjec, General Manager of Comtrade Gaming.
iGt BriNGs the wow to ice 2015 NoBle raNGe When the doors open for ICE, IGT will be of serverready to wow show-goers with an impressive portfolio of games & systems. Based systeMs “Our ICE 2015 portfolio is a direct reflection of our commitment to our customers and IGT’s leading role in cultivating thrilling gaming experiences,” said Eric Tom, IGT EVP of Global Sales. “Our customers look to IGT to push the envelope of innovation. The cross-platform content, hardware advancements and casino management systems that IGT will spotlight at ICE will speak volumes about our laser focus on meeting our customers’ demands of today and capturing the opportunities of the future.” A highly anticipated moment for IGT will be the introduction of the most-loved slot theme of all time, Wheel of Fortune, to desktop and mobile for real money wagering. Already a sensation on land and on IGT’s DoubleDown social casino, the addition of Wheel of Fortune to IGT Interactive’s game family marks a significant milestone for the industry in terms of cross-platform creation and deployment. Wheel of Fortune is not the only must-see newcomer to IGT Interactive’s legendary content portfolio. Family Guy, SHERLOCK HOLMES and Prowling Panther will join the Company’s game library of more than 50 fan-favorite titles. Keeping with IGT’s tradition of bringing sensational silver screen titles to the casino floor, IGT will also introduce a land- based version of Sherlock Holmes Video Slots. This all-new Premium Plus title is housed on IGT’s famed Triple Wheel hardware and will put players right in the middle of their favorite movie moments. The wily duo of Sherlock Holmes and Dr. Watson 6 4
Server Based Gaming Systems and platforms developer and supplier, Noble Gaming, will be exhibiting its new innovations on ICE Totally Gaming
Eric Tom come to life in this 3 x 5 game experience. Players have the option for 50 or 75 credit wagers that can lead them to one of four magnificent and mysterious bonus events. From boxing matches, to unlocking mysteries with the perfect key, this action-packed title will light up ICE. Other showstoppers from “Out of the Blue,” include Race Ace: the latest addition to IGT’s skill-based Video Reel Edge (VRE) game family that allows players’ skill in the bonus round to influence their bonus reward, tokidoki: a colorful, high-volatility and attention-grabbing spin on the widely loved lifestyle brand and the Dynasty Edition series: a revamped, refined and relaunched collection of several of the Company’s top-performing titles including Wolf Run, Siberian Story and Treasure of Troy. These exciting titles will complement IGT’s latest hardware and systems innovations. The chatterworthy S3000 spinning-reel cabinet and the much anticipated world debut of the CrystalDual cabinet will be impossible to miss in IGT’s stand N2-240.
The highlight at Noble Gaming stand this year would be on the European debut at ICE 2015 of Noble Gaming’s new VLT concept I-PAX modern and sophisticated modular slot cabinet with high technological features, providing option to easy modifications and components replacement. I-PAX coming with Noble Gaming’s server based multi-game STARMAX and with unique color concept in red, blue, purple and green sets. Each colour set offers up to 30 slot games available on Noble Gaming’s Remote Game Server called DIMAND. With easy serviceability and maintenance I-PAX also coming with the option for completing with the modules from the most popular Casino Management Systems. The company will also demonstrate ASPECTO - modern upright cabinet design with security, serviceability and variety of customization options also available with server based multigame STARMAX, the colour concept and option for completing with the modules of CMS. Noble Gaming will also showcasing their mobile and online solutions that could be visualised on PC, tablets or mobiles and enables operators to easy integrate software gaming content from Noble Gaming’s rich gaming library.
Preview ice totally GaMiNG 2015
Any bets covering the range in which the Spread-Bet number falls are then paid out at the specified odds. Spread-Bets can be placed in addition to, or independent of, the traditional roulette bets, giving operators full flexibility to maximise productivity levels.
caMMeGh lauNches BraNd New BoNus NuMBers GaMe Cammegh is to unveil a thrilling new roulette bonus numbers game at ICE Cammegh, manufacturers of the world’s finest roulette wheels, have recently revealed their innovative new roulette side bet; Spread-Bet Roulette, designed to fill the void in value added side bets for roulette. Spread-Bet Roulette uses a bonus number to bring mini-jackpots to the traditional game. Cammegh’s simple patented concept ramps up the excitement levels without distracting from
the traditional game. Two concentric roulette number rings appear on the Billboard Display, spinning in opposing directions. At ‘No More Bets’, the rings stop dead, randomly aligning the two sets of numbers. The game then continues as usual until the ball drops and a winning number is determined, which is then paired with its aligning number on the Billboard Display. The sum of these paired numbers determines the Spread-Bet result. Results are shown via Billboard Display on the pin sharp digital results table showing the roulette result alongside the Spread-Bet outcome.
Cammegh is also looking to retrofit the system to work with Mercury 2 wheels with Billboard displays, ensuring that Spread-Bet can be incorporated with existing and new customers. Cammegh believe the openness of Spread-Bet Roulette, along with the absence of random number generators, presents a fantastic opportunity for operators to introduce the game in varying jurisdictions while the dramatic look and increased odds of Spread-Bet Roulette is sure to delight all players, whether it be thrillseekers or roulette purists in equal measure. In December 2014, with the help of Grosvenor Casinos, Spread-Bet roulette was approved by the UK Gaming Commission, paving the way for Cammegh’s much anticipated roulette side wager, offering customised payouts ranging from even money to 1,200 to 1. Perfect timing to unveil the game at ICE 2015!
GloBal systeMs expaNsioN aNd coNNectivity DRGT is the fastest growing systems company in the industry and having opened two new subsidiaries in 2014, the team of DRGT Africa and DRGT Colombia look forward to meeting customers at ICE. DRGT is changing the way the gaming market views systems - DRGT specializes in the marketing benefits. The software is tailored for operators to be able to communicate directly with their players – for a whole world of possibilities – such as bonusing, promotions, information and advertising. All this and more will be on display at the DRGT stand number N2-130 at the forthcoming ICE. Here is a taste of the new solutions that will be on display: l
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drpromo exec – is a suite of software products designed to track and manage loyalty and reward loyalty program members. It manages all aspects of promotions and campaigns and provides mechanisms to evaluate the success (financial and otherwise) of a promotion or campaign. New jackpots – DRGT is changing the wide-
area progressive map for good with its wide array of jackpot solutions. Expect more to come at the ICE. l
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player-based promotions – more exciting player-based promotions will be on display dynamic Jackpot elevation – this brand new feature makes jackpots more attractive to players with greater chances to win. improved Multi Game reporting – all the required statistics can be displayed for all individual games on a Multi Game slot machine, including individual game play, payin and pay-out statistics. drscreen Mini – enables you to provide all the benefits of drScreen yet on the smaller playertracking screen drinteractive – provides an Interactive Gaming Platform with site and game content development and a complete suite of operational and supporting services for distributed kiosk, mobile and online clients. It offers the solution of both real and social play and is client-customized and branded with full
management of operations. Jurgen De Munck, co-founder and CEO, looks forward to welcoming visitors to the DRGT stand at ICE, commenting, “Our continual dedication to the systems market has led to a wide range of innovations to complement our product range. Be set to see the most innovations at any one time from DRGT at this year’s ICE.” 6 5
Preview ice totally GaMiNG 2015
suZo-happ systeMs solutioN provisioN focus Harald Wagemaker, Suzo-Happ EVP Sales and Marketing EMEA, discusses the last 12 months, the year ahead and ICE.
will accompany us throughout the year. The 60th anniversary of Suzo-Happ in Europe is a main focus on our stand at the ICE. We will be holding a special event at the Hippodrome on Tuesday the 3rd of February, in the evening and look forward to entertaining our customers there. But not only that, it is our way to thank them for their support throughout the years. In a business climate that is often based on short-term results, the fact that we are celebrating six decades in business speaks volumes on how much we care about our customers, and how much we are respected in the industry.
What can you say about the performance of Suzo-Happ in 2014? As Executive Vice President Sales & Marketing of Gaming and Casino EMEA, I am responsible for the Gaming 'vertical' in EMEA, so please allow me to focus on this: 2014 has been an outstanding year for the SuzoHapp Group and I am extremely proud of everyone within the entire Suzo-Happ EMEA team for their ongoing dedication. Our ability to continue to grow our business in this constrained market highlights the breadth of our expertise across Europe as the creative and effective company of choice for manufacturers and casino's in the region. We are hungrier than ever to push the limits in this rapidly evolving market.
What goals did you achieve in 2014? Our newly developed diversification strategy was strongly put into place. We have restructured the organization accordingly, and I am proud to have been involved in this giant task from the very beginning. One of the main components of this strategy was the creation of so-called ‘sales verticals’ – namely ‘Gaming’, ‘Amusement’, ‘Vending’ and ‘Industrial’. The creation of these verticals allows us to put more focus on each individual market without any market specific or geographical and cultural distractions. In addition, we have developed a program in restructuring the EMEA 'Gaming segment' in becoming much more of an 'integrated solutions provider' for our customers, rather than "just" a parts and components supplier. Our customers are focusing more and more on game content. So our message to them is – let us 'create' your hardware solutions. Our ‘OEM Gaming’ segment was the first to start to shift in this new product offering. No longer are we a supplier of components only instead we are capable in offering our OEM customers bespoke contract manufacturing services. The efficiencies achieved in logistics combined with bespoke manufacturing solutions of sub- or even complete assemblies, substantially help reduce our customers manufacturing costs. 6 6
Harald Wagemaker Within our Casino & Operator segment we are developing a strategy with strong focus in becoming a System Solution Provider. We are very excited that we are now the global exclusive distributor for TransAct, including Europe as from the beginning of this year. An important product that is part of this agreement is EpiCentral, the award winning software system that prints targeted promotions to carded and un-carded players in real-time, which allows users to easily create and design any number of coupons to create a marketing campaign. Obviously all of this besides offering the largest available choice for spare parts and components in the industry.
How is Suzo-Happ changing to integrate this new philosophy? Offering systems solutions require new skill sets. We are very well aware of that and are investing in our staff to best embrace this positive change. For example, we have introduced staff training programs to best prepare our salesmen to these new tasks. Naturally we have already restructured the organization to reflect this. We are creating or hiring experts in differing fields and expertise. We will help both manufacturers and operators to make the right hardware choices. We have R&D offices and Manufacturing facilities throughout the globe, all of them are both extensive and extremely modern, most of them being ISO certified. Our main goal is that our customers save time and costs for all off their hardware solutions.
Suzo will celebrate its 60th anniversary at ICE. Can you tell us something about this? Are you planning something special? Yes, indeed we are! This very special occasion
This will be the first ICE in which Comestero will be exhibiting as part of the Suzo-Happ family. What are your expectations? Comestero is an excellent addition to the family. We will be dedicating a large section of our stand to Comestero’s solutions. The Italian team is renown for product innovations and this forward-thinking philosophy fits into our management plan perfectly. Comestero has great solutions for all our verticals – we are very excited about our growth prospects here.
What are your expectations for 2015? Our hopes and expectations for the ‘Gaming' vertical here in Europe is for the industry to get to know how much additional value we can offer. We need to communicate with our customers more on how we can additionally support them. 2015 is a year that takes us into a new direction.
Can you reveal to us any plans for product launches or other news for 2015? We are very proud to be exclusive or key distributors for the industry’s greatest names in the component segment. Our focus is on offering ‘best in class’. Concerning other news – well let me not take away the excitement for the forthcoming ICE – please come and see us at the ICE and we’ll show you all that is new.
What are your customers’ mains concerns/goals for next year? We believe that our customers increasingly wish to focus more on what they do best. In our industry the focus is more on game development. We listen to our customers and our solution has been to alter our structure and strategy accordingly. We are there for our customers to provide the right hardware solutions they need – from individual components, part-manufactured solutions, to complete systems solutions.
G3-247 Report latvia Market report
Forced to think laterally G3’s last market report on the Baltics was undertaken back in 2007. We return to the lands of forests and medieval castles and start our research with Latvia to see what’s changed in the gambling market.
Latvia is a well known budget party destination and a hot spot for weekend visitors. It is bordered by Estonia, Lithuania, Russia, Belarus and by a maritime border with Sweden. It has a population of over two million. The country is divided into 118 administrative divisions of which 110 are municipalities and nine are cities. There are also four historical and cultural regions – Courland, Latgale, Vidzeme and Zemgale. The Latvians and Baltic people are culturally related to the Lithuanians and despite foreign rule from the 13th to 20th centuries the Latvian nation maintained its identity throughout the generations via its language and musical traditions. Latvia and Estonia share a long common history and as a result of Soviet occupation both countries are home to a large number of ethnic Russians. The Republic of Latvia was founded in 1918. In 1940 the country was however forced into the Soviet Union and then invaded and occupied by Nazi Germany in 1941. It was re-occupied by the Soviets in 1944 which then formed the Latvian region for the next 50 years. 6 8
Around 120,000 to 300,000 Latvians took refuge by fleeing to Germany and Sweden. During the post war period Latvian was made to adopt Soviet farming methods and rural areas were forced into collectivisation whilst a bilingual programme was initiated limiting the Latvian language. By 1959 some 400,000 people had arrived from other Soviet republics and the ethnic Latvian population had fallen by 62 per cent. Later new industry was set up in Latvia using the country’s well developed infrastructure and educated specialists and major machinery factories, chemical and electro-technical factories were set up. Latvia ended up manufacturing trains, ships, minibuses, mopeds, telephones, radios, furniture, watches, tools, and diesel engines to name a few. More immigrants arrived to provide a workforce and by 1990 the population peaked at 2.7 million. A call for independence began in the late 1980s and The Singing Revolution began in 1987 and ended with the dissolution of the Soviet Union in 1991 when Latvia declared independence. A majority of ethnic non Latvians did not receive
The latvian gaming market is currently regulated by the Gambling and lotteries law of 2006. The draft bill, titled the same, was suggested as the current law does not cover all actualities of regulation of online gambling. The new law is now expected to make the points of law more precise in terms of gambling and will contain a definition of a card game tournament for example. in the future when setting up a tournament the organiser will have to draft the rules and get confirmation from the lotteries and Gambling Supervisory inspection (iaui) that the rules are compatible with the new law. in addition the new law will also be able to block websites of those companies not registered in latvia.
Latvian citizenship even though many were born in Latvia and today there are some 290,000 non citizens who live in Latvia. The past decade has been fairly turbulent for the Latvian economy. Since the year 2000 the country has had one of the highest GDP growth rates in Europe however the
G3-247 Report latvia Market report
In 2010 the Latvian government approved a long term strategy for tourism development and in 2011 the number of incoming tourists from the USA increased by 14 per cent whilst Danish, Estonian and Norwegian visitors increased by 13 per cent.
the gamBling market Since independence the Latvian gambling market has seen significant growth. Back in the early 1990s the growth was fairly uncoordinated which was mainly due to the lack of gambling regulations and most of the development began in the late 1990s onwards. In the summer of 1991 the first casino opened in Latvia and around the same time the number of companies organising lotteries also began to grow. All this changed in 1995 when a new law was introduced to regulate the sector. The Law on Lotteries and Gambling was adopted by Saeima (parliament) and was amended nine times over the next 10 years before being replaced in 2006. In 2011 a new Gambling and Lotteries bill was drafted and if passed it is expected to change various elements of the gaming sector and will introduce tighter controls over gambling advertising and the operation of unlicensed and illegal operations. At the moment the market is regulated by the Gambling and Lotteries Law of 2006. The draft bill, titled the same, was suggested as the current law does not cover all actualities of regulation of online gambling. The new law is now expected to make the points of law more precise in terms of gambling and will contain a definition of a card game tournament for example. In the future when setting up a tournament the organiser will have to draft the rules and get confirmation from the Lotteries and Gambling Supervisory Inspection (IAUI) that the rules are compatible with the new law.
consumption drive growth collapsed in 2008 and continued until 2010 which was then exacerbated by the global economic crisis and the Latvian economy fell by 21 per cent. The country endured one of the worst recessions in Europe and the social turmoil led to the fall of the Godmanis government in 2009 and unemployment soared to 20 per cent.
Online operators will have to ensure the authorities are allowed to access systems containing data about players and their bets and winnings.
In addition the new law will also be able to block websites of those companies not registered in Latvia. Online operators will also have to ensure the authorities are allowed to access information systems containing data about players and their bets and winnings. It has also suggested that the age of players should be increased to 21 which is something that is being discussed as some consider it should be 18 years.
the scope for selling land to foreigners. Latvia brought in austerity measures and implemented structural reforms however at the same time they did protect the vulnerable and strengthened the social safety net. They also received a European Union bailout which helped it return to growth in 2011. Latvia introduced the Euro currency in January 2014 and this has been viewed as an important objective of the exit strategy from the international loan programme. Latvia returned to growth in the latter half of 2010. Meanwhile privatisation is now almost complete and virtually all the state owned small and medium companies have been privatised. Foreign investment is still modest although a law was passed in 1997 expanding
Latvia’s GDP increased in 2012 to five per cent whilst unemployment has declined to around 11 per cent. The country is currently torn apart by divisions between nationalist and pro Moscow separatists. Russian speakers make up 40 per cent of the population and consume Russian media. On the other hand they do not want to join Russia. The two communities live fairly separate lives speaking predominantly one language or the other. Meanwhile tourism is a fairly significant part of the country’s economy. After a slump in 2009 the country saw around 1.6 million visitors in 2011. The majority come from Estonia.
At the moment the draft law is still being prepared and is not available as there are changes expected. However a report on the draft bill states: “Despite the strict control of gambling and lotteries and licensing system a large number of unlicensed gambling in Latvia who carry out their activities in tax free jurisdictions, are for gambling online operations, thus exposing players to a large risk of fraud and failure to pay gambling taxes and fees and possible money laundering attempts. As a result this can cause damage to both players and the public interest and is in violation of the principles of fair competition in relation to licensed gambling organisers. “The current wording of the law allows for the possibility of different interpretations of the same gambling and 6 9
G3-247 Report latvia Market report
winning definition and it does not provide a common understanding of the definition of gambling advertising especially the interactive environment and mass media.”
Types of Gambling permitted include:
Clarify the conditions currently existing and definitions of gambling.
l l l l l l l l
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Outline the requirements of advertising bans
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Provide a new definition of card tournaments
It is expected that the new bill will include the following: l
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Prohibit cash transaction of Latvian credit institutes to internet addresses which deal with unlicensed gambling.
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Blocking of unauthorised IP addresses.
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Inspection officers can have access to databases and servers where player data is stored. Age limit for gambling to be set at 21 (not in draft law but suggested as an additional point)
There are currently 22 gaming licences issued by the IAUI including one lottery company, 17 landbased gaming operators and four online operators.
In the first quarter of 2014 the revenues from all sectors amounted to a total of €41m divided between slots (77 per cent), lotteries (12.6), tables (seven), online gaming (two), betting (0.6) and bingo (0.2) There are 325 gaming halls and six casinos currently open in Latvia. There are a total of 8,326 slots across these venues and these slots saw gross gaming revenues of €142m in 2013. Of the 17 landbased gaming companies the biggest companies include ALFOR (Admiral Clubs) with a GGR of €51.7m in 2013 followed by Olympic Casino with €34.1m GGR, Joker with €20.8m, Admiral with €18.2m, DLV with €8m and Furors with €7.1m In the first quarter of 2014 the revenues from all sectors amounted to a total of €41m and this was divided between slot machines with the biggest amount (77 per cent), lotteries (12.6 per cent), gaming tables (seven per cent), online gaming (two per cent), betting (0.6 per cent) and bingo (0.2 per cent) Meanwhile taxes and duties paid to the Latvian government included €24.7m paid to the state budget, €6.8m to the municipalities and €119m in duty on sales promotion lotteries and €134.8m paid in other taxes. According to the current Gambling and Lotteries Law the following points include: 7 0
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l
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Slot machines Roulette Game of cards Dice Bets Totalisator Bingo games Interactive gambling To obtain a licence for gambling operations the amount of paid stock capital must be not less than €1.4m whilst the interest of foreign members or stockholders shall not be more than 49 per cent. Licenses are issued by the Lotteries and Gambling Supervisory Inspection without term limitation but re-registered each year. Gambling can only be operated within casinos, gambling halls, bingo halls and totalisator venues. In January 2007 the Gaming and Lotteries law prohibited the operation of gaming machines outside of casinos and gaming halls. Previously there were around 300 to 400 locations (and as many as 3,000 locations back in 2001), where machines were operated. Casinos must have at least 10 gaming tables if located in Riga and five gaming tables outside of Riga.
The Gambling and lotteries law authorises the right to organise state level lotteries which is then organised by just one state owned joint stock company latvijas loto. one requirement is that the total value of lottery tickets may not be less than €140,000. local lotteries are organised within one city, district, county or parish and total value of tickets must not be more than €14,300, whilst local scale type lotteries are organised during public events with the total value of tickets sold not worth more than €720 with no money prizes awarded. They also pay a 10 per cent tax from ticket sales.
Gaming halls must have at least 20 slot machines. Prize money in casinos can be paid immediately if €750 or less. For amounts of €750-€14,300 this is paid within 24 hours and amounts over €14,300 will be paid out within 30 days. Online gaming is permitted for slots, roulette, ecards, bingo, totalisator and games of chance on the telephone. Licences are issued to capital companies. The state fee applicable for slots, bingo, roulette, cards and dice games is:
1. €427,000 for special licences 2. €35,580 for continuation of licence 3. €35,580 for yearly re-registration of licence
3. €14,230 for yearly re-registration of the licence 4. €28,460 per year for permission to operate a casino
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Yearly taxes include:
5. €4,270 per year for permission to operate a gaming or bingo hall.
1. €17,279 for roulette tables
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2. €17,279 for cards and dice games per table
The state fee for totalisator and betting includes:
1. €42,690 for a special licence
3. €3,141 for slot machines.
2. €42,690 for continuation of the licence
4. Tax on game of chance via the telephone is 15 per cent of GGR
3. €42,690 for yearly re-registration of the licence l
For operation of games of chance via the telephone:
5. Gaming tax for totalisator and betting is 15 per cent of GGR
1. €14,230 for a special licence
6. Gaming tax of bingo games is 10 per cent of GGR
2. €14,230 for continuation of the licence
7. Online gaming tax is 10 per cent of GGR.
G3-247 Report latvia Market report
latvia - ggr gamBling sector
the main sectors LOTTERY There are three types of lottery games in Latvia – state level lotteries, local lotteries and local scale type lotteries. The Gambling and Lotteries Law authorises the right to organise state level lotteries which is then organised by just one state owned joint stock company - Latvijas Loto. One requirement is that the total value of lottery tickets may not be less than €140,000. Local lotteries are organised within one city, district, county or parish and total value of tickets must not be more than €14,300, whilst local scale type lotteries are organised during public events with the total value of tickets sold not worth more than €720 with no money prizes awarded. They also pay a 10 per cent tax from ticket sales. Although NGOs and religious organisations are exempt from taxes and fees, all other operators with a licence must pay lottery and gambling tax and a state fee.
TYPE Total turnover of gaming companies GGR from gambling and state lottery Net turnover from state lottery
2010 €132.9m €122.3 €122.3m
2011 €153.8m €142,9m €142.9m
2012 €180.1m €165.5m €165.2m
2013 €191.3m €176.8m €176.8m
GGR from gambling GGR from slot machines GGR from casino tables GGR from bingo GGR from phone games GGR from betting Income from other activities (bars, billiards)
€113.9m €100.7m €9.7m €0.7m €1.2m €1.4m €10.6m
€132.4m €118.2m €10.8m €0.7m €0.4m €2.0m €10.8m
€150.3m €134.8m €11.9m €0.4m €0.1m €2.9m €14.8m
€157.5m €142m €11.5m €0.3m €0.001m €3.6m €14.4m
JSC Latvijas Loto was founded in 1972 as part of the Sojuzsportloto (the Soviet organised Sportloto). After independence a reorganisation took place and the company became known as the Latvian Lottery (Latvijas Loto) in 1993 when the first purely Latvian 5/35 number lottery was launched. Three years later in 1996 the company was converted
into a public limited company and also the same year a cooperation with Swedish company ESSnet AB was set up to launch the online lottery system. Keno and Superbingo were later launched in 2001 and today Keno is one of the largest lotteries organised by the company. Latloto 5/35 is drawn twice a week whilst Keno drawings are held daily except on Sundays. 7 1
G3-247 Report latvia Market report
In 2006 the legal framework for all gaming operations was adopted which is the law which governs the sector at the moment. Later in 2011 Viking Lotto was launched which is organised in cooperation with AB Svenska Spel and Danske Spil and Islenska Getspa in Iceland, Norsk Tipping, Veikkaus Oy and Eesti Loto. Games include Latloto 5 no 35, Keno, Superbingo, Viking Loto, Eurojackpot, Wild and Dzokers7 plus eight scratch cards. Today the most popular games are Sportloto and Sprints scratch card. Instant lottery tickets can be bought at various shops and kiosks and the company has 1,130 lottery outlets and saw total revenues in 2012 of Ls10.7m. Around 43 per cent is awarded in prize money. All revenues of the lottery go to the state budget whilst 10 per cent of instant sales and eight per cent of lottery sales is distributed as tax then earmarked for sports and cultural projects.
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at the end of the 1990s Teletoto was given the only legal licence to offer sports betting in latvia and is set up via two brands – optibet and latbet – and together they manage just over 20 betting shops of which the majority are in riga. Wagers are held on football, basketball, ice hockey and handball in the main. in 2012 the sports betting market was worth €3m. For a company to set up a sports betting company licences are only issued to capital companies (limited liability company) or a joint stock company established in latvia with not less than 51 per cent local shareholding (including eu investors). They require a total of €1.4m in paid up share capital minimum. a licence costs €42,690 and an annual registration fee of €42,690. Tax rate for sports betting is now 15 per cent.
SPORTS BETTING Sports betting has a long history in Latvia and in the 1950s the Hippodrome in the capital Riga was the country’s main venue for betting on horse races. However this burnt down in 1965 and sports gambling became illegal until independence in 1991. Although the first gambling regulations were introduced in 1994 sports betting as a service had almost ceased to exist due to low popularity and the new regulations just made it more complicated. But as the late 1990s saw casino and slot halls arrive, sports betting began to become more popular and betting points were opened in the larger cities. The rivalry between foreign online betting organisations and locals led to just one single enterprise licence to provide traditional and interactive sports betting services. At the end of the 1990s Teletoto was given the only legal licence to offer sports betting in Latvia and is set up via two brands – Optibet and Latbet – and together they manage just over 20 betting shops of which the majority
G3-247 Report latvia Market report
latvia - numBer of activities in gamBling sector
are in Riga. Wagers are held on football, basketball, ice hockey and handball in the main. Tele Toto Ltd was founded in 1999 and in 2007 Tele Toto was sold for Ls1m to Swedish company Redbet Holding AB (now known as Nordic Leisure) which is a platform and service provider. Nordic Leisure acquired a 98 per cent of the share capital in Tele Toto and licences its in-house developed exchange betting platform and offers online sports, betting, poker and casino games. Nordic’s operations now comprise of Optibet in Latvia plus Optiwin in Estonia, Redbet Gaming and Red Sports in Malta. It’s not a hugely popular sector of the gambling market compared to slots and casinos. In 2012 the sports betting market was worth €3m. For a company to set up a sports betting company licences are only issued to capital companies (limited liability company) or a joint stock company established in Latvia with not less than 51 per cent local shareholding (including EU investors). They require a total of €1.4m in paid up share capital minimum.
TYPE Number of licence holders Lottery companies on national scale Land based gaming Online gambling
2010 17 1 16 0
2011 16 1 15 0
2012 18 1 17 0
2013 22 1 17 4
2014 22 1 17 4
Number of gaming halls Number of casinos Number of slot machines Number of roulette tables Number of card and dice tables Number of betting points Number of bingo halls
327 6 7,973 15 62 21 3
321 6 7,858 16 63 22 2
328 6 8,103 16 57 19 2
324 6 8,135 15 50 19 2
325 6 8,326 17 52 20 2
A licence costs €42,690 and an annual registration fee of €42,690. Tax rate for sports betting is now 15 per cent. ONLINE The online gambling landscape is due to change as and when the new bill comes into place at some point this year. Online gambling has been permitted since 2006 and operators were charged a 10 per cent interactive
betting tax which didn’t stop some 160 operational sites from springing up. However the draft law published in 2011 is now aimed at blocking unlicensed websites and financial transactions with unlicensed operator’s bank accounts. This new law is still in process and is expected to come into force during 2014. However there are several 7 3
G3-247 Report latvia Market report
The online gambling landscape is due to change as and when the new bill comes into place at some point this year. online gambling has been permitted since 2006 and operators were charged a 10 per cent interactive betting tax which didn’t stop some 160 operational sites from springing up. however the draft law published in 2011 is now aimed at blocking unlicensed websites and financial transactions with unlicensed operator’s bank accounts. This new law is still in process and is expected to come into force during 2014. however there are several changes such as blocking access to domains and financial restrictions which came into play in august 2014.
changes such as blocking access to domains and financial restrictions which came into play in August 2014. The amendments mean there will now be a specific general licence for online games with a €1.4m shareholders capital required alongside a €100,000 licence fee and annual renewal fee of €36,000. There will be an ISP ban on unlicensed operator’s websites and payment ban to unlicensed operators bank accounts. There is a five per cent tax on GGR. It is also being discussed as to whether licensed operators will be able to advertise during the Olympic Games and other related events, but otherwise advertising is restricted. There are currently only four licensed companies operating in the online sector, with three more in review. It is thought foreign companies will wait to see how the domain blocking will work before appli7 4
OEG entered the Latvian market in 2002 by setting up Olympic Casino Latvia. Currently it operates 38 gaming halls in Riga and the main cities. Of these 22 branches operate under Olympic Casino brand.
Leisure. In 2013 the sister company Redbet was sold. Today Lifland has subsidiaries in Estonia, Latvia and Malta and is the leading i-gaming company in Latvia. They have two brands – Optibet, which is available in Latvia and Estonia and Gold Club Casino.com (Malta) Optibet has had land based betting shops in operation for the last 14 years and since 2008 has offered casino and sportsbook products online on Optibet.lv. Optibet was founded in 2005 and currently offers a full range of sportsbook features and 160 casino games to Latvian customers.
cations for licences. The current operators are: OPTIBET. This company is a subsidiary of the Lifland Gaming Group which is wholly owned by Nordic Leisure AB. Optibet conducts its gaming activities via a licence from the IAUI. Lifland was formed in 2011 to be a holding company for all gaming related businesses belonging to Nordic
The sportsbook platform offers around 14,000 pre game events per month and over 400,000 side bets per month in the live bet feature. There are 160 casino games from blackjack to roulette and Optibet was the fist and only casino operator offering live casino in blackjack, roulette and baccarat. In April this year NYX Interactive, part of the Swedish
G3-247 Report latvia Market report
group NYX Gaming Group, launched its Open Gaming System, NYX OGS with Optibet. Optibet is already a market leader in the online casino sector and this will increase its ability to market new content. Optibet is now live with chart toppers from both Aristocrat and Nextgen Gaming delivered via OGS. Aigars Zviedris, CEO of Optibet said: “It is a real pleasure to add to our online offering Aristocrat and Nextgen Gaming games delivered via OGS by NYX Interactive. It makes game selection to our customers even wider than before.” OLYBET. This is a brand of Olympic Casinos which provides sports betting in the Baltic region. Sports fan can watch the event in a sports bar located in casinos and bets are placed through Olybet before the sports event or whilst watching the live game. Olybet Sports Bar arrived in Latvia in August 2013 and
LOTTERY: Latvijas Loto OUTLETS: 1,130 LOTTERY REVENUE: €19.3 (net turnover) SPORTSBETTING: Optibet and Latvet REVENUE: €3.6m GAMING HALLS: 325 No. OF SLOTS: 8,326 GGR SLOTS: €142m CASINOS: CASINO TABLES: CASINO SLOTS: CASINO TABLES GGR:
6 65 138 €11.5m
TOTAL GAMBLING GGR:
€176.8m
is a new concept. The sports bar offers a choice of sports TV channels from all over the world and visitors can place bets using special OlyBet terminals. For real time betting a special App has been developed for tablets that are available to customers on request.
By the end of 2013 all Olympic Casinos in Estonia and Latvia were due to be converted to include the new Olybet sports bars. There are currently 17 Olybet Sports Bars in Riga and 13 elsewhere located in Olympic casinos and as such, OEG is the only Latvian gaming operator to open betting shops its own casinos and currently there are six slot halls equipped with Olybet. OEG entered the Latvian market in 2002 by setting up Olympic Casino Latvia. Currently it operates 38 gaming halls in Riga and the main cities. Of these 22 branches operate under Olympic Casino brand. In July 2013 OEG purchased casino operator SIA Altea adding 16 more casinos to its network in Latvia. By September 2013 the company operated over 1000 gaming machines and 21 gaming tables. JOKER. Joker was set up in 1995 and is a LatvianCzech join venture with Synot Tip. The company is represented in 28 Latvian cities (16 in Riga alone) and 7 5
G3-247 Report latvia Market report
There are 325 gambling halls open in Latvia with 8,326 slots in operation. The Gambling and Lotteries Act of 2006 states a gambling hall must have a minimum of 20 slot machines. provides 60 gaming halls and bar operations. Games are provided via IGT, Atronic and Novomatic.
casinos anD slot halls There are six casinos in Latvia all located in Riga bar a seasonal casino in Jurmala which is only open in the summer, and between them they operate 65 table games and 138 slots. The Gambling and Lotteries Act states a casino must have 10 gaming tables minimum if located in Riga or five gaming tables minimum if located outside of Riga and gaming equipment must be owned by the capital company with relevant licence. The main five casinos: 777 CASINO - There are two of these operated by NB located in Riga.
Joker Ltd acquired its licence to organise online gaming in August 2013 although it did not launch its site until February 2014. The site is run in conjunction with Microgaming and offers slots, table games, video poker and roulette. In order to expand Joker Ltd acquired Synot Tip Eastern Europe regional licence
ROYAL CASINO SPA AND HOTEL RESORT is operated by NIKS and this five star resort which is just 15 minutes walk from the old Riga town. It houses the casino which has 12 gaming tables and slots plus a private VIP hall.
VIENSVIENS. Viensviens was founded in 2012 and is a sports betting operator both online and offline. The company’s portfolio includes betting options before games plus a selection of live betting games.
EUROPA CLUB CASINO is operated by Furors. The casino offers 14 table games and various slots. There is also a VIP lounge. Furors also operate the Klondaika gaming halls.
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VOODOO CASINO is operated by Olympic Casino and it said to be the largest state of the art casino in the Baltics. It offers 21 table games including Russian Poker, Texas Hold ‘em, Draw Poker, 5card Poker, Blackjack and American Roulette plus 115 slot machines. All slots have EzPay payment ticket system. The casino is located in the Radisson Blu Hotel. Meanwhile there are 325 gambling halls open in Latvia with 8,326 slots in operation. The Gambling and Lotteries Act of 2006 states a gambling hall must have a minimum of 20 slot machines. Only automatic slots owned or purchased on the basis of financial leasing by the capital company can be installed. Licence holders include: ALFOR is a Latvian/Austrian joint venue founded in 2000 by Latvian Investment Company Foroms and the Novomatic group company Austrian Gaming Industries which also operates the Admiralu Club brand. They have a 32 per cent share of the Latvian market Novomatic began selling into Latvia back in 1992 when the company spotted the early potential of the market. Today the company is one of the main providers of
G3-247 Report latvia Market report
machines to the Baltic region. Alfor runs gaming halls called Phoenix Casinos which later became known as Admiral Clubs. In 2012 Admiral Clubs bought Estonian company Novolotto which then became the third group of companies. Phoenix Casinos began life in 2000 and today there are 93 such clubs in most major cities including Riga, Jurmala, Valmiera, Cesis, Liepaja and Daugavpils with a total of 2,510 slots. Novomatic supplies the machines and Foroms has extensive experience in this market. Alfor’s turnover in 2013 amounted to €51.713m compared to €51.758m in 2012. ALTEA is a gaming hall operator now owned by Olympic Entertainment Group which bought the company in June 2013 via its subsidiary company Siquia Holding. The acquisition almost doubles the number of casinos now in the Olympic group to 38. OEG CEO Madis Jagers said: “Adding to our network with a significant number of new casinos we see good potential in Latvian operations turnover and increase market share.”
gaming hall operators stats for 2013 operator
no. of slots
no of gaming halls
company turnover
alfor olympic joker aDmiralu kluBs Dlv furors altea Dlv nB optiBet post nevaDa Bliks garkalns neugao niks spelu nams viensviens
2,510 710 1,647 804 818 619 357 834 88
93 21 61 32 39 28 17 41
218 200 160 4 121 20
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€51.7m €34.1m €20.8m €18.2m €8m €7.1m €3.2m €8m €1m €3.5m €3.5m €1.2m €2m €0.77m €2.3m €0.234m €0.7m
19
market share (by net income) 32% 21% 13% 11% 5% 4.5% 2% 5% 0.67% 2% 2% 0.8% 1.3% 0.05% 1.4% 0.15%
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G3-247 Report latvia Market report
Altea was founded in 1994 and OEG bought the company along with 17 gaming halls most of which work under the brand name Jackpot Hall. Nine are located in Riga and eight are outside the capital and they have a total of 357 slots. Altea saw revenues of around €3m in 2012. Prior to purchase Olympic owned 21 casinos in Latvia with a total of 676 slots and 24 tables. Olympic Latvia saw 2012 revenues of €30m. During 2014 the gaming halls will all be re-branded as Olympic Casino and modernised to bring them up to the same standard as the other Olympic casinos. OLYMPIC CASINO LATVIA is one of the biggest players in Latvia and currently operates one casino and 38 gaming halls with a market share in Latvia of around 23 per cent. The company’s latest gaming hall opened in Daugavplis in February and overall there are a total of 1,040 slots across the gaming halls.
gaming halls, 27 operate under the OEG brand and 17 under the brand after being purchased from Altea in 2013. In February 2014 OEG launched Olybet which are betting points and currently available in six slot halls and as such OEG became the first gaming operator in Latvia to offer betting shops within its own operations. OEG has 82 casinos in total in seven countries. In 2013 the group’s total sales revenue reached €145.3m of which Latvia is responsible for €39.2m. Operating profit in Latvia for the group was €14.7m whilst gaming revenue increased by over 17 per cent to €36.2m. Sales revenues in the Q1 of 2014 amounted to €10.4m.
Casino Voodoo hosts 27 casino tables and 115 slots and it has been open for eight years. The casino also houses an OlyBet Sports Bar.
DLV is a gaming software and casino equipment manufacturer and operator. The company has been active since 1994 and currently has gaming machines in 33 countries. In 2004 the company began to produce its own software and there are 34 video reel games and six multigame programmes created using individual games base.
OEG entered the Latvian market in 2002 and of the 38
Meanwhile DLV also operates its own gaming equip-
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in February 2014 oeG launched olybet which are betting points and currently available in six slot halls and as such oeG became the first gaming operator in latvia to offer betting shops within its own operations. oeG has 82 casinos in total in seven countries. in 2013 the group’s total sales revenue reached €145.3m of which latvia is responsible for €39.2m. operating profit in latvia for the group was €14.7m whilst gaming revenue increased by over 17 per cent to €36.2m. Sales revenues in the Q1 of 2014 amounted to €10.4m.
ment in Latvia, Peru, Cambodia, Moldavia and Malta. In Latvia the group has 41 gaming halls under the brand name Zilais Dimants (Blue Diamond) of which 26 are located in Riga. Two of the 41 gaming halls are bingo halls located in Riga and Daugavpils, which are the only ones in the country to be operated. All gaming halls come with at least 20 slot gaming machines from standalone and jackpot. They include DLV games plus those from other companies such as IGT, WMS and Novomatic. They also include bar, billiards and are open 24/7.
G3-247 Report latvia Market report
latvia: vital statistics Capital: riga Population: 2,165,165 Land Area: 64,589 sq.km Currency: euro (since January 2014) Median age: 41.4 years Languages: latvian (56%), russian (34%) Ethnic Groups: latvian (61%, russian (26%), Belarusian (3.5%), ukranian (2.3%) Government: Parliamentary democracy Chief of State: President andris Berzins Head of Government: Prime minister laimdota Straujuma Cabinet: Cabinet of ministers nominated by the prime minister and appointed by Parliament Elections: President elected by parliament for four year term. last election 2011 and next one 2015.
open a gaming hall or a casino which is renewed each year. The Ministry of Finance understands that gaming means tax levies and so gaming halls deserve to exist but their existence needs to be regulated and therefore the new system to be implemented is a step in the right direction.
DLV recently launched the Diamond HD cabinet which is certified for other countries as well as Latvia whilst new games include the Diamond Games Premium game series for standalone machines and the VI and VII sets of these multigames plus jackpot games such as Gauya Quest.
NIKS operates the Royal Casino SPA and Hotel Resort in Riga. This five star resort houses the casino which has 12 gaming tables and slots plus a private VIP hall.
FURORS operates under the brand of Klondaika and are themed bars with card rooms and they operate slots from the likes of Novomatic, IGT, Aristocrat, Atronic, Bally and Williams. The group has some 14 locations in Riga plus bars in 14 other cities and one casino.
In May 2014 Latvia signed a Cooperation Agreement with the Gambling Regulatory Authorities of the Baltic States to ensure a transparent gaming operation, ensure the rights and legitimate interests of the players and to prevent illegal gambling.
GARKALNS was purchased by Post-Navada in 2011 and together both companies operate 19 Vulkan gaming halls and Labirints which are located in Riga (10 halls), Daugavpils (three halls) and one each in Rezekne, Jekabpils, Ludza and Tukums. The company is owned by Ritzio International and it began with the opening of the Liepaja Club. Most of the clubs consist of two zones for entertainment and leisure with around 20 slots per club. Ritzio entered the Latvian market in 2003 and today operates 19 gaming clubs and 423 slots in total.
The idea is that the parties will share and exchange good practice ideas and information relevant to the supervision and control of gambling and lotteries.
NB operates Casino 777 in Latvia. There are two casinos
in Riga which are open 24 hours and are smallish casinos.
It seems as if the Latvian market is growing up and becoming more responsible. DLV’s Lina Malahova said: “The Latvian market, as any other market, has its peculiarities in legislation and regarding the player. In order to operate in the country you should first of all, obtain a general licence to run a gaming related activity, as well as another licence to
“As regards players, many games attract their attention, but if a client gets to like a machine one can be sure of their loyalty. Certainly it is essential to know local players and understand their mindset to equip gaming halls with those products which would probably suit their preferences.” “We are constantly working on the possibility of opening new gaming halls and hope to accomplish this to the best of our abilities and the stability of the Latvian legislation is a great advantage for this. However currently we are investing more in the renovation of DLV’s current gaming halls and equipment.” Andrejs Jerkins of Olympic Casino said: “The market is showing steady one digit growth during the last few years and it is expected to continue so. This is very much connected to the overall economy situation in the country – when the economy is growing the gaming sector is growing as well, the same as any other entertainment sector. “As much as online gaming in concerned there is a new regulation in place regarding the blocking of nonlicensed online gaming operators in Latvia and so it very much depends on how effective the technical solution will be and what will be the effect on licensed online gaming operators.” 7 9
G3-247 Report latvia Market report
gaming hall operators stats for 2013 region
no. of gaming halls
numBer of machines
Daugavpils jelgava jekabpils jurmala liepaja rezekne riga valmiera ventspil aizkraukles aluksnes adazu Balvu Bauskas cesis Dobeles gulbenes lecavas karsavas kraslavas kuldigas kekavas lielvardes limbazu livanu ludzas madona ogre olaines preilu salaspils saldus saulkrastu sigulda smiltene talsu tukuma valka total
17 12 7 9 15 11 161 7 11 3 3 1 2 2 5 3 3 1 1 1 3 1 2 2 2 3 2 3 3 2 4 4 1 4 3 4 5 1 324
410 332 157 202 395 279 4,235 183 252 79 63 20 45 56 129 70 70 20 20 20 60 20 44 43 49 68 44 86 67 47 92 91 21 91 70 103 120 43 8,215
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numBer of casinos
numBer of casino taBles
1 (seasonal)
5
6
129
138
“The latvian market, as any other market, has its peculiarities in legislation and regarding the player. in order to operate in the country you should first of all, obtain a general licence to run a gaming related activity, as well as another licence to open a gaming hall or a casino which is renewed each year. The ministry of Finance understands that gaming means tax levies and so gaming halls deserve to exist but their existence needs to be regulated and therefore the new system to be implemented is a step in the right direction. as regards players, many games attract their attention, but if a client gets to like a machine one can be sure of their loyalty. Certainly it is essential to know local players and understand their mindset to equip gaming halls with those products which would probably suit their preferences.” Lina Malahova, DLV.
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The age of enlightenment The introduction of online gaming in Estonia’s established gaming market has had a dramatic effect, not least upon government finances
Human settlement began in Estonia around 13,000 years ago when the ice from the last glacial era melted. Eistland as it was once called, and still called in Icelandic, is a country in the Baltic region and bordered to the north by the Gulf of Finland, to the west by the Baltic Sea, south by Latvia and to the east by Lake Peipus and Russia. Sweden and Finland lie across the Baltic Sea. It is the most northern of the three Baltic republics and one of the least populous member states of the EU but since regaining independence with the collapse of the Soviet Union in 1991 it has become one of the most economically successful in Eastern Europe. The country was ruled at various times by Denmark, the German knights of the Livonian Order and Sweden. In the 18th century it ended up as part of the Russian Empire. It gained independence in 1918 after the end of World War I but this was short lived for just 22 years and it underwent many periods of democratic and authoritarian rule.
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Estonia was incorporated into the Soviet Union in 1940 however few nations recognised the annexation and the Estonians themselves considered it an illegal occupation. The repressions followed with mass deportations and many of the country’s political leaders were killed or deported to remote areas of the USSR whilst repression actions were taken against ordinary people. Today there is a large Russian population which accounts for about a quarter of the population and there has in the past been fear about the survival of the Estonian culture and language. In the 1980s a movement for Estonian autonomy began in 1989 and the Singing Revolution was held, which is a landmark demonstration for independence when two million people formed a human chain stretching through Lithuania, Latvia and Estonia. In 1991 Estonia declared formal independence during the Soviet military coup attempt in Moscow and the last of the Russian army left in 1994.
Estonia’s land border with Latvia runs 267 km whilst the Russian border is 290 km. The country has over 1,400 lakes and many rivers whilst forest covers 61 percent of Estonia and there are some 1,500 islands. Estonia is divided into 15 counties with the capital and largest city being Tallinn with 400,000 population. These counties are then divided into municipalities – urban and rural. A maakond (county) is the biggest administrative subdivision whilst the government of each county is led by a governor who represents the national government at a regional level. The current Prime Minister came into power in March 2014 and is the former Minister of Social Affairs and head of the Estonian Reform Party. Meanwhile the country is considered a high income economy by the World Bank and is ranked 11th in the 2014 Index of Economic Freedom and the fourth freest economy in Europe. The country has been described as the Baltic Tiger due to
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Meanwhile Estonia’s income from foreign tourism in 2013 amounted to €1.35bn and Estonia received some six million visitors last year an increase of 13 percent on 2012 figures. The tourism industry forms over 13 percent of the GDP.
the gamBling market The gambling market in Estonia is fairly new territory. When it was part of the USSR all types of gambling activities were banned even though illegal casinos still operated despite the prohibition. However the real history of gambling in Estonia began once the country was released from Soviet rule in the early 1990s. At this time the country was so eager to bring in foreign companies that they immediately legalised gambling and dished out licences like sweets at a kids party. It all began in 1994/95 when the first Lottery Act of 1994 and the first Gambling Act of 1995 came into force and these opened the doors to legal gambling. Firstly the state lottery was set up in 1991 and by 1995 the Gambling Act was introduced which although brought law and order still offered a very relaxed industry. The gambling act of 1995 introduced four types of gambling namely games of chance, games of skill, total-
01 in estonia’s capital city of Tallinn, free public transportation if offered to anyone who is a registered resident of the city. despite the costs to the city for providing the initial transport, it means more people register as residents. This, in turn, means more tax revenue for Tallinn’s administration. not only that, but— because people can move freely and cheaply around the city—it appears the program, at least initially, is actually improving the business of local shop owners. due to the program, more people are using public transport and there fewer cars are on the road, so the environment wins too. 02 estonia is a very tech-savvy country, with most classrooms and homes having an internet connection. For the sake of convenience, estonians decided to automate electoral voting in 2005.
Gaming boomed during the 1990s and there were some 90 plus casinos in the capital Tallinn by 2008 and over 170 gaming houses and casinos in total in the country. However when the global crisis hit, Estonia also suffered. its rapid growth and in 2011 Estonia adopted the Euro and became the 17th Euro Zone member state. It has a balanced budget and non existent public debt, flat rate income tax, free trade regime and competitive commercial banking. It is mainly influenced by developments in Finland, Sweden and Germany, which are its three largest trade partners. There has been an emphasis on making Estonia a world leader in technology with talk of an ‘e-economy’.
isators and betting and according to this act all operators had to obtain an activity licence and an operation permit. Licences were issued for 10 years whilst operational permits provided for five years. Gaming boomed during this period and there were some 90 plus casinos in the capital Tallinn by 2008 and over 170 gaming houses and casinos in total in the country. However when the global crisis hit, Estonia also suffered.
The country saw an investment boom in the early 2000s but then the global recession saw GDP in Estonia decrease by 1.4 percent in the second quarter of 2008 and by over three percent in the third quarter of that year and nine percent by the fourth quarter of 2008.
Gaming taxes are used to finance various activities but as the number of licensed gambling premises in Estonia reduced during 2010 from about 160 to 100 so did gambling revenue which fell to EKK300m leaving some charities struggling with less revenues passed their way.
By 2010 the economy had stabilised and began to grow based on strong exports. GDP in Estonia increased by 2.2 percent in the second quarter of 2014 compared to the same quarter in 2013. However over half the GDP is created in Tallinn whilst the unemployment rate is currently around 6.9 percent.
In 2009 the new Gambling Act 2008 came into place and the main change was that it provided a legal basis for the rapidly developing online gambling industry. It replaced the previous two acts and at a later date there were some minor changes made to this act in 2012 and again in 2014 and there are also rumours that the 8 3
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Ministry of Finance is planning to make further changes next year. In addition the Gambling Tax Act will change in February 2015. This will bring a change for the slot tax rate and tournament tax rates in the main. Due to these changes Estonia has since become one of the key gambling markets and its willingness to reform laws to provide positive financial outcome for its residents indicate a growing gambling market. The issue of activity licences and operating permits falls under the Estonian Tax and Customs Board. There are currently a total of 62 casinos/slot halls. As of September 2014 there is no difference between a casino or slot hall as the criteria they have to fulfil is the same, although some locations operate table games and others just slots. There are actually 35 slot only halls and 27 which also operate table games.
the gamBling act 2008
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Types of gambling permitted are: games of chance; lotteries; totalisator and games of skill.
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01 Back in the early days of the internet, there was another file-sharing service that emerged in the waning days of napster. This service was called Kazaa, and it was designed by estonians, who eventually sold the rights to the product they had created. Years later, it was again estonian programmers that took what Kaaza had done for file-sharing, but arrived at the idea of mixing it with voice calling (VoiP) and called it Skype. This meant people could make practically free calls, voice or otherwise, as long as they had an internet connection. a technological revolution was born. While there are similar services now, Skype is still the original, and a source of national pride for estonians.
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Remote gambling is permitted via telephone, internet and media services. Tournament games of chance are also permitted and can take place as a tournament or ring game. Games of chance can be organised by a public limited or private limited company with share capital amount of at least €1m. Lotteries can be organised by a public limited company with share capital amount of at least €1m and all those shares must be owned by the Estonian state. Games of skill may be organised by a public limited or private limited company with share capital amount of at least €25,000. Toto can be organised by public or private limited companies with share capital amounts of at least €130,000. Operators must obtain an Activity Licence for games of chance, game of skill and totos.
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licenseD operators in estonia operator
BranD
AS Eesti Loto Casino Cleopatra IMG Kasiinod AS MC Kasiinod AS AS Novolotto Olympic Casino Osauhing Tonybet OU Best4U OU Tallinn Ent. PAFER AS REEL Estonia Ltd Spordiennustus Totalisaator AS Triogames OU KingsWin Online OU Tivoli Tuur OU Unibet (Estonia) Optiwin OU
Eesti Loto Casino Cleopatra Casino Grandprix Casino Monte Cristo Fennikss/Admiral Olympic Casino Tonybet CityCasino Paf Pokerstar Paf Totalisator Triobet Kingswin Tivoli Tuur Unibet Optiwin
casinos
online
ship gaming
toto
lottery
skill games
Yes 2 14 4 12 18
Yes
Yes Yes
Yes Yes
5 7
Yes Yes
Yes Yes
Yes Yes
Yes Yes Yes Yes Yes
Yes Yes
Yes Yes
www.emta.ee
As of September 2014 there is no difference between a casino or slot hall as the criteria they have to fulfil is the same, although some locations operate table games and others just slots. There are actually 35 slot only halls and 27 which also operate table games. l
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An Operating Permit is issued for the opening of a gaming location to operate games of chance, toto or games of skill, organising remote gambling or organising a lottery. These are issued for five years (lottery and remote gambling) or 20 years (games of skill locations) and five to 20 years (games of chance and toto locations). Gambling is prohibited to those under 21 years or 18 years (toto) and 16 years (lottery). A gambling hall cannot be situated near to schools, educational institutes, youth camps or welfare institutions.
•l Gambling halls must have at least 40 gaming machines or at least five gaming tables. l
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A state fee is also paid for the review for operating permits and this includes: €3,195 for gambling operating permits (except lotteries)
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Taxes are covered by the 2009 Gambling Tax Act which includes:
By May 2014 there were 2,183 slots and 61 table game places at 90 slot hall locations and casinos in Estonia according to the EHKL. This compares to 2,101 slots and 56 tables at 75 locations at the end of 2013 and most recently (September 2014) 2,164 slots and 88 table games at 62 locations. The gambling association in Estonia – EGOA – has nine members which include the six landbased casino/slot hall operators plus three of the nine online operators Triobet, Optiwin and PAF. The turnover for the casino/slot hall sector last year was €53m for land based operators which was divided between €46.5 for slots and €6.5m for table gaming. Online turnover was €9.8m for the three EGOA members. Margus Laudver of Casino Cleopatra said: “The gaming market is recovering from the low point. All the major changes that impacted the players, such as the compulsory registration for customers and smoking restrictions, are now behind us.”
casino operators €447 per slot machine.
Toto and Online Gambling – pay five percent on gross revenues.
€47,934 for organisation of games of chance. €3,195 for organisation of games of skill.
The Maksu-Ja Tolliamet (Tax and Customs Board/EMTA) has a total of 18 licensed operators listed of which there is one lottery company (Eesti Loto); six casino/slot hall operators and nine online operators
€1,278 per gambling table.
€31.95 per skill gaming machine. A state fee is paid for the review of an application for an activity licence and this includes:
Lottery – pay 18 percent from tickets sales total.
Casinos – pay 18 percent. Winnings over €300 must be reported to the Ministry of Finance.
There are six operators which have between them 62 casinos (including seven shipboard casinos) operating 2,164 slots and 88 table games. Of these 35 are slot only halls and 27 have table games. The main casino table games at the Estonia venues include Russian Poker, Oasis Poker, Texas Hold ‘em Poker, American Roulette, Blackjack and Baccarat. The operators are: CASINO CLEOPATRA first opened its doors in July 8 5
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2007 and today operates two gaming halls – Marja Games Room in Mustamae and another Umera Games Room in Tallinn. Between the two sites there are a total of 65 slots plus there are also five gaming tables at the Marja site including roulette, Blackjack and Poker. Cleopatra’s group revenue from 2013 was €18.5m. CASINO GRAND PRIX has 14 slot hall locations in several towns across Estonia which all features slot machines either multi line slots or video poker, multi game jackpot and bar. Some feature electronic roulette games. The brand is operated by IMG Kasiinod AS and the company also offers online gaming. The first slot hall opened in 1995 and they operate a total of 487 slots whilst eight of the locations have poker tables. MONTE CRISTO CASINO is operated by MC Kasiinod AS and initially opened in 2001 and is a chain of gaming slot halls which originated from a chain of Irish slot halls which have been operating since 1990s. The casinos in Estonia are located in Tallinn and Tartu. They have four halls – one in Tallinn in Idakeskus and
Olympic operates 82 casinos with 3,038 slots and 178 tables in Estonia, Latvia, Lithuania, Poland, Slovakia, Belarus and Italy. 18 slot casinos in Estonia 14 casinos in Tallinn, two in Tartu and one each in Parnu and Johm. three in Tartu in Lounakeskuse, Sopruse and Tasku. In total they operate 160 slots between them. The first slot hall opened in 1990 and the latest in 2008. A fifth location is due to be open in 2016. FENIKSS/ADMIRAL is operated by Novoloto AS (part of the Novomatic Group) and was founded in 1996 in Estonia. They first opened casinos in Tallinn in 1993 and in 2010 joined the Novoloto group. In 2013 the Admiral Klubs brand was launched. Today there are 12 casinos including: l l
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ADMIRAL JOHVI offers 26 slots and is the most north eastern county and has been open since 2005 ADMIRAL KOHTLA JARVE was one of the first gaming halls in Estonia and opened in 1997. The interior has since been renovated in 2007 and is modern and inviting and is found in the centre of town in the same building as the Alex Hotel. ADMIRAL KURESSAARE is located in Kuressaare which is the capital of Saaremaa, the biggest island and popular holiday and spa resort in Estonia. The gaming hall has 22 machines and opened in 2007. ADMIRAL NARVA is located in Narva, the third largest city in Estonia on the Russian border. It was opened in 2004 and has 20 slots and a large bar. In 2009 the venue moved to more spacious premises.
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OLYMPIC ENTERTAINMENT GROUP currently operates a total of 82 casinos with 3,038 slots and 178 tables in Estonia, Latvia, Lithuania, Poland, Slovakia, Belarus and Italy. Of this number there are 18 slot casinos in Estonia (one is closed at present for reform) - 14 casinos in Tallinn, two in Tartu and one each in Parnu and Johm. Table games can be found in two casinos – Radisson Blu Olumpia Casino in Tallinn and Tartu casino. The company started operating in 1993 and today employs some 530 people. Last year the company paid more than €4.5m in gambling tax to the Estonia government. Alongside its casino operations the OEG company also has several other companies in the hotel real estate development and operating sector including Fortuna Travel, Nordic Gaming, Kungla Investeeringu and Kaslino.ee an internet solutions company. OEG saw sales revenues in 2013 of €145.3m whilst gaming revenues accounted for over 93 percent of this total (€135.9m) whilst consolidated net profit totalled €25.7m.
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Group revenues in the Estonian market remained stable with revenues of €35.2m with EBITDA of €9.3m and operating profit at €7.7m. Today Olympic has 18 casinos with 737 slots and 19 tables across the sector and its market share is around 56 percent.
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Last year the company signed an agreement with Kesklinna Hotelli and AS Merko Ehitus Eesti for the construction of a new hotel to be operated by Hilton Worldwide which will also replace the current Reval Park Hotel and Casino in Tallinn.
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The new hotel and entertainment complex will cost around €36m. The current Reval Hotel and Casino ceased operations in October 2013 when OEG’s flagship casino moved its activities to the Radisson Blu Hotel Olumpia for two years and is the largest casino in Estonia providing Las Vegas style gambling venue. The casino runs popular daily poker tournaments and has an OlyBet area. There are 60 slots and 10 gaming tables with a VIP lounge with three tables and poker hall with six tables.
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The new building began work in February this year and is expected to be completed by December 2015. It will be a 13 storey hotel and consist of a four storey low building topped with a nine storey high building. The lower part will include the casino, lobby, conference hall, spa and restaurant. The higher part will include 202 rooms. The casino will take over 1,600sq.m and have a separate gaming area for slots, tables, club poker and a VIP lounge. The other casinos in the Olympic group in Estonia include: l
OLYMPIC CASINO NORDE is at the Norde Centrum shopping centre and this is a marine themed slots casino next to the Tallinn passenger port. There are weekly poker tournaments and an OlyBet zone.
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OLYMPIC CASINO VANA-VIRU is on the edge of the Tallinn old town in a historic firehouse facing Viru Hotel and is located amongst bars and restaurants. OlyBet available. OLYMPIC CASINO KRISTIINE has the largest OlyBet sports bar in Estonia and is located in Tallinn. OLYMPIC CASINO MAGISTRALI offers sports and slots and is in Tallinn. OLYMPIC CASINO MUSTIKA is tropically themed and offers weekly poker tournaments and OlyBet sports and is located in Tallinn. OLYMPIC CASINO ROCCA AL MARE is decorated in an ancient Greek theme and located in Tallinn and offers slots, OlyBet and weekly poker tournaments. OLYMPIC CAISNO NURMENUKU is located in a shopping centre of the same name and provides gambling to the Oismae and Mustamae city districts. OLYMPIC CAISNO JARVE is also located in a shopping centre and a very spacious slot hall offer poker tournaments, slots and OlyBet. OLYMPIC CASINO PIRITA used to be located at the Tallinn Olympic Yachting Centre and opened back in 1993 and as such was the first Olympic casino to open in Estonia. Today it is operating in the Pirita Top Spa Hotel. OLYMPIC CASINO LASNAMAE CENTRUM has an ancient Greek theme and offers slots and OlyBet. OLYMPIC CASINO MUSTAKIVI provides gambling to the Lasnamae city district and has slots and OlyBet. OLYMPIC CASINO KOPLI is situated in a building which was once the cinema theatre Rahu in Tallinn and offers slots and OlyBet. OLYMPIC CASINO TARTU is located in the heart of this historic university town of Tartu and provides slots and table games and is designed with a Rock n Roll theme plus with an OlyBet zone. OLYMPIC CASINO NARVA FAMA is also in Tartu and opened in April 2013 and is located in one of the most popular streets in the Narva Fama shopping centre. There is OlyBet and poker tournaments and open air terrace. OLYMPIC CASINO PARNU is in the summer capital of Estonia and offers slots and OlyBet and twice weekly poker tournaments. OLYMPIC CASINO JOHVI is next to a shopping centre in the centre of Johvi town and is tropically themed and offers slots and OlyBet.
CITY CASINO operates as a brand under OU Best4U company and began its activities in Estonia back in 2001 by opening Bally’s Casino. It is a chain of gaming halls belonging to Ritzio Entertainment Group called City Casinos. In March 2004 they opened the first CityCasino 8 7
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gaming hall in Tallinn and over the next few years a further 22 gaming halls opened in the city. In 2005 the company began to expand outside of the city and opened its Parnu casino. Today CityCasino has five gaming halls, four of which are in Tallinn: l
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COCA COLA PLAZA in Tallinn city centre which has 26 slots mainly from IGT and Admiral. There is a 24 hour bar. MARJA CityCasino in Mustamae, Tallinn has 40 slots and is located in a large 220 sq.m hall. CITYCASINO PAE in Tallinn has 40 slots and is located in Lasnamagi shopping mall. MUSTAKIVI has 26 slots and is located in Lasnamae Centrum. PARNU CityCasino has 30 slots near the big shopping centre in Estonia’s summer capital of Parnu.
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the sectors ONLINE Online gambling has been legal since 2010 and was in part introduced to help Estonia’s flailing economy during the global recession. The government gave Estonian gamblers the chance to play online but only at licensed sites and only by sites operated by local companies. In 2011 they opened the market to offshore operators with the condition that licences are obtained from the Estonian authority. Any other illegal sites were blocked. Operators must obtain two types of licences – the Activity licence which certifies the applicant who wants to operate an online business and the Operating Licence/Permit which is obtained before organising a specific type of gambling such as lotteries, totalisators, slots or tables. Applications are made to the Tax and Customs Board and licences are issued for five years. The rule that online gambling sites be hosted by an
01 estonia is known for being one of the most interconnected countries, when it comes to internet connections. most of the population has access to the internet at home, and if not, they probably use it at school. This has led to the creation of a new program, intended to start teaching children the skills necessary for programming while they are still in the first grade, with the foundations they will need being taught at a very early age. This can-do approach to education has been very successful for estonia, considering they have one of the highest literacy rates in the world. For estonian adults, the literacy rate is just shy of 100 per cent.
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The Estonian Olympic Committee, Spordiennustus, originally had a licence to operate fixed odd sports betting in Estonia and is a joint venture between the Olympic committee and PAFER, Alands. The company set up Fortuuna.ee which offered sports betting and lottery games and bingo. Today most players prefer the foreign run casino sites. There are nine online gaming licences issued of which two are foreign companies. The operators include: Pafer As, Spordiennustus (Paf), Triogames, Kingswin Online, Unibet, Optiwin and Tonybet plus two casino operators with online licences Grand Prix and Olympic. Tonybet offers all sorts of online games from sports betting, live games, poker, live casino whilst Triobet Sportsbook offers betting on global and local events whilst TrioBet’s Poker room is said to be the biggest in the Baltics and part of Microgaming’s poker platform. The first land-based operator to obtain a poker room licence was Olympic Entertainment Group who partnered with Playtech to offer more than 150 casino games and online poker. Later PokerStars launched a sponsored live tournament in Estonia and was also one of the first sites to obtain an activity licence in the country.
Online gaming revenue has enabled the country to recover from economic difficulties. Before this the state run sportsbook Spordiennustus offered the first online gambling facilities back in 2004. Meanwhile taxes for the online sector are five percent for betting and remote gambling operators on their net profit.
Estonian based server came under question at the European Union in terms of possible violations and prohibiting free competition. Today the law states that if the server is not located in Estonia “the organiser of remote gambling shall, before starting to use the server for the organisation of remote gambling, provide the Tax and Customs Board with evidence that the gambling supervisory authority and the authority dealing with prevention of money laundering in the country of location of the server have a legal basis and possibilities to cooperate with the Tax and Customs Board and Financial Intelligence Unit.”
SPORTSBETTING The main operators in the sportsbetting sector include Totalisaator AS, Pafer AS and Spordiennustus who operate PAF.com. Meanwhile Olympic Casino provides sports betting in Estonia under the Olybet brand and these are located in all of the company’s casinos. Bets are placed through Olybet before or during an event and all sports bars have betting terminals and TV screens. This is available at all Olympic Estonian casinos.
There are to date over 1,000 blocked illegal online gaming domain names listed on the Estonia Tax and Customs Board.
In August 2013 Olympic Entertainment Group expanded its online business into the sports betting sector in both Estonia and Latvia with the introduction of OlyBet. OEG was one of the first online licensed operators in Latvia and today all the casinos and slot halls in Estonia operated by Olympic have the OlyBet system in place.
Online gaming revenue has enabled the country to recover from economic difficulties. Before this the state run sportsbook Spordiennustus offered the first online gambling facilities back in 2004.
OlyBet offers a pre-match and live in-play sports betting service and customers can watch a wide variety of competitions and matches and can either place a bet or just enjoy the sports on the screen.
estonia: vital statistics Capital: Tallinn Population: 1,340,415 Land Area: 45,228 sq.km Currency: euro Median age: 41.2 years Languages: estonian (official) (68.5%), russian (29%), ukrainian (0.6%) Ethnic Groups: estonian (69%), russian (25%), ukrainian (1.7%), Belarusian (1%) Government: Parliamentary republic Chief of State: President Toomas hendrik ilves Head of Government: Taavi roivas Cabinet: ministers appointed by the prime minister approved by Parliament Elections: President elected by Parliament for a five year term (eligible for second term). if candidate does not secure two thirds of the votes after three rounds of balloting then an electoral assembly elects the President. OlyBet is an open platform and has been created and delivered in partnership with e-gaming software developer Iforium. It offers casino product from Playtech and Microgaming. LOTTERY The work behind developing a lottery in Estonia began back in 1971 with the first lotto 6/49 loto draw held in that same year. In 1991 state owned Eesti Loto was born and today this company operates Bingo Loto, Keno Loto, Viking Loto and Euro Jackpot lotteries. Other lotteries can only be operated for the purpose of charity. Before 2010 this company had a 90 percent market share but since this date most other licenses for lottery operators have expired and it has become increasingly difficult to obtain new licences so Eesti Loto pretty much remains the monopoly. In 2009 the Prime Minister at the time suggested privatising the company to help with the budget but as of yet it remains state property. In 2002 the company began to sell tickets online and via mobile in the same year. In 2004 the company went over to a new online lottery system. The Gambling Act states that money from the lottery must go to allocated charities and 32 per cent goes to science and education projects, 22 per cent for Olympic Committee, 10 percent to other sports projects, 32 percent to welfare projects and four percent to cultural projects. Players must be aged 16 and over to play the lottery. 8 9
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LOTTERY: eesti loto LOTTERY REVENUE: €47.4m (sales 2013) ONLINE GAMING: permitted – nine operating licences ONLINE REVENUE: 9.8m (turnover for 3 operators only – Triobet, optiwin and PaF) CASINOS/SLOT HALLS: 62 CASINO TABLES: 88 CASINO SLOTS: 2,164 CASINO/SLOT HALL GGR: €53m (turnover)
The company reported earning results for the first quarter of 2014 of €2m net profit compared to €2.4m the year earlier. Sales revenues totalled €12.7m which was a 6.6 percent growth on 2013. In 2013 the company saw a net profit of €6.3m whilst lottery sales grew to €47.4m Eesti Loto has increased its sales of Viking Loto in the Russian language target group by clever advertising last year. Direct advertising and invitations to gambling is not permitted in Estonia so Eesti instead broadcast the weekly Viking Loto numbers show on the TV channel 9 0
PBK with the preliminary advertising of the lottery show which is permitted by law and circulated fun lottery instructions via a song. Sales then increased sharply in both Ida-Viru County and Tallinn. Meanwhile the company launched a joint service last year called Loto M to allow mobile play of Viking, Keno and Bingo Lottery which has been set up by mobile company Elisa and Eesti Loto. The lottery play is via a special service number which can be purchased by calling the Keno Lotto, Viking Lotto and Bingo and Lotto Eurojackpot tickets. Players must be playing via mobile accounts on Eesti Loto’s website. The cost is €2 for keno, Viking, bingo or Euro Jackpot tickets. In 2015 the company will be moving to a new commercial and office building in Tallinn called the Eesti Loto Building which has been built specifically for the company. Tax for the lottery (numerical lottery) is now 18 percent (from the total amount of sale of tickets) which was raised in 2008 from 10 percent.
01 The estonian government was the first in europe to put a flat tax system into practice. While estonia is a fairly small sample, the results have been far reaching and universally recognised. however, many countries that adopted a flat tax after estonia, have not done very well in the economic crisis, and they have now switched their tax systems back. estonia, on the other hand, believes that the flat tax is still the best system, and the estonian economy has recovered from the crisis. of course, estonians weren’t able to accomplish this by simply letting the system do its work. To begin ameliorating the effects of the crisis, the estonian government increased the value added tax, and also used the good old-fashioned tactic of using austerity measures.
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G3-247 Report lithuaNiaN Market report
An ever changing landscape With the final instalment of our coverage of the Baltic States we focus on Lithuania, which although was late joining the gambling party in this region, today has a steady and established industry. However this could all change very soon...
Lithuania is situated to the east of Sweden and Denmark and is bordered by Latvia to the north, Belarus to the east and south, Poland to the south and Kaliningrad Oblast, a Russian enclave, to the southwest. The country has a population of around three million and the capital Vilnius is also the largest city. The first people settled in Lithuania just after the last glacial period in the 10th millennium BC. For centuries the south eastern shore of the Baltic Sea was inhabited by various Baltic tribes and in the 1230s the Lithuanian lands were united by Mindaugas, who was crowed as King of Lithuania and the first unified Lithuanian state, the kingdom of Lithuania, was created in 1253. The King was assassinated in 1263 and pagan Lithuanian became a target of Christian crusades. During the 14th century the Grand Duchy of Lithuania was the largest country in Europe. At that time Lithuania, Belarus, Ukraine and parts of Poland and Russia were the territories of the Grand Duchy but with the Lublin Union of 1569 Lithuania and Poland formed a
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voluntary two union state – the Polish Lithuanian Commonwealth. From the mid 16th century to the mid 17th century culture, arts and education flourished in the country. However the Northern Wars meant the territory was devastated by the Swedish army and later ravaged by the Great Northern War. The war, a plague and a famine wiped out around 40 per cent of the population. This commonwealth lasted more than two centuries until it eventually collapsed between 1772 and 1795 with the Russian Empire annexing most of Lithuania’s territory. After World War I Lithuania’s Act of Independence was signed in February 1918 which established the Sovereign State of Lithuania. Then in 1940 the country was occupied first by the Soviet Union and then later by Nazi Germany although as World War II ended the Germans retreated and the Soviet Union stepped in once again.
During Nazi German control they murdered some 190,000 Jews, some 91 per cent of the pre-war Jewish community. The Soviets meanwhile organised massive deportations of Lithuanians to Siberia and complete nationalisations. Between 1944 and 1952 around 100,000 partisans fought a guerrilla war against the soviet system After a landslide victory in the election in March 1990, a year before the formal break up of the Soviet Union, Lithuania became the first Soviet republic to declare the restoration of independent state of Lithuania. The Soviet Union attempted to suppress the succession by imposing an economic blockade and attacked the Vilnius TV Tower killing civilians. Today Lithuania has maintained strong democratic traditions. The current head of state, Dalia Grybauskaite was the first female President in the country’s history and this marked a dramatic shift in the Baltic politics after Latvia also elected their first political leader the previous decade Lithuania lies on the edge of the Northern Plain and has a
G3-247 Report lithuaNiaN Market report
landscape that has been smoothed by the glaciers of the last ice age. Its highest mountain is Aukstojas Hill at 294m and the rest of the terrain features numerous lakes, the wetlands and forest zone covering a third of the country whilst the main and largest river Nemunas cuts through the country. The country has a three tier administrative division and is divided into 10 counties – Telsiai, Siauliai, Panevezys, Utena, Kaunas, Vilnius, Alytus, Marijampole, Taurage and Klaipeda, which are then further divided into 60 municipalities which consist of over 500 elderships. The municipalities are the most important administrative unit and each has its own elected government. Before joining the EU in 2003 Lithuania had the highest economic growth rate amongst all candidate and member countries which reached 8.8 percent in the third quarter of that year. But 2009 saw a dramatic decline in GDP due to the global economic crisis and in 2010 the rate was just 1.33
Before joining the EU in 2003 Lithuania had the highest economic growth rate amongst all candidate and member countries which reached 8.8 per cent in the third quarter of that year. percent. Lithuania is currently about to change its currency and litas will become Euros on January 1, 2015. The country’s GDP growth is around 3.5 percent this year and unemployment stands at 10.6 per cent. Lithuania has a flat tax rate and personal income tax is 15 percent and corporate tax is 15 per cent or five per cent for smaller companies, which is among the lowest in the EU.
LOTTERY: oliferja, Zalgiro, lietloto LOTTERY REVENUE: lTl174.7m (turnover) BETTING OUTLETS: 176 BETTING REVENUE: lTl625m ONLINE GAMING: unregulated CASINOS: 17 CASINO TABLES: 120 TABLE GAME REVENUE: lTl301m CAT A MACHINES: 596 CAT A MACHINE REVENUE: lTl139.7m GAMING HALLS: 136 CAT B MACHINES: 2,913 CATEGORY B REVENUE: lTl503.4m TOTALY GAMING REVENUE: lTl1.3bn
There has been a shift towards a knowledge based
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G3-247 Report lithuaNiaN Market report
economy with emphasis on biotechnology plus mechatronics and information technology. In 2009 Barclays established the Technology Centre Lithuania, which is one of four strategic engineering centres supporting Barclay’s Retail Banking business around the globe whilst in 2011 Western Union opened their new European Regional Operating Centre in Vilnius. There is a list of other international companies who are based here. Tourism is growing. Back in 2009 the number of airlines operating in Lithuania dropped after FlyLal went bankrupt and the country was left with limited direct connections to other nations. However Ryanair entered the market whilst AirBaltic Corporation also expanded its direct air routes from Vilnius in 2010. Meanwhile the VAT for accommodation which was raised to 21 per cent during the economic downturn was dropped to nine per cent in 2011 allowing hotels to offer better deals and prices. There are some 1,217 holiday establishments of which there are 382 hotels, 32 motels, 35 hostels and 21 camp9 4
01 lithuania is a nation with high average income. it is a member country of the european union and is the largest economy among three Baltic countries. in 2011, the gross domestic product (PPP) was estimated at $59.825 billion, while the per capita stood at $18,278. major industries include biotechnology, tourism, wood processing, paper industry, construction, real estate, and food processing. The country exports minerals, machinery, and chemical products, while the major imports include machinery, mineral products, and chemical or allied industry products. russia, Poland, Germany, and latvia are the principal trading partners. 02 lithuania is the only country in the world with its own official scent, called the Scent of lithuania.
sites in Lithuania and last year a total of 2.1 million tourists, of which 1.2 million were foreigners, visited the country. Russian tourists account for the biggest number of visitors in all markets
the gaming inDustry Despite independence after 1990 gambling in Lithuania remained illegal until 2001 when the country became one of the last countries to legalise gambling and the Gaming Act was introduced in 2001. This act regulated table games, slots, bingo, lottery and sports betting. The sector is governed by the State Gaming Control Commission (LPT) which is independent of supervision and controlled by the state and carries out its work under the supervision of the government’s Finance Ministry and is financed by state funds. The Gaming Control Authority issues the licences for lotteries, slot machines, bingo or casinos and betting stations and controls and regulates the market. The Gaming Act 2001 includes the following: l
Licences are for an indefinite period and are issued to organise:
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numBer of proDucts over last DecaDe year
taBle games
category a machines
category B machines
2005 2006 2007 2008 2009 2010 2011 2012 2013
152 192 198 171 111 95 96 105 120
836 956 1,054 995 613 500 495 525 596
888 1,326 2,085 2,505 2,322 2,108 2,314 2,517 2,981
For Bingo, totalisator, betting – company share capital must be at least LTL1m For horse racing – company share capital must be at least LTL0.5m For Category B machines – share capital must be at least LTL1m For Casino operators – share capital must be at least LTL4m l
Table games and gaming category A machines (token play) Category B machines (coin play) Bingo Totalisator Sports betting l
l
Games of chance can be organised by public limited and private limited companies or joint stock companies.
schools, places of education, vocational training institutes, health care centres, libraries, theatres or shops etc. l l l
Gambling is only permitted to those over the age of 18 years or 21 years in casinos.
As a security bond the Supervisory Authority sets a limit that each company must have at least: Per table game – LTL40,000 Per Category A slot – LTL25,000 Per Category B slot – LTL300
Since 2009 all casino visitors must be registered and take identification for their first visit. The requirements for operating companies is:
For companies organising bingo, totalisator, betting and horse racing – they must have not less than 25 percent of the required minimum share capital.
Casinos cannot be opened near residential houses, 9 5
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l
l
l l l
Gaming machines (Category B) can be operated in gaming halls and bingo parlours. There must be at least 10 gaming machines operated in a gaming hall. Roulette and Category A machines can only be operated in casinos and there must be at least three gaming tables (of which one must be roulette table) and at least 30 Category A machines. Lotteries tax rate is five percent. Bingo, totalisators and betting are subject to 15 percent tax. Slot machines and table games pay a fixed fee – Category A pay LTL800 per month; Category B pay LTL300 per month and table games pay LTL6,000 per month.
In 2013 there were a total of 13 companies operating out of some 18 operating companies with licences. There were four companies operating casinos and eight operating Category B gaming halls. Last year two new casinos opened in the country and the number of Category B gaming halls increased from 121 to 136 between 2012 and 2013 whilst the number of betting shops dropped from 184 to 175 during the same year. There were 17 casinos in Lithuania in 2013. Betting has the biggest market share in terms of revenue with 40 percent followed by Category B machines (32 per cent), table games with 19 per cent and Category A machines with nine per cent share.
the casino operators OLYMPIC GROUP The Olympic group started its operations in Estonia back in 1993 and today operates in Lithuania, Latvia, Estonia, Poland, Belarus, Slovakia and Italy and is a member of the Lithuanian Gambling Operators Association. Activities in Lithuania began in 2001 and as such Olympic became one of the first casino operators in the country. Today they operate nine casinos and three slot halls with 56 gaming tables and 370 slots. The slot halls include Slot Hall Mandarinas and Bumerangas which are both in Vilnius. Bumerangas opened recently and is located in the Panorama Hotel next to the Stotis Casino. It has 26 Category B slots. Slot Hall Babilonas is the third gaming hall and is located in Panevezys offering slots. Slots are provided mostly by IGT, Atronic, Bally and WMS and many are operated with EZ Pay Tickets instead of cash. Most Olympic casinos are connected to the Olympic Mystery Jackpot system with accumulated prizes. Meanwhile the Olympic Casino operations include: OLYMPIC CASINO LIETUVA VILNIUS which is the biggest casino in Lithuania and runs free concerts and events. Table games include Blackjack, Oasis Poker, Russian Poker and Texas Hold ‘em plus slots.
numBer of locations per operator casinos operator Olympic Group Losimu Strategine Grupe Nese Pokervegas VSGA Savas Kazino Grand Casino World City Casino Tete-a-Tete Kazino Egivela Unigames Novogaming Vininius Bongo Slots Top Sport Orakulas Omnibetas Baltic Bet Limonas total
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gaming halls
Betting 2012
2013
27
23
82 57
89 48
18
16
184
176
2012 8
2013 9
2012 3
2013 3
3
3
4
4
3 1
4 1
61
73
27 17 3 6
28 17 2 8
1 15
17
121
136
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gamBling revenue 2013 01 lithuania used to be huge. Back in the 1400s it was one of the biggest countries in europe, whose territory included most of modern-day Belarus and western ukraine. it even teamed up with Poland to form the Polishlithuanian Commonwealth for a few hundred years, until it was carved up by surrounding european powers. 02 lithuania is one of several countries vying for recognition as containing the geographical center of europe, just north of Vilnius. 03 of all indo-european languages, lithuanian is considered to have changed the least over the years, and is thus valuable for the study of linguistic development. 04 Forest covers 1/3 of the country, including many protected regions and national parks.
type
total revenue 2013
payouts
net result
numBer of
Table Games Category A Machines Category B Machines Betting TOTAL
LTL301m LTL139.7m LTL503.4m LTL625m LTL1.3bn
LTL239.3m LTL103.1m LTL419.4m LTL572.4m LTL1.1bn
LTL61.6m LTL36.6m LTL83.9m LTL52.6m LTL208m
121 596 2,981 176 3,640
OLYMPIC CASINO GEDIMINO VILNIUS is one of the most accessible casinos as it is located in the heart of Vilnius on the main avenue. It is a small casino but offers table games and slots. OLYMPIC CASINO AKROPOLIS VILNIUS is also in the city and offers table games and slots. OLYMPIC CASINO STOTIS VILNIUS is a brand new recently opened casino and located in one of the busiest locations in the city next to the main station in the Panorama Hotel. There are table games and slots. OLYMPIC CASINO DONELAICIO KAUNAS is an Egyptian themed casino on the main avenue in the Park
Inn Neris by Radisson Hotel in Kaunas. There are table games and slots. OLYMPIC CASINO SAVANORIU KAUNAS has table games and slots and is also in Kaunas. OLYMPIC ROCK CASINO KLAIPEDA is the only casino close to the holiday resort and is the most popular based in Klaipeda. OLYMPIC CASINO AKROPOLIS SIAULIAI is located in Siauliai and offers table games and slots. OLYMPIC CASINO BABILONAS PANEVEZYS offers tables and slots and located in Panevezys 9 7
G3-247 Report lithuaNiaN Market report
NESE GROUP This company is a real estate company and also operates in the bar and restaurant sector and has casino and slot hall operations in Lithuania. Founded in 1991 the company is headed by director Inga Cesnakiene and Nese was awarded the title of second fastest growing company in the Klaipeda region and one of 15 fastest growing companies in Lithuania in Gazele in 2006. Nese is the second largest gaming company in the country. The company also operates slot halls in Romania. In Lithuania the company has three casinos and four slot halls. The four slot halls are called Nese Slots with three located in Klaipeda and one in Vilnius. The casinos are: NESE PRAMOGU BANKAS VILNIUS which has four American Roulette tables, eight card tables and 30 slots. NESE PRAMAGU BANKAS KLAIPEDA is a cosy casino with three American Roulette tables, six card tables and 30 slots. There is a VIP room and the Nese Whisky Bar. NESE CASINO AKROPOLIS KLAIPEDA is a comfortable 24/7 casino with the Café de Nese and two American Roulette tables, three card tables and 33 slots. VSGA VSGA was established in 2003 and operates under the brand Casino Tornado. The company today has four casinos in the country although prior to 2012 there were two casinos operating in Vilnius in the Antakalnis and Seskine districts. CASINO TORNADO, ANTAKALNIS in Vilnius has 39 Category A slot, six card tables, two American Roulette and a VIP room and the bar Tornado. CASINO TORNADO SESKINE in Vilnius has 36 Category A slots, five card tables, two American Roulette, VIP room and bar Tornado. CASINO TORNADO SIAULIAI has 30 Category A slots, six card tables, one American Roulette, a VIP room and Poker Club. CASINO TORNADO KLAIPEDA has 36 Category A slots, seven card tables, three American Roulette, VIP room, bar and Poker Club. SAVAS KAZINO SAVAS KAZINO operates the Nautilus Casino in Kaunas offering slots and table games.
ping centres. Top Sport later partnered with Maxima LT, IKI, Rimi, Prisma and some others and on average has around 10,000 customers per day. The company launched an i-betting service in 2005 and telephone betting a year later. In 2008 they began accepting bets on dog racing and launched dog racing online in 2010. Top Sport also operates eight gaming halls ORAKULAS is one of the leading betting companies in Lithuania and has 48 betting shops. They offer bets on any sports and entertainment from dog racing, interactive games and live bets. The company was established in 2003 and began its activities that same year in Vilnius. The betting shops are usually between 20 and 100sq.m in size and have flat screen TVs for live transmission. Customers can bet on most sporting events plus they have a lottery organised by Orakulas with maximum winnings of LTL25,000.
other gamBling sectors SPORTS BETTING Sports betting was legalised in 2001 when the Gaming Act came into force and the main reason was to increase revenue for the state budget. The first sports betting companies jumped on board immediately and by 2009 four companies were involved in sports betting activities in Lithuania which has remained to date. TOP SPORT is the largest betting company in the country and has 89 betting shops across the country in 34 towns and cities. It was also the first to open a shop in Kaunas in 2002 and the halls are often found in shop9 8
Other betting companies include Losimu Strategine Grupe (Tony Bet) which was founded in 2009 by the businessman Antana Guoga (Tony G) after he took over OmniBet. Tony Bet has 29 betting shops in Lithuania. The fourth company is Baltic Bet which has 16 locations and was established in 2008 opening its first betting agency in Vilnius. There has been no real changes in legislation for this sector bar a few tax changes and there is little competition from overseas bookmakers however there has
01 Vilnius is the only capital in the world that you can fly a hot air balloon over. lithuania is also #1 for the highest number of hot air balloons per person. 02 Cepelinai is one of the most popular dishes of lithuania; it is an oval shaped dish made from potato and ground meat. The most interesting thing about this dish is that, it got its name from the zeppelin or dirigible, the aircraft invented by the German Count Ferdinand von Zeppelin. 03 lithuania is divided into 10 counties, 60 municipalities, and 500 elderates. 04 The largest city in lithuania is Vilnius with over 500,000 people, followed by Kaunas, Klaipeda, Siauliai, Panevezys, alytus, marijampole, mazeikiai, Jonava and utena. been intense competition from the online sites provided by foreign companies. Horse racing is one popular sport and Lithuania is famous for its Sartai Horse Racing and this is an annual festival held in Aukstaitija National Park near to the town of Dusetos. It is over a hundred years old and according to history the first horse race was held on the frozen Sartai Lake in the 19th century when a rich man challenged his poor servant to win a bride they both desired. The young servant rode an old horse and carriage whilst the rich man rode his best horse with carriage. The young servant won and the master ordered him to be beaten
G3-247 Report lithuaNiaN Market report
just as the ice cracked on the lake he fell into the lake and drowned. Since 1905 the Sartai Horse Race has become a traditional event and is usually held on the first Saturday of February. LOTTERY The Law of Lotteries in 2004 was brought in to legalise and regulate the organisation of lotteries and to provide security for the players. There are two types of lotteries permitted under the Lottery Law which include national lotteries and local lotteries. These can then by numeric lotteries, instant, classic lotteries or sports lotteries. According to the amount of money that can be dished out as prizes there were two new kinds of lotteries established under this law – A grand lottery where the nominal value of the ticket is not limited and a small lottery which can be organised for events and the value of tickets cannot be higher than LTL100,000. There is no law to create a monopoly and any registered company in all reality can apply for a licence to operate a lottery and currently there are just a couple of companies that do so. Licences to operate a lottery are issued by the State Commission for Gambling Supervision and for small lotteries a licence can be provided by the municipality. Only national enterprises or foreign enterprises with established subsidiaries can operate lotteries and they
comparison Between the three lottery companies 2013/2012 lottery
tickets DistriButeD
ticket turnover
winnings paiD out
Oliferja Zalgirio Lietloto TOTAL
76,505,258 785,931 3,895,398 81,186,587
LTL169.5m LTL1.2m LTL3.9m LTL174.7m
LTL88.5m LTL476,906 LTL2.2m LTL91.2m
The Law of Lotteries in 2004 was brought in to legalise and regulate the organisation of lotteries and to provide security for the players. There are two types of lotteries permitted which include national lotteries and local lotteries. must be set up to support a charity. The company must have a share capital of not less than LTL500,000 for a grand lottery or LTL50,000 for a small lottery. Lotteries pay a gambling tax of five per cent on the sale of tickets. There are currently three lottery operators in Lithuania. The largest lottery organiser is Olifeja which was founded in 1992 and began with instant tickets. Between 1993 and 1995 Olifeja extended its activities to a multiple game strategy and via kiosks in banks, post offices and
retail stores. Today the company has a 99 percent share of the market. It is an Olympic Lottery and revenue goes towards financing the Lithuanian Olympic Committee and Olympic Foundation of Lithuania and funds sports clubs and programs. In 1995 Olifeja launched a computerised online network in cooperation with GTECH Corporation and today there are 820 retailers equipped with online terminals. Tickets offer a random selection of numbers with each ticket giving up to 25 numbers. Tickets for this game cost LTL2 (€0.58) There are various lottery games on offer including Teleloto, Viking Loto, Eurojackpot, Kenoloto, Jega and Jega-2 plus various scratchcards. Teleloto is by far the largest game and makes up 75 per cent of sales. You can buy tickets online by registering and pay via ebanking. Superloto is played live every five minutes between 9am and 3am. Zalgirio Loto is less well known and was set up in 1992 9 9
G3-247 Report lithuaNiaN Market report
and operates telephone lotteries, instant lotteries, internet lotteries and sport lotteries. Revenue is used to sponsor culture and sport in the country. Lietloto is the third smallest lottery. Meanwhile Fortuna Baltica at one time also operated in Lithuania but has since liquidated. The company was the smallest of the lottery groups and saw a huge decline in profits in the early 2000s. The lotteries are regulated by the Ministry of Finance. Between them they saw a total turnover of LTL174.7m in 2013 compared to LTL156.5m in 2012. Of the 2013 budget some LTL40m was paid in gaming tax.
changes aheaD At the moment online gaming remains unregulated in Lithuania. There has been a long ongoing debate as to whether to legalise online gambling or simply ban it completely. Since the adoption of the Gaming Act back in 2001 all attempts to change the law or improve it have failed. To block domains of unregistered companies, like 1 0 0
Online gaming remains unregulated in Lithuania. There has been a long ongoing debate as to whether to legalise online gambling or simply ban it . Since the adoption of the Gaming Act back in 2001 all attempts to change the law have failed. neighbouring Estonia has done, would be too costly according to the Ministry of Finance and would not eliminate a ‘black list’ There have been several draft laws attempting to introduce online gambling in the country and the latest was presented in January 2014 (XIP4393 ES2). There are already concerns this draft will not comply with EU law and that it has not really evolved much since previous drafts.
01 The geography of lithuania stems from being at the edge of the north european Plain, with 33% of the land a mixed forest area along with 2,800 lakes and 816 rivers, the largest being the nemunas river. 02 lithuania is known as the land of storks, the national bird for the country with about 13,000 pairs, hence the mythology of storks bringing babies still being a commonly told story in the area. 03 From a ranking in 2011, lithuania ranked first worldwide for internet upload and download speed. 04 Beverages from ukraine include alus for beer, Gira (similar to Kvass), degtine (meaning “the burn”, otherwise known as vodka), midus (a variety of mead), Starka and Trauktine, (other vodka varieties). making vodka from corn was first discovered by the lithuanians.
G3-247 Report lithuaNiaN Market report lithuania: vital statistics Capital: Vilnius Population: 3,505,738 Land Area: 65,300sq.km Currency: litai (lTl) (euro in 2015) Median age: 41.2 years Languages: lithuanian (82%), russian (8%), Polish (5.6%), other (0.9%) Ethnic Groups: lithuanian (84%), Polish (6.6%), russian (5.8%), Belarusian (1.2%) Government: Parliamentary democracy Chief of State: President dalia Grybauskaite Head of Government: Prime minister algirdas Butkevicius (lithuanian Social democratic Party/lSdP) Cabinet: Council of ministers appointed by the president on the nomination of the Prime minister and approval of parliament. Elections: President elected by popular vote for a five year term. last election held in may 2014 and next due in 2019.
requirement, the minimum paid share capital requirement and the requirement to open a certain amount of land based establishments. Vyte Danileviciute, Senior Associate at SORAINEN law firm in Lithuania said: “It seems that the working group on the draft Gaming Law disregarded the majority of the comments received with respect to the earlier bill as well as the raised voice of the European Commission. Effectively this means that there is no clear consensus as to how the online gaming industry in Lithuania will be shaped and that no quick outcome can be expected from the legislative process. “This time the draft Gaming Law has also drawn the attention of network operators. The bill establishes the right for the gaming supervisory body to order network operators to remove information related to illegal gaming or to limit the accessibility of such information. This
Several foreign operators have websites available in the Lithuanian language, but these exist uncontrolled and of course the state government is losing vast amounts of taxable revenue and so the situation needs to change. provision has already been criticised by a member of the parliament as superfluous and as establishing internet censorship.”
The new draft law follows the role of previous bills particularly its predecessor XIP4393 and the only change in regard to the current bill is that it will allow companies established in other EU member states (private limited liability companies) the right to set up gambling practices in Lithuania. The main point of the new draft new state: l
l
l
l
branch of their company in the country. l l l
The right to provide remote gambling services shall be made available to public and private limited companies with a gambling operator licence. They must have a branch established in Lithuania. They must have opened at least one casino or at least five betting shops for horseracing, or at least 10 gaming halls or at least 20 betting shops or at lest 20 parimutuel betting shops. The minimum paid share capital still exists and is LTL4m (approx €1.1m) and will apply to both foreign and local entities. It will require local and foreign operators to set up a
l
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The right to run real money poker tournaments will be available to public and private limited companies. There will be enforcement measures against illegal operators and software and technical requirements Gambling operator companies and branches from other EU states providing gambling services in Lithuania are prohibited from performing any other income generating economic or commercial activities other than the provision of gambling services. It is not permitted to use gambling devices and equipment used for gambling services for any other purposes unrelated to gambling services such as free trial gambling, incentive games. Minimum age for participation in remote gambling will be 18 years.
The previous draft bills have been criticised due to the specification for a company’s physical establishment
So at the moment Internet gaming in Lithuania remains unregulated. Online betting which was previously permitted has since been declared as ‘inconsistent with the Gaming Law’ by the courts in May 2013. Local gaming operators are banned from providing online services although foreign companies offering their website services are available to users. Several foreign operators have websites available in the Lithuanian language, but these exist uncontrolled and of course the state government is losing vast amounts of taxable revenue and so the situation needs to change. Mr Danileviciute added: “Needless to say the current situation requires a change and has a number of drawbacks. Foreign online gaming operators aiming to engage in legitimate business face legal uncertainty, local gaming organisers may not offer online gaming services without facing liability and are losing their market share to foreign unlicensed companies, consumers cannot be effectively protected and the state budget is losing substantial amounts in tax revenue – to name but a few of the concerns. Realistically it will still take a while before the new Gaming Law is adopted to bring some legal certainty.” Meanwhile there were some recent amendments to the existing Gaming Law, but this primarily deals with the adaptation of gaming machines for the new Euro currency at the beginning of 2015. 1 0 1
Interactive MoBile/oNliNe/laNd-Based
connecting the dots in land-based and online G3 speaks to Jan Hagelberg, the Director of Digital Channels for RAY - Finland’s Slot Machine Association, about the creation of a seamless brand experience for players across multi-channels that includes land-based, online and mobile gaming solutions What are the benefits for a retail operator in recreating its casino/brand/environment/player experience in the online space? The benefits are numerous. For one thing, having your brand online creates loyalty and retention. If you build your online existence around multichannel experience, which you should, you can reach your customers where ever they are 24/7. So you need to have a strong mobile offering. It used to be so that you build a strong portfolio of Flash-games on a desktop bowser based site and that's it. But couple of years ago, when smartphones started to be more suited for gaming and broadband available for more customers, operators started to move their customers from desktop browser to mobile site. But if you start your online gaming operations now, you need to go straight to mobile, both native and Html5. The growth is there, so you need to guarantee best possible mobile experience with superior usability, great games and high entertainment value right away. If you do not have your mobile offering in shape, it can ruin your whole brand reputation. These days people expect to reach brands with their phones having bad experience on a mobile site, drives a potential customer to another operator that is just one click away. You should offer some of your biggest brands both online and in casino, but it's not only about games, it's also about your value promise, seamless customer journey through all platforms and channels and the level of service in all of them. You need to be consistent. If you have certain service standards offline, you need to deliver it also online. With all means available, be it product offerings, CRM, social media, interactive chat on your site, registering and deposit funnels etc.
How close can a retail operator get to achieving a 1 0 2
You should offer some of your biggest brands both online and in casino, but it's not only about games, it's also about your value promise, seamless customer journey through all platforms and channels and the level of service in all of them. You need to be consistent. recreation of their land-based offer online? It's a different medium. You need to use different methods to deliver the experience. But you should drive for the same values and brand and stay loyal to things that differentiate you from your competitors in your land-based operations. One thing to understand is that online gaming experience can be very solitary experience compering to a land-based casino visit. This is how it is now. It doesn't have to stay so, but so far online operators haven't been investing to social experiences, should you not count poker and bingo games.
What are the practical steps in creating an offline/online seamless gaming experience for the player? Creating a seamless multi-channel gaming experience is a huge task. You need to master all channels. You need to cover all areas, from products, to user acquisition, CRM, responsible gaming practices and tools, to money handling and player accounts, just to name few.
Jan Hagelberg, director digital Channels raY - Finland’s Slot machine association
Do you want gaming machines in your offline sites to be able to identify your customers in a similar way as you can do online? Do you want to create gaming experiences that go through all channels? Then you should support your players with one player account and one wallet in all channels. The backend systems you build need to support the idea of omni-channel. You need to be
Interactive MoBile/oNliNe/laNd-Based
able to measure everything and optimize your customer behaviour based on the metrics in all channels. The task is a combination of backend systems that support multichannel experiences, service standards that go through the whole offering and an organisation that is built for operating an omni-channel gaming site. Try to do it in silos and you end up having several channels with different agendas.
Based on my experience in Finland and other European countries, yes there are. They vary on each territory and you need to be prepared for it. Also, the regulatory bodies are on many occasions not prepared for things that you may want to build. The overhead cost for solving the regulatory requirements can climb very high and sometimes even be a showstopper for your most creative ideas.
What scale of gaming operation is this suitable for - ie. multi chain, single site?
What should operators focus upon in the creation of their online equivalent?
I don't see a difference here. If you have one brand offline, then you recreate it online, too. If you have an umbrella of brands, then you may need to deliver dedicated online experience for all of them. Thus multichannel may mean more development and operational work.
Talent. You need to have the best team. Great online gaming experiences and business is built by the best talents. You need to secure them on every discipline.
Are there any additional regulatory factors that should be considered when considering this solution?
Operators need understand that online gaming is a long term investment and that online experiences are built iteratively. Measure everything, tweak and optimize relentlessly and never stop doing it. Make deals with innovatively thinking vendors
I don’t see any difference in terms of scale. If you have one brand offline, then you recreate it online, too. If you have an umbrella of brands, then you may need to deliver dedicated online experience for all of them. Thus multichannel may mean more development and operational work. whose solutions are as flexible as possible and who share the same values that you do by understanding that players expectations, gaming behaviours and technologies change all the time. You need to focus on delivering something that no 1 0 3
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one else has and try to build the customer experience better than your competitors. One thing not to overlook or forget is HR and change management. Once you add online functions to your organization, you need to be prepared for the clash of old-school and nu-school, especially if you do not treat the business apart from each other, but decide to go for shared customers and player experiences.
How much land-based technology is linked to the online gaming experience? CRM, payment solutions, loyalty programmes, incentive schemes etc.? If you decide to go for multi-channel, then all functions will be linked. Online technologies are many times more advanced and realtime and you need to invest to them for being able to deliver the customer experience that is expected and also for being able to optimize your site and business. But you can also treat online and offline as separate business functions. Though that's old fashion.
How important is the exposure and expansion of a retail gaming brand into the online space at this time and into the future? I think online gaming is a must have for landbased operators if they want to survive the ongoing digitalization. The land-based operations are shrinking and players expect to be able to play the games when ever and where ever. The mobile games growth tells it all. There will always be 1 0 4
You cannot expect to convert all of your land-based audience to your online site, but it is inevitable that more and more players are moving to online. So, if you do not have your offering available, they will go for someone else. space and need for offline gaming, casinos and high-street shops, but you need to support your business with superior online gaming offering, too.
folio. It's a pity from the customers' perspective. All these operators compete in a red sea with aggressive bonus and freespin offering, instead of trying to deliver a unique customer experience. That's why RAY (Finland’s Slot Machine Association) and some of other operators, who have been in the business for long enough, have also internal game and site development. This way we can deliver unique, localized games to our players and also build our site to deliver game-as-a-service experience with customized user-experiences based on players expectations and with multichannel offering that we share with our land-based operations.
Who are the players that are looking for this solution and is it worth the investment to target them?
There have been lots of missteps from smaller operators into online gaming - what’s the big difference now in recreating a location successfully online and how should operators manage their expectations?
We have several player segments that are playing our online games. We deliver different experiences for them, on the site and in our games portfolio. We know them inside out.
The legislation doesn't support small operators and building a sustainable long term business can be very hard for them. Building yet another online gaming site doesn't really sound like a good option, if you do not bring anything new to the table. What I see all the time are new smaller operators who come to the market with the same products than the rest of the operators. In the Nordics there are several, also bigger operators, who all more or less share the same product port-
Some of them play also offline, but it's not all the same audience. You cannot expect to convert all of your land-based audience to your online site, but it is inevitable that more and more players are moving to online. So, if you do not have your offering available, they will go for someone else. Also, you can bring players to your land-based offering by effective online user acquisition. You anyway need to be online for marketing purposes, so why not deliver the whole experience there?
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Managing expectations and delivering results When taking the journey online, land-based operators need to prioritise precisely their goals and work with a dedicated partner that can deliver a tailored solution. G3 speaks to Ales Gornjec of Comtrade Gaming about the practical steps involved in this transition What are the benefits for a retail operator in recreating its casino/brand/environment/player experience in the online space? By recreating casino/brand/player experience online, a retail operator both leverages the investments that have been made to build the experience in retail to online, and at the same time extends the familiar and cherished experience (like customer service, content, etc.). Providing an online experience allows the operator to reach players at any time and almost anywhere without the players having to venture to the operator’s physical venue.
How close can a retail operator get to achieving a re-creation of their land-based offer online? There are a few areas. The first is content – most content can be made available online and there can even be a fusion of the physical and online offering by providing live dealer games online. Live dealer games can be streamed from real tables in operator’s venues where both physically present and online players can share games. The online world actually offers operators more choice in selecting best-of-breed content, regardless of vendors; particularly when integrated with a common gaming platform. The second is the essence of customer service. While the mode of delivery may differ online (there will be no face-to-face communication with the player), the essence of the service can be migrated to the online world. Customer assistance, promotions, rewarding, and bonuses can keep the same essence and reward players with the same “feel” as in the retail space. The service can also be brought to a different level when attracting players online, as much more intimate information about player preferences can be collected online (like for example favourite games, playing patterns) and this is used in retail. A common wallet makes it much more convenient for the player to wander between the retail and online worlds. 1 0 6
There are, of course, also limitations: the venue experience can only be transitioned to a very limited extent online, as only the online device screen is the “real estate” that is available for recreating the venue experience.
What are the practical steps in creating an offline/online seamless gaming experience for the player? The operator will want to start with selecting the content to be made available. A survey of a focus group and analysis of existing performing games in retail may be helpful in selecting the right online content. The content may include live streaming games, where the operator needs to decide whether an existing venue or a dedicated studio will be used. After determining the content, the operator needs to decide how to source the content. Decisions can range from white label partnerships, to buying content, or to developing content. When the most flexibility and control is needed, the operator might want to decide on acquiring a RGS platform and integrating games into the platform. The next step is to decide on enabling services, which primarily includes payment services, but also fraud prevention services, Know Your Customer (KYC) services, communication services (email, SMS), affiliate management services, etc. To tie all of the components together and to achieve a complete view of the player’s experience, the operator will want to select a platform that allows for quick and flexible integration of all the services, both online and land-based. That platform will ideally be open, modular, and flexible enough to allow for quick integration of all components. It will need to also have player engagement functionality that spans online and land-based areas.
What scale of gaming operation is this suitable for – i.e. a multi chain or single site?
Providing players an online experience is becoming a necessity nowadays. To protect and leverage the investments into brand and players, all operators need to consider providing a seamlessly integrated experience both online and at their landbased casino. The size and the implementation model will vary however, depending on the scale of operation. Smaller operations might want to consider a partnership model with white label operators, while larger operators that need full control and flexibility for online and land-based experience, will be better served by choosing flexible online and gaming platforms and potentially several content providers.
Are there any additional regulatory factors that should be considered when considering this solution? Recently, licenses have only been awarded to companies with an existing land-based presence in many jurisdictions that are legalising online gaming, and in such cases many regulatory proceedings are quite similar on both sides. If markets are also opened for pure online operators, then usually disputes can occur if taxation is different (often online taxes are lower than landbased). In jurisdictions with multi-channel gaming operations, responsible gaming solutions become more complex. Introducing a central selfexclusion database usually works for all instances in which players have to identify themselves. Introducing limits (spending, depositing, wagering, session time) can already be a much more complex task if a player can play on several
In order to use the benefits of a land-based presence operators should deploy solutions that will allow them to do effective cross marketing and have a full 360° view over their player’s activities. online portals at once and then also spend time and money in retail or casino sites near his home.
What should operators focus on in the creation of their online equivalent? The first thing to focus on would be to take advantage of their brand and existing relationships with their players. This is a very important asset that is difficult to build, and helps a lot in building the initial trust on the online side. To smooth the transition operators should also try to include games that are popular in their land-based opera-
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tion in their online portfolio. Such games usually outperform pure online games. The last point is to choose the right technology – in order to use the benefits of a land-based presence operators should deploy solutions that will allow them to do effective cross marketing and have a full 360° view over their player’s activities.
How much land-based technology is linked to the online gaming experience? What about CRM, payment solutions, loyalty programmes, incentive schemes, etc.? All of the above might be leveraged when practical, however there may be additions to the services mix to also support online and combined landbased offerings. Loyalty programmes and incentive schemes will likely keep the overall theme, as they might be tightly associated with the brand experience. They will, however, probably be enriched with online and cross domain options and incentives to steer players to offerings that provide both better lifetime player value to the operator, and better player experience. CRM needs to be common for both spaces – retail and online.
How important is the exposure and expansion of a retail gaming brand into the online space at this time and into the future? An online presence is a must. Whether the retail brand should be the same for retail and online depends primarily on the strategy of the operator,
however from observing other industries (retail, telecommunications) it is very likely that there will be a trend towards an multi-channel approach whereby it is completely transparent for the player where, when, and how content is consumed. A joint retail and online branding and experience strategy will allow for better utilization of marketing budgets, better knowledge of the customer, seamless customer interaction, and consequently also a better experience for the customer. Considering that customers are already used to seamless migration between the online and retail worlds from other industries, it is strategically sensible not to significantly separate online and retail branding.
There have been lots of missteps from smaller operators into online gaming - what’s the big difference now in recreating a location successfully online and how should operators manage their expectations? In the past especially smaller operators started their online operations with established whitelabel suppliers because that was the simplest starting point, and it didn’t require much investment from their side. Unfortunately, they were, in many cases, unable to use the full benefits of their land-based presence with this approach since they didn’t have all the aspects of their online business under their control. Now there are also some alternative options available in which they can run online operation very similar to the way
they are used to on the land-based side, where they separately choose suppliers for a casino management system that then allows them to pick the optimal portfolio of content suppliers for their target audience.
Who are the players that are looking for this solution, and is it worth the investment to target them? This depends on the jurisdiction that opens an online operation. Smaller markets that require a lot of specific development (data-centers located in their country, special certifications procedures, and integrations with local governments for monitoring purposes) are not attractive for international vendors. Casinos from bigger jurisdictions have, however, more options to choose because vendors see that these investments are better for them.
Ales Gornjec, General manager, Comtrade Gaming
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Networking every aspect of the gaming business GameAccount Network specialises in recreating land-based gaming offerings in the online space, something it describes as Simulated Gaming. G3 speaks to GameAccount’s Daniel Lindsay about the opportunities available to all operators whatever size and scale What are the benefits for a retail operator in recreating its casino/brand/environment/player experience in the online space? The battle for the consumer entertainment spend has never been more fierce. Pretty much every TV advert you care to watch will make some reference to products being available ‘in store, on line and on mobile’, so clearly it’s about offering a seamless experience for a casino customer no matter what their location is. It’s generally understood that player behaviour revolves around mobile play in the mornings, desktop during the day, and twin screening on tablets or mobiles in the evening. That means the potential benefits to the retail operator who commits to an online product offering are very clear. It's about allowing your customer to ‘remain’ on your premises and interacting with your brand even when they are not on property.
How close can a retail operator get to achieving a recreation of their land-based offer online? The simple answer here is as close as they want to. Luxury is not the preserve of offline operations, it’s possible to re-create an opulent environment online in the way that you interact with your customers. VIP customers would already receive closer attention, but in terms of the overall look and feel of an online offer, then anything is possible.
What are the practical steps in creating an offline/online seamless gaming experience for the player? It's quite straightforward. The most obvious single existing marketing channel that a land based operator has is the customer database. With GameAccount’s Simulated Gaming solution and patented iBridge technology, an integration between the Internet Gaming System and the land based Casino Management System can be 1 0 8
achieved quickly and efficiently providing a large online customer acquisition opportunity. However, how players can be taken through the registration process (either via a lite or full registration or made even easier by the use of their land based casino loyalty card) is the challenge. Experience and evidence shows that by offering the right content that players know they enjoy playing and also incentivising (where allowed) players with rewards they can redeem in-venue, we know our customers can monetize players from registration to deposit at upwards of 18%. That’s an awful lot better than general social gaming.
What scale of gaming operation is this suitable for - ie. Multi-chain, single-site?
What’s important for a land based casino license holder is that they do nothing to jeopardise that land based license and so we work with the operators and regulators to ensure Simulated Gaming complies with any harm minimisation measures. There’s no right or optimum business size to drive the decision to move online, it’s purely strategic. Simulated Gaming offers the opportunity for land-based operators to move into the online space now, without regulations needing to be in place. Not only does this provide an incremental revenue stream, it’s proven to drive lapsed land based players to re-engage with the bricks and mortar venue not only spending on gaming activities but the associated verticals within the venue,
Daniel Lindsay, Commercial director, Gameaccount network
including accommodation and F&B. The accelerator effect achieved is remarkable.
Are there any additional regulatory factors that should be considered when considering this solution? Currently, social gaming is an unregulated market that’s currently estimated at being worth over US$2bn a year. And, depending on what shape regulations take (or not), this could grow to in excess of US$19bn within five years. What’s important for a land based casino license holder is that they do nothing to jeopardise that land based license and so we work with the operators and regulators to ensure that Simulated Gaming is fully understood as a proposition and also comply with any harm minimisation measures which need to be included in the offering. What’s critical to remember with Simulated Gaming is that it is ‘Gaming’, not ‘Gambling’ and there’s a fundamental difference there.
What should operators focus upon in the creation of their online equivalent? A few things must be achieved in our view. Firstly, a seamless offering of the brand whether in venue or online. Players need to feel the same experience wherever they are, and that includes the level of customer service they receive. Secondly, content is critical. We’ve said it many times and it’s always worth repeating ‘Content is King’. People want to play games they recognize,
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trust and enjoy from the land-based environment. Lastly, convergence. In the same way that we have seen different gambling segments in the land based markets coming closer together in terms of product, the same is true of an online proposition. It’s about player convergence, driving land-based customers to engage with the brand when they leave the venue and also being rewarded for doing so.
How much land-based technology is linked to the online gaming experience? CRM, payment solutions, loyalty programmes, incentive schemes etc.? As explained, by integrating into the existing land based Casino Management System, anyone with a player card can complete online registration quickly and easily, so often a barrier to actual monetization. This is a critical advantage in terms of player acquisition. In the same way, when virtual credits are purchased, then rewards can be made directly back onto their players’ card which can be used in venue.
How important is the exposure and expansion of a retail gaming brand into the online space at this time and into the future? The regulated .com and .it environments have shown what safe and successful online gaming looks like for established land based brands. Whilst the North American market is seemingly
Whilst the US is stuttering on a state-by-state approach with only Pennsylvania looking like it might come to fruition, Simulated Gaming provides a stepping stone which allows bricks and mortar casino operators to extend their brand and interact with customers now. stuttering on a state-by-state approach with perhaps only Pennsylvania looking like it might come to fruition in the very near future, Simulated Gaming provides a stepping stone which allows bricks and mortar casino operators to extend their brand and interact with customers now. It’s an enhancement and very much complementary to the terrestrial offering, and in many cases, where competition is fierce, it can be a very useful acquisition and retention tool.
There have been lots of missteps from smaller operators into online gaming - what’s the big difference now in recreating a location successfully online and how should operators manage their expectations?
Perhaps there was an element of ‘build it and they will come’ for many smaller operators when venturing into the online space and it’s an exceptionally large but also very competitive space. Effective marketing goes hand in hand with having the right product offering and perhaps when smaller operators have ventured into the space before, there might have been some naivety around how important (and cost intensive) this function is.
Who are the players that are looking for this solution and is it worth the investment to target them? Our experience in launching US operators into the social space has shown that it’s a wide range of demographics that are attracted to the offering. It’s probable that a significant amount of play will come from residents within an hour’s drive of the venue, but we have also seen players across the US playing, in fact also a small percentage from outside of the US as well. For experienced slot players and regular casino patrons it’s a way of interacting with the brand, playing their favourite games and being rewarded for doing so all at the same time. In terms of return on investment, the incremental spend and accelerator effect of Simulated Gaming means a short payback period, but more important it reactivates lapsed land-based players and encourages a significant percentage to visit the land-based venue more often. 1 0 9
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the incredible importance of mobile gaming
Leigh Nissim, Commerical director, iGT interactive leigh nissim is responsible for the commercial development of iGT’s interactive business across all regulated markets, including europe, Canada and the uS.
IGT Interactive’s Leigh Nissim describes the results of a commissioned ‘thought leadership’ report in 2014, which looked at multi-channel convergence in the gaming space. The research produced dramatic findings that impact upon every aspect of gaming What are the benefits for a retail operator in recreating its casino/brand/environment/player experience in the online space? The arguments for land-based operators going online are almost as endless as they are onesided. The most conclusive of these is that not having an online product means missing out on a stream of revenue generation and the opportunity to offer players a consistent playing experience across retail-online-mobile. During 2014, IGT Interactive commissioned a thought leadership series with leading digital specialists Econsultancy, with convergence being the most recent topic. A headline finding from a survey of almost 40 gaming professionals involved in channel convergence was that companies taking part recorded a 38% improvement in revenue uplift per player when they are engaged across multiple channels. The research process included a series of in-depth interviews with a range of senior practitioners from top-tier operators, suppliers and client organisations featuring retail, digital, content, strategy and operations staff. It was supported by online surveys carried out with professionals in the gambling sector to find their views on convergence.
that online will eat into land revenues has long been exposed as inaccurate. It can actually help drive offline revenues thanks to the branding benefits and enhanced engagement it allows. Furthermore, when your target audience is one that administers most of its daily life and routine via smartphones and tablets, the online offering must also include mobile. To illustrate how important it is to IGT, we now have 33 game titles available on mobile, of which 21 are also available in retail casinos. In newlylive New Jersey, mobile is already responsible for more than one-third of igaming volumes in that market, and across the board it is nearing historical desktop levels.
How close can a retail operator achieve a recreation of their land-based offer online? Land-based operators can create very faithful online replications of the offline environment. At IGT, our focus is on bringing the same great games to all channels, so we have successfully launched many of our casino classics online and on mobile – we now offer 51 game titles that are available across land-online and 21 land-online-mobile. Cleopatra is a fine example. Since being launched in 2001, it has been deployed on thousands of gaming terminals around the world.
Among the other discoveries were that 88% of respondents ‘strongly agreed’ it is crucial for players to have a consistent experience across channels and 67% ‘strongly agreed’ that convergence is creating significant opportunities for their businesses. The same percentage ‘strongly agreed’ that company leadership understands the significance of convergence.
Following its land-based achievements, Cleopatra launched online in September 2006 and has reached unprecedented levels of success, accumulating more than 600 million cash transactions. Cleopatra has passed the 2.5 million hourmark of total cash play and has paid out over £800 million.
In mature markets, like the UK, the contention
Mobile players love Cleopatra too. On mobile,
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Cleopatra runs at a rate of well in excess of eight wagering transactions per second and has the highest lifetime pay out of any IGT mobile slot. We will take this strategy a step further in 2015, when we start simultaneous launches that will see IGT release games online and on mobile at the same time as they go live on the casino floor. This will begin in the UK with the launch of Prowling Panther.
What are the practical steps in creating an offline/online seamless gaming experience for the player? It all starts with a clear vision of gaming and channel convergence, with defined goals and objectives that everyone can work towards. This vision will need to be articulated to the entire organisation, with buy-in at every stage. Crucially, this must go to the very top level. Among our customer base, most retail gambling operators in regulated markets are making healthy progress in this regard. To create a seamless gaming experience takes great understanding from the player’s perspective. What is the current customer journey like? Test it, refine it and keep on improving. Perform an audit of the database, systems and all technologies to identify problems with integration and to formulate ideas on how they can be resolved. Once an online platform is in place consider incentivising offline operations to push customers online to boost engagement and revenues. Give players credit to increase the chance of them transacting online. And once they have started, devise a rewards strategy to maintain loyalty and retail visit frequency.
What scale of gaming operation is this suitable for - i.e. multi-chain, single site? Let’s compare this to the retail industry. Virtually every forward-thinking brand, regardless of size, will have an online presence that enables some level of transaction with the company. The scale of the site will be comparable to the bricks and mortar operation, and this is fair yard stick in the gaming industry too. However, it is important to note that having a superior online offering will allow an operator to punch above their weight versus other brands that do not.
Are there any additional regulatory factors that should be considered when considering this solution? The regulatory factors are often the main consideration when it comes to launching an online casino. The legal landscape varies markedly across different countries but there are frequently solutions available to suit each market.
What should operators focus upon in the creation of their online equivalent?
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The top priority must be on ensuring the best possible customer journey. The user experience has to be fun, engaging and comprehensive. It is incredibly easy to lose peoples’ attention in the online space. It is an environment where things happen quickly and efficiently. Use data collection and analytics to power tailored marketing. Against the obscurity and anonymity of the internet, a personalised offering allows operators to stand out. Focus time, effort and budget on creating bespoke sites, communications, bonusing, paid search and, above all, their user experience, marketing and technology. Players want to be able to play the same great games that they love from the casino floor. Quality is everything. The online offering needs to come complete with fantastic features, beautifully rendered graphics and movie studio-like sounds. Online also needs to be backed by a fully optimised mobile product. The momentum across mobile gaming in the last five years has been nothing short of staggering, redefining competitive landscapes across product verticals and driving growth in a new phase for our industry. Recent research has predicted that the global mobile gambling market is set to generate just over €19bn of gross win by 2018 – this would represent just under 44% of all interactive gambling and just under 5% of all gambling. But based on our current mobile casino volumes, we would expect to reach this milestone well before then.
How much is land-based technology linked to the online gaming experience? CRM, payment solutions, loyalty programmes, incentive schemes etc.? The potential is there for almost everything to be linked, but we are not quite at that stage yet where all of the dots are joined up all of the time. However, it will not be long before it becomes the norm, and in isolation there are some excellent case studies of this happening. One of these is at Rank Group’s Grosvenor Casinos. It is doing an excellent job of migrating its 1.7 million retail customers online, where it offers IGT slots. It reports that more than half (52%) of its online customers come from its clubs and knows that these players will be most valuable thanks to their existing brand loyalties. A key driver in the process has been the implementation of in-venue iPad stands that allow players to register for online gambling. Grosvenor also employs digital champions to roam the clubs and directly interact with players to encourage registration.
understand behaviour.
To illustrate how important mobile is to IGT, we now have 33 game titles available on mobile, of which 21 are also available in retail casinos. In newly-live New Jersey, mobile is already responsible for more than one-third of igaming volumes in that market. kets where interactive gaming is well established that players want to engage around the clock, regardless of their present location. Firstly, you are missing out on transacting with an active, current customer base. Beyond that, not having an online offering means missing out on swathes of new players.
How important is the exposure and expansion of a retail gaming brand into the online space at this time and into the future?
The convergence that is happening in the betting and gaming industry is just as rife in other sectors. Convergence is ordering your groceries from your desk at lunchtime then collecting them from a station on the commute home. It is watching your football team’s match on-the-go; it is using a boarding pass downloaded to a smartphone to check-in for your flight.
It is vital. Even if a casino is open 24 hours, players loyal to the brand may not always want, or be able to, access the venue, but we know from mar-
For gambling businesses it means the chance to have that all-round, single view of players. The opportunities to up-sell and better engage and
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For players it means a seamless, personalised customer journey and experience, while enjoying the same entertainment products and service on all channels, rewarded for their loyalty as they play.
There have been lots of missteps from smaller operators into online gaming - what’s the big difference now in recreating a location successfully online and how should operators manage their expectations? You don’t need to simply re-create the casino in the online world – you offer the same products and services in a way that suits the platform and the behaviour of the users. The emphasis must be on offering quality content and an unbeatable service. In a crowded marketplace, differentiation is an important sales tool.
Who are the players that are looking for this solution and is it worth the investment to target them? There is not one type of player who goes online – the potential audience is simply vast. Interactive players often fill a wider demographic, thanks to the ease and comfort of engagement, and they will want to be able to play anytime and anywhere. To become a major protagonist online will take significant investment, and this should not be made lightly, yet it is a must. Plan your online strategy meticulously and execute it carefully. Do that and you will reap the benefits.
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the deconstruction and reconstruction of brands Pegasus Gaming Solutions, a Microgaming company launched by Lydia Barbara, helps first time and established operators to gain the most from their online gaming businesses. The establishment of true multi-channel gaming is a key component in maximising business potential and in this article Lydia explains the steps necessary to achieving these goals What are the benefits for a retail operator in recreating its casino/brand/environment/player experience in the online space? Land-based casinos sometimes think of online gaming as cannibalising their existing traffic. This simply isn’t true. Moving online is a way to deepen and broaden your relationship with your players, in turn increasing your share of their wallet longterm. What’s more, it’s much easier to leverage off an existing brand than to create a new one. One thing land-based casinos must keep in mind is that online gaming is now a fairly established market. Your players probably already have accounts with an online casino or two, so approaching them to sign up to your new online site should be viewed as an acquisition campaign rather than one of retention. Your offline relationship with the players will help (provided it’s a positive one!), but it will not be enough.
How close can a retail operator get to achieving a recreation of their land-based offer online? As close as they want! But that shouldn’t necessarily be the aim. What an operator should consider is whether the land-based offer is one that will work online. “Recreation” is a good word to use here, as you first need to ask yourself, and your staff, some serious questions about your brand image and power. If you have not done this in a while, at the outset you need to deconstruct your brand to identify 1 1 4
your core values, both from your perspective and from your players’. Will they work in an online space? What needs to go and what can stay? How is this best represented online? This process will be a real eye-opener!
What are the practical steps in creating an offline/online seamless gaming experience for the player? First, as already mentioned, you should deconstruct and then reconstruct your brand. This will make you stronger and more robust. And second comes the next big question: do you have the skills and experience in-house to successfully expand online? Be honest and critical in this process. Mistakes and assumptions at this stage will prove very costly over time. And if you don’t have the skill set already inhouse, it’s not the end of the world! There are experienced specialists out there that you should utilise.
Lydia Barbara, head of Pegasus Gaming Solutions lydia entered the online gaming industry in 2005, occupying managerial positions in B2C and B2B environments before joining microgaming four years later. Following a five-year stint managing poker and network games, lydia launched Pegasus Gaming Solutions, a specialist consultancy operating under the microgaming umbrella. Pegasus assists new operators as they venture into online gaming for the first time, as well as helping established operators plan for major changes, get more value from their data and increase profitability of their online businesses.
What scale of gaming operation is this suitable for - i.e. multi-chain, single site? Online expansion is most naturally suited for multi-chain casinos with well-known brands, but single locality casinos with ambition, drive and capital to invest can definitely make a go of it as well.
Are there any additional regulatory factors that should be considered when considering this solution?
Online expansion is most naturally suited for multichain casinos with wellknown brands, but single locality casinos can definitely make a go of it as well.
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allows you to grow, using your existing relationships as a base, in a market from which unlicensed operators are vigorously pursued. However, that is not necessarily at the top of regulators’ wish lists for new gaming regulations, so your best plan should be to spend a lot of time forecasting, budgeting and working within the boundaries laid out by the regulators.
What should operators focus upon in the creation of their online equivalent? What are the biggest differences and how should operators manage their expectations? Data, data, data. Smart, driven, experienced business intelligence experts are worth their weight in gold in this new ‘big data’ world.
Operators who exploit that data to the fullest will have the best chance of success in an online launch. Land-based casinos who move online and expect people to sign up and play, simply because of the power of their brand, will fail. Moreover, the biggest difference in managing players online and offline is the amount of data you get from your online players. Operators who exploit that data to the fullest will have the best chance of success in an online launch. Landbased casinos who move online and expect people to sign up and play, simply because of the power of their brand, will fail. In terms of managing expectations, casinos need to avoid the Field of Dreams mentality. Running an online operation is hard work, and it requires specialist knowledge that may not exist within your organisation. If it doesn’t exist in-house – find it. You must be prepared to invest in people and the skills required.
How much land-based technology is linked to the online gaming experience? CRM, payment solutions, loyalty programmes, incentive schemes etc.?
The most important regulatory factor to consider is whether online operators without links to landbased casinos will be allowed in the market. The second is whether the regulators will be actively banning unlicensed operators from entering the market. Also, do the regulations allow you to process deposits, withdrawals and online registrations through your land-based casinos? If so, this is
extremely positive for you, as it allows you to maintain the real-world relationship you spent so much money and effort building, whilst getting those customers’ online patronage. On the flip side, do they forbid you to process payments online? This would inhibit your growth and give a leg-up to any companies operating under the radar in your market. The best regulatory environment is one that
One essential thing land-based casinos should keep in mind is that the online gaming sector is currently undergoing a massive shift from product-centric to customer-centric business models. Product is still very important – it must be market-leading or you won’t be able to compete on equal footing with the incumbent online casinos in your market. But, it’s not the only factor to consider. The customer is king in this new world of one-tomany marketing and big data. How you shape your customers’ gaming experiences will in turn 1 1 5
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shape your success in your target markets.
How important is the exposure and expansion of a retail gaming brand into the online space at this time and into the future? It’s dependent on the operator themselves. This is a question land-based casinos need to ask themselves before expanding their operations online. And be prepared that it simply might not be the right move for your business. If it’s not viable, there will always be a place for land-based casinos. Online casinos cannot replicate the social aspect of live gaming, at least not until virtual reality becomes reality. What’s important to remember is that the relationship between online and land-based is symbiotic, and you can benefit from this relationship even if you choose to remain in the physical space.
Who are the players that are looking for this solution and is it worth the investment to target them? Players differ from market to market. In a country in which internet penetration is low, expect low conversions from offline to online, even as low as three per cent. In a market like this, where your overall traffic might be quite low, your important players will be your VIPs. However, if there are already lots of competitors also vying for their 1 1 6
attention, it could be a poor investment to launch online. But markets differ, as do demographics. And you need to find the right market for your brand and your product. Do your research and your modelling: thorough market analysis and forecasting are essential, as they could highlight an opportunity well worth taking.
How successful have operators been so far in taking their gaming experience online? Unfortunately the answer is ‘not very’. But that’s not to say that it can’t be done. It absolutely can. A noteworthy example is Adjarabet, a very successful poker and casino company born from landbased casinos in Georgia. The very sensible strategy of focusing on their strengths and marketing heavily in a carefully delineated region has paid back in spades.
What are the biggest challenges operators are facing when trying to create their online offering? The brand loyalty your players may have to incumbent online casinos is a big challenge, one often under-estimated or overlooked by casinos moving online. Also, proper forecasting can be difficult if the senior managers have never experienced the impact of affiliates, payment processors, hosting and
The brand loyalty your players may have to incumbent online casinos is a big challenge, one often under-estimated or overlooked by casinos moving online. other services not required for land-based casinos. Although you may not have the bricks and mortar, you’re picking up other substantial costs. But if you’re willing to take on these challenges head on, opportunity beckons.
If you could offer advice to gaming operations considering an online launch, what would it be? Be realistic. You’re entering a mature marketplace with many competitors. You need more than your brand power to be successful. Know your strengths and weaknesses. If you specialise in small, local casinos in a specific market, then work to capitalise on your localisation knowledge. Be flexible. Prepare for change. It’s the one constant in this industry.
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protecting your most important gaming assets G3 speaks to Gabriel Cianchetto, Greentube’s President of Market Development, North America, about the pitfalls and challenges facing operators seeking to take their brand into multi-channel gaming, and also the practical steps and opportunities that such a step represents. It’s one that Gabriel maintains is critical to the future success of the business What are the benefits for a retail operator in recreating its casino/ brand/environment/ player experience in the online space? There are many benefits to having an online “Social Casino” for a retail casino operator and they are as follows: l Protect Your Brand – when your land-based casino customer (player) walks out the door of your establishment you must be ready to engage that player online with your BRAND across multiple devices. There many social casino options available to players, why send them to an online competitor. l Protect Your Database – your customer database is the one of the most valuable assets of any casino. Keep your data behind your firewall on your servers. l Extend Your Loyalty Program – by extending your loyalty program online you can give offers to your players on any device making more convenient and valuable to them. l Player Acquisition, Retention and Re-activation – use your social casino platform as marketing tool through loyalty based rewards, video and banner ads, reports and analytics, social community. l Entertain and Engage – leverage the expertise of the video game world through the use of gamification, gaming mechanics, etc. with world casino gaming to bring a more compelling and entertaining experience to your players.
How close can a retail operator get to achieving a recreation of their land-based offer online?
1 1 8
For an online social casino, in many ways you can create a more entertaining experience than the land based casino can offer. Most importantly, if you are trying to attract young millennials as new customers the first place they may experience your brand may be online. For your existing players, you will be able to give them a very familiar experience in offerings across to slots, table games, tournament’s, etc. In particular, there is the concept of progression in the online world, where a player can come back again and again to the game and feel like they're progressing through levels.
What are the practical steps in creating an offline/online seamless gaming experience for the player? This is a big question and it depends on who you are as a casino operator. What resources do you have available from a monetary, technical, strategic planning, online gaming, online marketing and operational standpoint. If you are very large casino operator with multiple properties across many states or country’s you may decide to acquire the skills needed to plan, build and operate your own social casino. Or you may decide to partner with a company like Greentube and use the GreentubePro platform as the way to create your online social casino experience. Some of the practical steps would include the following: l Deciding on which brand you will use online l Determine if you will build your platform within Facebook to leverage the social graph or build a pure .com version, or both.
Gabriel Cianchetto, Greentube’s President of market development, north america
The most important thing for a smaller operator is to manage expectations about what an online social casino will do for them. Yes, there have been many missteps and casino operators feel burned by past experience. This is new ground for the casino industry and the business models, technology and providers are evolving to bring better solutions to the market. Education and knowledge is key for the operator, a fundamental understanding of real money vs free 2 play virtual goods model is critical.
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l Choose to build internally or go with a platform provider.
the primary purpose and priorities of goals may be different depending on scale.
In a word, Critical. Stay in the past at your own risk.
l Decide what user interface, including navigation, colours schemes, features and functionality will determine your customer experience.
Are there any additional regulatory factors that should be considered when considering this solution?
There have been lots of missteps from smaller operators into online gaming - what’s the big difference now in recreating a location successfully online and how should operators manage their expectations?
l Work hand in hand with your designer (or platform provider) to flush out the user experience design (UX). l What type game of content will available on your site, slots, poker, bingo, blackjack, etc
For an online social casino solution in the U.S., no not at this time. For real money gaming, there are a host of regulatory factors depending on the state. Right now, in the U.S. only New Jersey, Delaware and Nevada have passed online real money gaming legislation.
l Determine who will provide that content and where it will come from.
What should operators focus upon in the creation of their online equivalent?
l Prepare for the build with a realistic launch date and interim milestone dates that can be met. l Once the site is launched make sure you have technical and customer support in place. l Be committed and prepared to have a realistic marketing budget and the talent, whether internal or external to execute your plans, l Have the right reporting and analytics tools in place to track you success and ROI.
What scale of gaming operation is this suitable for - ie. multi chain, single site? A good social casino solution can be suitable for any size client, small to large. Keep in mind that
Extending their brand and loyalty program online with an engaging and exciting platform to provide a home for their existing players and use that platform to market and get those players back through the casino door.
How much land-based technology is linked to the online gaming experience? CRM, payment solutions, loyalty programmes, incentive schemes etc.? It can be all of the above that you mentioned and depends on what makes sense for the casino operator.
How important is the exposure and expansion of a retail gaming brand into the online space at this time and into the future?
The most important thing for a smaller operator is to manage expectations about what an online social casino will do for them. Yes, there have been many missteps and casino operators feel burned by past experience. This is new ground for the casino industry and the business models, technology and providers are evolving to bring better solutions to the market. Education and knowledge is key for the operator, a fundamental understanding of real money vs free 2 play virtual goods model is critical.
Who are the players that are looking for this solution and is it worth the investment to target them? As I stated in the question above we are in the very early stages of the market for online whitelabel social casino solutions for casino operators. Essentially, we are really talking about a version of cloud computing here offering a particular service. It is certainly worth the investment if you have your act together with the right solution, business model, marketing, PR and sales strategy in place. Is there risk, of course, any good opportunity comes with it. 1 1 9
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GTeCh has launched its new mY ChoiCe multigame in latin american following installation of the games in 13 nevada/ alpamayo Group casino gaming halls. The nevada/alpamayo Group operates more than 10,000 slot machines in 113 casinos across Peru, and the games are available in their money money and Fargo properties. “GTeCh has developed a strategic partnership with our group, not only through consistent technical support, but also marketing support and ongoing development analysis of each product in its portfolio, including the mY ChoiCe multigame,” said nevada/alpamayo Group President and Ceo Felix rosenberg. “We’re pleased that GTeCh offers this support not only in lima, but at all our locations, many of them in remote provinces far from the capital city.” The mY ChoiCe multigame is now available at the nevada/alpamayo Group’s money money and Fargo casinos. offered on the new prodiGi VuTm cabinet exclusively for latin america, GTeCh’s mY ChoiCe multigame features nine different game suites.  each suite includes four distinct titles from GTeCh’s proven SPielo core games library, including player favorites from around the world.
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The release of hybrid Blackjack developed in cooperation with uplay1™ is designed to increase betting activity from existing players by offering unlimited seats, a mix of higher and lower bet minimums which are ideal for engaging new and existing blackjack players. The Games marketing 21+3 and Perfect Pairs Blackjack sidebets games further provide more betting opportunities in-game for the blackjack player. Kfir Kugler, Ceo of ezugi said: “Blackjack is one of the most widely played casino games in the world and with many operators finding it difficult to differentiate themselves, hybrid Blackjack and blackjack sidebets, provides revenue enhancing solutions to grow their existing blackjack player base and attract new players. as a business we are committed to providing our clients with customizable market leading revenue generating products, games and features such as these and our improved games lobby which are available on all platforms and through all channels.”
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hit utopia is a local side-bet jackpot system for all table games where its global scale empowers local casinos to attract players from competitors with the highest cash prizes and first-time visitors with targeted “experiences you can’t buy.” Knowing that most current players only want to win cash, that this group only account for about 5% of a population, and that first-time visitors cannot be attracted with cash, a focus on something else than cash to attract the 95% of the population is a logic step.
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Since the launch in april 2014, two experiences you can’t buy were already won. one winner viewed the monaco Grand Prix from the yacht of Jenson Button and partied till late with drivers and celebrities. The global dealer incentive feature where dealers dealing hit utopia can win cash prizes on a monthly basis is not only loved by the dealers, but also by management as they receive valuable information about their dealers. in december a dealer won uS$ 5.000. hit utopia is offered on an exclusive basis so
participating casinos benefit the most in their region. hit utopia further guarantees cash prizes, arranges experiences you can’t buy and manages the system so the casino can sit back, relax and see how hit utopia works for them. hit utopia, founded in 2010 by dennis Korthouwer, is a multi-million dollar development backed amongst others by former land-based and online casino Ceos. With david Charnock (ex-TCSJohnhuxley) leading the global roll-out and the product already installed nearly 100 times on 3 continents including uSa and on cruise lines, casinos can still claim there exclusivity in regions where the company is not yet active.
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Better business by extension
Rory Shanahan, head of marketing & B2B Social Products for interactive at Scientific Games
Scientific Games’ Rory Shanahan explains the benefits of brand extension into multi-channel solutions for all operators
It’s critical to the long-term success of any offline operation to begin engaging their players online as well, whether with online wagered options, social casino-style options, or a combination of the two. Are there any additional regulatory factors that should be considered when considering this solution? This depends on the solution pursued and the jurisdiction in which a traditional operator competes. If the solution offered online is for realmoney gaming, there are various levels of regulatory approvals needed from the operator and their game content suppliers. If the online experience is “social casino style” or a “freemium” offering, which has proved to work very well in jurisdictions without online wagering like many parts of the United States, there are significantly fewer (if any) regulatory factors to consider. The content, though capable of monetization at significant rates, is an entertainment experience, not a true gaming experience.
What are the benefits for a retail operator in recreating its casino/brand/environment/player experience in the online space?
in-casino experience with a simultaneous deployment of those games online and for mobile devices.
The key benefit to a retail operator is that they are able to extend their brand of gaming entertainment beyond the walls of their establishment, and with the right mix of gaming content online and offline, give their players the choice to play the games they love wherever they prefer. Whether in a free-play or wagered online format, the increased touch points with players, providing the games they enjoy when and where they want to play those games, can dramatically increase the total value of those players to the operator’s business.
We’ve seen tremendous success online with game content that operators also offer in person. In our experience, when a game is a hit in one channel it tends to perform well through all channels. In the UK, for example, the content produced by our Barcrest game studio, like Rainbow Riches or Crown Gems, performs very well in the high street shops and outperforms its competitive set when released online by those same operators.
How close can a retail operator get to achieving a recreation of their land-based offer online? The top games suppliers in the industry will continue to set themselves above and apart from the competition by enabling operators to offer the exact same content in every channel through which they engage their players. This is a select few companies when you combine the retail or
In the US casino markets, we’re seeing similar success by offering games from our Williams studio like Bier Haus and Raging Rhino - already popular with players in terrestrial casinos - for deployment in social casino format for those operators to their players online and through native iOS and Android apps. The content that performs offline is something these players have come to enjoy, and want to enjoy both on the casino floor and between trips to the physical property.
What should operators focus upon in the creation of their online equivalent? At the end of the day, the best content on their land-based floor should be replicated online for their players, in both laptop/desktop formats as well as mobile (tablet and smartphone) formats. This will ensure they’re giving the choice that modern players demand, to play the games they love where they want to, when they want to, and in what format they prefer.
How important is the exposure and expansion of a retail gaming brand into the online space at this time and into the future? Regardless of the jurisdiction, at this point in the ongoing evolution of the iGaming and Social Casino industries, there is no shortage of opportunities for retail and casino gaming brands to engage players with content they enjoy online and in mobile format. It’s critical to the long-term success of any offline operation to begin engaging their players online as well, whether with online wagered options, social casino-style options, or a combination of the two. 1 2 1
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