THE BUSINESS FOR www.G3imagazine.com

GLOBAL GAMES AND GAMING MAGAZINE I APRIL 2013

ANALYSIS IOM’S INTERACTIVE SECTOR THE ONLINE GAMING ISLE

FOCUS IN SHFL’S BATTLE WITH LT

REVIEW GLI ROUNDTABLE N. AMERICA ABOVE AND BEYOND

MARKET REPORT - PART II VLT AND EXPANSION ACROSS THE CANADIAN MARKET CANADIAN CHARTER

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© 2012 Triumph International, Inc. under license from Bravado Merchandising. All rights reserved. © 2012 Bally Technologies. All Rights Reserved. Images are for illustration purposes only and are subject to change. “Sometimes people ask me why GLI goes to the time and expense to produce the Roundtable each year in three areas around the globe. And my answer to that question Contents can be summarised by a comment I received from a APRIL 2013 regulator during the Roundtable. He said to me, ‘GLI always goes above and beyond for the regulators we serve.’ And that is it in a nutshell.” James Maida, President and CEO, GLI. Page 32

CANADIAN CHARTER The second part of G3’s extensive market report covering the gaming sectors in Canada. This issue features the provinces of Newfoundland, Prince Edward Island, and Saskatchewan. Page 34

MEXICO’S GAMING PROLIFERATION PLANS - PAGE 10

CYPRIOT LAST RESORTS MGM’S HO TRAM STOP Resort-style are planned to MGM withdraws from Vietnam’s Ho turnaround fortunes in Cyprus Tram Strip casino development PAGE 9 PAGE 16

BMM TEST LABS OPENS LAS VEGAS HQ - PAGE 20

CAESARS STRIP UNVEILING ARGENTINE CLAMPDOWN Caesars Entertainment and Argentina’s government imposes Gansevoort Hotel Group’s Strip plans measures to prevent credit card play PAGE 12 PAGE 19

HORSESHOE OPENS OHIO’S FOURTH CASINO - PAGE 24

LIGHTENING QUICK VALIDATION Thunder Valley Casino Resort upgrades to MEI - Pg 26

I +31 020 569 2740 I BallyTech.com THE GAMING ISLE GLI ROUNDTABLE - ABOVE & BEYOND - PAGE 32 The Isle of Man’s interactive

gaming sector - Pg 52 SHFL GAMBLES IN MACAU - 30 April 2013 PAGE 3 Viewpoint APRIL 2013

It’s been a bit of a yin-yang month. from the Ho Tram Strip, was The international news has been equally matched bad news - dominated by major casino though comments on G3Newswire development announcements, regarding adequate ‘due diligence’ significant closures and provide food for thought on that withdrawals, and tax increases one. We might have thought the across the casino sector. The news same, but we are not affiliated with the comments in any way!

INTERNATIONAL The news is also legislation-centric with Governments around the NEWS HAS BEEN world pursuing increasingly liberal policies towards gaming, rewriting DOMINATED BY legislation in favour of casino DEVELOPMENTS, operators, while simultaneously drawing up draconian taxation CLOSURES AND regimes to cripple them. The WITHDRAWLS, AND market most responsible for this yin-yang attitude to gaming is TAX INCREASES Latin America, with multiple stories this month concerning tax ACROSS THE CASINO changes - none of them good. SECTOR. Helping us to cover the market changes in Latin America, G3 has that Genting would be opening on enrolled the skills of James the Vegas Strip, quickly followed Marrison, who has been reporting by Caesars was both welcome and on the gaming market in the region surprising news, since predictions for the best part of a decade. were that Vegas wouldn’t see a James is providing news for major new opening in the half- G3Newswire and G3 and I’d like to decade. The withdrawal of MGM welcome him to our team.

Lewis Pek Editor - Tel: +44 (0) 1942 879 291 , Email: [email protected] John Slattery Commercial Director - Tel: +44 (0)7917 166471 , Email: [email protected] Phil Martin News Editor - Tel: +44 (0)161 236 6669 Email: [email protected] Karen Southall G3 Spain - Associate Editor, Email: [email protected] John Carroll G3 Germany, Email: [email protected] James Marrison G3 Latin America, Email: [email protected] Lisa Nichols Sub Editor, Gareth Irwin Senior Designer, Paul Jolleys Production Manager, John Malin, David Addison, Bepi Mottes, Alexandre Rotenberg Contributors, Jennifer Pek Subscriptions Manager John Pek Commercial Administrator, Cover Image: Gareth Irwin

For sales enquiries contact: John Slattery , Tel: +44 (0)7917 166471 Email: [email protected] For editorial enquiries contact: Lewis Pek , Tel: +44 (0)1942 879 291 Email: [email protected] Gaming Publishing Limited, Samson House, 457 Manchester Road, Manchester M29 7BR, UK April 2013 PAGE 4

Calendar APRIL 2013 - JULY 2013

APRIL 2013 APRIL 2013

FADJA - ANDEAN GAMING SOUTHERN GAMING TRADE SHOW SUMMIT & WORLD Date: Date: April 3-4, 2013 April 23-25, 2013 Location: Location: Mississippi Coast Coliseum & Corferias, Bogata, Colombia Convention Center, Bi – US Organiser: Organiser: 3A Producciones SAS, BNP Media Gaming Group Carrera 41 # 6-35 Oficina 2401 W Big Beaver Road, Suite 700 901 A Edificio Géminis Cali, Troy, Michigan, US MI 48084 Colombia Contact: Lesley Grashow Contact: Jose Anibal Aguirre Tel: +1 203 938 2782 Tel: +572 551 8474 Email: [email protected] Email: [email protected] Web: www.sgsummit.com Web: www.fadja.com MAY 2013

GAMENET EXPO - GREECE SAGSE GAMING PANAMA Date: Date: Looking to May 8-9, 2013 April 5-7, 2013 Location: Location: ATLAPA Convention Center, Panama EKEP Exhibition Center, Lamia Advance your City, Panama National Rd Organiser: Monografie SA, Avenida Metamorfosi, Greece Alvear 1883, Loc. 21, Buenos Aires Organiser: bottom line? 1129 Argentina GAM Advertising/GameNET Tel: +54 11 4805 4623 13 Herakleous Str, Aharnai Email: [email protected] You designed the answer. Athens Greece 136 73 Web: www.sagsepanama.com Contact: Jose Anibal Aguirre MEI has made it possible with Tel: +30 210 27 74 201 Email: [email protected] G2E ASIA 2013 Web: http://gamenetexpo.gr Date: May 22-23, 2013 Location: The Venetian Macau, Macau MEI has redefined expectations of note IGAMING FORUM, SWEDEN acceptors yet again with SC Advance. Date: Conference Opens: April 10-11, 2013 Tuesday 9:30am - 5:00pm Enhancements were driven by customer Wednesday 10:15am - 5:30pm Location: requests to improve upon core measures Thursday 9:30am - 1:00pm Grand Hotel, Stockholm, Sweden of performance---acceptance, speed and Exhibition Opens: Organiser: Wed-Thurs 10am - 5:30pm security---and do so in a manner that is Midfield Media Contact: Phoebe Wong backwards compatible with the existing S:t Eriksplan 11, 2 tr, installed base. Organiser: Reed Exhibition 113 20 Stockholm, Sweden Companies, 39/F Hopewell Centre Contact: Goran Kandic 183 Queens Road East By maximizing the number of street-grade Tel: +46 8 650 02 70 Wanchai, notes accepted, while simultaneously Email: [email protected] Tel: +852 2965 1686 increasing the security against counterfeit Web: www.i-gamingforum.com Email: notes, the MEI SC Advance is a step forward on [email protected] on the most important measure... Web: www.G2EAsia.com GIGSE 2013 - US operator profitability. Date: April 23-25, 2013 INTERNATIONAL MASTER Learn how to specify cashboxes in your Location: OF , CANADA Date: property that fill up faster than ever before. San Francisco, US May 8-10, 2013 Contact +44 (0) 118 938 1100 to Organiser: Location: Clarion Events schedule a SC Advance demonstration. InterContinental Montreal Fulham Green, Bedford House Montreal, Quebec, Canada 69-79 Fulham High Street Organiser: London, UK SW6 3JW International Masters of Gaming Proven performance. Increased profits. Contact: Ewa Bakun Law, 3885 Northbrook Drive Tel: +44 (0) 207 384 8116 Boulder, CO 80304 meigroup.com Email: Tel: +1 303 449 9955 [email protected] Email: [email protected] MEI is ISO 9001:2000 certified. ©2013 MEI. All rights reserved. Web: www.gigse.com Web: www.gaminglawmasters.com

April 2013 PAGE 6 MAY 2013 JUNE 2013

GAMING EXPO BELGRADE ISRA-EL EUROPEAN Date: CONGRESS May 21-23, 2013 Date: June 3-6, 2013 Location: Location: Belgrade Fair, Hall 5, Belgrade, Hilton Hotel, Tel Aviv – Israel Serbia Contact: Nenad Radojkovic Organiser: Organiser: Multi Solution Consult, Ortra Ltd, 1 Nirim Street Aleksandra Stamboliskog 3a PO Box 9352 Tel Aviv, Israel Belgrade, Serbia 11000 Tel: +972 3 638 4444 Tel: +381 11 266 1991 Email: [email protected] Email: [email protected] Web: www.el2013.org Web: www.see-geb.com

IGAMING SUPER SHOW 2013 G2E ASIA 2013 Date: June 10-14, 2013 Date: May 22-23, 2013 Location: Location: The Amsterdam RAI, Amsterdam, The Venetian Macau, Macau The Netherlands Conference Opens: Contact: Marit von Stedingk Tuesday 9:30am - 5:00pm Organiser: Wednesday 10:15am - 5:30pm iGaming Business Thursday 9:30am - 1:00pm 33-41 Dallington Street Exhibition Opens: London, UK EC1V 0BB Wed-Thurs 10am - 5:30pm Tel: +44 207 954 3417 Contact: Phoebe Wong Email: [email protected] Organiser: Reed Exhibition Companies, 39/F Hopewell Centre Web: 183 Queens Road East, Wanchai, HK www.igamingsupershow.com.org Tel: +852 2965 1686 Email: [email protected] CANADIAN GAMING SUMMIT Web: www.G2EAsia.com Date: June 17-19, 2013 Location: Palais des Congres Montreal, CIJUEGO PERU 2013 Quebec – Canada Date: Contact: Chris Torry May 29-30, 2013 Location: Organiser: Westin Hotel & Convention Center, MediaEdge Communications Lima, Peru 5255 Yonge Street, Suite 1000 Organiser: Toronto, Ontario, Canada M2N 6P4 Victoria Gaming Tel: +1 416 512 8186 Regus Cronos El Derby, Av el Derby Email: [email protected] 055, Edificio Cronos, Torre 1 Piso 7 Web: Santiago e Surco, Lima www.canadiangamingsummit.com Contact: Lesley Grashow Tel: +51 1716 2728 JULY 2013 Email: [email protected] Web: www.cijuego.com WORLD GAMING EXECUTIVE SUMMIT 2013 Date: July 9th-11th, 2013 GAMING REGULATORS Location: EUROPEAN FORUM W Hotel, Barcelona, Spain Date: May 29-June 2, 2013 Contact: Kellie Jenkins Location: Jersey, Channel Islands, UK Organiser: Organiser: Terrapinn Ltd Danish Gambling Authority Wren House, 43 Hatton Garden Helgeshoj Alle 9, Hoje Taastrup London EC1N 8EL, UK Denmark 2630 Tel: +44 207 827 5955 Tel: +45 72 388937 Email: [email protected] Email: [email protected] Web: Web: www.gref.net www.terrapinn.com/2013/wges

April 2013 PAGE 7

News INTERNATIONAL UPDATE

DER LEITER DER Glücksspielkommission Uruguays, Javier Chá, verlangte dringende Änderungen an den Glücksspielgesetzen des Landes und machte mangelnde Eingriffe der Regierung für das Emporkommen des ille - Cypriot casinos last ‘resorts’ galen Glücksspiels verantwortlich. DIE TESTEXPERTEN VON BMM TESTLABS Resort-style casinos are planned öffneten die Pforten ihres neuen Geschäftssitzes in Süd-Nevada und machten to turnaround the fortunes of damit den Weg frei für ein fortgesetztes Wachstum und die Schaffung neuer economically strickened Cyprus Arbeitsplätze in der Region. Die Nutzungsfläche der Räumlichkeiten an der As the economic problems in Cyprus Adresse 815 Pilot Road, Suite G, in Las Vegas, tumble to a climatic head, the process to wurde um ca 2.000 Quadratmeter erweitert bring large-style resorts casinos to the und es bestehen bereits Pläne für eine weit - Greek-owned Cyprus, south of the border, ere Ausdehnung durch die Einbeziehung eines Nachbargebäudes. appears to have been kick-started. Looking at ways to boost its failing NACHDEM BERICHTET WURDE, DASS economy, the government has said it aims Genting den nicht fertiggestellten Echelon- to open the first casinos within two years. Standort sanieren wolle, wurde seitens It has instructed the Cyprus Caesars Entertainment bestätigt, dass man zusammen mit der New Yorker Organisation (CTO) to review the analyses Luxushotelmarke Gansevoort Hotel Group it conducted in 2007. The CTO predicts durch die Schaffung eines intimen urbanen annual revenues for the state would be Resorts am Standort von Bill’s Gamblin’ Hall & between €35 and €50m. Saloon die Schaffung eines bislang einzigarti- gen Las Vegas-Erlebnisses plane. New Minister of Tourism George DIE ARGENTINISCHE REGIERUNG GAB Lakkotrypis has said that with regards to bekannt, dass sie Kreditkartengeschäfte mit the casino issue, the ministry needs to ausländischen Casinos und Online-Spiel-Sites assess all the available information before The casinos in the The number of casinos to be allowed will blockieren würde. Die Maßnahme, die am 15. März wirksam wurde, ist der letzte einer making its final decision. He referred to Turkish-controlled be determined by the Council of ganzen Serie von Schritten, mit denen der the social dimension of the issue, replying north generated Ministers, after analysing a study to be Abfluss von Dollars aus der Zentralbank to questions about the criteria of around €600m in carried out on the subject. eingeschränkt und der argentinische Peso admission to the casino etc. annual revenues. gestärkt werden soll. There are some 25 The previous government had doggedly MIT SEINEN 1200 Glücksspielautomaten He described the issue of casinos as being fully-fledged refused to consider introducing casinos und 300 Spieltischen hat Manilas neues urgent and the government hopes that in casinos in Turkish despite Greek Cypriots gambling fortunes Casino Solaire bereits in den ersten 12 two years the first casinos will be Cyprus. at casinos in the north of the island. Stunden 25.000 Menschen angezogen. Das operating on the island. am 16. März eröffnete, $ 1,2 Mrd. teure Casino hat die Philippinen in ihrem Bemühen, nach Macau und Singapur zum drittgrößten The Ministry of Justice and Public Order Glücksspielmarkt zu avancieren, ein gutes has completed its first draft of a bill Aristocrat and GiGames Stück vorangebracht. Der Standort wurde von paving the way to resort casinos in the der Bloomberry Resorts Corp. erschlossen, die south of the island. Minister Ionas sich im Besitz des Hafenbetreibers und to work together in Spain Milliardärs Enrique Razon befindet und ist das Nicolaou informed that the only aspect erste von vier Milliarden Dollar teuren Resorts, that was outstanding was the level of Aristocrat Technologies has domestic install base and a die in schneller Abfolge in der Manila Bay taxation that the new casinos would pay. signed a deal with GiGames, national logistics and rapid eröffnet werden sollen. That, he said, would be decided by the part of the CONEI Corporation, response network vital to our CASINOS IM SÜDAFRIKANISCHEN Ministry of Finance although the Ministry to partner in sales, after-sales operational needs. Their local Westkap wurden mit einer von Ministern als would recommend four or five betting support and other areas to knowledge and expertise in "Sündensteuer" bezeichneten Abgabe belegt. taxation systems. help grow each other’s this market provide the perfect Die Steuererhöhung um 2 Prozent wird position in the Spanish match. Customers will benefit jährlich etwa 25 Millionen Rand zusätzlich in Mr. Nicolaou explained: "The bill we have market. The agreement will from not only the ready die Staatskassen spülen. Entsprechend einer Änderung der Provinzgesetzgebung, die das drafted meets recommendations made by cover currently available and availability of our games but Glücksspiel und Wettrennen in der Provinz the Cyprus Tourism Organisation on future Aristocrat games also a proven nation-wide regelt, wird eine Steuererhöhung um resort casinos. We have examined arcade/salon and bar markets, back-up service that is so pauschal zwei Prozent auf alle sechs legislation used in other countries, we as well as potential machine crucial in a diverse mix of Einnahmenkategorien angewendet werden. have incorporated strict provisions both deployments in other gaming single and multi-site venues.” ARISTOCRAT TECHNOLOGIES HAT as regards its operation and the protection sectors including casino and bekannt gegeben, dass das Unternehmen of the citizen.” networked gaming operations. Juan Lao, President of CONEI, eine vertragliche Vereinbarung mit GiGames, added: “We have been die zur CONEI Corporation gehören, getroffen The Minister believes the operation of a Having established a firm base impressed by the quality of hat, wonach man im Bereich des Verkaufs und des Kundendienstes sowie in anderen bricks and mortar casino would raise in the specialised salon Aristocrat content and see this Marktbereichen zusammenarbeiten will, um more money than internet gaming. The segment and now entering the as a fit with our own die Positionen beider Unternehmen am government would receive money before broader bar market, Aristocrat successful brand of sales spanischen Markt auszubauen. Die the casinos open with an initial is seeking to maximise games. The additional variety Vereinbarung betrifft aktuell erhältliche sowie investment coming from the chosen opportunities in Spain. The will enhance the status of our zukünftige Aristocrat-Spiele, Spielhallen/- salons und den Gaststättenmarkt sowie auch operator. agreement with GiGames will operations estate and offers die potenzielle Automatenplatzierung in weit - go beyond simple box and customers a unique games eren Glücksspielsektoren, einschließlich “Revenue will come not only from betting game sales, explained General portfolio that will be extremely Casinobetriebe und vernetzte but also from the standing annual income Manager – EMEA, Pedro De hard to beat in terms of both Glücksspielangebote. generated from the operation of the Matos. “GiGames offer an entertainment quality and casino,” he explained. established, significant performance.”

April 2013 PAGE 9 News INTERNATIONAL UPDATE MALTAS VERFASSUNGSGERICHT HAT entschieden, dass das Verbot der Werbung für Glücksspiel gegen das Recht auf Redefreiheit verstößt. Ein Richter namens Camilleri war der Auffassung, dass es nicht Mexico’s proliferation plans zu rechtfertigen wäre, Werbung für staatlich lizenzierte Casinos zu verbieten, solange diese für die malteser Öffentlichkeit Mexico prepares for another zugänglich wären, da ein solches Verbot eine Einschränkung des Rechts auf freie gaming growth spurt with 50 Meinungsäußerung darstelle. new gaming centres planned DER GLÜCKSSPIELMARKT IN NEW Mexico wuchs im Jahre 2012 um fast vier Mexican gaming is gearing up to another Prozent bei einem Nettogewinn für den Staat growth spurt with as much as US$150m von insgesamt mehr als US $ 1 Mrd. aus to be invested in the gaming industry in StammesCasinos, und nicht prof - 2013. According to Miguel Ángel Ochoa itablen Einrichtungen. Während jedoch die StammesCasinos ein solides Wachstum Sánchez, a spokesman for the Mexican erlebten, verzeichneten die fünf Racinos des Gaming Association (AIEJA) as many as Bundesstaates einen Rückgang des 50 new gaming centres could open before Nettogewinns um etwa drei Prozent. the end of the year. Insgesamt betrug der Nettogewinn staatlich - er Glücksspieleinrichtungen im letzten Jahr $ 1,01 Mrd., was einer Steigerung gegenüber Gaming in Mexico has proliferated greatly 2011 um 3,9 Prozent entspricht. since 2005 when the government granted the Mexican Interior Ministry (SEGOB) IN EINEM UNERWARTETEN SCHRITT betrat die Genting Group den Strip- the right to grant licences. Although Casinomarkt von Las Vegas, nachdem sie Mexican gaming laws prohibit fully The opening of City officials closed 12 casinos down in Boyd Gaming den ins Stocken geratenen fledged casinos, gaming centres are often Playboy Cancun February due to irregularities on site and Standort Echelon für $ 350 Mio. in bar large scale offering in many instances was expected to are now looking at ways to change abgekauft hatte. Genting erklärte, dass die Gruppe das unvollendete Projekt in Resorts , slot machines and bingo herald a new age building and zoning laws so that no more World Las Vegas umwandeln wird. Die on site. Visitor Numbers are on the up in Mexican casino casinos will be allowed. While this has Arbeiten dazu sollen 2014 beginnen und die according to Mr. Sánchez who said that gaming when it led to casino workers demonstrating Eröffnung der Einrichtungen mit ihren 3500 they went beyond the two million mark in debuted in against the closures, the municipal Hotelzimmern, einem Kongresszentrum und einem Theater für 4000 Zuschauer ist für 2011 and could reach three million by the December 2010. government looks set to limit the growth 2006 geplant. end of 2013. However only eight of gaming within the city limits and has months later a announced that they will be holding a DAS US-AMERIKANISCHE Mr. Sánchez said that this new growth in firebomb attack at referendum on the issue in the coming Glücksspielunternehmen Entertainment Gaming Asia wird in diesem Monat sein the sector would again be particularly Casino Royale in weeks. Locals will also be able to vote on zweites Casino in Kambodscha eröffnen. strong along the frontier and in tourist Monterrey left 52 new planning laws which would Das Unternehmen, das von Melco destinations especially beach resorts. In people dead and a expressly forbid the construction of any International aus Macau unterstützt wird und Mexico there are around 350 gaming nation in mourning. more casinos in the city. an der New Yorker NASDAQ-Börse notiert ist, offenbarte darüber hinaus, dass die centres now in operation, which Einnahmen des Unternehmens 2012 auf combined, house 90,000 slot machines. mehr als US $ 20 Mio. angestiegen sind. Around 330 gaming licences are pending. High slot sales sees EGT MIT DER INSTALLIERUNG SEINER Blackwave-Automaten im neu eröffneten Hotel Casino Carrasco in Montevideo hat set up office in Tanzania Zitro einen Fuß in den Glücksspielmarkt Uruguays gesetzt. Das Hotel Casino Following close on the heels of Mwananyamala, Africa Sana, Carrasco ist mit Zitros Automaten der Concrete plans for neuesten Generation ausgestattet worden, installing its first video slots in Madukani and many others. nämlich mit Blackwave-Automaten mit Armenia, Euro Games The company is enjoying a Spielen wie Ultimo Bingo en Paris, new resort casino Technology has completed successful partnership with PowerManiaBonus, Bingo Dreams, Lucky another breakthrough with a Lotus Valley – an operator Hero und Fishmania, die alle zum ersten am An Israeli business man wants to build a Markt erscheinen. €500m resort casino on the Greek island of new international office being with numerous gaming halls Crete. The plan is to develop a five-star set up along with its first game and casinos. MGM RESORTS HAT SICH AUS DEM hotel unit comprising luxury tourism installs in Tanzania, East geplanten Projekt auf dem Ho Tram Strip, Africa. EGT has set up a new “We have already received a Vietnams erstem größeren integrierten accommodation, a conference center, a office in the country’s business number of requests for our Resort, zurückgezogen. Projektträger Asian spa, sports facilities, a shopping mall, a Coast Development bestätigte, dass MGM capital Dar es Salaam. products from influential Cretan theme park and a casino. Resorts das Projekt nicht länger leiten wür - casino operators in the country den; die Gruppe gab jedoch keine Gründe Boyko Boev, Director of EGT including: Le Grande Casino, für einen solchen Rückzug an. Sie sucht jetzt The Mayor of Hersonissos, Zacharias Africa, said: “EGT customers Sea Cliff and New Africa. As a nach einem "geeigneten neuen und interes - Doxastakis, said the group has warned the santen Markennamen" für ihr erstes Resort. are delighted to know that we result, EGT plans new development would only go ahead if the are close to them and are installations in Kenya, South DAS GRÖSSTE CASINO AUSTRALIENS, government considerably speeds up the always ready to assist them in Africa and Tanzania,” said Mr. das Crown Casino, musste die Polizei ein - licensing process. The group behind the any way. We provide technical Boev. “I predict a successful schalten, nachdem Betrüger mit hohen plan want the Finance Ministry to activate a Spieleinsätzen bei einem Kartenspiel A$ 32 support which contributes future for EGT in the African Mio. (US$ 33 Mio.) ergaunerten. Durch Zugriff law dating back to 1994 which provides for further to the convenience of market. EGT is expanding and auf das Bildmaterial der hoch auflösenden the operation of a casino on Crete. our partners in Tanzania.” soon we shall also be present Überwachungskameras, mit denen aus - Businesses people on the island have in other countries on the geteilte Karten herangezoomt wurden, kon - pushed for two casinos, one in the east and nten die Komplizen ausreichend Recent installations have been continent like Congo, Ghana, Informationen gewinnen, um another in the west. completed in some of the Central Africa, Angola, vorherzusagen, welche Karten ausgeteilt major gaming halls in Dar es Equatorial Guinea, Uganda werden würde Salaam, Kumekucha, and many more.”

April 2013 PAGE 10 NOVOMATIC GLOBAL ATTRACTIONS

IInternationalnternational Sales: JensJens Halle, Phone: +43 2252 606 234, [email protected], wwwwww.austrian-gaming.com.austrian-gaming.com News INTERNATIONAL UPDATE

EL DIRECTOR DEL COMITÉ SOBRE EL Juego de Uruguay, Javier Chá, ha hecho un llamamiento para que se produzcan cam - bios urgentes en la legislación uruguaya sobre el juego, achacando el aumento del Caesars unveils Strip casino juego ilegal a la falta de intervención por parte del Gobierno. They said that Vegas wouldn’t LA EMPRESA ESPECIALIZADA EN have a new casino for at least ensayos BMM Testlabs ha inaugurado su nuevo cuartel central en Nevada del Sur, lo five years - now there’s two que allana el camino a un crecimiento con - tinuado y a la creación de oportunidades Following the news that Genting is to de empleo en la región. El espacio reciente - redevelop the uncompleted Echelon site, mente ampliado, ubicado en 815 Pilot Caesars Entertainment has confirmed it is Road, Suite G (Las Vegas), abarca 2 000 m², si bien hay planes para continuar la expan - teaming up with New York-based luxury sión a un edificio adyacente. hotel brand Gansevoort Hotel Group to launch a never before seen Las Vegas TRAS LAS NOTICIAS ACERCA DE QUE experience, creating an intimate urban Genting se dispone a redesarrollar el recin - to inacabado de Echelon, Caesars resort at the location of Bill's Gamblin' Entertainment ha confirmado su alianza Hall & Saloon. con la marca de hoteles de lujo Gansevoort Hotel Group, con sede en Nueva York, para Located at the heart of the Strip on the lanzar una experiencia nunca vista en Las prime corner of Las Vegas Boulevard and Vegas que prevé la creación de un comple - jo urbano íntimo en el emplazamiento de Flamingo Road, Gansevoort Las Vegas is TARIQ SHAUKAT, Gansevoort Las Vegas will be the fourth Bill’s Gamblin’ Hall & Saloon. planned to open in early 2014. Executive Vice instalment of the luxury hospitality brand Gansevoort Las Vegas, combined with the President and Chief following the recent success of EL GOBIERNO ARGENTINO HA HECHO nearby open-air retail, dining and Marketing Officer of Gansevoort Park Avenue in New York. públicos sus planes de bloquear las transacciones con tarjeta de crédito en entertainment complex The LINQ, Caesars Following a $185m renovation, casinos y sitios web de juego online extran - opening in late 2013, will transform the Entertainment. Gansevoort Las Vegas will feature 188 jeros. Esta medida, que entró en vigor el 15 heart of the Strip into the heart of Las Parisian apartment-style guest rooms de marzo, es la última dentro de una serie Vegas entertainment. As the only “We are confident including 19 suites, designed by Tandem de movimientos destinados a restringir el flujo de dólares fuera del Banco Central standalone boutique resort, perfectly that Gansevoort Las Las Vegas. An intimate lobby space will para impulsar así el valor del peso argenti - situated at the centre of the Strip, Vegas will be one welcome guests upon arrival, with a no. Gansevoort Las Vegas aims to redefine the of the most exciting redesigned lobby bar, ultra-lounge, retail boutique hotel experience. Glitterati and destinations in Las outlets, and 40,000 sq. ft. casino EL NUEVO CASINO SOLAIRE DE MANILA everyday guests alike will receive the providing a unique upscale energy. A congregó en sus primeras 12 horas de fun - Vegas when it cionamiento a 25 000 personas en torno a ultimate in VIP treatment and unique opens in 2014.” destination restaurant overlooking the las 1200 máquinas tragaperras y las 300 social experiences. Strip will round out the guest experience. mesas de juego del complejo. Tras su inau - guración el 16 de marzo, este casino valo - rado en 1200 millones de dólares supone el primer paso en el propósito de Filipinas Zuum signs Suzo-Happ de convertirse en el tercer mercado de juego en Asia después de Macau y Zitro installation at Singapur. Ha sido desarrollado por Bloomberry Resorts Corp, propiedad del for FutureLogic supplies multimillonario empresario dedicado a los Uruguay Carrasco servicios portuarios Enrique Razon, y se Suzo-Happ has entered into a global gaming industry. Their trata del primero de cuatro complejos de Zitro has earned a foothold in the long-term agreement to supply continual focus on every single 1000 millones de dólares previstos para Uruguayan gaming market having installed Zuum, the Slovenian detail makes them stand out. inaugurarse sucesivamente en el Puerto de its Blackwave machines at the newly manufacturer of electronic Naturally the component side Manila en un plazo relativamente corto. opened Hotel Casino Carrasco in solutions, with is key and we at Suzo-Happ LOS CASINOS DE LA PROVINCIA Montevideo. The Hotel Casino Carrasco has ticket printers from place utmost importance on Occidental del Cabo (Sudáfrica) se han visto been fitted with Zitro’s latest machines, the FutureLogic. This Preferred offering the best products golpeados con lo que los ministros han Blackwave, with games such as Ultimo Supplier Agreement focuses on alongside our customer-driven denominado un «impuesto pecaminoso», es decir, una subida fiscal del dos por cien - Bingo en Paris, PowerManiaBonus, Bingo the long-term supply of support. We are very pleased to que supondrá al año aproximadamente Dreams, Lucky Hero and Fishmania all FutureLogic’s ticket printers. to have signed this agreement 25 millones de rands extra en impuestos. entering the market for the first time. Zitro’s with Zuum.” En virtud de una enmienda a la legislación President, Johnny Ortiz, said: “We believe Jure Kolman, the CEO of provincial que rige el juego y las carreras en la provincia, se aplicará un incremento this new entrance into Uruguay will prove to Zuum, said: “We are looking Harald Wagemaker, Sales general del dos por ciento a cada una de be very satisfactory, given that our products ahead to a very bright 2013. Director of Suzo-Happ EMEA, las seis categorías de ingresos. are highly sought after in the Latin This agreement is an added: “This is the third American market.” The opening of the Hotel additional support from Suzo- Preferred Supplier Agreement CROWN CASINO, EL MAYOR CASINO DE , ha denunciado a la policía un Casino Carrasco lwas a social event of Happ and FutureLogic to for the long-term supply of fraude en apuestas concretado en una great relevance which brought together a accomplish our goals for the FutureLogic’s printers that we estafa a alto nivel en juegos de cartas por number of the country’s authorities as well coming years”.” have signed with Slovenian un importe de 32 millones de dólares aus - as businessmen and players. “This gaming manufacturers in the tralianos (unos 33 millones de dólares esta - dounidenses). Gracias al acceso a los enthusiasm infected those playing the Zitro Goran Sovilj, Regional Sales past six months. This vídeos de vigilancia de alta resolución y tras machines, who found in Blackwave an Manager at Suzo-Happ for underlines our true focus in aplicar un potente zoom sobre varias experience which rose to the occasion and Slovenia, added: “The being the local partner for our operaciones de cartas, los autores del became one of the focuses of the evening,” Slovenian electronic table customers, supplying them golpe fueron capaces de recoger informa - game manufacturers have with the industry’s best ción suficiente para predecir las cartas que Mr. Ortiz added. se iban a jugar. grown to be extremely strong, components alongside the day- respected and successful in the to-day support.”

April 2013 PAGE 12

News INTERNATIONAL UPDATE EL TRIBUNAL CONSTITUCIONAL DE Malta ha determinado que la prohibición de la publicidad sobre el juego constituye una violación del derecho a la libertad de expresión. Justice Camilleri determinó que mientras los casinos estatales con licencia estén accesibles al público maltés no es justificable prohibir su publicidad, ya que se trata de una restricción de la libertad de expresión. EL JUEGO EN NUEVO MÉXICO aumentó casi un cuatro por ciento en 2012, y los casinos tribales, los racinos y los establecimientos sin ánimo de lucro regis - traron en conjunto cifras de beneficio neto superiores a los 1000 millones de dólares. Western Cape casino sin tax Sin embargo, aunque los casinos tribales reflejaron un sólido crecimiento, los cinco Gambling and Racing Act confirmed the racinos del estado solo pudieron conseguir Five casinos in South Africa are aprox. un tres por ciento de declive en su change in the Western Cape Provincial beneficio neto. En conjunto, los establec - facing a two per cent tax hike Legislature last week. imientos del estado dedicados al juego being labelled as a ‘sin tax’ registraron 1010 millones de dólares en A casino that earns R14.2m or less per beneficio neto durante el último año, lo que supone un 3,9 por ciento más con respecto Casinos in South Africa’s Western Cape annum will be taxed eight per cent on a 2011. have been hit with what ministers are each rand of taxable revenue. Where a calling a sin tax; a two per cent tax casino’s taxable revenue is between EN UN MOVIMIENTO ESPERADO POR increase that will equate to about R25m R14.2m and R28.4m, its tax will jump to pocos, el grupo Genting se ha introducido en el mercado de los casinos de la franja extra in tax a year. The five casinos in the “This is money that 10.5 per cent from 8.5 per cent, while a de Las Vegas al adquirir el paralizado region are GrandWest, operated by will be used to casino generating R71m or more will recinto Echelon de manos de Boyd Gaming Sunwest International, Caledon Casino, improve service liable to pay 19 per cent, up from 17 per por 350 millones de dólares en efectivo. operated by Century Casinos, Casino delivery. This cent. The taxes will come into effect as Genting declaró que transformará dicho Mykonos, owned by West Coast Leisure, soon as Premier Helen Zille signs the bill proyecto inacabado en Resorts World Las proposed flat tax is Vegas empezando las obras en 2014 y con Garden Route Casino and the Golden in effect a sin tax into law. la inauguración prevista para 2016, de Valley Casino, run by Worcester. on casinos forma que el complejo dispondrá de 3500 operating in our Finance, Economic Development and habitaciones de hotel, un centro de congre - The market boasts some 97 tables and province.” Tourism MEC Alan Winde, commented: sos y un auditorio con capacidad para 4000 personas. 3,767 machines. According to an ALAN WINDE, “The additional taxation that will accrue amendment to the provincial legislation, Finance, Economic as a result of the proposed amendment ZITRO HA CONSEGUIDO ESTABLECERSE which governs gambling and racing in the Development and will add an additional R25m per annum por primera vez en el mercado del juego province, a flat two per cent tax rate Tourism MEC. to the Provincial Revenue Fund.” uruguayo tras instalar sus máquinas Blackwave en el recientemente inaugurado increase will be applied to each of six Hotel Casino Carrasco de Montevideo. El revenue categories. The Western Cape Hotel Casino Carrasco se ha equipado con máquinas de última generación de Zitro: la Rank Group selects WMS Blackwave, con juegos como Último Bingo en Paris, PowerManiaBonus, Bingo Dreams, Lucky Hero y Fishmania, todos Southampton bids Interactive’s online slots ellos nuevos en el mercado. WMS Interactive has entered Interactive, said: “The alliance ARISTOCRAT TECHNOLOGIES HA into a multi-year, online with The Rank Group is anunciado un acuerdo con GiGames, parte welcome in April de CONEI Corporation, para colaborar en el content, licensing agreement another premier endorsement Southampton council in the UK is finally ámbito de las ventas, el soporte posventa y with Rank, giving the group’s of WMS’ online gaming otras áreas, de forma que esto ayude a pushing on with the legal process of online brands, capabilities and demonstrates reforzar la posición de ambas en el merca - awarding one of the new ‘large’ style Meccabingo.com and our growing momentum in do español. El acuerdo cubrirá los merca - dos de las salas recreativas y los bares casino licences, which it believes will be the Grosvenorcasinos.com, access expanding the worldwide ‘cornerstone’ of the keenly-awaited Royal disponibles actualmente y en el futuro por to WMS’ online library of audience for our gaming parte de Aristocrat, así como los poten - Pier project, which the council chiefs wants games including The Wizard content. I’m confident that as ciales desarrollos de máquinas en otros to use to reconnect the waterfront with the of OZ, Zeus, Reel 'Em In and we bring new levels of sectores del juego, incluidos los casinos y city centre. Casino applications will be las operaciones de juego conectadas en Jackpot Party games. excitement and entertainment red. welcomed from April and evaluated from to its online communities we August onwards with the process of The WMS video slot content is will achieve great success OLYMPIC CASINO EESTI AS, LA FILIAL selecting an operator likely to take a year- expected to be available on together in the years to come.” de OEG, ha adquirido un 100 por cien de la and-a-half. A large UK licence, which has propiedad de Siquia Holding B.V. (capital Meccabingo.com and accionarial 21 101 euros), registrada en los so far only been developed by Aspers in Grosvenorcasinos.com before Joe Hine, Head of Commercial Países Bajos. Además, OEG ha creado y Westfield, London, allows for up to 150 slots the second half of the year; at Rank Interactive comments, registrado las compañías Gametech with a top pay-out of £4,000. The council and is made possible by the “We’re pleased to be able to Services Limited y Gametech Licensing see the casino as being pivotal in kick- seamless integration with bring such new and exciting Limited en Jersey. Según el Director Ejecutivo de Olympic Entertainment Group, Madis starting the £450m redevelopment at Royal OpenBet’s Remote Gaming video slots content to our Jaager, el objetivo de la creación y la Pier, which it hopes one day will boast two Interface, an integral part of online players. We adquisición de las filiales es crear una hotels, restaurants, luxury flats and an the platform used by Rank’s continuously strive to keep our plataforma legal para la expansión de las indoor arena. The council believes the websites. product offering fresh and as a actividades del grupo OEG en mercados relacionados con el negocio principal del ‘large’ gaming floor could results in annual result the user experience both mismo, así como en el negocio del juego taxation for the local government of £1m. Orrin J. Edidin, President of thrilling and entertaining and remoto. WMS Industries Inc. and CEO we believe that WMS games and President of Williams will do just that.”

April 2013 PAGE 14

News INTERNATIONAL UPDATE IL DIRETTORE DELLA COMMISSIONE per i giochi d'azzardo in Uruguay - Javier Chá - ha richiesto dei cambiamenti urgenti alla legislazione che regola i giochi d'azzardo in Uruguay, e ha MGM Resorts’ Ho Tram Stop attribuito la responsabilità dell'aumento dei giochi illegali alla mancanza di inter - MGM withdraws from Vietnam’s venti da parte del governo. Ho Tram Strip development with L’AZIENDA BMM TESTLABS, specializzata nella conduzione di test, ha no explanation forthcoming inaugurato il proprio quartier generale nel sud del Nevada, incrementando le MGM Resorts has pulled out of its opportunità di crescita economica e planned project on the Ho Tram Strip, occupazionale della regione. La nuova Vietnam’s first large-scale integrated sede, situata al n. 815 Pilot Road, Suite G, Las Vegas, si estende per 2000 m², e si resort. Project owners Asian Coast prevede un’ulteriore estensione in un edi - Development confirmed MGM Resorts ficio adiacente. would no longer manage the project but didn’t give any reason for the group’s IN SEGUITO A VOCI SECONDO LE withdrawal. It is now evaluating a quali il gruppo Genting intende ristrut - ‘suitable new and exciting brand’ for its turare un edificio non completato della Echelon, il gruppo Caesars Entertainment first resort. ha confermato un accordo di collabo - razione col gruppo alberghiero di New Chief Executive Lloyd Nathan said: “We York Gansevoort, allo scopo di lanciare thank MGM for its assistance in the hiring sul mercato qualcosa di mai visto prima and training of our 2,000-strong team of The development of Everything had appeared fine in mid- nel settore, un resort intimo in città, che prenderebbe il posto di Bill’s Gamblin’ Vietnamese hospitality professionals. We a road linking the January when MGM helped complete a Hall & Saloon. are delighted that we have completed the Ho Tram Strip to customer simulation. Nr. Nathan said construction of the first phase of our first Vietnam’s capital, back then: “Vietnam's first integrated IL GOVERNO ARGENTINO HA resort. It includes 541 five star rooms and Ho Chi Minh City, resort, the MGM Grand Ho Tram Beach, annunciato delle misure rivolte a suites, nine world-class restaurants, has been a was honoured to welcome 600 friends sospendere le transazioni tramite carta di credito con i casinò e i siti web di giochi gaming facilities, convention and meeting contentious issue and family over a three day period to online stranieri. Questa misura, che è space, luxury retail, bars, an ultra-lounge, with the preview its luxury facilities. Pending final entrata in vigore il 15 marzo, è l'ultima di a spa, three swimming pools, beach government regulatory approvals for all of the una serie di iniziative rivolte a limitare il facilities, and other leisure amenities. refusing to commit property's offerings, the MGM Grand Ho flusso di dollari in uscita dalla banca cen - ACDL is also currently constructing Tower investment to the Tram Beach is ready to open its doors. We trale e a rafforzare il valore del peso argentino. 2 of the first resort which will add an development continue to work closely with the additional 559 five star rooms and suites. without input from Government of Vietnam to ensure an IL NUOVO CASINÒ SOLAIRE A In addition, it is constructing an 18-hole casino operators. expeditious opening.” Manila ha ricevuto 25.000 visitatori nelle Greg Norman designed golf course.” prime 12 ore di apertura. È in grado di offrire 1200 slot machines e 300 tavoli da ACDL’s principal shareholders reaffirmed gioco. Il casinò, che è costato $ 1,2 miliar - Suzo-Happ presented a di, si è aperto il 16 marzo e ha rappre - their long term commitment to the sentato la prima iniziativa delle Filippine project, with Harbinger Capital Founder rivolta a fare del paese il terzo mercato and Principal Philip Falcone saying: world of solutions in Italy asiatico nel settore dei giochi d'azzardo, “Harbinger Capital was among the dopo Macao e Singapore. La struttura è founding investors in ACDL, and remains Suzo-Happ demonstrated its Suzo-Happ additionally stata completata da Bloomberry Resorts Corp, una società di proprietà del miliar - as committed as ever to the Ho Tram commitment to local gaming provides the ideal top lighting dario internazionale Enrique Razon ed è il Strip. We believe the Ho Tram Strip is set markets by exhibiting at the for both AWPs in the Comma primo di quattro resort del valore di $ 4 to become the premier integrated resort ENADA Rimini in Italy. Suzo- 6a market and VLTs in the miliardi, che verranno inaugurati in rapi - destination in the region.” Happ has a strong presence in Comma 6b market. Toppers da successione nella baia di Manila. Italy with long-established include the Celebration I CASINÒ DI WESTERN CAPE NEL The project in Ho Tram, two hours' drive partner, Comestero. Topper, the Ellipse Topper and Sudafrica sono stati il bersaglio della from Ho Chi Minh City, fell into trouble the Xenon LED Topper. cosiddetta “tassa sul peccato”, secondo il last year when the other operator signed Suzo-Happ’s speakers, coin- gergo usato dai ministri. Si tratta di un up to develop there; Pinnacle entry bezels, side lighting and Harald Wagemaker, Sales incremento fiscale del 2%, equivalente ad Entertainment, said it might lose its push buttons have all been Director of Suzo-Happ EMEA, un incremento annuale delle entrate fis - cali di circa R25m. Secondo un articolo $100m investment due to licensing and readily adopted by the Italian commented: “We are well della legislazione provinciale che regola i funding problems. Pinnacle is in a slightly market, but it’s in the coin known for our hoppers and giochi d'azzardo e le corse dei cavalli different position than MGM as it opted to payout market that its toppers in Italy. Today more all'interno della provincia, verrà applicato buy 26 per cent of ACDL in May 2011. specialist coin hoppers have and more operators are un aumento delle tasse del 2% in sei found the greatest demand. seeking our advice and diverse categorie di reddito. Pinnacle Entertainment Chief Executive The Flow Hopper is the support for their smaller CROWN CASINO, IL PIÙ GRANDE Officer Anthony Sanfilippo confirmed perfect response to coin pay- component needs within their casinò in Australia, ha dovuto ricorrere Pinnacle’s commitment to the project out management. The new gaming machines. We are alla polizia, dopo che un giocatore ha following MGM’s departure, saying: red coloured bowl symbolises ideally placed with our Italian vinto alle carte, barando, A$ 32 milioni “ACDL has built a truly remarkable the new AES protocol and is distributor Comestero to (US$33m). Con l'aiuto di video di sorveg - property just two hours from Ho Chi aligned to the Comestero AES provide this support. We were lianza ad alta risoluzione, in grado di zoomare sulle carte in gioco, il team Minh City and we look forward both to coin-handling range. The here in force here in Italy – responsabile della truffa era in grado di its opening and to the implementation of Flow Hopper is available in a including our Managing ottenere informazioni sufficienti a predire ACDL’s vision for Vietnam's tourism wide range of bowl sizes. Director Marcel Oelen – to le carte che sarebbero state distribuite. industry.” underline how key the Italian The range of toppers from market is for Suzo-Happ.

April 2013 PAGE 16

News INTERNATIONAL UPDATE

LA CORTE DI CASSAZIONE DI MALTA HA stabilito che il divieto di pubblicità per i giochi d'azzardo viola il diritto alla libertà di AGT’s worldwide sales boom parola. Il giudice Camilleri ha stabilito che, finché i casinò di Stato sono accessibili al revenue nature. At December 31, 2012, pubblico, il divieto di pubblicità non trova Ainsworth Game Technology is giustificazione, in quanto rappresenta un 1,096 machines were on participation, limite alla libertà di espressione. enjoying extraordinary sales rental and lease with an additional 387 success in international markets machines under trial subject to LE ENTRATE DEI GIOCHI D'AZZARDO NEL conversion to potential sale and/or lease New Mexico sono cresciute di quasi il 4% Improving its international market share in the second half of fiscal year 2013. The nel corso del 2012. Le entrate dei giochi has seen Ainsworth Game Technology company is now established and globally gestiti dalle tribù, dei e non-profit sono ammontate a più di $ 1 miliardi. report a 41 per cent revenue increase to recognised as a leading provider of high Tuttavia, mentre i casinò delle tribù hanno A$96.5m (US$98.5m) for the six months Ainsworth Game performing gaming products and has fatto registrare una crescita considerevole, i to the end of December 2012 with North Technology’s ability secured a solid financial position. Further cinque racino dello stato hanno registrato America surging by 237 per cent. to fund research revenue growth is expected within the una flessione netta del 3%. Nel complesso, Earnings before interest, tax and and development, Americas in the second half of fiscal year lo scorso anno, gli stabilimenti statali di depreciation and amortisation improved which has been the 2013 as new products receive regulatory gaming hanno registrato profitti equivalen - by 31 per cent with net profit up 60 per key driver of its approvals for installation while we ti a $1.01miliardi, un aumento del 3,9% rispetto al 2011. cent on the year half in 2011 to A$30.1m. profitability.” continue to maintain our strong position LEN AINSWORTH. in all established domestic markets.” IL GRUPPO GENTING, inaspettatamente, Danny Gladstone, CEO Ainsworth, said: è entrato sul mercato dei casinò di Las “I am pleased with the progress to date Vegas, in seguito all'acquisto dello stabili - and expect continued revenue growth mento Echelon da Boyd Gaming, per $ 350 within North America in the second half milioni in contanti. Il gruppo Genting ha of the 2013 financial year.” International affermato che trasformerà il progetto non completato, e lo chiamerà Resorts World revenue came in at $30.3m compared to Las Vegas. I lavori avranno inizio nel 2014, $16.8m in the prior corresponding period l'apertura è prevista nel 2016; saranno in 2011, an increase of 80 per cent. The realizzate 3500 camere d'albergo, ci sarà key market of North America achieved un centro congressi ed un teatro da 4000 revenue of $21.6m, an increase of 237 per posti. cent on the previous corresponding period LA SOCIETÀ AMERICANA DI GAMING in 2011 and contributed to 71 per cent of Entertainment Gaming Asia sta per aprire il total international revenue. Mr. Gladstone secondo casinò in Cambogia, nel mese in added: “We continue to pursue corso. L'azienda, supportata dal gruppo di opportunities to establish gaming Macao Melco International, è quotata al operations in the Americas with products NASDAQ di New York. Le entrate della soci - under participation or of a recurring Great feedback at AMEX età sono cresciute nel 2012, raggiungendo la cifra di $ 20 milioni. for DRGT system solution L’AZIENDA ZITRO SI STA AFFERMANDO nel mercato uruguaiano dei giochi d'azzar - Operators in Ireland had the products together with do, in seguito all’installazione delle mac - Kaminkow joins ideal opportunity at this year’s drScreen. The upper printed chine Blackwave all’ Hotel Casino Carrasco Irish Gaming Show that took glass can be replaced with a a Montevideo. L’ Hotel Casino Carrasco ha place between 5th and 6th touchscreen monitor that installato l'ultima generazione di macchine Aristocrat Leisure March in Dublin to see how emulates the glass. It can be della Zitro: Blackwave, con giochi come Ultimo Bingo en Paris, PowerManiaBonus, Aristocrat Leisure has appointed legendary their current slots can be used for direct communication Bingo Dreams, Lucky Hero e Fishmania, game developer Joe Kaminkow as a Senior future-proofed. The need for via the individual player – tutti giochi presenti per la prima volta sul Vice President of Game Development. Mr. connecting the slots is rising such as targeted advertising, mercato. Kaminkow is widely acknowledged as one and DRGT is ideally placed to promotions or information on of the most successful creative talents in the support this market. events, bars, restaurants, etc. L'AZIENDA MGM RESORTS HA RITIRATO il proprio progetto a Ho Tram, il primo global gaming industry, having led the Together with DRGT’s local FunFair Casino, managed by resort integrato su grande scala del development of many of the best Vietnam. L'azienda Asian Coast performing slot titles of the past 20 years, partner, FunFair Casino, DRGT brothers Stephen and Philip Development, proprietaria del progetto, ha including Wheel of Fortune, Sex and the City exhibited its latest solutions O Leary, underlined the confermato che MGM Resorts non avrebbe and Ghostbusters. His appointment, for the Irish market. The in’novation DRGT is bringing più gestito il progetto, ma non ha rivelato i together with the recent exclusive third- proposed new Gaming Control to the Irish gaming market: motivi del ritiro. Al momento sta valutando Bill has advanced the “DRGT is a perfect fit for un ‘ nuovo ed eccitante marchio’ per il suo party appointments of Daniel Marks and primo resort. Scott Olive, will further enhance Aristocrat’s requirement for networked slot systems in Ireland,” creative talent pool and accelerate its machines, but operators still commented Mr. O’Leary. “The LA SOCIETÀ ARISTOCRAT Technologies ha strategy to become the world’s best want to maintain their current DRGT modular, flexible annunciato un accordo con l'azienda provider of gaming content. Kaminkow’s slots. The Franco reel slots approach allows operators to GiGames, che fa parte del gruppo CONEI. remain extremely popular and choose exactly what they need Questo accordo prevede la collaborazione deep experience in slot games, with a operators are looking how to – from accounting right up to nelle vendite, nel supporto post vendita ed particular focus on US recurring revenue update these machines. jackpot systems. The fact that in altre aree, per permettere una crescita games, will benefit Aristocrat’s strategy to we can update all the reciproca nel mercato spagnolo. L’accordo expand its participation in this segment and riguarda i giochi, le sale gioco e i bar della DRGT can connect all slots – machines in the market – in optimise its core Class III business. Aristocrat, attuali e futuri, nonché potenziali which is of real importance to particular the Franco reel- Kaminkow begins his employment in May. applicazioni future in altri settori del gam - Irish operators. Updating older based ones – makes DRGT ing, inclusi i casinò e i giochi in rete. reel-based slots is simplified by stand out with such unique the combination of several dr selling points.”

April 2013 PAGE 18 News INTERNATIONAL UPDATE Argentine credit clampdown The Argentine government has imposed measures to prevent players using their credit cards The Argentine government has THE IRISH GAMING SHOW IN DUBLIN announced plans to block credit card proved to be the perfect setting for Amatic transactions with foreign casinos and Industries to launch its slant top Performer online gaming sites. The measure, which Grand Arc to the Irish market. Genesis went into effect March 15, is the latest in Games is the long-standing partner for a series of moves to restrict the flow of Amatic Industries in the UK and Ireland. dollars out of the central bank and bolster Hans Bierrum and his team showed the the value of the Argentine peso. In the new Performer series from AMATIC face of rising inflation, which currently Before the new to the credit card and banking sectors Industries. The upright Performer C22 stands at 23 per cent, the government has measures those which ruled that from now on "financial gaming machine is a dual-monitored initiated a number of measures designed with a bank institutions and other local card issuers ergonomic gaming machine now firmly to dissuade Argentines from using dollars account abroad must have the prior approval of the established in the Irish market where and stop the flight of savings from the simply deposited Central Bank to act on foreign currency Amatic games consistently top the country. In July 2012 the government money in online transactions using credit and debit cards performance list. banned people from buying dollars for the gaming accounts issued in the country, when they are used purpose of saving them and Argentines and then withdrew either directly or indirectly via The electronic Grand Jeu from are only permitted $100 a day when the abroad in international payment networks for the Amatic Industries is the number one choice travelling outside the country. another account in participation in different kinds of for many operators in Ireland. Strong dollars. These gambling and betting." market share continues as operators look to update their arcades with the modern Since August 2012 Argentines must pay a transactions were Grand Jeu 22WS. Thomas Engstberger, 15 per cent tax surcharge on all credit made mostly in Sales Manager at AMATIC Industries card transactions made abroad and this neighbouring (pictured right), confirms AMATIC’s went up to 25 per cent on March 19. Uruguay a short popularity in Ireland, stating: “Alongside Argentines eager to find ways to avoid the ferry trip away from SPIELO partners our popular feature-rich games, our fruit- restrictions have resorted to the black capital, Buenos based games are being played more and market with the unofficial rate now Aires. the Olympic Group more. We are dedicated to offer the Irish standing at a record 8.8 pesos per dollar market our latest technology and while the official rate is 5.10 pesos. SPIELO International has partnered with introducing the Performer Grand Arc Olympic Entertainment Group to install 100+ cabinet here shortly after its international Now the government will block EGMs in Olympic Casino properties in five premiere in London at the ICE underlines Argentines from using their credit and countries. Trials began in late 2012, and our commitment. This was a very good debit cards to gamble via offshore gaming they have been so successful that the show for us to display our innovations.” sites. The Central Bank issued a statement casinos have ordered more machines for 2013 installation. Olympic Casino Poland REFLEX GAMING HAS CONFIRMED TWO new appointments to its recently created launched the HOT & WiLD slots at their sales team as Steve Clark and Martin Mexico calls time on property with hostesses dressed as the Austin join the UK’s Nurse character from the game. In addition largest supplier of to diversity, the multi-game solution that Category C machines. illegal slots operations offers 10 games of varying volatility on one “We are very pleased to machine, Olympic Casino in Estonia has The Mexican government has multiple facilities. In Mexico, announce that Steve also installed Egyptian Gold, SPIELO’s first confirmed that the country’s 52 gaming halls operate has joined the team as progressive link using EPiSODiC GAMiNG. slot sector is to be regulated without formal permission sales executive. He has “From the first day Egyptian Gold was on and taxed with illegal from the Ministry of the excellent experience of the floor, it caught our players’ attention, operators being closed down Interior but via judicial inland and coastal with players standing in a queue for their and prosecuted. Slot suspensions granted by courts arcades as well as chance to play,” said Piret Barlo, Purchase operations will be restricted to or tribunals, according to the FECs, single sites, pubs Manager, OEG. “The promotion built on this operators holding licences latest report of the Directorate and clubs,” says Reflex interest, and we have high expectations Managing Director, following proposed regulation General of Gaming. that the popularity of the new SPIELO Quentin Stott. “Martin’s that has the backing of International games will continue to grow.” skills and contacts President Felipe Calderon. Although these venues belong perfectly complement our sales team and to companies with operating Cameron McKeown, Regional Sales along with Surj and Steve, we can ensure Currently, 29 companies have permits, they must now Manager, SPIELO International said: “Our that every market sector that we currently permits with the main comply with any applicable diversity multi-game suite is a player supply will be well catered for. This is a operators being Grupo Federal, state or municipal favourite in casinos the world over, and the very exciting time of growth for the Caliente, chain Yak and Play laws, to avoid closure or court Egyptian Gold progressive is garnering company and it is more important than City, a subsidiary of Televisa. action. Another 16 facilities great interest, particularly in Latin America, ever that we remain close to our customers Another important part of the operate under a regulatory so we are thrilled to see it in the European and continue to supply machines that new law is that licences will exemption criteria, but also market as well.” perform well in the market.” only be issued for individual without formal permission properties and not across from the federal agency.

April 2013 PAGE 19 News INTERNATIONAL UPDATE Ranks rolling ‘G’ over Gala The takeover of Gala Coral’s casino division by the Rank

Group is finally confirmed TESTING SPECIALIST BMM TESTLABS Rank Gaming has now agreed terms with has opened the doors to its new headquarters in Southern Nevada, Gala Coral for the purchase of 19 of the paving the way for continued growth 23 casinos originally comprised within and employment opportunities in the the deal announced back in May 2012 for region. The newly expanded space, a revised sum of £179m. The group has located at 815 Pilot Road, Suite G, in Las also now confirmed that its G Casino Vegas, comprises 22,000 sq. ft. with brand will replace the Gala brand at the of Rank, said: “This acquisition enables plans of further expansion into an casinos included in the deal. us to capitalise on our proven record of adjacent building. The entire expansion operational excellence in the British highlights an economic development The original bid of £205m for gala’s entire casino sector and is expected to be success story that showcases an innovative business with North American estate was blocked by The Competition earnings enhancing in the first full year of and global impacts. BMM employs more Commission who insisted that casinos ownership. By rolling out the ‘G Casino’ than 200 people in 12 countries and Gala Coral casinos in Aberdeen, Bristol, “This acquisition format into the Gala estate and expanding operates 11 gaming labs. It also serves Cardiff and Stockton-on-Tees should not enables us to the Grosvenor Casino brand into 11 new more than 400 gaming jurisdictions. be included in the package. The Office of capitalise on our cities, we will accelerate the growing Fair Trading also believed that the original proven record of awareness of the brand and support the BMM Global President and CEO Martin sale, which would leave the UK with just operational development of a multi-channel gaming Storm said: ”As our business continues two casino operators; Rank and Genting, excellence in the business.” its year-on-year growth, and as we could have negative effect on customers British casino sector continue to provide gaming product compliance and testing services across due to reduced competition. Also and is expected to Inquiry chairman Martin Cave said: “We North America and international excluded from the new deal are licences be earnings think that removing the casinos in markets, we are proud to make Las for the City of Westminster and Dundee, enhancing in the problem areas from the deal and Vegas our global business home and Gala’s Gibraltar venue and its Gala Coral first full year of requiring Rank to sell the Edinburgh cold celebrate the opening of our wonderful branded online casinos. The new ownership.“ licence to an upfront buyer will protect new offices and laboratory space. After agreement is expected to be completed in IAN BURKE, the interests of customers. The excluded hiring many staff in Las Vegas over the the second quarter of 2013. Chairman and casinos are profitable and so we believe years, we are looking forward to adding Chief Executive, that they will continue to act as viable 100 people or so in Las Vegas over the Ian Burke, Chairman and Chief Executive Rank. competitors to Rank in these areas.” next two years.” ARUZE GAMING America has appointed Kelcey Allison as Senior Bally recruiting for 100 Vice President of Sales Uruguay’s Rivera and Marketing, and Paul Omohundro as professional gaming roles Director of Marketing. Mr. Allison brings over signs up IGT Cloud In a further sign that the and Human Resources Gary 20 years of experience to his new Rivera Casino Group has entered into an industry is recovering Kapral, said: “As an position. Prior to joining Aruze Gaming in agreement to implement the IGT Cloud at following the darkest days of innovation-driven leader in 2009, he worked for Progressive Gaming two casino sites in Uruguay based on the recession, Bally the casino gaming industry, International Corporation in various regulatory approval. Rivera will have access Technologies was recruiting our thirst for extraordinary executive management positions in to all features offered through the Cloud, exceptional professionals for talent continues to grow as Sales and Marketing throughout the including the expansive game library in more than 100 open positions fast as our business. With a and Latin America. In this position, Mr. Allison will be responsible addition to analytics and floor management during the Game Developers focus on developing the most Conference at the Moscone entertaining content for for sales in Canada, the United States, features. Salvador Serra, Rivera Casino & Latin America and the Caribbean. He will Center in San Francisco. casino games, iGames, Resort GM, said: “The selection of the IGT also lead AGA's product marketing and Cloud provides us with a cost-efficient mobile, and social, the Game service departments. solution to implement floor management Bally Technologies executives, Developers Conference is a Richard Pennington, Aruze's CEO and with analytics as there is no need for a hiring managers, and fertile environment for us to President, said: "Aruze is clearly one of substantial investment into infrastructure. recruiters exhibited at the showcase our career growth the fastest growing gaming suppliers in the industry. We would not be where we This will allow us to make decisions conference seeking to fill opportunities, competitive openings for mobile and benefits, and award-winning are today without Kelcey's ability to build regarding our gaming floor that are more in relationships and execute on key tune with what our players want.” interactive content developers; innovation to Bally’s future programmers; web innovators and leaders.” strategic initiatives." Sabby Gill, Regional VP of sales for EMEA Mr. Omohundro also brings extensive developers; graphic artists; and SOLAC at IGT, added: “We are thrilled to experience within the gaming industry. digital illustrators; motion- The Game Developers partner with Rivera to offer the IGT Cloud Prior to joining Aruze, he served as the graphics artists; 3D animators; Conference and Women in solution. As we continue to grow our Cloud Founder and President of Fairway mathematicians; and other Games International business we look to the future of gaming Gaming LLC, Vice President of Sales for high-tech positions. networking event are among DEQ Systems Corporation, and COO for and what it can provide to our customers.” several recruiting events that the DEQ subsidiaries including DEQ-USA Bally Technologies’ Senior Bally Technologies is and D.P. Stud Inc. Vice President of Operations attending this year.

April 2013 PAGE 20 News INTERNATIONAL UPDATE iPad Evolution enlivens Italy Evolution Gaming’s Live Roulette for iPad goes live online in Italy with the Lottomatica Group Evolution Gaming has begun the rollout VNE, THE NO.1 CHANGE MACHINE of its new Live Roulette for iPad solution manufacturer in Italy had a strong for Lottomatica, a first in the Italian presence at the ENADA Rimini exhibition. market. Lottomatica is using the VNE change machines incorporate Evolution iPad platform in two ways: to exceptional industry components housed broaden the reach of its web-based Live in highly secure cabinet. This year’s Roulette games to iPad users; and to ENADA Rimini saw VNE introduce a new provide an iPad-based betting interface for service to the market entitled ToolGame. ToolGame is a complete operational viewers of the Lottomatica Vegas Club TV software tool that allows operators to show, channel 59 on DTT. have full control not only of their VNE change machines but of all their AWPs Live game feeds for both the web-based “This demonstrates studio set. Italian presenters provide (Comma 6a) as well. The data includes Lottomatica Live Casino service and its our commitment to running commentary on the live games personal information, machine licences Live Casino TV show are streamed direct delivering flawless and interact with the viewers and dealers. and approvals. Complete machine data from dedicated tables at Evolution’s Riga live gaming on history is available at a click of a button. studios. The tables are Lottomatica multiple devices in Lottomatica customers use their iPads to Direct notifications of damage, jams, branded and staffed by native speaking regulated markets; it play Live Roulette, with a simple betting alarms etc. are passed to the operator. Italian dealers. not only extends interface synchronised to the online Lorenzo Verona, VNE Commercial player choice but game, appearing on their iPad screens. Director added: “We have calculated that For the TV show, Lottomatica broadcasts also operator implementing ToolGame can save live from an Italian TV studio and reach.” Lottomatica originally selected Evolution operators up to €70 per machine per integrates the Riga live table feeds on GIONATA LA TORRE, – the first Live Casino provider to be fully month. Operators appreciate that they large screens that are part of the TV CEO, Evolution Italy. certified by AAMS and to go live in Italy – have a strong partner at their side with in 2011. The new iPad services extend VNE and we are increasingly seen as a Lottomatica’s core online Live Roulette, full service company. Our change and in the near future, Live machines are our main business and OPAP hit by new taxation demand continues to increase in Italy. We offering too. are building the complete support business around our machines. from Greek government Operators appreciate this service.” The Greek government has worst analyst forecast of €135 THE DELAWARE STATE HAS brought in a new that to €140m” Genting to close formally adopted the recently released GLI- will crush the revenues of 19 v2.0 “Interactive Gaming Systems” Technical Standard. On January 31, 2013, Greek betting monopolist OPAP monopoly on sports Derby Friar Gate OPAP by more than 60 per betting is due to expire in the Delaware State Lottery issued a Having opened its new Riverlights casino in cent in the coming year. The 2020 with its hold over comprehensive request for proposal (RFP) Derby, UK, Genting is now looking to to the gaming industry regarding an move comes at a time when lotteries set to run out in 2030 Internet Gaming System and Services the Government is selling a 33 respectively. It also has the consolidated its operations by shutting Solution with a view to becoming the first per cent stake in OPAP and exclusive rights to operate down its other Derby licence at Friar Gate. full-scale interactive gaming installation in could quell interest from VLTs in Greece for ten years Genting said all 41 staff affected will be the United States. During the RFP process seven potential suitors. and scratch cards for 12 years. offered the ‘opportunity to apply’ for the Delaware State Lottery immediately available positions at the Genting's casino recognized the importance of employing OPAP has already predicted Alpha Finance analyst Angelos at Riverlights. A spokesman said: “The technical standards covering the various decision to put forward this proposal has systems and technologies envisioned for that revenues will fall from Chorafas said: “What might been taken following the successful £6 their market. €1.3bn in 2012 to €1.2bn in make the difference to 2013. The new 30 per cent consensus, which currently million development of Genting’s new “GLI is pleased to assist the Delaware State levy on gross earnings was stands at €150m, is a higher premises in Derby, Genting Club Riverlights, Lottery in meeting their requests for a introduced at the start of 2013 than expected cost for the roll- which was completed in November 2011. comprehensive technical standard for as it looks to improve out of the video lotteries and a We have decided to consolidate our interactive gaming systems. We pride government revenue and meet lower than estimated drop in operations in Derby and focus our efforts on ourselves on having the resources to fiscal targets set in a bailout expenses for sponsorships and the superb new facilities we have created quickly identify and act upon our client’s at Riverlights so we can satisfy all our needs,” said GLI President and CEO James deal with its international advertising.” Maida. “GLI continues to be a proponent of lenders, the European Union customers' requirements. This decision is industry standardization and recognizes and the International OPAP operates an estate of consistent with Genting’s ongoing strategy that homogeny of standards in the Monetary Fund 4,800 betting outlets. It is of investment and its commitment to interactive gaming space is paramount, gearing up to opening more to improving quality across the provincial particularly when jurisdictions work Takis Zamanis, an analyst at operate its first 16,500 VLTs, estate and we look forward to continuing towards the goal of establishing effective Beta Securities, said: “OPAP’s which analysts believe will investing in our properties to improve the player liquidity required to maximize return estimate for 2013 net profit generate €448m in revenue in customer experience.” on investments.” was unexpectedly negative 2015, its first year of full and noticeably lower than the operation in the VLT sector.

April 2013 PAGE 21 News INTERNATIONAL UPDATE LCI shuts up shop in Leeds LCI is to close its Leeds casino in the UK just over fours years since opening its doors GENTING GROUP HAS ENTERED THE London Clubs International is to shut its casino market having bought the stalled Echelon site from Boyd Alea Leeds casino at Clarence Dock Gaming for $350m in cash. highlighting ‘frustrations with the pace of Genting said it will transform the change within the UK gaming industry.’ unfinished project into Resorts World Las The closure, which will affect almost 100 Vegas, starting in 2014 and opening 2016 jobs, also sees it pull out of the licensing with 3,500 hotel rooms, convention process for the 2005 Act large casino centre and 4,000-seat theatre. licence run by Leeds City Council. CEO KT Lim said: “This is an unparalleled opportunity to showcase what has made LCI, owned by US giant Caesars the Resorts World brand a globally recognised success for the past several Entertainment, had wanted Leeds Council decades. Genting intends to undertake to help revive the popularity of its £12m Competition for the opened in 2008 and have continued to the development, either singly or jointly Alea Casino in Clarence Dock by new style licence support the business through difficult with other parties, and will announce the improving infrastructure between the remains high with times for Clarence Dock, but during the details of the development plans in due casino and the city centre. It also wanted Leeds United bid process we became aware of the full course. The land has approximately to be awarded the city’s ‘large’ licence football club extent of the additional investment sought 1,523 feet of frontage on the Las Vegas allowing it to spread out into its 60,000 wanting to bring by the council in order to win the new Strip and is zoned as H-1, which allows sq ft of front-of-house entertainment the casino into its licence and it has become clear to us that for the development of gaming enterprises, compatible commercial and space and become more of a draw. stadium, Global this additional financial burden is mixed commercial/residential uses. It Gaming Ventures unsustainable.” also lies entirely within the gaming Roy Ramm, Governance and Public wanting to develop enterprise district, which allows for Affairs Director at London Clubs in the new £600m A collective redundancy consultation with application for a non-restricted gaming International, said: “It is with great regret Eastgate Quarters employees at Alea Leeds is now license and permitted gaming that we are also suspending trading our whilst Rushbond underway. Following a spectacular throughout the site.” existing casino business in the city, but has made the opening in October 2008, the wider, Echelon and Fontainebleau had become current trading conditions in the Clarence casino part of its multi-leisure destination at Clarence Dock unfinished monuments of the economy Dock development have made this plans for the has seen most of its retail offering close crashing in Las Vegas. The property on the northern end of the Las Vegas Strip outcome inevitable. We made a redevelopment of down due to lack of business. Describing should have opened as a mixed-use significant investment into Alea when it the former Clarence Dock as the ‘forgotten part of development complete with 5,000 rooms Majestyk nightclub the city,’ Mr. Ramm said footfall had in six hotels in 2010. The Stardust resort on City Square. dropped by 10 per cent year-on-year in was demolished in 2007 to make way for the last three years. He had previously the $4.8bn project. warned that the casino’s future was not Crown considers secure unless links were improved. INTERBLOCK HAS COMPLETED AN install at one of the top casino operator in France with JOA Groupe going live with a Sri Lankan resort G4 Organic Live Roulette systems at its Astra acquires Games Casino de Montrond-les-Baines. The island of Sri Lanka in the Indian Ocean Seven play stations of the G4 Organic Live has been thrust into the casino spotlight Roulette in silver-black design have been following reports that Australian operator Media from SG Gaming placed in the brand new casino and Crown has been asked to review the entertainment complex in the area of Lyon. SG Gaming, a division of bingo and arcade operators island’s casino potential and prepare a Bojan Dreven, Regional Sales Manager at Scientific Games, has have fully embraced this proposal regarding resort development. Interblock, said: “This is now the fourth announced the completion of solution. However, following a Crown’s Chairman James Packer has met Interblock installation within the JOA the sale of its Games Media lengthy strategic review, we Groupe casino floor, which are placed all with officials to discuss options to invest in a pub business to Astra Games believe that the pub industry is over the France. It‘s a pleasure to work in large, city-based hotel in Colombo, the (the wholly owned UK not able to support the entirety such a great partnership and we believe administrative capital of the Western subsidiary of Austrian Gaming of our solution at this time. that advantages that they recognise in our Province as well as present ideas for a Industries, part of the gaming products will continue to keep our good relationship in the future.” casino resort development in the eastern Novomatic Group). The pub “We are delighted to sell the city of Trincomalee. Lakshman Yapa G4 Organic Live is a semi-automated business will be incorporated pub business to Astra’s game, offering choice of any traditional Abeywardena, Sri Lanka's Minister of into Astra’s Gamestec division, Gamestec division, which is Investment Promotion, confirmed Mr. game from our selection. Organic Live a leading operator of gaming known for its outstanding platform offers players the ability to place Packer had met with Sri Lankan ministers to machines for the UK pub retail service and support to pub wagers electronically on a live wheel discuss ‘investment opportunities.’ He said sector. retailers. This action will allow operated by a croupier or an Electronic the area being proposed for development us to focus our resources on shoe being dealt for a baccarat game. A hadn’t been confirmed, but said Crown was Phil Horne, Group Managing the LBO, arcade, bingo and compact and modern Organic Live interested in investing in ‘integrated tourism’ Director, UK, for SG Gaming, interactive sectors, helping to Roulette game designed for six, seven, nine or 14 players it can be easily integrate including hotels and casino gaming. said: “Server-based gaming is further drive innovation and into any casino floor. the focal point of our business operational efficiencies in our and our licensed betting office, retained business.”

April 2013 PAGE 22 News INTERNATIONAL UPDATE

FUTURELOGIC HAS SIGNED A DEAL TO extend its Global Technology Agreement with International Game Technology. According to the agreement, FutureLogic’s AGI set to dazzle in Colombia peripherals will continue to be the preferred printers in IGT’s current gaming AGI Gaming Colombia is to “AGI Gaming experience. An optional independent platforms. With operator demand Colombia is 18.5ins. multi-purpose TFT topper increasing, IGT will be transitioning to the present a series of product committed to provides room for all sorts of casino GEN3 Evolution printer in 2013. The GEN3 highlights for Latin America providing leading information or game specific displays. Evolution printer has the industry’s largest Novomatic gaming standard paper capacity, 450 tickets. This The Feria Andina de Juegos de Azar products, Novo Line Interactive is the innovative will save operators up to 30 refills or $300 (FADJA) takes place at the Corferias technologies and stand-alone gaming solution, server- per printer annually. exhibition centre in the Colombian capital services for the based-ready for a later plug ‘n’ play city Bogotá. The Novomatic Group’s local local gaming interconnection into the Novo Line VLT Further reducing costs, FutureLogic printers subsidiary AGI Gaming Colombia will industry. We are system. With five categories comprising a eliminate paper waste by consuming the present a selection of innovative products therefore looking total of 25 games the Novo Line ticket stack down to the last ticket. Moreover, the GEN3 Evolution® printer is and gaming highlights especially designed forward to Interactive multi-game mix is guaranteed also the fastest printer in gaming, printing for the Latin-American markets. presenting the to meet the preferences of all guests. and presenting a ticket/coupon in less latest Novomatic Operators can group and arrange, activate than one second. Designed with On show will be the brand new innovations at and deactivate games in order to create promotional couponing in mind, the GEN3 Dominator cabinet with a range of Novo FADJA to our their ideal mix. The mix will be presented Evolution® printer will provide operators Line Interactive games – among them the customers and in Bogotá in the Novo Super-Vision two- with separate and secure processing single game, Reach the Hill, in partners from the monitor cabinet. environments for both TITO and combination with the new Community local Colombian promotional couponing and precision Jackpot Amazeland. and regional Latin A selection of Coolfire II products will be grayscale printing through advanced American markets.” on show at FADJA: Super-V+ Gaminator temperature control technology, yielding The Dominator features game- MANUEL DEL SOL, mixes 72-75 in the NovoStar SL and Novo the highest resolution output for printing synchronised LED-effects, three 24ins. Managing Director Super-Vision cabinets as well as the eye-catching promotional coupons. TFT screens for gripping graphics display AGI Gaming Premium-V+ Gaminator multi-game mix as well as top sound which combine to Colombia, 1 (41 games/5 categories) and mix 5 (42 “We chose to extend our global agreement create an unforgettable in-depth gaming games/5 categories) in the NovoStar SL with FutureLogic because of their slant top. Also on show will be the outstanding printer performance and upright bestseller Super-V+ Gaminator III reliability, which allow IGT to focus on our featuring a selection of Novo Line single customer needs in innovative ways, while games that are connected to the Magic delivering new levels of efficiency to casino Entertainment Gaming Joker Jackpot. This card-animated four floors.” said John Chamberlain, IGT Director level mystery progressive jackpot is of Platform Product Management. “Over triggered in two stages for increased time, strong relationships have been Asia Cambodia expansion jackpot thrills. established between our companies, and US gaming company, According to EGA, the we look forward to our continued partnership with FutureLogic.” Entertainment Gaming Asia, is company’s second Cam bodian set to open its second casino casino, in the border town of APEX GAMING HAS in Cambodia this month. The Poipet in Banteay Mean chey appointed Stephan company, which is backed by province, is currently under SG Gaming agree Freiszmuth as After- Macau-based Melco construction, but is expected Sales Manager for the International and is listed on to be open for business in international Customer New York’s NASDAQ stock April. This $7.5m project, Gala Coral deal Services Department at exchange also revealed that its which is being constructed as SG Gaming, the recently formed division of APEX gaming. revenues had grown to more a stand-alone extension to an Scientific Games Corporation, has Mr. Freiszmuth has over 10 years of than US$20m in 2012. existing casino owned by a announced an agreement with Gala Coral experience in customer support within the local Cambodian company, to bring its popular games to Gala Coral’s industry, having worked for well-known Entertainment Gaming Asia, opens with approximately 300 online players. The agreement builds on the companies in the industry in his native formally Elixir Gaming, EGMs. strong relationship that already exists . These responsibilities include secured two additional casino between SG Gaming and Gala Coral in the installations, support and training. In projects in Cambodia in EGA’s Dreamworld Pailin land-based sector. Adding an interactive welcoming him to his new role, Max addition to its Dreamworld casino opened its doors in May element will enable the two groups to work Pessnegger, CTO at Apex gaming, said: Casino in Pailin province 2012, and contributed $1.8m “Stephan has an excellent track record in which opened in May, 2012. to the company’s revenue in even more closely together to provide customer support and this appointment fits The additional licences are the year. Most of that revenue, players with multiple ways to access perfectly with the strengthening of our located near the border with $1.3m, came in the last three innovative content across a range of customer support department. The Vietnam in the provinces of months of the year, as EGA channels. SG Gaming’s Interactive division demand and interest for Apex products Kampot and Takeo. The upped its marketing efforts for has been steadily expanding its online offer continues to grow, particularly in Asia and Dreamworld Casino provides the casino to draw in more and the deal with Gala Coral will enable Latin America. Stephan will be the first link even more players to engage with its to our customers in after sales.” electronic gambling machines players. However, volatility to Phnom Penh’s NagaWorld remains as the company innovative content. SG Gaming’s content will Mr. Freiszmuth added: “Apex has a first- be deployed on the GTS Edge platform with rate reputation in the industry. After Sales is Casino and Thansur Bokor, the continues to refine its Rainbow Riches and Ca$hino as the first key and I am very proud to be leading the casino-hotel resort opened last marketing programs. EGA Customer Support Department for APEX year in the Kampot province expects to establish normalised games available, with a roll-out of gaming.” by the Sokimex Corporation. operating results for additional content planned. EGA also has a smaller Dreamworld Pailin with the operation in the Philippines. next one or two quarters.

April 2013 PAGE 23 News INTERNATIONAL UPDATE Horseshoe opens Ohio casino Ohio’s fourth and final full- service casino opens to the public in spectacular fashion LUCA PIPPO, SALVATORE CASERTA and More than 5,000 members of the public ARISTIDIS TSIKOURAS of GeWeTe. were treated to a spectacular fireworks ENADA RIMINI PROVED TO BE AN display as they queued around Horseshoe excellent opportunity for Germany’s Casino Cincinnati, Ohio’s fourth and final GeWeTe to demonstrate its strength in full-service casino, which officially depth in change machine technology. opened to the public on March 4. As it No fewer than 10 separate change opened, more than 10,000 guests quickly machine solutions were on display with filled the gaming floor and restaurants GeWeTe partaking on the Merkur Gaming before midnight wanting to be the first to stand. GeWeTe is the most successful experience downtown Cincinnati’s newest supplier of change machines to arcade first-class entertainment destination. operators in Germany, while Italy is a key market for GeWeTe and the past three Horseshoe Cincinnati was developed by Caesars and Rock The grand opening event was attended by years have seen GeWeTe become a firm Rock Ohio Caesars, a joint venture Gaming are also Gary Loveman, Chairman, President and supplier to the Italian gaming market. between Rock Gaming LLC and Caesars developing CEO of Caesars; Dan Gilbert, Chairman of Entertainment. With the latter managing Horseshoe Rock Gaming; Kevin Kline, General GeWeTe offers solutions for operators in all the casino’s day-to-day operations. Baltimore, a $350m Manager of Horseshoe Cincinnati and kinds of gaming environments – from Horseshoe Cincinnati is a full member in urban casino in Cincinnati Mayor Mark Mallory. Gary Comma 6a (AWPs) and Comma 6b (VLTs) Total Rewards, Caesars Entertainment’s Maryland, which is Loveman said: “Horseshoe Cincinnati and the combination of both. “GeWeTe is loyalty program. expected to open in represents the urban casino concept we the only non-Italian change machine 2014. have developed and has been quite manufacturer to firmly establish itself in the The 100,000 sq. ft. gaming floor offers successful for us in Cleveland, where we Italian gaming market. This success is based on our excellent product and approximately 2,000 slot machines, 87 opened a little less than a year ago. To service range. Belonging to the table games, a 31-table World Series of date, that property has attracted more Gauselmann Group and producing in room, high limit gaming rooms, an than four million visitors and has injected Germany are two further signals to Asian gaming room, that pays homage to millions of dollars into the local economy. operators that we are the ideal partner in Cincinnati’s sister city Liuzhou, , We expect no less from Horseshoe Italy for their change machine and a VIP players’ lounge. Cincinnati.” requirements. Our Italian team within GeWeTe further underpins our focus on this market and is another success factor”, Bally selects GeoComply explained Aristidis Tsikouras, Managing Betting Promotion Director of GeWeTe. MERKUR GAMING IS PROMISING supplies Plus-Five for geolocation coverage surprises, fun and the very best gaming Bally Technologies has of handheld devices, will products for Colombia at FADJA 2013. This Betting Promotion has signed an selected GeoComply for the enable operators to access the year, the German gaming specialist’s agreement with Plus-Five Gaming to integration of geolocation majority of their players in portfolio is bigger than ever, with five different types of cabinet, including: the supply its services to its newly developed technologies into its market- real time and address any brand-new Jackpot Rain, the Merkur leading Bally iGaming regulatory concerns.” sportsbook. “We have been talking to the Dispenser; and the extremely well Platform. “This, combined Group for many months whilst they regarded VLT Manager. Merkur Gaming ensured that developing a sportsbook was with our ability to easily GeoComply CEO, Anna considers Colombia a key country, as distribute content to an array Sainsbury, sees the agreement the best approach for their business. Over evidenced by its Bogota office and of handheld devices, will with Bally Technologies as a warehouse, which opened in July 2012. recent months we have worked closely to enable operators to access the strategic commercial ensure they understood the requirements This offers a complete package through majority of their players in partnership with long-term commercial, technical and operational clients expect of their software suppliers. ”, real time and address any opportunities. “Working with staff. Year-round, the company is said CMO, Richard Hogg. regulatory concerns.” Bally Technologies provides us committed to providing excellent value Andy Jones, CEO of Plus-Five Gaming a great platform for our and terms for its customers. Having a added, “Ensuring we had a partner who “By entering into this technologies, as well as strong belief that long-term relationships could help us deliver a bespoke product partnership with GeoComply, decades of player and product are fundamental to ongoing business for all our clients was a key component of we will be one of the first experience to tap into through success, Merkur Gaming is thrilled by its selecting Betting Promotion. We had licensed suppliers to offer the development process. initial work in the Colombian market. casino operators a fully Using our solutions to ensure During the last year, the company discussions with a number of potential integrated geolocation solution that the player is on the right successfully deployed a large number of partners for this product, eventually for their players,” said Bally side of the state or provincial machines and gained extremely concluding Betting Promotion was best Technologies’ Vice President line or sovereign nation is favourable feedback. This positivity and equipped to deliver odds and risk of Business Development John only part of the challenge. We growth is motivating for Merkur’s team, management services.” Connelly. “This, combined also need to do so in a way who are keen to deliver in Colombia for with our ability to easily that does not interfere with the long term. distribute content to an array the customer experience.”

April 2013 PAGE 24 Focus INSURED JACKPOTS

be used to cover jackpots for almost any and even certain skill- related games. For example we have insured jackpots for Lotteries, Bingo, Poker, Slots, Roulette, Blackjack, , Scratch Card and Sports games and promotions...which illustrates why insurance plays a key part in the future of online gaming.

Most existing promotions run by gaming brands are pedestrian and add little value for the player. Running a prize draw on your site offering to give away one holiday to Las Vegas will definitely attract some entries and yes, you will get a winner – but it’s not very exciting and won’t do much for player development, retention or loyalty.

Don’t get me wrong. Even big global consumer brands use sales promotion tactics such as the free prize draw (the industry is unfortunately rife with them!) but, knowing how many entries these IT’S A RISKY BUSINESS tend to get, we also know they are not Mitigating the risk of jackpot prizes are predominantly used as part of doing much to enhance the brands’ wider promotional marketing, loyalty and perception with the customer base. wins is the business of insured player reward campaigns. The main jackpot experts, PIMS-SCA objectives tend to be to give the brand an edge over the competition and to keep INSURANCE Gaming can be a risky business, players interested in, and – importantly – ENABLES SMALL especially for those starting out in the loyal to, the brand. online industry. Launching new sites and BRANDS TO products requires deep pockets – and to Back in 2000 we decided to take the COMPETE WITH attract players, those pockets need to be experience we had developed from MATTHEW overflowing not just with cash, but with working with the big US gaming brands BUTCHER, THE BIG compelling games, huge jackpots and and use it within the online gaming Sales Director/ ESTABLISHED exciting promotions. industry. It certainly wasn’t easy to get Board Director of online gaming companies to accept the PIMS-SCA COMPANIES IN THE Of course, as in any industry, there are principle of using insurance to cover JACKPOT STAKES ways that start up companies can get an jackpots for both free-to-play promotions Matt Butcher, edge – but in the very serious business of and pay-to-play jackpot games – despite Director of leading WITHOUT HAVING online gaming, there are no easy cheats the fact that it is now 10 years since we prize insurance THE PLAYER BASE. for those looking to reach the highest paid out the first £1m prize from a purely provider PIMS-SCA, levels. And, while it is a risky business, online lottery game. has successfully With a bit of creativity and a similar there are ways to manage those risks. developed the budget, a prize promotion with an Now, however, there is a burgeoning Gaming and insurance-backed jackpot could not only PIMS-SCA are specialists in Promotional interest in jackpot insurance, we could Promotional offer players multiple chances to win but Risk Management – which is essentially even be reaching a tipping point where Marketing areas of also, for the game-owner, get players the insurance of promotions, contests insuring jackpots becomes the norm! the business. His talking about the brand. and games. For an insurance premium One reason for this is that insurance main focus is to that is often a small fraction of the enables small brands to compete with the create new and How big could it get? Well the biggest amount at risk, a brand or company can big established companies in the jackpot long-standing ‘jackpots’ we have ever insured – insure itself against the possibility of a stakes, without necessarily having the relationships in the although not in the world of gaming – are winning outcome on a game or player base to support this. With the cost Gaming industry the Grab.com $1 Billion free ‘lottery’ draw promotion. If, however, there is a big and risk of the jackpot being transferred, while tailoring back in 2001 and Pepsi’s Billionaire win....well, the insurance policy covers the gaming brand can concentrate on unique risk Promotion in 2003. Pepsi picked 200 the jackpot payout. creating more compelling products – and management American consumers to compete for the the industry benefits from more solutions to our chance to win a record-breaking $1 Jackpot insurance has been used in land- competition, fresh blood and new ideas. client’s individual BILLION! In the end, nobody did win the based gaming (especially in North needs. big prize – although one winner did walk America, where our parent company is A number of gaming brands have recently away with the guaranteed $1 million based) for decades. This type of come to market with innovative products ‘consolation prize’! insurance has enabled practitioners to and big prizes, all of which started out by run massive prize promotions offering insuring their jackpots – and many of With the unparalleled current interest in multi-million dollar prize funds, while which still rely on insurance to minimise gaming....anyone care to take a bet on minimising their financial outlay. their risk and financial exposure. how long it will it be before there’s a cool billion up for grabs in the world of the Within this market, these insured jackpot The advantage of insurance is that it can ‘online casino’?

April 2013 PAGE 25 Insight THUNDER VALLEY

investment – and the MEI products proved their worth from day one. CASHFLOW SC and EASITRAX Soft Count ran without issue throughout the trial and continue to run without issue today.”

CASHFLOW SC has redefined the role of note acceptors in operator profitability and customer satisfaction on the way to achieving a global installed base of more than 1.3 million units. The addition of EASITRAX Soft Count provides operators with a platform for better cash management by networking the slot floor to the soft count room. CASHFLOW SC AND EASITRAX RAN WITHOUT ISSUE THROUGHOUT THE TRIAL AND CONTINUE TO RUN WITHOUT ISSUE Thunder Valley TODAY. Casino Resort has The EASITRAX system, which can be LIGHTNING QUICK AT been in the elite easily retrofitted to existing SC products, ranks of AAA Four is a software/hardware solution that Diamond award- gathers data from multiple note acceptors THUNDER VALLEY winning resort and funnels the information into a secure Thunder Valley Casino Resort upgrades to MEI destinations since database that can be accessed from a across all 2,700 machines, retrofitting with CASHFLOW SC note 2011. Located 30 single remote location. EASITRAX has miles east of proven to deliver a return on investment acceptors and EASITRAX Soft Count hardware within two weeks Sacramento, in less than one year by reducing 20-30 Thunder Valley Casino Resort in Lincoln, security and overall cost of operation to Thunder Valley seconds per cash drop and improving California has upgraded its entire slot profitability. Casino Resort offers maintenance practices through access to floor with MEI CASHFLOW SC note 250,000 square eight pre-programmed reports. acceptors and EASITRAX Soft Count. “Maintenance costs from our previous feet of gaming The upgrade across the 2,700 machine- note acceptor vendor had become too space – including “Thunder Valley’s experience represents floor, which occurred last November, expensive,” said James Lancaster, slot 2,700 slot and the kind of value that MEI takes took less than two weeks to complete. technical manager at Thunder Valley video machines, tremendous pride in generating for our Casino Resort. “It was time for a change. 113 table games customers,” says Eric Fisher, MEI senior Thunder Valley Casino Resort MEI products seemed like a natural and a live poker vice president – Americas. “We are management decided to invest in MEI choice for their excellent performance and room with space confident CASHFLOW SC and EASITRAX products after a Value-added Trial (VAT) reliability. Conducting a trial allowed us for 210 players Soft Count will continue to demonstrate again proved the importance of high to test the reputation that the MEI industry-leading results that will acceptance rate, fewer note jams, better product had before making the positively impact their bottom line.”

April 2013 PAGE 26 Focus AW SIGNS

“Operators find and so rather than re-invent the wheel themselves facing by developing these solutions SENDING ALL THE hurdles everyday ourselves, we have chosen to partner that range from with our distributors in the German physical challenges market, Diekhaus (D&D Elektronic und RIGHT SIGNALS – such as low Software GmbH), to provide this AW Signs celebrates its 20th Apart from the feature Jackpot signs ceilings or even dry technology. This not only gives us a manufactured by AW, which could be walling that is proven product, but also access to a anniversary and positions itself seen on the booths of its regular unable to take the significant amount of experience in this for futher expansion in 2013 customers such Merkur Gaming, weight of a full sign area.” Inspired Gaming and Synot, the - to budgetary The culmination of its 20th Anniversary company also displayed its range of constraints in these celebrations saw AW Signs (formerly thin gaming signs and a new media challenging times. I “OUR NEW AW Neoon) exhibiting at the 2013 management system capable of think that our range BRANDING, International Casino Exhibition, which showing digital media, including of thin signs offers was held for the first time at the Excel jackpots , that complements the gaming solutions to these WHILST PAYING exhibition centre in London’s environment. challenges, along HOMAGE TO OUR Docklands. ICE wasn’t the only one with a quality sporting a new look as AW unveiled its Reimo Luite, Operations Manager at product that they ORIGINS, new corporate image at the show, part AW Signs, said that the firm continued know from PORTRAYS THE of the company’s 20th Anniversary to see growing interest in its range of experience they celebrations. thin signs from across Europe. can trust.” QUALITIES OF A “Operators find themselves facing REIMO LUITE, MODERN, Vladimir Luite, the Founder and hurdles everyday that range from Operations President of AW Signs commented: “AW physical challenges – such as low Manager, CREATIVE AND turned 20 last year, which is a fantastic ceilings or even dry walling that is AW Signs. INNOVATIVE milestone for any company, but as part unable to take the weight of a full sign of a continuous and ongoing review of - to budgetary constraints in these COMPANY.” the business, we felt that the time had challenging times. I think that our “Overall, I think the ICE show this year come to refresh our corporate image. range of thin signs offers solutions to was very good. Not only was the new Whilst our old branding had served us these challenges, along with a quality venue excellent, but we enjoyed a well, the company has evolved over the product that they know from steady flow of customers which was years to a point where it was felt that experience they can trust.” good for business. In addition to repeat the brand image no longer reflected business from existing customers, we who we are. Our new branding, whilst “The addition of a media or jackpot were also able to generate business paying homage to our origins, portrays display system to compliment our core with new customers, which was ideal. the qualities of a modern, creative and signage product is also the result of We are looking forward to working innovative company - much like the listening to the needs of our closely with all our customers in 2013.” industry that we serve today. You only customers,” added Reimo. “More and Vladimir concluded: “All-in-all, we have have to look around the show to see more are looking to AW Signs to deliver a busy year ahead of us but we’ll what I mean.” complete solutions, not just signage, definitely be back next year.”

April 2013 PAGE 27 Focus I-DEPSYS & GENTING

have dramatically improved the i-depsys machine both mechanically and by adding intelligence to the units to handle every eventuality. Categorically, the live- trial environment has been invaluable to us. Nothing can compare to a live environment and I don't think we would have progressed to this stage without the commitment and strong relationship between IDS and Genting Casinos UK."

Rob Hoddinott, Commercial Director for Genting Casinos commented: “IDS has worked with us at every stage of the early trials to develop a robust product which we believe is one of the biggest steps forward ever in respect of how cash is handled from customer to table to cash desk to bank.”

Essentially the i-depsys unit accepts, counts, validates deposits and secures all cash tendered at the gaming table into a

IDS HAS DEVELOPED A ROBUST PRODUCT WHICH WE BELIEVE CASH CONVERTER IS ONE OF THE So many fabulous concepts fail on the path to development. BIGGEST STEPS The cash counting, validation and storage solution, i-depsys, is a FORWARD EVER IN success story thanks to the commitment of one casino operator RESPECT OF HOW

The unique cash counting, validation benefits through labour savings or CASH IS HANDLED and storage solution, i-depsys, has redeployment of resource to create ANDREW BEDDOE, FROM CUSTOMER concluded successful trials with Genting efficiencies. Chief Executive UK and received orders for additional Officer, i-depsys. TO TABLE TO CASH units to be installed at Genting Casino “We originally planned a 90 day trial with DESK TO BANK.” locations around the country, including Genting, however, upon installation our “We have Liverpool, Reading, London Mint and initial accuracy levels of 99.76 per cent dramatically secure tamper-proof pouch, is given a StarCity. The installation represents the were not where we or Genting wanted the improved the i- unique ID number and can then be sent first order for Intelligent Deposit Systems, product to be, so we spent time depsys machine straight to bank. It's this streamlining of a company established by gaming improving the accuracy of the product to both mechanically the process that is so attractive to casino industry professionals with the intention 99.9 per cent and beyond,” states and by adding operators and the banks have also stated of developing the world’s first table i-depsys’ CEO, Andrew Beddoe. intelligence to the that it allows them to streamline their integrated Intelligent Drop Box. “Genting’s commitment to i-depsys during units to handle own internal processes too. this period has been a vindication of their every eventuality. i-depsys is a cash counting, validation belief in this product and that we'd Categorically, the The difference between estimated and and storage device that can help protect deliver the results they are looking to live-trial actual drop can always be debated with and secure cash at all stages of its achieve.” environment has industry average figures accepted as 3-5 journey from customer to croupier, to been invaluable to per cent, but often higher. It’s this cash-in-transit company, and finally to The initial eight trial machines were us. Nothing can inaccuracy that is targeted by potential the cash centre and bank. IDS have been prototype models with IDS currently compare to a live fraudsters. Eliminating the opportunity developing and testing the i-depsys laying the tooling for full production and environment and I through improved processes and real- machine to ensure the product is fully installs throughout March/April. Genting don't think we time, accurate reporting of both cash and robust and auditable, this market-ready has taken the decision to install i-depsys would have machine, means that i-depsys is a product’s principle goal is to give on every table at three of their casinos progressed to this management tool that makes logical sense operators greater control and flexibility and on eight of their busiest tables at Star stage without the to operators. through improved information, and the City as part of a preliminary roll-out, commitment and ability to know the true cash position of expanding the machine base to evaluate strong relationship “We currently have trials due to start in their business in real-time. At the same further all of the operational benefits. " between IDS and Australasia in the very near future and we time, i-depsys handles cash in such a Genting Casinos are commencing in Macau, Malaysia and way that it eliminates the need to “We have learned a great deal from UK.” Australia," states Mr. Beddoe. “i-depsys is physically count the cash at the end of working with Genting in a live trial a home-grown success story that's the day, offering operators significant environment,” stated Mr. Beddoe. “We proving its abilities at home and abroad.”

April 2013 PAGE 28 Insight CASHLESS IN CHINA

CASHLESS TRIAL PUT ON TRIAL Investors had been closely watching the progress of the new Jesters casino bar, part of the newly opened Mangrove Tree Resort on Sanya Bay in China's southern Hainan island. Just before it was shutdown.

China’s first mainland cashless casino concept was thought to have the potential to siphon business from the world's largest gaming hub in Macau, which is an hour's flight away from Hainan island. However, as quickly as the casino bar opened, the local authorities shut it down and launched an investigation into illegal gaming on the premises. Jesters, a part of the newly opened Mangrove Tree Resort World in Sanya Bay, offered hotel guests the chance to win points that could be used to pay for accommodation, luxury goods, jewellery and artwork on sale at the resort. Owned by real estate mogul Zhang Baoquan, Mr. Baoquan claimed that the casino bar marked the Chinese government's first tacit approval of a gaming concept outside of Macau.

It is thought that at least 10 licenses were about to be issued by Sanya officials when Jesters was shut down, with investors in Hong Kong dismayed at the closure of the southern Chinese island casino. The casino bar, with 50 gaming tables, is currently closed to hotel guests, though the The local government still wants to develop Hainan to be the first plan had been to allow local residents to play once the resort had been completed. place in China to legalise gaming outside of Macau, but its test-run, encountered a snag that could put a halt to the cashless concept.

Mr. Baoquan claimed that while the casino bar was something of a test and that the government was closely monitoring its progress, with the cashless phase seen as an initial stage before legalised casino gaming was allowed at the 173-acre property. Unfortunately, it seems that the government was watching the progress of the Jesters’ concept, though not with an eye to approving it. Chinese investigators commented: “We are investigating the bar, and so far it looks like they have violated their operating regulations. When we approved it the regulations and the certificate said its operations would be in nature entertainment, but within the bar there are some games and they’ve gone beyond the scope of the regulations, so we closed it down.”

Mangrove Tree Resort World, the newest addition to Hainan's rapidly developing hotel scene, will be China’s biggest resort when construction is completed next year. It will have more than 4,000 rooms, a convention hall accommodating 6,000 people and facilities including a water park. It is one of 10 integrated resorts that Mr. Baoquan is developing around the country, including another in Sanya and others stretching from Lhasa in Tibet to the eastern coastal city Qingdao.

While the Chinese government does not permit casinos in the country outside of Macau, Mr. Baoquan - ranked by Forbes as one of the country's 300 richest people in 2012 with $600m, previously said Hainan could become an exception.

Before its swift closure, Jesters had modelled itself on Macau's casino floors, but with players buying tickets costing 500 yuan ($80) each. Bets range from 20-2,000 yuan in the mass area, while the high-limits area is set at 2,000-100,000 yuan. High rollers were be able to place bets over 100,000 yuan once the VIP room opens on the second floor. Winning players received 'Mangrove' points to buy products available in the casino such as an iPad or Rimowa suitcases. Once luxury brands open outlets within the resort, customers would be able to spend their points in those stores. MGM Resorts International opened a hotel in Sanya last year and US casino operator Caesars Entertainment is set to open a hotel in 2014. April 2013 PAGE 29 Focus SHFL ENTERTAINMENT

GAMBLING IN MACAU G2E Asia 2012 saw a very public legal dispute between SHFL entertainment and China’s LT Game. Will next month see round two?

SHFL entertainment has confirmed that The litigation despite losing one recent court case in regarding the Macau and regardless of on-going legal Macau Rapid disputes with LT Game in the Macau Baccarat Patent market, it will exhibit at G2E Asia in Issue is long and Macau next month. convoluted but has led to the The Las Vegas-based manufacturer said scheduling of a trial that this month’s Court of Second hearing. SHFL’s Instance’s ruling on a progressive spokesperson said: baccarat game patent claimed by Jay “SHFL Asia will have Chun, owner of Macau-based the opportunity to manufacturer LT Game, would not present the legal prevent it from showing products. and factual arguments as to A spokesperson said: “This is a why any accusation standalone issue regarding the validity of of patent a proprietary table games related patent’ infringement we are opposing, not to be confused with should be found our separate e-Table issue. This patent totally without merit. has nothing to do with anything we are We believe that we currently selling in Macau.” have meritorious defences and are SHFL confirmed it had challenged the vigorously validity of the progressive baccarat patent defending this in Court and was unsuccessful. The Court matter.” of Second Instance rejected its appeal, ruling that as SHFL is only registered in Macau as a ‘retailer and distributor and not as a manufacturer’ it had no legitimacy to appeal. The Court ruled that SHFL was unable to prove that it was ‘directly and effectively harmed’ by the government’s decision to approve Mr. Chun’s patent.

The ruling shouldn’t be confused with the on-going legal issues that SHFL and LT Game remain entangled in. LT claims it holds a monopoly over e-Table patents to sell multi-player terminals in Macau, which has seen several companies unable to display such product at G2E Asia despite the event covering Asian gaming and not just the Macau casino sector.

The wider fall out between the two companies began in 2009 but came to a head at G2E Asia last May when SHFL voluntarily covered some of its products following visits by Macau customs officials to the company’s exhibition stand. That dispute focused on SHFL’s Rapid Baccarat System, which LT claim infringes on patents it holds for multi- player hybrid games.

April 2013 PAGE 30 Focus SHFL ENTERTAINMENT

As the overwhelming game of choice in A complaint has Game alleging that its claims of holding a Macau, baccarat has become a keen focus also been filed monopoly have been ‘to the detriment of for developers of multi-player terminals against SHFL SHFL Asia’s business’ and have gone due to legislation capping live tables as entertainment in ‘beyond the legal scope of patent well as labour shortages due to so many the United States protection in Macau.’ casinos opening in such a short space of District Court for the time. District of Nevada The lawsuit alleges that the LT patents are alleging ‘unfair not novel and so shouldn’t restrict SHFL Sands China, the Macau-based operating competition and Asia and other companies from selling or arm of , originally opted tortious interference using multi-game terminal betting to install SHFL product when it opened a with current and products in Macau. multi-player dedicated part of its gaming prospective floor called Imperial Stadium at its business and Whilst some multi-player manufacturers Venetian Macao and contractual are still weighing up their options with casinos. It subsequently replaced SHFL relations’ as a regards to exhibiting at G2e Asia, SHFL’s product with that from LT Game. result of SHFL’s spokesperson stated: “It is our intention alleged to exhibit our products at G2E Asia, yes.” The litigation regarding the Macau Rapid ‘disparagement Baccarat Patent Issue is long and and Even away from the multi-player issue, convoluted but has led to the scheduling misrepresentations the market is still providing huge of a trial hearing. SHFL’s spokesperson regarding LT Game opportunities for SHFL. said: “SHFL Asia will have the International’s opportunity to present the legal and business, products factual arguments as to why any and services.’ WHILST SOME accusation of patent infringement should be found totally without merit. We The complaint MULTI-PLAYER believe that we have meritorious defences seeks injunctive MANUFACTURERS and are vigorously defending this matter.” relief and an unspecified amount ARE STILL “After initially agreeing with Macau of damages, WEIGHING UP customs officials’ request to cover our including claims for Rapid Table Games Multi Game product, costs. SHFL’s THEIR OPTIONS we received court approval to post a bond spokesperson WITH REGARDS TO of approximately $0.1m to enable our stated: “We believe subsidiary SHFL Asia to display the Rapid that this complaint EXHIBITING AT Table GamesMulti Game product at the is without merit and G2E ASIA, SHFL’S G2E Asia Gaming Show,” it explained. “In we are vigorously November 2012, a higher court in Macau defending this INTENTION IS TO agreed to hear our appeal of the matter.” EXHIBIT ITS injunction, giving us the opportunity, for the first time, to contradict the facts and PRODUCTS AT G2E the arguments proffered by the Natural ASIA. Noble Plaintiffs in support of the injunction, and to attempt to recover the The spokesperson said: “We’re very bond of approximately $0.1m and prove pleased with its success, and the the lack of merit of the injunction. We consistent feedback we've received from have submitted our defences and operators in Macau is that DFDC is one of counterclaims in this matter and are the strongest slot performers on their vigorously defending this matter.” floors. In Asia, Duo Fu Duo Cai is a progressive link jackpot game with 88 A complaint has also been filed against Fortunes and 5 Treasures as the base SHFL entertainment in the United States games. There are approximately 160 District Court for the District of Nevada currently installed in Macau at City of alleging ‘unfair competition and tortious Dreams, Galaxy, Wynn, MGM, Mocha slot interference with current and prospective halls, Sands and the Venetian. Further business and contractual relations’ as a expansion in Asia includes the result of SHFL’s alleged ‘disparagement Philippines.” and misrepresentations regarding LT Game International’s business, products Analysts at Union Gaming recently tipped and services.’ SHFL for big things in Asian markets with the product saying it ‘has an opportunity The complaint seeks injunctive relief and to gain market share in the Asian slot an unspecified amount of damages, machine market.’ It highlighted SHFL’s including claims for costs. SHFL’s slot game Duo Fu Duo Cai – Fu saying it spokesperson stated: “We believe that this was ‘performing well above house complaint is without merit and we are average in Macau’ with strong time on vigorously defending this matter.” device. Union believes a combination of expansion and replacement will see In October SHFL Asia countersued with a 23,600 new slot machines sold into Asia lawsuit in a Macau court against the LT over the next four years.

April 2013 PAGE 31 Review GLI USA ROUNDTABLE

GLI ALWAYS GOES ABOVE AND BEYOND ABOVE AND Gaming Laboratories International’s 12th North comment I received from a regulator BEYOND FOR THE during the Roundtable. He said to me, American Roundtable drew 315 regulators from ‘GLI always goes above and beyond for REGULATORS WE across 46 jurisdictions in the USA the regulators we serve.’ And that is it in SERVE. IT’S NOT a nutshell. It’s not enough for us to just Emerging technologies and evolving (Top) GLI President do our jobs. We as a company set ENOUGH FOR US TO regulation took center stage as Gaming and CEO JAMES ourselves apart by going above and JUST DO OUR JOBS. Laboratories International (GLI), the MAIDA and Bally beyond for our clients. That’s who we are world’s leading technical consulting and Technologies as GLI.” WE SET OURSELVES independent certification laboratory, President and CEO APART BY GOING welcomed 315 regulators from 46 RAMESH The Roundtable opened with Srinivasan’s jurisdictions to its 12th annual North SRINIVASAN who keynote address, wherein he talked about ABOVE AND American Roundtable. presented the the benefits of new technologies and the BEYOND FOR OUR keynote speech at need for standards in regulation. After The Roundtable, produced through GLI’s the GLI North Srinivasan, GLI President James Maida CLIENTS. world-renowned training program GLI American and Director of Technical Compliance included Kurt Freelund, COO & General University, was held February 27 and 28 Roundtable. Patrick Moore presented “Hot Topics: 10 Counsel, Georgia Lottery; Katie Lever, at the Flamingo Las Vegas and included a Things You MUST Pay Attention to in General Counsel & Executive Vice mix of general session panel discussions, 2013.” President, SHFL Entertainment, Inc.; the hands-on learning modules and a keynote Honorable Leslie Lohse, Vice Chairman of address by Bally Technologies President The session was followed by GLI’s California Business Alliance & Treasurer of and CEO Ramesh Srinivasan. General Counsel & Senior Director the Paskenta Band of Nomlaki Indians; Government Relations Kevin Mullally and Paul Williams, Chief Technology GLI secured leading global experts from moderating a panel on social gaming Officer, Cantor Gaming. across the gaming industry to speak to asking the questions does social gaming regulators on a variety of today’s most need to be regulated and can it be? Sports betting and wagering regulatory important topics, bringing regulators Panelists were Gaming Network Solutions best practices were the topics of many different vantage points, and CEO John Cramp; Cherokee Nation discussion in a panel led by GLI Senior providing a one-of-a-kind forum for Director Gaming Commission Jamie Director Engineering & Client networking and knowledge-sharing. Hummingbird; Mitch Kamin, Principal at Development Ian Hughes with Michael Bird/Marella; and Illinois Gaming Board Ellen, Director Licensing and Strategy, GLI President and CEO James Maida said, Executive Director Mark Ostrowski. AGCC; John Tarr, Director of Security, “Sometimes people ask me why GLI goes Montana Lottery; and Paul Williams, to the time and expense to produce the Next was a discussion on what regulators Chief Technology Officer, Cantor Gaming Roundtable each year in three areas must do to ensure compliance, data joining as panelists. around the globe. And my answer to that security and player protection as casinos question can be summarised by a shift from bricks-to-clicks. Panelists Next, GLI Canada CEO Salim Adatia led a

April 2013 PAGE 32 Review GLI USA ROUNDTABLE

discussion about the regulatory The last general session panel highlighted (Above left) KELLY a back-to-basics compliance session on implications of persistent browser-based the migration of technology with online SHAW , VP Systems network security and field audits. gaming with panelists Floyd Barroga, systems. GLI’s Director of Development & Marketing North Jurisdictional Engineer, WMS Interactive; Global Professional Services Stephanie America, Aristocrat GLI Vice President Paul Magno brought Morris Choma, Senior Manager Technical Maddocks moderated with panelists Technologies and the Roundtable to a close with an eye to Services, Manitoba Lotteries Corporation; Jamie Hummingbird, Director Gaming STEVE KASTNER, this year’s GLI University regional and GLI Director of Engineering Commission, Cherokee Nation; Steve Executive Director seminars and the Roundtables in Europe Mackenzie Haugh. Kastner, Executive Director Product Product and in Latin America. Compliance, IGT; and Kelly Shaw, Vice Compliance, IGT The risks of departmental security silos President Systems & Marketing North In addition to the seminars, the annual were highlighted in a panel led by America, Aristocrat Technologies (Above right) LESLIE Regulators/Suppliers cocktail party drew Arizona Gaming Director Mark Brnovich participating. LOHSE , Vice hundreds of suppliers as well as and panelists Sam Basile, Gaming & Chairman of regulators for what has become one of Business Attorney & Advisor, GeoComply; The learning modules were conducted by California Business the year’s premiere gaming industry Denise Harvey, Gaming Commission GLI staff and included a hands-on Alliance & events. Chair, Confederated Tribes of the Grand overview of GLICloud, GLI’s newest Treasurer of the Ronde Community of Oregon; and Victor exclusive tool; cloud gaming and trends Paskenta Band of GLI’s next Roundtable takes place May Rocha, Owner & Editor of Pechanga.net. in third-party audit and certification; and Nomlaki Indians. 13 and 14 in Barcelona, Spain.

April 2013 PAGE 33 Report NEWFOUNDLAND

NEWFOUNDLAND AND LABRADOR HIDE AND SEEK An enormous new replacement programme for its VLT stock has triggered great market interest, though the province resolutely refusing to entertain igaming Newfoundland and Labrador is the The capital (right) 1. Games which are conducted by the easternmost province in Canada and and largest city is St Atlantic Lottery Corporation on behalf of located on the country’s Atlantic coast John’s which is the government which include 6/49, and is made up of the mainland Labrador Canada’s 20th Super 7, scratch tickets and breakopen and the island Newfoundland which are largest metropolitan tickets which can be sold in convenience separated by the Strait of Belle Isle. area in terms of stores plus VLTs. census and home to Around 94 per cent of the province nearly 40 per cent of 2. Games which are conducted by resides on the island of Newfoundland the population. The charitable and non profit organisations including some 7,000 smaller associated name is derived which can then include bingo, ticket islands of which over half live on the from New Found lotteries, games of chance, card games, Avalon Peninsula. Labrador is joined to Land and as a Monte Carlo events and breakopen tickets Quebec and Nunavut. former colony and which can be sold at bingos. dominion of the UK, The capital and largest city is St John’s this province The Department of Government Services which is Canada’s 20th largest because the 10th to and Lands, Trades Practices and Licensing metropolitan area in terms of census and enter the Canadian Division is responsible for regulating home to nearly 40 per cent of the Confederation in lotteries in Newfoundland and Labrador. population. The name is derived from March 1949 as New Found Land and as a former colony Newfoundland. It CHARITABLE GAMING and dominion of the UK, this province 2001 an amendment This sector includes bingo, breakopen and because the 10th to enter the Canadian was made to the pull tickets, Monte Carlo night, poker and Confederation in March 1949 as constitution to raffles. Usually this is associated with • Breakopen – Newfoundland. It 2001 an amendment rename the province health organisations, churches and sports Licence fee is $10 per box/unit was made to the constitution to rename by adding Labrador and recreation groups and the sector is the province by adding Labrador to the to the title. licensed by the Department of • Bingo/Breakopen – title. Government Services. Licence fee 1% of prize payout

For many years the province has Each type of lottery has its own rules and • Ticket – experienced a depressed economy there are also individual rules for each Licence fee is 1% of prize payout following the collapse of the cod fishery town. A licence takes around two weeks industry during the early 1990s. But due to receive once applied for and funds • Games of Chance to an energy and resource boom there has raised must be for charitable purposes. Games of chance shall not exceed a been a turnaround in recent years. period of 12 hours in any 24 hour In 2009 some 3,100 licences were issued period Today, the service industry accounts for with gross proceeds amounting to $36.3m the largest share of GDP especially the and net proceeds of $9.3m. Some of the Combined total of wheels and games financial services, health care and public regulations include: will be maximum 15. administration whilst other significant industries are mining, oil production and • A licence period is for 12 months Maximum wager on wheel is $10 on manufacturing. maximum any one spin

Tourism too is significant and is most • Only permitted to those aged 19 years Total value of prizes for card games is popular during the months and and over $500 per event. annually the provinces sees 15 million visitors bringing in some $9.5bn in • Bingo Licence fee is 1% of prize payout receipts whilst total Tourism GDP reached Maximum combined prize payout for except in the case of Wheel of Fortune $31.3bn in 2011 making up 1.9% of each bingo event is $3,000 where a fee of $5 for each wheel per Canada’s total GDP. Between Jan and event is required or $5 for each game June 2012 there were a total of 6.7 million Maximum payout for any one game is of chance per event. visitors. $1,500 • Monte Carlo GAMING AND LOTTERIES Maximum events allowed per week is Licensee is limited to maximum of six In Newfoundland and Labrador (NL) two or 104 per year. Monte Carlo events in any 12 month there are two main types of lotteries or period. gaming. Licence fee is 1% of prize payout.

April 2013 PAGE 34 Report NEWFOUNDLAND

Newfoundland: Operator profile Operator: Atlantic Lottery Corporation Newfoundland VLTs: 1,938 Information: ALC operates 1,938 VLTs in this province which saw net profits of $122.7m in 2011/12. Background: The four Atlantic provincial governments established ALC in 1976 and since then it has been running lotteries on behalf of New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland and Labrador. ALC was the first company to introduce video lottery into Canada. ALC saw gross ticket sales in 2012 of $626m and net profits of $369m. They operate in total over 3,000 lottery retail terminals, 63 multi purpose retail terminals and 6,957 VLTs.

drivers competed for almost $120,000 over 20 race days which is three times Combined total of tables, wheels and The Atlantic Lottery more than competed for in 2007. games shall be 25 maximum THE ST JOHNS Corporation was RACING AND established by the The bulk of that money comes from Games can only be played with chips, four provincial simulcast wagering which took in over tokens or play money. ENTERTAINMENT governments of $2.5m in on-site and online bets last year. New Brunswick, Betting on live races has also increased Bets cannot exceed $10 on any wheel CENTRE IS THE Nova Scotia, Prince over the last three years to $10,000 to spin or individual game of blackjack. ONLY PARI- Edward Island and $40,000 per race day with anything from Newfoundland and 10 to 35 race days in a year. Licence fee is 1% of prize payout MUTUEL BETTING Labrador. The ALC except in case of Wheel of Fortune as TRACK IN THE has been delivering THE ALC above or table games where a fee of $5 lottery products for The Atlantic Lottery Corporation was per game per event is required. PROVINCE WITH more than 35 years established by the four provincial 50 YEARS OF and last year saw governments of New Brunswick, Nova • Sports net profits of Scotia, Prince Edward Island and Total value of tickets or entries sold for HARNESS RACING. $369m. Gross Newfoundland and Labrador. one event will not be more than 12 was time the province had a harness tickets sales in times the total retail value of prizes. racing track. And so racing began a year Canada amounted The ALC has been delivering lottery later and pari-mutuel wagering in to $626m in 2011/12 products for more than 35 years and last Maximum individual prizes for a time Newfoundland was also born. whilst gross profits year saw net profits of $369m. Gross shall not be more than $1,000 and were $549m. tickets sales in Canada amounted to purchase of a single ticket not more The St Johns Racing and Entertainment $626m in 2011/12 whilst gross profits than $5. Centre is located in Goulds and is the were $549m. only pari-mutuel betting track in the Licence fee is 1% of prize payout. province and this year celebrated 50 years In total ALC has just over 3,000 lottery of harness racing. The track has shown retail terminals, some 63 multi purpose HORSE RACING positive reports over the last few years retail terminals and 6,957 VLTs. Horse racing is run by privately operated saying owners and horse have increased corporations and regulated by the and there are more visitors than before. In 1990 the ALC began the management Canadian Pari-mutuel Agency and the of the Atlantic Canadian VLT programme Standardbred Canada. The track is run by Jim Whelan and Scott and introduced a regulated alternative to Forward who purchased the 27 acre what was really an unregulated market at Back in 1961, Newfoundland and facility next to Gould’s Third Pond in the time. Today the ALC is widely Labrador racing enthusiasts decided it 2005. Last year the horse owners and recognised as a world leader in these

April 2013 PAGE 35 Report NEWFOUNDLAND areas in terms of social responsibility.

Since 1976 the ALC has returned more than $7.4bn in profit to the four Atlantic provinces which help fund services such as roads, hospitals or schools.

The subject of VLTs in the NL province has been a touchy one for some time. One anti gambling group wants to see the VLTs removed permanently whilst the government continues to support the machines and the income it collects from them.

The games were introduced in 1991 and were permitted only in licensed establishments with a play of 5c minimum and $2.50 bet with a maximum payout of $500 and a prize payout percentage of between 93-95 per cent. They all feature responsible gambling features such as length of play reminders, forced cash outs and a $60 deposit limit. A maximum of five terminals are permitted per site.

In 2005 the government implemented a five year VLT reduction strategy which included reducing the number of VLTs by 15 per cent, reprogramming VLTs to slow the speed of play and changing the hours of operation from 12pm-12am instead of 9am-2.30am. More funding was also allocated to treatment, research and education. This was fully implemented by 2010/11 and saw the reduction of 650 VLTs.

ALC’s Lindsay Shannon said: “This programme was about creating gaming environments that support Atlantic Lottery’s, and the government’s commitment, to responsible gaming and we’re proud of how it’s been implemented.” “The [VLT] the 7,500 VLTs it operates in the four such as length of play reminders, forced replacement provinces. The ALC issued a request for cash outs and a $60 deposit limit.” At the time there were 2,645 VLTs in 593 process began in proposals and the results were announced different bars in the province. This was September 2012 in May 2012. Techlink Entertainment won a to the highest per capita number of VLTs in and will span a build 1,000 VLTs, some 17 per cent of the any Canadian province. Regulation stated period of two years. Lindsay Shannon of ALC said: “Currently units, whilst Spielo will provide 1,700 a maximum of five per site. However The new terminals our terminals are almost 10 years old new VLTs a 29 per cent share, IGT with some site holders merely multiplied their will offer many of which is older than terminals in other 1,612 units and 28 per cent share and liquor licenses and sites within the same the same games jurisdictions across Canada making them Bally with 1,576 units and 27 per cent establishment in order to increase their allowing for a obsolete as we can no longer buy parts share. number of VLTs. Today there are 1,938 seamless transition for or service them. VLTs in the province whilst net VLT in our VL Bally signed its agreement in May this receipts were $122.7m. programme. The “The replacement process began in year and will provide 1,576 VLTs. The technology may September 2012 and will span a period of Bally cabinet is the V22/22 and will Meanwhile the ALC has been operating allow for the two years. The new terminals will offer include top titles such as Quick Hit its online gaming site since 2004 and introduction of new many of the same games allowing for a Platinum and American Original. This is became the first lottery in North America games however the seamless transition in our VL programme. the first VLT replacement contract for to sell its products online. Games such as replacement The technology may allow for the Bally who were not selected for the Loto Lotto Max and Lotto 6/49 and regional initiative is driven by introduction of new games however the Quebec and Alberta awards. draw games are all on offer. the fact we have replacement initiative is driven by the fact obsolete technology we have obsolete technology that can’t be Techlink was set up in 1994 and is Two years ago in June 2010 the ALC that can’t be serviced. headquartered in Nova Scotia. The began a process to replace the 7,000 VLTs serviced.” contact with ALC was signed in May 2012 it operates throughout Canada. The ALC LINDSAY “The new terminals will continue to offer for 1,000 Blast VLTs and is the largest plans to spend $93m to replace 5,900 of SHANNON, ALC proven responsible gambling features contract in Technlink’s history and was

April 2013 PAGE 36 Report NEWFOUNDLAND

Newfoundland: Vital Statistics Capital: St. John’s Population: 514,536 Land Area: 405,212 sq.km Lt. Governor: John Crosbie Premier: Kathy Dunderdale (PC) GDP: $28.1bn Casinos: 0 Racetracks: 1 Racing Revenue: $487,000 Lottery Outlets: 1,073 Lottery Revenue: $79.3m Charity Gaming Licences: 3,100 (2010) Charity Gaming Revenue: $15.7m VLTs: 1,938 VLT Sites: 468 (bars with VLTs) VLT Revenue: $122.7m Total Gaming Revenue: $201m Online Gaming: N/A Regulator: Ministry of Services www.gs.gov.nl.ca

deliver the GL20 lottery terminal which complies with specifications and G2S protocols.

David Flinn, IGT executive director, Canada said: “IGT is very pleased with the performance of our games in the Atlantic Lottery and Societe des lotteries video du Quebec markets. IGT is fully Games to System (G2S) compliant in a wide area network. We believe an open G2S based Service Window player user interface is key to delivering new content and allowing for the convergence of lottery business units as well as also facilitating responsible gaming features and information. due to be completed by mid November “IGT is very “While the GL20 cabinet was designed with the VLTs deployed by the beginning NEWFOUNDLAND pleased with the specifically for lottery markets the of 2013. The company was one of the IS STUDYING A performance of our common platform among all our products winning companies due to excellent price games in the allows us to offer any one of a number of quality ratio, innovative games and PROPOSAL FOR Atlantic Lottery and cabinets based on market needs.” security and integrity of the machines. Societe des lotteries ONLINE GAMING video du Quebec At the moment the estimated combined Deborah Macpherson, Executive Assistant AS ALC SAYS THE markets. We market share from Loto Quebec, Alberta to the President and CEO at Techlink said: believe an open and ALC means that IGT has a “Techlink has experienced significant PROVINCE LOSES G2S based Service approximate 45 per cent share of the total growth over the course of the last few AROUND $50M IN Window player Canadian market, Spielo 34 per cent, years. Today it remains the only true user interface is key Bally six per cent, WMS five per cent, Canadian manufacturer with VLTs in the REVENUE. to delivering new Aristocrat five per cent and Techlink four Canadian marketplace and we hope that tickets in the one terminal and it comes content and per cent. the success of our products in the Atlantic with the new LaunchIT software allowing for the Canadian market will result in further platform. convergence of Meanwhile, Newfoundland has been growth and opportunity throughout the lottery business studying a proposal for online gaming rest of Canada.” Blast is completely adaptable as a multi units as well as from the ALC who says the province loses game or single game machine and game also facilitating around $50m in potential revenue by not After a year of development the company changes can take place immediately from responsible allowing internet gaming. They say launched its new VLT Blast in 2011. It a central server. gaming features revenues from VLTs have decreased since comes with two high definition and information.” the number of machines was reduced. widescreen monitors and LED artwork IGT is a long time partner of the Atlantic DAVID FLINN, However, former Premier Danny Williams lighting and offers traditional casino Lottery and has been providing VLTs Executive Director, is against and says he games, VLT games and even scratch since 1990 and under its agreement will Canada, IGT. will vote against it.

April 2013 PAGE 37 Report PRINCE EDWARD ISLAND

PRINCE EDWARD ISLAND PROTECT AND SERVICE The smallest of the Canadian provinces is taking measures to overhaul and refresh its offer

This maritime province is the smallest in There are 175 the nation in both land area and lottery retailers on population and is often referred to as the the island and the Garden of the Gulf. sector took $14.7m last year. Net It was named after Prince Edward, Duke revenue from of Kent and Stratheam. The island gambling is became the seventh Canadian province in returned to the 1873 and consists of the 5,620 sq.km government to main island plus 231 minor islands. The support charitable main island is the 104th largest island in organisations and the world and Canada’s 23rd largest. promote sports and health care. Around Geographically it is located in the Gulf of $26.9m went to the St Lawrence which is west of Cape Breton government last Island and is around 200km north of year and charities Halifax in Nova Scotia and 600km east of received $94,300. Quebec City. Some $611,000 was allocated to The island has two urban areas, the problem gambling. largest of which surrounds Charlottetown Harbour and is situated centrally on the southern shore. A smaller urban area surrounds Summerside Harbour also on industry generates around $42.9m in tax In 1985 the provinces were given control the southern shore consisting primarily of revenues whilst total revenue for tourism of gaming and today various acts cover the city of Summerside. is around $372m annually. The island the gaming sector while the lottery is receives over 1.2 million visitors a year. managed by Atlantic Lottery Corporation The landscape is mostly hills, beaches and operated by ALC and ILC. and ocean and the island is famous for its CHARITABLE GAMING natural beauty. The Prince Edward Island gaming There are 175 lottery retailers on the industry is worth around $39m (2005) island and the sector took $14.7m last The economy is dominated by seasonal and VLT gaming and lotteries account for year. Net revenue from gambling is industries of agriculture, tourism and the the largest share as there is no casino returned to the government to support fishery trade. The province accounts for a gaming. charitable organisations and promote third of Canada’s total potato production sports and health care. Around $26.9m whilst the Aerospace sector is the island’s VLTs have a 50 per cent share of the went to the government last year and fourth largest industry. Prince Edward Island gaming market charities received $94,300. Some $611,000 followed by the lottery with 36.5 per cent, was allocated to problem gambling. The island is recovering from the global bingo with 8.4 per cent and pari-mutuel recession and the prediction was for a 1.6 betting with 4.8 per cent. Meanwhile, the Charitable Gaming sector per cent growth in GDP for last year and is regulated by the Consumer Services 1.4 per cent in 2013. Employment The lottery is regulated by the Prince Section under the Department of increased by two per cent in 2011 and Edward Island Lottery Commission Act Environment, Labour and Justice and unemployment averages 11.3 per cent. which was passed in 1976 and governed by the Charities Act. established the commission as the body Meanwhile tourism accounts for 6.8 per to manage and operate gaming activities There are several types of charitable cent of PEI’s total GDP and the sector on the island. gaming available including bingo, Cash employs around 15,000 people. The lottery, 50/50, raffles and Monte Carlo

April 2013 PAGE 38 Report PRINCE EDWARD ISLAND

Prince Edward Island: Vital Statistics Capital: Charlottetown Population: 140,204 Land Area: 5,600 sq.km Lt. Governor: Frank Lewis Premier: Robert Ghiz (Liberal) GDP: $5.3bn VLTs: 270 VLT Retailers: 40 VLT Revenue: $17.3m Lottery Retailers: 175 Lottery Revenue: $14.6m Racinos: 2 Slots at Racetracks: 248 Slots Revenues: $11.9m Charity Licences: 1,100 Charity Gaming Revenue: $2.7m Total Gaming Revenue: $49m Online Gaming: N/A Regulator: PEI Lottery Commission www.gov.pe.ca

licence fees are based upon the total retail prize value so:

1. For lotteries with a total retail prize value of $250 or less the fee is $5

2. For lotteries with a total retail prize value of over $250 the fee is two per cent of the retail value of the prizes to not exceed $2,000.

3. For series event bingos the fee is two per cent of retail value of prizes.

VLTS Back in the 1980s the island saw a rapid expansion of illegally operated machines. These unregulated casino nights. Therese are operated by a In 1996 a cap was games were operated at convenience number of organisations such as the AROUND 1,000 introduced on the stores and there was a call to change the Royal Canadian Legion, Kiwanis and number of VLTs system. Lions Clubs. LICENCES ARE available in the ISSUED EACH province limiting it So in 1991 the government stepped in and There are around 1,000 licences issued to 615. Liquor regulations were introduced reducing the each year and raffles account for over YEAR AND licensed number of sites and restricting access for three quarters of all licences. RAFFLES establishments those under the age of 19. could not have BINGO: This is open to those aged 16 ACCOUNT FOR more than five VLTs The programme followed that of New years and over. Prize limits for any one per site and non Brunswick in terms of private sector game is $2,000 and the maximum prizes THREE QUARTERS liquor ownership and operation of machines. At offered in any one 24 hour period is pool or value of prizes shall not exceed establishments this time the government received 50 per $5,500. $3,000. Maximum admission to each could not have cent of the revenue while site holders and lottery shall not be more than $1. more than two. By VLT owners split the remaining revenue In 2006 satellite bingo was introduced on 1998 the equally. the island and these games are held on CASINO NIGHTS: These can offer government had regular bingo nights and join bingo halls blackjack, roulette, Wheel of Fortune or removed all VLTs In 2003, however, the Atlantic Lottery across the island by satellite for a larger other games. However games, punch located in non Corporation became the sole operator of rolling jackpot. All proceeds from bingo boards and coin tables are not permitted. liquor VLTs and also assumed responsibility for nights must be used for charitable Games must be played with tokens or establishments. the supply, maintenance and technical purposes. If there are other games played chips and prizes cannot be given in cash. support of the machines. in conjunction with bingo (such as Pots of Gold, Looney Jackpots, Bottle Bingos) LOTTERY: Lottery can be a single event or The government changed the revenue then the maximum amount of the cash series events and for the lottery the share scheme several times over the next

April 2013 PAGE 39 Report PRINCE EDWARD ISLAND few years increasing its share of the win from 35 per cent to 80 per cent.

In 1993 the government restricted the hours that VLTs were available to be played and permitted them from between the hours of 11am and midnight. They could not be played on Christmas Day, Good Friday or on Sundays.

In 1996 a cap was introduced on the number of VLTs available in the province limiting it to 615. Liquor licensed establishments could not have more than five VLTs per site and non liquor establishments could not have more than two. By 1998 the government had removed all VLTs located in non liquor establishments.

Since this time the number of machines in operation has ranged from 350 to 430 and the win level was around $20m. Between 1992 and 1997 there were generally 225 to 250 VLT locations per year in the province which dropped to around 75-100 once VLTs were removed from non liquor establishments.

Back in 2006 there were 379 VLTs located in 81 locations plus another 225 VLTs at the newly opened Charlottetown Driving Park and Entertainment Centre.

Then in 2008 the ALC was asked to reform the video lottery program as part of the Government of Prince Edward Island’s Responsible Gaming Strategy.

The aim was to reduce the number of “The new terminals • The 11 Royal Canadian Legion cash outs and a $60 deposit limit. VLTs in the province over the next two will offer many of branches which had VLTs would not be years. Some called for a complete ban, the same games, impacted. “We work with each of our shareholders however, those against felt this would allowing for a to develop the gaming strategy that best drive gambling underground and instead seamless transition • All changes were expected to be fully reflects the interest of its residents. the industry merely had to addressed in our VL implemented with 18 months. Currently on the island all our VLTs responsible gaming. So the idea was to: programme. The feature a maximum bet amount of $2,50 technology may Today, there are 40 establishments with a and a maximum award amount of $500 • Reduce the number of VLTs sites by 50 allow for the total of 270 VLTs in operation. The ALC and feature a prize payout percentage of per cent. introduction of new will revamp its VLT machines also in this between 93-95 per cent. There is also a games, however province with the roll out of new maximum terminal amount in effect of • Reduce the number of VLT terminals the replacement products expected by the end of 2012 and five VLTs per site.” by 20 per cent - this would make it the initiative is driven by beginning of 2013 and will be provided by lowest number of VLTs per capita in the fact we have IGT, SPIELO International, Bally and Net video lottery receipts on Prince Atlantic Canada obsolete Techlink (see update in Newfoundland Edward Island were $17.3m in 2011/12. technology that report). SPIELO International will also • Commissions would be reduced for site can’t be serviced. provide the next generation INTELLIGEN RACINO holders with more than five VLTs. The The new terminals Central System as part of the upgrade In 2004 the government approached ALC commission at the time was 20 per will continue to process undertaken by ALC. to develop a racing entertainment centre cent. A new class of sites would be offer proven at the Charlottetown Driving Park and the established for those with more than responsible Lindsay Shannon of ALC said: “The new Summerside Raceway. The idea was to five and the commission would be gambling features terminals will offer many of the same revamp the harness racing industry. Net reduced to 15 per cent. such as length of games, allowing for a seamless transition slot receipts at the Red Shore locations play reminders, in our VL programme. The technology were $11.9m. • Business and performance standards forced cash outs may allow for the introduction of new will be developed and introduced to all and a $60 deposit games, however the replacement initiative Charlottetown Driving Park is a harness retailers. This would include an open limit.” is driven by the fact we have obsolete racing track which opened in 1889 and and transparent process for selection of LINDSAY technology that can’t be serviced. The became one of the premiere tracks in sites to carry out the reduction in the SHANNON, ALC. new terminals will continue to offer eastern Canada. In 2003 a hurricane number of sites. proven responsible gambling features caused a lot of damage to the grandstand such as length of play reminders, forced and it is believed this spurred the CDP’s

April 2013 PAGE 40 Report PRINCE EDWARD ISLAND

Prince Edward Island: Operator profile Operator: Atlantic Lottery Corporation PEI Racinos: Red Shores, Charlottetown Driving Park and Red Shores at Summerside Raceway Information: RED SHORES, Charlottetown opened in 1889 initially. In 2005 it underwent renovations and opened a 50,000 sq.ft entertainment centre housing 208 VLTs including 20 stand alone progressive slots, six Texas Hold ‘em Poker tables, a tele-theatre and simulcast racing. RED SHORES, Summerside is a sister property which opened to the public in 2009. The redevelopment also included a new grandstand, live and simulcast racing, a gaming floor with 40 VLTs and two electronic Texas Hold ‘em. Background: The ALC studied several gaming and entertainment centres at racing tracks nationwide to evaluate income and employment. After the study the PEI government asked ALC to redevelopment project for a racino. ONLINE It is estimated that develop a business plan and the Back in 2010 Prince Edward Island’s currently islanders Charlottetown raceway facility was So in August 2005 the public opening of finance minister refused the ALC’s in Atlantic Canada opened in August 2005 followed by the 50,000 sq.ft entertainment centre took proposal for an online gaming website as a whole spend place and in 2009 the facility was claiming the province needed to explore around $50m on Summerside in 2009. The racetracks renamed Red Shores Racetrack and more ways to make online gaming “more unregulated online offer all sorts of packages for birthdays, Casino at Charlottetown Driving Park. containable”. gambling and a meetings, conventions, tours and office Today there is a three tier restaurant, new regulated site parties. grandstand, and 208 slots housed in the It is estimated that currently islanders in would mean funds casino including 20 stand alone Atlantic Canada as a whole spend around for health care and of property from a mapped grid of one of progressive slots, six Texas Hold ‘em $50m on unregulated online gambling education. 2.3 million locations in Atlantic Canada Poker tables, a tele-theatre for pari-mutual and a regulated site would mean funds with daily draws. Price of play is $7.50 for betting and simulcast racing. The refit for health care and education. each Geo and the player can own that cost $25m. Geo for 30 days making it worth 25c per However the government is more day. Summerside Raceway is believed to be concerned with the protection of players. the oldest racing track in Canada and A computer will then randomly select a opened in 1886 initially. In 2009 it Atlantic Lottery has been operating its square daily from those available and the reopened under the name of Red Shores online gaming site since August 2004 and jackpot goes to the owner of that at Summerside with a gaming centre currently offers its lottery games online particular Geo Square. However although added. The redevelopment also included plus iBingo and Pro.Line games plus ALC haven’t released sales number there a new grandstand, live and simulcast GeoSweep. were no winners in the first 132 draws for racing, a gaming floor with 40 slots and the $250,000 jackpot suggesting a low two electronic Texas Hold ‘em poker plus PEI and New Brunswick each invested take up. food and drink in the West End Bar and $4m in the company to develop the Grill. Both Red Shores gaming floors are GeoSweep game which was launched last GeoSweep’s parent company Roboreus open seven days a week from 11am until year. New Brunswick is already needs to convince other lotteries to buy midnight Monday to Thursday, 11am until reconsidering its investment in the online the game and the company has signed 2am on Friday and Saturday and 12pm lottery game. agreements with GTECH to market it. The until midnight on Sundays. game saw poor results in the UK market GeoSweep allows players to buy squares two years ago.

April 2013 PAGE 41 Report QUEBEC - CANADA

QUEBEC TOTAL RECALL Quebec was the first province to establish its lottery gaming sector and has taken this know-how into the international casino market

This province located in the east-central The province’s part of Canada is the only province with a natural resources predominantly French speaking have been a population. It is also the largest province mainstay of the by area and second largest administrative economy whilst division. sectors such as aerospace, The name Quebec comes from the Information Algonquin word kebec which means Technology, ‘where the river narrows’ and Quebec biotechnology, was chosen in 1608 by French explorer mining and the Samuel de Champlain. pharmaceutical industry all play a It is bordered to the west by Ontario, in part and today the east with Newfoundland and Quebec is the Labrador and New Brunswick and to the second most south by the US states of Maine, New economically Hampshire, Vermont and New York. influential province. Various water ways border the remaining.

Quebec is the second most populous province after Ontario and the majority live in urban areas near to the Saint Lawrence River between Montreal and the capital Quebec City.

The province’s natural resources have been a mainstay of the economy whilst sectors such as aerospace, Information Technology, biotechnology, mining and The Société end to nearly a decade of Liberal rule. responsible for the construction projects the pharmaceutical industry all play a d’exploitation des and choosing casino sites. part and today Quebec is the second most Lotteries et Courses LOTTERIES economically influential province. du Quebec (Loto- There are various types of gaming Loto-Quebec saw total revenues of $3.6bn Quebec) was the permitted in Quebec from lotteries, VLTs, in 2011/12 and in total some $347.9m was Quebec is ranked the 27th largest first lottery casinos, bingo and online gaming. paid out in commissions to partners economy in the world and it represents a corporation in across the various gaming sectors whilst quarter of the total GDP of Canada. Canada and the Loto Quebec was founded in 1969 by the $30.3m was spent on problem gambling Around 60 per cent of aerospace third of its kind in government of Quebec and was set up to and $17.1m paid to NPOs. production comes from Quebec. North America. oversee the activities of games of skill and Today it is chance and create profits for the state. It manages some 8,700 retailers with Growth in Quebec at the moment is responsible for the lottery terminals throughout the province expected to be 1.6 per cent of the GDP in sale and marketing The Société d’exploitation des Lotteries et and each year there are more than 450 2011 and 2012 and the province’s deficit is of traditional, Courses du Quebec (Loto-Quebec) was million transactions on lottery game estimated to be $3.8bn for 2011/12. instant terminal the first lottery corporation in Canada and terminals. Unemployment is 7.6 per cent. based lotteries and the third of its kind in North America. sports pools. Today it is responsible for the sale and For every dollar spent on the lottery 52 Tourism plays a huge part and this marketing of traditional, instant terminal per cent is paid out in winnings, 25.56 represents 2.5 per cent of Quebec’s GDP. based lotteries and sports pools. per cent goes to the Quebec government, In 2011 the province saw 26 million 10.88 per cent is paid in administration foreign tourists visit and some 400,000 The company is made up of several costs, 6.93 per cent goes to the retailers, people are employed in this sector. subsidiaries which manage each gaming 1.68 per cent goes in ticket printing costs sector. For example the subsidiary Ingenio and 2.94 per cent goes in taxes and The province recently held elections in develops skill and chance (multimedia contributions. August and Pauline Marois became the lotteries, bingo, casino and VLT) games first female premier and also brought an whilst Casiloc is the subsidiary company In fiscal year 2011/12 the lottery sector

April 2013 PAGE 42 Report QUEBEC - CANADA

Casino Montreal is one of the world’s largest casinos and welcomes 17,000 visitors per day. It was originally located in the former Expo ’67 French Pavilion and was opened in October 1993. At the time it had 65 tables and 1,200 slots. In 1994 the casino was expanded and again two years later when it took over the former Quebec Pavilion. Major renovations began in 2009 is expected to be completed by autumn 2013 with the inauguration in time for the venue’s 20th anniversary. Today the casino houses 100 gaming tables including 18 Texas Hold ‘em Poker and 3,000 slots and one electronic Texas Hold ‘em Poker. There are four restaurants on site.

Casino De was opened in 1994 in the Manoir Richelieu’s former summer playhouse on the cliffs of Pointe-au-Pic. In 1998 Loto Quebec teamed up with Canadian Pacific Hotels and the Solidarity Fund QFL to acquire Manoir Richelieu, renovate it and expand the casino. It reopened in 1999 and is a world class resort. It houses more than 900 slots and 20 tables including seven poker tables. There are two bars.

Casino du Lac-Leamy and the Hilton Lac- Leamy complex are one of the region’s key attractions and home to casino, hotel, restaurants, bars, spa and convention centre and theatre. It was the first of Quebec’s casinos to be built entirely and opened in 1996. In 2000 it launched a $210m renovation project to expand and build a 350 room hotel, conference centre and the theatre which reopened in 2001. The casino has 60 tables including 12 Texas Hold ‘em Poker and more than 1,800 slots, three restaurants, two bars and two reception halls. Last year the first saw a total of $1.7bn (48.9 per cent of The casino sector sales rose by 1.7 per The Société des Loto-Quebec Grand Poker Tournament Loto-Quebec’s total revenues) in revenues cent last year and reached $871m which Casinos du Quebec was held at Lac-Leamy casino which with the highest amount going on instant is 22.9 per cent of Loto-Quebec’s total (SCQ) is responsible became one of the most prestigious lotteries ($465m) and $51.7m on sports revenues. Growth at the Casino de for the operation events in Canada. Meanwhile betting. Montreal was 1.3 per cent whilst Lac- and development rejuvenation work started at Lac-Leamy in Leamy grew by 1.9 per cent, Charlevoix of Quebec’s autumn 2012 with work due to last 27 CASINOS by 2.9 per cent and Mont-Tremblant by casinos and is also months at a cost of $50m. The Société des Casinos du Quebec (SCQ) seven per cent. the primary is responsible for the operation and promoter of tourism Casino De Mont-Tremblant was officially development of Quebec’s casinos and is The casinos saw annual visitors of around in the four regions opened in 2009 and is an upscale venue also the primary promoter of tourism in 10.3 million with 1.8 million of these from of Quebec. Today located in a very natural setting. It is the four regions of Quebec. Today there outside of the province. there are four housed on three floors with 500 slots and are four casinos located in Montreal, casinos located in 16 gaming tables including three Texas Charlevoix, Lac-Leamy and Mont- Highlights last year at the casinos Montreal, Hold ‘em tables. The casino has two Tremblant. The first two casinos in included the launch of new slot machines Charlevoix, Lac- private lounges, restaurants and outdoor Montreal and Charlevoix opened in 1992. and new table games such as Ultimate Leamy and Mont- terraces. Texas Hold ‘em poker and Blackjack Tremblant. The first The SCQ, via Casino Mundial which was Switch. The SCQ also introduced its first two casinos in VLTS created in 2002, also brings Quebec’s hybrid game, electronic roulette. Montreal and The Société des Lotteries Video du know how in designing and operating Charlevoix opened Quebec (SLVQ) is responsible for the casinos to the world. In 2005 Casino Meanwhile in cooperation with Ingenio, a in 1992. network of VLTs operated by Mundial became a 35 per cent new mobile application was added to establishments with a bar or tavern shareholder of the French JoaGroupe, enable customers to locate games and licence which have also obtained a VLT which owns and operates 20 casinos in services in a given casino plus provide operators licence from the RACJ. France. them with news and other special offers. State controlled VLTs were introduced into

April 2013 PAGE 43 Report QUEBEC - CANADA

Since April 2008 the Quebec: Vital Statistics SLVQ has also Capital: Quebec City managed the two gaming halls Population: 8.02m located in Salon de Land Area: 1,542,056 sq.km Jeux de Trois- Lt. Governor: Pierre Duchesne Rivières and the Premier: Pauline Marois (PQ) Salon de Jeux de GDP: $319.3bn Quebec. The Casinos: 4 Quebec hall is open from 10am to Casino Slots: 6,200 3am and has a Table Games: 196 gaming area with Casino Revenues: $871m electronic games VLTs: 12,000 seating 335 players VLT Venues: 2,000 including VLTs, electronic roulette, VLT Revenue: $998m Texas Hold ‘em Lottery Retailers: 8,700 Poker tournaments, Ticket Lottery Revenue: $1.7bn electronic keno and Total Gaming Revenue: $3.6bn electronic Online Gaming: $19.4m blackjack. The Ludo Regulator: Regie des Alcools, des Bar houses a television and courses et des Jeux - terraces. www.racj.gouv.qc.ca

Quebec in 1994 and prior to that legislation permitted the operation of video poker type amusement machines which did not payout, however illegal operations were rife.

In 1993 the Sureté du Quebec estimated there were between 25,000 and 45,000 illegal machines representing annual sales of around $780m. So Loto-Quebec was given a mandate to set up and operate a network of VLTs and the SLVQ was formed in June 1993 with the first machines installed the following year.

The establishments are open to aged 18 years and over and price of play is between 2c and $2.50 with a minimum 83 per cent payout. The VLT network consists of two models of equipment and the units feature a touch screen with information in English and French.

Gaming halls in Quebec were established Today there are The Trois Rivières gaming hall is also 12,000 outdated machines in use at the in 2007 under the name Ludoplex and around 12,000 VLTs open 10am until 3am and has electronic time with two suppliers chosen. The cost today they are managed by the SLVQ and in nearly 2,000 games seating for 200 players offering the to replace the VLTs and central control again are open to aged 18 years and over. establishments same range as the Quebec gaming hall. system was approximately $265m. such as bars and Deployment began in 2012. Since April 2008 the SLVQ has also taverns plus the Today there are around 12,000 VLTs in managed the two gaming halls located in two gaming halls. nearly 2,000 establishments such as bars IGT was awarded 56.7 per cent of the VLT Salon de Jeux de Trois-Rivières and the This in fact is the and taverns plus the two gaming halls. replacement programme and supplied Salon de Jeux de Quebec. The Quebec lowest number of This in fact is the lowest number of VLTs 7,200 of the new VLTs. They supplied the hall is open from 10am to 3am and has a VLTs and and establishments per capita in Canada new GL20 terminal which accommodates gaming area with electronic games establishments per and it is heavily controlled with strict a flat screen LCD display or MLD seating 335 players including VLTs, capita in Canada management criteria. For example technology to facilitate 3D games. electronic roulette, Texas Hold ‘em Poker and it is heavily operator employees can take a training tournaments, electronic keno and controlled with strict programme which has been offered online Eric Tom, Chief Operating Officer for IGT electronic blackjack. The Ludo Bar houses management since 2008 and some 27,000 bar owners said: “We were excited about Loto- a television and terraces. criteria. have taken the training since it was Quebec’s decision to award IGT this implemented. valuable business. Our commitment to The hall will however be relocated by our customers to build the best games 2014 as the city has plans to construct a In 2011/12 VLT units were replaced and platforms in the industry is being new building where it is currently housed following an announcement to update the recognised by our partners in Canada and

April 2013 PAGE 44 Report QUEBEC - CANADA

Quebec: Operator profile Operator: SCQ (Société des Casinos du Quebec) Quebec Casinos: Casino Montreal is one of the world’s largest casinos and has 100 tables including 18 Texas Hold ‘em Poker and 3,000 slots and one electronic Texas Hold ‘em Poker. Casino de Charlevoix was opened in 1994 and has more than 900 slots and 20 tables including seven poker tables. Casino du Lac-Leamy has 60 tables including 12 Texas Hold ‘em Poker and more than 1,800 slots, three restaurants, two bars and two reception halls. Casino de Mont-Tremblant is housed on three floors with 500 slots and 16 LOTO-QUEBEC 2011/12 KEY REVENUE FIGURES “The first wide area gaming tables including three Texas G2S deployment in Hold’em. SECTOR 2012 2011 VARIATION North America is Information: The Société des Casinos now live in Quebec. Lotteries $1.79bn $1.78 0.1% Spielo du Quebec (SCQ) is a subsidiary of Casinos $870.9m $856.4m 1.7% International’s Loto-Quebec and is responsible for the central system, operation and development of VLTs $997.9m $1bn -0.3% along with a limited Quebec’s four casinos. number of VLTs are Background: The casino sector sales Bingo $33.9m $31.3m 8.4% now operating in rose by 1.7 per cent last year and Total Revenues $3.65bn $3.64bn 0.5% Quebec for the purpose of reached $871m which is 22.9 per cent Prizes lotteries $930m $918m 1.3% conducting a pilot of Loto-Quebec’s total revenues. prior to the full Growth at the Casino de Montreal was Prizes awarded-bingo $18.1m $15.6m 15.4% deployment of all 1.3 per cent whilst Lac-Leamy grew by Quebec VLTs 1.9 per cent, Charlevoix by 2.9 per cent Net earnings $1.2bn $1.3bn -3.7% scheduled for 2013.” and Mont-Tremblant by seven per cent. the rest of the world.” conjunction with Spielo International’s ROBIN The casinos saw annual visits of G2S based i-LINK retailer terminal. DRUMMOND, around 10.3 million with 1.8 million of Meanwhile Spielo International provided VP and General these from outside of the province. the other 5,500 and supplied it’s prodiGi Robin Drummond, VP and General Manager of Public Vu VLT terminals. The prodiGi Vu VLT is Manager of Public Gaming for Spielo Gaming for Spielo a player focused and technician friendly International said: “Spielo International International. deployment of all Quebec VLTs scheduled cabinet offering superior video and audio has been providing top performing for 2013.” experience, responsible game features and gaming solutions to Loto-Quebec since networked gaming capability. It is also the 1994. Our replacement VLTs represent the Last year sales in the Quebec VLT first G2S open standard protocol based third generation of VLTs in Quebec and network reached $998m (27.3 per cent of VLT operating in the North American our INTELLIGEN central system will Loto-Quebec’s total revenues). Gaming distributed VLT market enabling SLVQ to replace the current central system halls saw their combined sales rise by 9.6 benefit from the extra technology this provided by another vendor. per cent. Some $214.2m was paid out in offers. commissions to VLT site operators and “The first wide area G2S deployment in $41.8m was given in taxes. In addition Spielo International was North America is now live in Quebec. awarded the contract for the VLT central Spielo International’s central system, ONLINE GAMING monitoring system for managing the along with a limited number of VLTs are This is operated by the Société du Jeu entire SLVQ network of VLTs. The G2S now operating in Quebec for the purpose Virtual du Quebec (SJVQ) which based INTELLIGEN system will operate in of conducting a pilot prior to the full currently operates the online gaming

April 2013 PAGE 45 Report QUEBEC - CANADA platform called espacejeux.com. The SJVQ plans to make its virtual gaming platform a key part of Loto-Quebec’s evolution by offering the entire products from Loto-Quebec in a competitive environment.

On December 1 2010 Loto-Quebec’s online gaming site Espacejeux.com was officially launched and today offers poker, blackjack, roulette, table games, slots, sports betting and lotteries. In October it then launched a new online game called Quebec Max.

In March 2012 Mise-o-jeu, Loto-Quebec’s online sports betting site was launched enabling players to bet on sports via computer, phone or tablet and since August 2012 lotteries can now be bought online either via a computer or mobile device including the games Lotto Max, Quebec Max, Lotto 6/49, Quebec 49 and Banco. The mobile Mise-o-jeu applications were designed by Loto- Quebec’s own Ingenio subsidiary.

OpenBet has partnered with Loto-Quebec to develop the online system and the customer account management system was designed by OpenBet which has also supplied some of the table games.

An OpenBet spokesperson said: “At the time of our involvement there were over 2,000 illegal and unregulated online gaming sites available to residents of Quebec. Loto-Quebec wanted to put together an online offering that provided Quebec residents with a safe, secure and legal gaming environment.

“Loto-Quebec needed a partner that could “Loto-Quebec introduce third party suppliers. In 2010 Kinzo was inaugurated which was satisfy a range of key criteria. Firstly there needed a partner a new entertainment game followed by had to be no question over the legality of that could satisfy a Meanwhile poker is offered on a common the first Kinzo Express halls opened in that partner’s operations. Secondly they range of key platform via the British Columbian June 2011. There are currently eight Kinzo had to be able to provide the criteria. Firstly there Lottery Corporation and the Atlantic Express halls with more to open this year. infrastructure that would enable a best in had to be no Lottery Corporation. It is hosted in class product. And thirdly they must have question over the Montreal and the platform is provided by There are 60 halls connected through a a solid track record of working with third legality of that Spielo G2, the interactive gaming division computerised system offering Network party suppliers. partner’s of Spielo International. The Bingo. There are 14 Kinzo locations operations. Espacejeux.com saw sales of $19.4m last which can each accommodate up to 50 “These three stipulations effectively sum Secondly they had year. players. Virtual Kinzo calls numbers in up what we have created at OpenBet and to be able to real time and players can experience the highlight why we were selected as Loto- provide the BINGO game wherever they are located. It is Quebec’s partner and indeed have infrastructure that The Société des Bingos du Quebec (SBQ) designed for group outings. become the provider of choice in Canada. would enable a designs and markets network bingo best in class products and also created the Kinzo To play Kinzo you place your cash bet on “At the very heart of our business is the product. And thirdly Game which is played in Kinzo halls. the gaming table and a Kinzo ticket costs necessity to be ‘open’. OpenBet Account they must have a $2. Your game ticket will include 15 allows operators to integrate with many solid track record of This subsidiary was set up in 1997 and numbers in three rows and nine columns. other products and services while working with third began with a network of 179 bingo halls Kinzo is two games of either the Line or OpenBet Casino allows Loto-Quebec to party suppliers.” and initially two bingo products were the 15/15. The Line prize wins eight per tailor its casino offering to provide any DAVID LOVEDAY, offered daily. In 1999 a keno game was cent of sales whilst the 15/15 can win third party game on their platform and to CEO, OpenBet launched and in 2002 a new policy was anything from a regular jackpot (42 per develop the software further to meet their enforced which meant all network bingo cent of sales) up to $100,000 Super unique requirements.” profits are paid to non profit organisations Jackpot. and today more than 600 organisations OpenBet has over 100 partners and an benefit. Bingo sales rose by 8.4 per cent last year infrastructure which allows customers to and reached almost $34m.

April 2013 PAGE 46 GiGse ScS

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10:52 Report SASKATCHEWAN

SASKATCHEWAN COMMUNITY STRENGTH As part of the SLGA’s plan for the year 2012/13 Meanwhile, the tourism industry the authority is to introduce a full network contributed almost $1.68bn in 2010 and is the province’s fourth largest export replacement of 4,000 VLTS and central OS industry with around 3,700 attractions and events. Some 8.9 million people visit Saskatchewan was founded by the Fifty per cent of the Saskatchewan each year. Europeans in 1690 and became a SaskGaming net province of Canada in 1905 and its name profits go to the CASINOS is derived from the Saskatchewan River. It provincial General There are a total of eight casinos in is a rectangular shaped prairie province Revenue Fund (GRF) Saskatchewan of which two are run by which is bordered on the west by Alberta whilst 25 per cent the Saskatchewan Gaming Corporation and in the north by the Northwest goes to the First and six are run by the Saskatchewan Territories and in the east by Manitoba Nations Trust and Indian Gaming Authority. Heritage site. There are over 853 slots and and in the south by the US states of 25 per cent is given 26 gaming tables. It is open seven days a Montana and North Dakota. to the Community The Saskatchewan Gaming Corporation week from 9am until 4am. There is a Initiatives Fund. (SaskGaming) is a crown corporation, Vegas style show lounge plus snacks and Of the one million inhabitants the Since 1996 when which operates Casino Regina and Casino dining areas. majority live in the southern half of the the first casino Moose Jaw. They are regulated by the province as the north is heavily forested opened over Saskatchewan Liquor and Gaming Casino Moose Jaw is located in the heart and many are based in the largest city $356m has been Authority (SLGA). of Moose Jaw’s downtown and has over Saskatoon or the capital Regina. The land given to these 204 slots and six table games. The decor is covered heavily by lakes, reservoirs and funds. Fifty per cent of the SaskGaming net is inspired by the roaring 20’s and it is rivers and its major economic activities profits go to the provincial General open seven days a week from 9am until are agriculture, mining and energy. In Revenue Fund (GRF) whilst 25 per cent 2am or 3am on weekends. 1992 the government signed a land claim goes to the First Nations Trust and 25 per agreement with the First Nations which cent is given to the Community Initiatives The two casinos see a total of 3.5 million gave them the ability to buy land and as Fund. Since 1996 when the first casino visitors each year whilst total revenue in such around 761,000 acres have been opened over $356m has been given to 2011 reached $134.5m with a gaming turned into reserve land. these funds. income of $51.7m with a payment to the GRF of $25.8m leaving a net income of Saskatchewan grows a large portion of SaskGaming was established through the $24.8m. Revenues have increased by 6.7 Canada’s grain and is also the second Saskatchewan Gaming Corporation in per cent on 2010 figures. largest producer of Beef cattle in Canada. 1994 to establish and operate casinos in Oil and natural gas production are also the province. In 2008 the corporation Between the two casinos there are a total important. The province is one of came under the direction of the Crown of 1,057 slots and 32 table games plus Canada’s top economic performers with a Investment Corporation and as such now nine poker tables (and 12 extra poker GDP growth of 2.9 per cent in 2012 and pays dividends to the CIC. tables in the Regina tournament room). expected to be up to 3.1 per cent by 2013. Slot revenues for the two casinos reached Unemployment rate is around 4.8 per cent Casino Regina is located in the historic $114.2m whilst table games saw revenues which is the lowest in the country. Union Train Station which is a National of $9.5m.

April 2013 PAGE 48 Report SASKATCHEWAN

Saskatchewan: Vital Statistics Capital: Regina Population: 1,033,381 Land Area: 651,900 sq.km Lt. Governor: Vaughn Solomon Schofield Premier: Brad Wall (Saskatchewan Party) GDP: $63.5bn SaskGaming Casinos: 2 Casino Slots: 1,057 Table Games: 32 SIGA Casinos: 6 SIGA Slots: 1,870 SIGA Tables Games: 52 SIGA Revenues: $260m VLTs: 3,995 VLT Retailers (Hotels/Restaurants): 613 VLT Revenue: $226.4m Lottery Retailers: 845 Racetracks: 4 Charity Licences: 3,482 Total Gaming Revenue: $765m Online Gaming: n/a Regulator: Saskatchewan Liquor and Gaming Authority - www.slga.gov.sk.ca

entertainment stage and restaurant and gift shop. It sees 165,000 visitors annually.

Gold Eagle Casino is operated by North Battleford and is open seven days a week from 9am until 3am or 4am on weekends. The casino isn 29,000 sq.ft and there are 285 slots and eight table games plus a Meanwhile the Saskatchewan Indian Gold Eagle Casino restaurant. It sees 60,000 visitors per Gaming Authority (SIGA) is the operator THE TWO CASINOS is operated by month and has annual gross revenues of of the six First Nation casinos in the North Battleford over $30m. province. SEE A TOTAL OF and is open seven 3.5 MILLION days a week from Northern Lights Casino is operated by SIGA was established in 1996 just a year 9am until 3am or Prince Albert nation and is open seven after the First Nations Gaming Act was VISITORS EACH 4am on weekends. days a week from 9am to 4am. There are introduced and a body was needed to The casino isn over 525 TITO slots and 11 table games in develop, manage and operate on-reserve YEAR WHILST 29,000 sq.ft and an 18,500 sq.ft gaming floor. The casino casinos. The first four casinos opened in TOTAL REVENUE there are 285 slots also offers a restaurant and the Starlight 1996 whilst the fifth opened in 2007 and eight table Lounge. It opened in 1996 and has (Dakota Dunes) whilst the sixth casino IN 2011 REACHED games plus a undergone various renovations and sees a (Living Sky) opened in late 2008 $134.5M. restaurant. It sees million plus guests. The casino is 60,000 visitors per undergoing a 4,500 sq.ft expansion which SIGA has annual gross revenues of $267m The six casinos are: month and has will hold an extra 200 slots. and net income of $79.2m and is one of annual gross the top 25 companies is the province. Bear Claw Casino is operated by White revenues of over Painted Hand Casino is operated by SIGA casinos see around 4.2 million Bear First Nation. It is nestled in the $30m. Yorkton and is located in east central visitors each year with a total of 1,870 Moose Mountains in the southeast of the Saskatchewan. It sees around 300,000 slots and 52 table games plus food and province and was originally opened in guests annually and the $30m facility is a entertainment facilities. 1993 but was shut down due to a joint First Nations development project contentious argument between the First between the Yorkton Tribal Council and Profits from SIGA’s operations go to the Nations and the provincial government. It SIGA. The gaming floor houses a First Nation’s Trust (50 per cent) which is reopened in 1996 and is open seven days restaurant and snack bar and has 220 then distributed to the government’s GRF a week from 9am until 1am and until slots and seven table games and is open (25 per cent) and Community 2am on weekends. The casino is 30,000 seven days a week. Development Corporation (25 per cent). sq.ft, which includes a gaming floor with 130 slots and four table games, Dakota Dunes Casino is operated by

April 2013 PAGE 49 Report SASKATCHEWAN

Whitecap Dakota First Nation and is a $61m Las Vegas style casino of 85,000 sq.ft, including gaming floor and restaurant, bar and banqueting facilities. There are 575 slots and 18 table games and it is open from 9am until 2am daily or 3am at weekends. This casino is also undergoing an expansion project which will double the number of slots and add a full service bar.

Living Sky Casino is operated by Swift Current tribe and opened at the end of 2008 and is located on the Trans Canada Highway in southwest Saskatchewan. It is the province’s newest casino and houses a theatre, banquet hall and is open from 9am until 2am daily with one million visitors per year. The $35m casino is 50,000 sq.ft and has eight gaming tables and 225 TITO slots.

The casino sector is regulated by the Saskatchewan Liquor and Gaming Authority which is a treasury board corporation and is also the main distributor and sole licensing agent for the sale of alcohol in the province. SLGA IS PLANNING TO INTRODUCE A FULL NETWORK REPLACEMENT OF 4,000 VLTS AND CENTRAL OPERATING SYSTEM. There are 700 liquor outlets across the province and SLGA operates 79 liquor stores in 64 communities with 188 small franchises to sell liquor.

It also owns and manages all VLTs and owns and manages the slot machines at the six SIGA casinos.

The casinos slots at the SIGA casino are owned by the SLGA and operated by Western Canada Lottery Corporation (WCLC).

SLGA also regulates and licences most forms of charitable gaming such as bingo, raffles, Monte Carlo events, Texas Hold ‘em Poker, breakopen tickets and horse racing. It also registers all provincial gaming employees and suppliers.

All charitable and religious groups which conduct gaming events are eligible to receive a charitable gaming grant of 25 per cent of net proceeds raised to a maximum of $100,000 annually. Around

April 2013 PAGE 50 Report SASKATCHEWAN

$46m was made in grant payments under Western 649, scratch and win and keno the charitable gaming sector and some with funds distributed to sport, culture 3,482 charitable gaming licences were and community groups via a trust fund issued. Total revenues for the SLGA last set up in 1974. Today over 1,200 groups year was more than $1bn with $463.5m receive funding and more than 12,000 in net income. affiliated organisations receive support.

Meanwhile at the beginning of 2012 Bally As part of the SLGA’s plan for the year signed a contract to replace the slots and 2012/13 to improve effectiveness and table game systems at all six SIGA efficiency of operations for both gaming casinos. Bally provided its latest version and liquor establishment, the authority is of SDS Windows slot management system planning to introduce a full network Quebec: Operator profile and installed the iVIEW Display Manager replacement of 4,000 VLTS and the Operator: Saskatchewan Gaming player user interface with Elite Bonusing central operating system. The VLT Corporation Suite, Bally Business Intelligence, replacement began this winter and is due Saskatchewan Casinos: Casino Regina Tableview and CMP player tracking to be completed by March 2013. solutions. and Casino Moose Jaw The central monitoring system has been Information: CASINO REGINA opened VLTS provided by Spielo International who in 1996 and has around 2.8 million The Partnerships and Supply Management signed a seven year contract to supply its visitors per year and a daily attendance Division of the SLGA is responsible for INTELLIGEN central system which will of 7,796. It has 853 slots and 28 tables. the VLT programme. This began in 1993 CASINO MOOSE JAW opened in 2002 when the hospitality industry voiced its concerns that people from the rural areas TODAY, THERE and sees 732,900 visitors per year. of the province were travelling to ARE 3,955 VLTS There are 204 slots and six tables. neighbouring jurisdictions to play VLTs. Background: Both casinos are (WITH A CAP OF operated by SaskGaming which is a And so the VLT programme was crown corporation employing around introduced with the aim of supporting 4,000) IN 613 1,000 people and transferring profits to rural communities to allow additional SITES LOCATED IN forms of entertainment at liquor the General Revenue Fund. permitted hotels and restaurants. AROUND 296 SaskGaming was established through COMMUNITIES IN the Saskatchewan Gaming Corporation Today there are 3,955 VLTs (with a cap of Act in 1994. 4,000) in 613 sites located in around 296 SASKATCHEWAN. communities in Saskatchewan. replace the existing ageing infrastructure. province. Some $1.5m in horse racing Net revenues from VLTs are split with 85 grants was paid to the four tracks last per cent (less expenses) which goes to Robin Drummond, VP and General year which go to funding for purses, race the GRF whilst 15 per cent goes directly Manager of Public Gaming for Spielo operations and breeding. In 2011/12 the to the operators. The site contractor International said: “Spielo International is live horse racing handle was $1.1m with revenues amounted to $34.4m last year the incumbent provider of VLTsS (10 simulcast totalling $7.5m. whilst VLT net income is $183.5m for years) and central systems (20 years). In 2011/12. Gross VLT revenue is $226.4m. this latest procurement round we were re- The four race tracks include Marquis awarded the central system and VLT Downs in Saskatoon, Yorkton Exhibition The VLT network is completely controlled including 13 games. We are one Association, West Meadows Raceway in and regulated and machines are only of four VLT vendors in this province and Regina and Agri Park in Melville. permitted in age controlled liquor the contracts were awarded as part of two establishments. There must be a competitive procurement processes.” In March 2013, the provincial government minimum seating capacity of 30 seats per will eliminate the pari-mutuel tax from venue and sites can have a minimum of Other measures will include the horse racing wagers which will enable the three and a maximum of 12 VLTs per development of responsible gambling sector to keep a larger portion of the venue. SLGA contracts with Western initiatives including an online training revenues generated through wagers. Canada Lottery Corporation to operate the programme for VLT site contractors and VLT programme. staff. There will also be a review of the At the moment pari-mutuel tax is 10 per ‘responsible use’ feature on the new VLTs. cent collected from each wager. Last year The VLTs all feature responsible gaming $857,000 was collected in pari-mutuel tax. software including showing the amount Meanwhile although the Saskatchewan wagered, a clock to show time of day and government says it won’t proceed with Mark Regier, CEO of Saskatoon ‘pop up’ reminders which come into play online gambling the First Nations are Prairieland Park Corporation which every 30 minutes. pushing for the approval saying with operates Marquis Downs, said: “Our other provinces moving forward the idea organisation is pleased that the WCLC also operates lotteries and VLTs for should be considered. The government government has listened to our concerns Alberta, Manitoba, Yukon Territory, fears the potential risks outweigh the by eliminating this tax. Horse racing has Northwest Territories and Nunavut. In benefits. been a fixture in Saskatoon for more than Saskatchewan the WCLC works with the 40 years and the elimination of this tax Saskatchewan Lotteries. HORSE RACING creates a more positive business The Horse Racing branch of the SLGA is environment that will allow us to Sask Lotteries and WCLC operate lottery responsible for regulating horse racing continue to provide exciting racing games such as Lotto Max, Lotto 6/49, and the operation of race tracks in the entertainment.”

April 2013 PAGE 51 Analysis ISLE OF MAN (PTII)

THE GAMING ISLE Changes are afoot in the land-based gaming sector with a new casino licence on specific online gaming law. The island underwent a serious re-branding process. the cards, but it’s the Isle of Man’s online gaming industry that’s still the top draw Although it was always recognised as having a beneficial fiscal law it was not According to Manx mythology the Isle of The Isle of Man is with many markets still prohibiting however a place where the e-gaming Man was ruled by Celtic sea god, now considered internet gambling this of course is just a industry was initially drawn to. Its first Manannan mac Lir who would pull his one of the top four mere percentage of what it could entry into e-gaming was groundbreaking misty cloak around the island to protect it e-gaming potentially reach. and was a complete learning curve, but from invaders. Today, as it openly jurisdictions one which has clearly paid off. welcomes businesses to its shores, its alongside Gibraltar, The Isle of Man is now considered one of protective shield has managed to Alderney and the top four e-gaming jurisdictions The introduction of a firm yet fair law has encourage and support this development Malta. Although a alongside Gibraltar, Alderney and Malta. seen companies flock to the island whilst in more ways than one. British dependency, Although a British dependency, the Isle of the ability to attract the ‘right kind’ of the Isle of Man is Man is not within the jurisdiction of the business has also been understood. The Although the Isle of Man has always been not within the UK and therefore is self governing and key element is making sure the recognised as a financial hub, it was a jurisdiction of the not bound by the laws of the UK. The Isle infrastructure works 24/7, whilst tax deliberate government policy a few years UK and therefore is of Man is a reputable offshore incentives also draw companies. The ago to diversify into other areas, self governing and jurisdiction, which has been encouraging gambling commission boasts a fast turn specifically e-gaming. not bound by the and developing internet gambling around of licences, clear and concise laws of the UK. business since the introduction of the regulations and player protection schemes In 2010 e-gaming was responsible for 9.1 IOM internet gambling law back in 2001, in place. per cent of GDP which is an increase of and as such, became one of the first 40 per cent from the previous year. And jurisdictions in the world to introduce The first set of legislations passed in the

April 2013 PAGE 52 Analysis ISLE OF MAN (PTII)

46 licensees of which 40 per cent are “We consider IOM serving the island and has a totally self focused outside the UK and the EU. to be an example sufficient power infrastructure. Fibre for many countries optics are in place and the country boasts The benefits of holding a licence within searching to find a political stability plus there is of course the IOM include: blueprint of how it the huge desire from the government to can and should be welcome companies and businesses to • A clear and simple tax regime done. The player the island. protection program • Low betting duty of between 1.5% and has especially So why the Isle of Man? 0.1% on gross profit. proven its value “We chose the IOM because of its and their strong reputable position, the excellent facilities • A preferred location for non-UK focus on security, towards data hosting, the proven player companies wishing to incorporate fraud and protection program and corporative when listing on AIM. verification is an government,” said Ab Olde-Scheper of issue many TWLV. • No capital gains tax, inheritance tax or countries would like wealth tax. to adopt. This will “We consider IOM to be an example for position IOM and many countries searching to find a • Attractive personal tax rates with high their licensees blueprint of how it can and should be personal tax allowances. Individuals comfortably in done. The player protection program has receive a £9,300 personal allowance (or obtaining (sub) especially proven its value and their £18,600 for jointly assessed). licences in other strong focus on security, fraud and Isle of Man relating to online gaming countries as well. verification is an issue many countries were the Electronic Transactions Act back • Income tax payable per year is capped We look forward to would like to adopt. This will position in 2000 followed by the Online Gambling at £115,000 per person. a cooperative IOM and their licensees comfortably in Regulation Act (OGRA) in 2001. These structure.” obtaining (sub) licences in other countries two acts basically legalised online gaming • Generous grant assistance for AB OLDE-SCHEPER, as well. We look forward to a cooperative in the country. businesses available. TWLV. structure.”

By 2002 five gaming operators had • The IOM has become a Tier 1 Aidan Murphy of Trada Games said: “We licences in the Isle of Man but because of jurisdiction with excellent legal and chose the IOM because of reputation, the market situation they then accountancy firms. trust, player protection, ease of doing relinquished them. After the downslide in business, world class internet connectivity 2002 various steps were taken to rescue In addition the IOM is UK ‘White list’ and hosting, access to UK players, helpful the situation. Licensing was brought accredited and is an ideal jurisdiction for Department or Trade and Industry, easy under the umbrella of the Department of AIM or FTSE stock market listing. There travel to and from the UK and fair levels Trade and Industry whilst the huge are government grants available of up to of gambling duty. insurance bond of US$2m operators had 40 per cent towards the cost of relocation, to pay was replaced by a lower bond. marketing, hardware and software plus “E-gaming on the IOM has a great future Then in 2005 the income tax on the IOM annual government funding of up to 50 given the solid and trusted reputation the was brought down to a zero rate. per cent available for training. IOM Gambling Commission and government have established. The IOM By 2009 there were 16 operators with The Isle of Man has excellent DTI works with the gambling licences on the Isle of Man and in 2010 infrastructure with world class telecoms commissions and other European there were 38 licensees Today there are systems including two self healing rings countries to try to find solutions to cross

April 2013 PAGE 53 Analysis ISLE OF MAN (PTII)

e-gaming sector operates in ‘dog years’ in Gauselmann Furthermore working with the licensing THE NEXT THREE that we deal with such dynamic change subsidiary Edict authority at the IOM has proven to be in technology, licensing and regulation, Egaming has spent excellent and the licensing times are, TO FIVE YEARS threats and opportunities and it feels as two and a half compared to other regimes, relatively WILL DELIVER though we cope with seven years change years developing a short.” every 12 months. new online casino SIGNIFICANT system for the B2B THE ISLAND DWELLERS “I believe the next three to five years will market and was Due to the heavy investment over the last GROWTH deliver significant growth opportunities granted an IOM few years in the telecommunications and OPPORTUNITIES for the industry and the IOM as a licence in January power infrastructure on the Isle of Man a jurisdiction. We have strong and effective 2011 which enables number of hosting providers have been FOR THE regulation which absolutely has to be the separate online establishing their business here. INDUSTRY. cherished and maintained. Companies casino operation like mine regard their IOM licence as a whilst also There are currently five world-class data border issues including tax, which will key ‘balance sheet asset’ for the business marketing the centres offering gaming specific services help to enhance its reputation going and part of what differentiates us as a software to other operated by Manx Telecom, Continent8 forwards.” company, and the IOM as a jurisdiction, operators who can Technologies, Domicilium, Netcetera and from our competitors.” then operate under Wi-Manx. Meanwhile after completing a detailed a sub licence. Sun inter-jurisdictional SWOT analysis, Celton Gauselmann subsidiary Edict Egaming Gaming was Edict’s Manx Telecom built its 6,300 sq.ft data Manx chose the IOM because of its strong has spent two and a half years developing first customer. centre back in 2005 in Douglas North. English based legal system, primary a new online casino system for the B2B Manx Telecom has of course been legislation and regulation for the e-gaming market and was granted an IOM licence involved in the development of the e- sector, ease of access and positive support in January 2011 which enables the gaming sector since the beginning and from the government, global industry separate online casino operation whilst has worked with the Department of recognition of the quality of regulation also marketing the software to other Economic Development and the GSC. On and player protection levels, world class operators who can then operate under a the island it offers a complete range of telecommunications infrastructure, world sub licence. Sun Gaming was Edict’s first data services and was the first on the class data hosting centres and banking customer. island to provide data centre services and facilities. hosted some of the first e-gaming sites Nils Rullkoetter, PR Manager said: “The registered and today is the company’s top Celton Manx’s Executive Director William IOM offers numerous advantages. First of area of focus and growth. Mummery said: “I believe the Isle of Man, all the IOM is well recognised in the standing as a global premier jurisdiction market and thus has a licence regime that Manx Telecom’s purpose built Data of licensing from which to operate, has is in demand. The possibility of sub- Centre and Disaster Recovery facility never been stronger. Whilst all businesses licensing makes the IOM a very practical provides the highest standards of data are having to deal with global change the model for selling online casino software. security and hosting capacity. In June

April 2013 PAGE 54 Analysis ISLE OF MAN (PTII)

2010 it was sold by parent company “The decision to the Manx Electricity Authority’s fibre Telefonica SA Group and bought by headquarter FOR E-GAMING optic network. telecommunications company CPS Group Continent 8 out of and private equity investor HgCapital. the Isle of Man was THE ISLAND The data centre was opened in 2008 and relatively OFFERS A is now home to a large number of the Stephen Trimble at Manx Telecom said: straightforward world’s leading operators and software “Few people can be unaware of the considering the NUMBER OF providers and offer a mix of either island’s undoubted attractions. I’m biased many advantages FINANCIAL primary or disaster recovery solutions to but believe it has everything – advanced the island has to these customers. The company also hosting and connectivity from a plethora offer such as a INCENTIVES operates data centres in France, Malta, of providers, a government with a ‘can business friendly Gibraltar, London, Singapore and do’ attitude to e-gaming, plus a growing environment, stable ALONG WITH Montreal. and very professional support sector of and responsive WORLD CLASS legal, accounting, venture capitalists and government which Richard Ebbutt, Head of Marketing at web specialists. encourages and INFRASTRUCTURE Continent 8 said: “The decision to supports e-gaming, unveiled its new IT hosting and headquarter Continent 8 out of the Isle of “Even the island’s geographical position an educated and management product called Intelligent Man was relatively straightforward in the Northern European time zone motivated Cloud which offers small and medium considering the many advantages the places it optimally for companies with workforce and a sized firms the opportunity to have their island has to offer such as a business global operations in both hemispheres.” high quality of life.” IT needs ‘hosted’ more securely off-site friendly environment, stable and RICHARD EBBUTT, without the need to manage networks responsive government which encourages Manx Telecom was the first nation in the Head of Marketing and servers in-house. It should in theory and supports e-gaming, an educated and world to launch the super fast HSDPA at Continent 8. reduce overheads and running costs. motivated workforce and a high quality of 3.5G mobile broadband service back in life. For the e-gaming sector the island 2005 and has invested around £100m over Cloud computing can also provide offers a number of financial incentives the last 10 years developing the island’s additional capacity for firms wishing to along with world class power and infrastructure. The company recently maintain their own IT systems in the long telecommunications infrastructure. invested €25m to develop the Next term. It has been developed by Manx Generation Network, the digital backbone Telecom together with hosting technology “As a hosting provider, Continent 8 for the island’s future development. Based firm VMWare. Technologies stands out from the other on Internet Protocol, the NGN enables data centre owners and service providers Manx Telecom to offer its business and Continent8 Technologies has been as we work extensively with the e-gaming consumer customers the ability to access headquartered in the Isle of Man since industry. Our solution and service voice, television, data and video services 2006 and has a state of the art data centre approach is based on 14 years of catering on one seamless converged network. in Douglas. The data centre is located 300 to the specific needs of our e-gaming metres from the main power generating customers to aid their expansion and In March this year, Manx Telecom station on the island and at the centre of growth plans.

April 2013 PAGE 55 Analysis ISLE OF MAN (PTII)

Isle of Man: Vital Statistics Capital: Douglas Population: 85,421 Land Area: 572 sq.km Median age: 42.6 years Languages: English, Manx Gaelic Ethnic Groups: Manx (Norse-Celtic descent), Britons Currency: Manx Pounds (IMP) Government: Parliamentary Democracy Chief of State: Lord of Mann Queen Elizabeth II (represented by Lt Governor Adam Wood) Head of Government: Chief Minister Allan Bell (since 2011) Elections:

Monarchy is hereditary. Lt Governor is appointed by the Monarch. Chief Minister elected by the Tynwald for a five year term.

Casinos: 1 (licence for a second) Casino slots: 150 Gaming tables: 10 Gaming halls: 2-3 Slots: 250-300 LBOs: 11

“One of the island’s greatest strengths is the willingness to work with operators to create suitable and forward thinking legislation. Good examples of this are the Disaster Recovery Legislation and the new Network Licence. Both before and during the licence application process support is provided by individuals within the DED. We have worked closely with both our customers and the government in ensuring that the IOM is an ideal location for either primary licensing or a disaster recovery site.”

Domicilium was founded in 1991 to provide technical solutions and upper quartile management services from data centre facilities, network infrastructure and office connectivity. The company provides hosting facilities in a number of jurisdictions around the world. Its most recent investment is the Isle of Man data Wi-Manx operates four data centres in London and in 2006 dedicated servers and managed web centre at Ronaldsway which is 20,000 data centres in invested £10m to construct a new data hosting services in the UK. sq.ft in size. London and centre, The DataPort, in the Isle of Man’s Manchester under Freeport. It was functional by March Wi-Manx operates data centres in London Meanwhile from just one server in 1996 the Heywood 2007. and Manchester under the Heywood Netcetera has grown to become one of brand name and brand name and offers a new range of the world’s leading hosting service offers a new range Dataport has a capacity of 16,824 sq.ft the data centre, hosting and network providers catering for small companies to of data centre, equivalent of over 700 racks or 28,000 solutions. The IOM data centre Heywood large global e-business enterprises in over hosting and servers and is housed in a building which House opened in 2011 and offers a range 60 countries. network solutions. was previously used to manufacture of hosting and network solutions industrial diamonds. Netcetera provides including dedicated servers, cloud By the year 2000, Netcetera had opened data centre co-location, cloud hosting, hosting, disaster recovery, managed

April 2013 PAGE 56 Analysis ISLE OF MAN (PTII)

each month. There is no limit to the number of licence holders:

ANNEXIO LTD offers lottery style products and gives members the chance to play in lottery syndicates worldwide via its website BigFatLottos.com. This includes syndicate games for the UK lotto, EuroMillions, SuperEnalotto, the Spanish Superdraw and the Spanish Christmas lottery El Gordo. The company received a licence in the Isle of Man in 2011

BETTING FUN IOM LTD is part of the Cashball Network which was given a licence in February 2009 and runs betluck.co.uk which is an online site.

BLACKBIRD GAMING LTD is a sports betting company which received its IOM licence in November 2010.

BONOBO PLC operates online bingo games under the brand lottorace.com

BOYLESPORTS (IOM) Ltd is Ireland’s largest independent bookmaker and online betting company and was established in 1989 with retail branches nationwide. It is regulated in the Isle of Man under the name Boylesports (IOM) and obtained its licence in August 2007. It operates via boylesports.com

CASH BALL LTD is part of Cashball Network which was founded in 2008 and acquired by NYX Interactive AB in 2010 and is now a subsidiary of the online gaming supplier NYX. Cashball offers a portfolio of over 200 casino games, 23 mini games and all versions of bingo games. It received its licence in the Isle of Man in February 2009.

CAMASINO LTD operates camasino.com is an online poker site which also provides the world’s first webcam poker social network so you can read, speak and see the opponents every move. There is also a casino room to give players a unique table game with clear images of opponents. The company was registered in the IOM in December 2011.

CELTON MANX LTD is headquartered in the IOM and operates sbobet.com and casino.sbobet.com which is a leading There are currently security and complex hosting solutions. “Research shows that the data centre online gaming brand with operations in 46 licence holders business is a growth sector with an Asia and Europe mainly covering fixed in the Isle of Man David Stickland, Wi-Manx’s Chief increasing number of businesses using odds sports betting, live dealing and RNG and on average Commercial Officer said: “We’re confident outsourced data centre facilities. The slots and games. Sbobet.com is a leading around two new that the Heywood House Data centre is benefits to the IOM of such growth are global online sportsbook offers covering companies are the most modern hosting facility on the obvious, as we hope to attract global 500 sporting events each week. The added each month. island. We’ve invested a significant brand names and create local jobs to casino site offers live dealer multiplayer There is no limit to amount of time and resources and we’re sustain this growth in the industry.” casino games and video streaming the number of already seeing strong interest from technology. licence holders. established Manx businesses and Meanwhile there are currently 46 licence businesses looking to relocate to, or be holders in the Isle of Man and on average The latest release will be the launch of a hosted in, the Isle of Man. around two new companies are added new European website where the style

April 2013 PAGE 57 Analysis ISLE OF MAN (PTII)

and presentation of data and functionality CLADSTONE LTD operates rogersbingo.com “The IOM offers today has some 90 odd games for the have been tailored to these markets. Also and rogerscasino.com which is set to numerous online market alone. due to be launched is a global horse become the world’s biggest bingo site. It advantages. First of racing product for the UK, Ireland, South provides a complete social media all the IOM is well CUBE LTD operates 188bet.com which Africa and Dubai plus a dedicated Micros environment along with comprehensive recognised in the provides sports betting and casino games. Site for the upcoming European Football bingo software offering the traditional 90 market and thus The company markets itself as the in-play Championship. Celton Manx was issued ball bingo and 75 ball bingo games. has a licence specialist offering around 4,500 live with a licence in the Isle of Man in Casino games are provided by regime that is in games for in-play betting each month August 2008 and began trading in Microgaming. It received its IOM licence demand. The whilst the soccer markets cover over 400 December 2008. in January 2011. possibility of sub- different leagues. The company was only licensing makes the established back in 2006 and received its CHRONICLE BOOKSMAKERS LTD is one of COZY GAMES MANAGEMENT LTD was IOM a very practical IOM licence in August 2007. Ireland’s leading bookmakers which was founded in 2005 and has emerged as one model for selling launched back in 1985 and now offers of the industry’s top innovators. The online casino EDICT EGAMING IOM LTD is the operator of internet betting, telephone betting, shop company’s product range includes bingo software.” stake7.com. Edict is a subsidiary of the and on course betting. Chronicle is the games, classic and video slots, table NILS RULLKOETTER, Gauselmann group and has developed an leading on course player in both Ireland games, scratch cards, network jackpot PR Manager, online casino system for the B2B market. and the UK and represented at all major games and casino games. The Malta Edict Gaming. Edict specialises in online gaming racecourses. It received its IOM licence in based company provides games for the platforms and develops and distributes August 2007. online, mobile and social platforms and software for online casinos and also

April 2013 PAGE 58 Analysis ISLE OF MAN (PTII)

goldenboysbet.com. There are four games: Millionaires – predicting the last digit of the official closing price of either stock markets; Tick Poker - a multi player table game; Up Down – betting on whether the stock market will end up or down and Scratch Tickers – to match three stocks on the scratch card. Golden Boys Bet received its IOM licence in May 2010.

HOGAMING LTD operates via hogaming.com and offers a range of casino games from multiplayer casino games, live dealer online casino games and online casino games. It received its IOM licence in January 2011.

IGAMING IOM LTD operates Mrgoodwin.com which has table casino games, video poker and keno plus slot games from three reel, five reel and jackpot slots on offer. It was registered in the IOM in April 2011.

JENNINGSBET (IOM) LTD is one of the UK’s leading independent bookmakers with over 100 shops in the UK. The company also operates various sites offering sports and casino games such as jenningsbet.com, mcbookie.co.uk, 180bets.com, setantabet.com, sportsbarcasino.com, apollobet.com and wilsonbet.com It received its licence from the IOM in September 2009.

KEEN OCEAN ENTERTAINMENT (IOM) LTD operates kashbet.com and is a leading online betting brand. The Asian company has several offices and operates throughout the world. Its live casino is powered by HoGaming and features live dealer casinos games with being launched this year. The company received its IOM licence in October 2011.

LOGISPIN MANX LTD runs the betin.com website which was launched in October 2010. The aim was to create a multilingual betting site offering in-house provides gaming system back ends for “Research shows products and third party content digital gaming entertainment. Sun EDICT LAUNCHES that the data centre including sportsbook, soft games, casino Gaming is one of its customers. Edict will business is a games, poker. They plan to add bingo and launch Version 2.0 of its Online Casino VERSION 2.0 OF growth sector with multiplayer games in the near future. System in June this year and this will ITS CASINO an increasing They were granted the IOM licence in contain a new Content Management number of June 2010. System to provide customers with more SYSTEM WITH A businesses using flexible product handling. Further features NEW FLEXIBLE outsourced data MAHJONG LOGIC LTD is a software in the back office will be added and also centre facilities. The development company producing internet further games packages. Edict received its CONTENT benefits to the IOM versions of the gaming classic Mahjong IOM licence in January 2011. of such growth are which is often referred to as Asian Poker. MANAGEMENT obvious, as we The company operates out of Stockholm, GOALDASH LTD is a new predictive SYSTEM. hope to attract Sweden and Isle of Man. Although football game which gives players the for other wins. The company was global brand Mahjong is popular in North America and chance to win £1m for just £1 play. founded in 2009 in the UK. Goaldash names and create Europe via the terrestrial gaming market Operated via goaldash.com players have received its IOM licence in April 2011. local jobs to sustain it has still to make inroads into the online to pick the six teams that will score the this growth in the sector. Mahjong Logic offers a complete six quickest goals of the day from the 25 GOLDEN BOYS BET LTD was launched in industry.” suite of online Mahjong solutions. The Goaldash matches. If a player picks all six 2012 and aims to be a betting site with a DAVID STICKLAND, company has partnerships with they win the jackpot with cash payouts difference and operates via COO, Wi-Manx. HoGaming, Plus-Five Gaming, Cubeia

April 2013 PAGE 59 Analysis ISLE OF MAN (PTII)

Ltd, Egass and EveryMatrix. There are complete upgrades are then delivered to The gaming It acquired Cashball in 2010. NYX recently various player websites available from the the iPad online. Market Bet received its industry is sold its IOM business. company such as allstarmahjong.com, IOM licence in December 2011. governed by the dragonkong.com, emahjong.net, Isle of Man ONEWORKS NETWORK LTD is a leading mahjongexpress.com, mahjongworld.com, MARKETS THE WORLD LTD offers a binary Gambling sportsbook platform provider based in heromahjong.com, allmahjong.com, options financial betting service which Supervision Taiwan which has evolved over the last reddragonmahjong.com and lets customers earn more profit on global Commission (GSC) 10 years to provide technology and ladymahjong.com. It received its IOM indices, commodities and the worldwide which was founded programming to sportsbooks around the licence in December 2009. currency forex. The UK company has back in 1962 whilst world. Product ranges also include Events been licensed in the Isle of Man since the Department of Creation and Pricing, SML Event and MANDALAY GAMING HOLDINGS LTD offers April 2011. Economic Price Feeds and In-Play Events It was xbingo.com an online bingo site offering Development is granted the IOM licence in December bingo games, instant games and table NOVIGROUP LTD runs novibet.com and authorised to 2011. games plus daily promotions, special statusbet.com which are both sports and manage and jackpot every evening and weekly slots casino betting sites offering anything from support internet PACIFIC SEA INVESTS SA (EUROPE) LTD tournament. There is the traditional 90 roulette, card games, slots, poker games, gambling business operates 12bet.com which is a sports ball bingo and 75 ball bingo – the bingo dice games, poker machines and lottery issues on the Isle of betting and casino game site offering game from the US. There are also classic games. It received a licence from IOM in Man. services to European and Asia Pacific roulette and blackjack games on offer. May 2010. markets. In Europe the 12bet brand is Company received its IOM licence in April operated by Pacific Sea Invests licensed in 2011. NYX INTERACTIVE NETWORK IOM LTD is a the Isle of Man (licence received in software company which offers solutions August 2010) whilst in Asia the 12bet MARKET BET GLOBAL LTD is a UK company for operators to enable them to optimise brand is operated by Pacific Sea Invests which runs marketbetglobal.com which CRM and sales, analyse customer (PSI) a British Virgin Island company offers a unique gaming experience and database and generate reports on player with offices in the Philippines. concierge service to VIP players via its progress. They also offer a portfolio of members club. Players are allowed to bet online games from bingo to casino PADDY POWER HOLDINGS LTD is Ireland’s on the movement of financial markets products. It is a Swedish based company biggest bookmaker and operates both as a with the traditional Fixed Odds Financial which was born in 2006 whilst the IOM retail and online/telephone division. The Betting. It is operated via an iPad licence was issued in November 2008. company has a total of 356 retail outlets application. Once the initial installation is throughout Ireland, Northern Ireland the

April 2013 PAGE 60 Analysis ISLE OF MAN (PTII)

QUINELLA GAMES LTD

RATIONAL ENTERTAINMENT ENTERPRISES LTD is the operator of .com, pokerstars.eu, pokerstars.net and pokerstars.co.uk which are the world’s largest poker sites and the home of tournament poker. It offers a wide selection of games and is a fun and safe place to play poker with people from around the world for real or play money. It is also home to the weekly online tournament Sunday Million plus the annual World Championship of Online Poker and is even in the record books for hosting the biggest ever online poker tournament and the highest number of people playing at once. There are a range of games from Texas Hold ‘em, Omaha Stud and mixed games. The company’s IOM licence was renewed in August 2010.

REGENT MARKETS (IOM) LTD operates betonmarkets.com which has been providing financial betting to a worldwide audience of over 200,000 clients since 1999. The company recently launched its new BetOnMarkets Pricing Table in March this year which is designed to calculate the prices of a range of bets on a player’s favourite market without them having to do the work themselves. Regent Markets Group Ltd is based in Jersey and is partly owned by the Regent Pacific Group Ltd, a diversified mining group focused on the Asian Pacific region. Its IOM licence was granted in August 2007 whilst there are other affiliated companies in Malta and Costa Rica. Great Britain and was founded back in “We chose the IOM 1988 by the merger of three existing high THE RISE OF because of SPACEMILES IOM LTD was set up to launch street bookmakers in Ireland. It is said to CLOUD PROVIDES reputation, trust, the Space Shuffle Lottery offering clients be the third largest online bookmaker and player protection, the opportunity to win tickets to embark sixth largest online gaming business in OPERATORS WITH ease of doing upon the Sub-Orbital Space Flights at a Britain and Ireland. It runs business, world cost of $25. paddypower.com and was granted a A WAY TO class internet licence in IOM in August 2007. MINIMISE COSTS connectivity and SPORT MARKET MANX LTD operates hosting, access to sportmarket.com which offers online PARIPLAY LTD operates scratchgames.com AND ENJOY THE UK players, helpful sports betting with large bets and full which is a fun scratch card website FLEXIBILITY OF Department or coverage of Premiership plus 40 leagues offering some of the most engaging and Trade and Industry, worldwide. Sport Market are leaders in entertaining games on the internet. They BANDWIDTH. easy travel to and the Asian Betting. The have been developed so you have the is a pari-mutuel wagering platform of the from the UK and company received its IOM licence in potential to win big whether you bet big Isle of Man Tote and trading as Premier fair levels of August 2009. or small. The cards come with 3D effects, Gateway International. The website, gambling duty.” great graphics and humour animations. together with Betab’s wagering terminal AIDAN MURPHY, SUN GAMING IOM LTD operates Pariplay offers other sites such as called Betab Pro, allows players to bet Trada Games. sunmaker.com. This was established in mamutgames.com, winnersisland.com directly into the tote pools at any of its 2004 and offers classic casino games from and bellajackpot.com. The sites also partner tracks around the world. The Isle Roulette, Blackjack and slot games which offers slots, instant win, bingo, keno and of Man Tote is a 100 per cent owned are produced by Edict Egaming (a table games and all games are fixed odds. subsidiary of Phumelela Gold Enterprises subsidiary of Gauselmann). Sun Gaming Licence was granted in the IOM in April which in turn forms part of Phumelela was the first customer to have chosen the 2011. Gaming and Leisure based in South Edict online casino software and has been Africa. PGE’s own infrastructure includes operating an online casino with this PEARL ACES LTD received its licence in 11 racetracks, two telebet call centres and software since June 2011 when they were June 2011. 200 off track betting outlets in South issued with the IOM licence. Africa. All bets taken on Betab Pro are PHUMELELA GOLD INTERNATIONAL processed through the Isle of Man hub. TRADAGAMES (ISLE OF MAN) LTD operates LTD/PREMIER GATEWAY INTERNATIONAL The company received its IOM licence in several sites including tradacasino.com. operates betab.com and betab.uk.com and October 2008. This company plans to be a leading

April 2013 PAGE 61 Analysis ISLE OF MAN (PTII)

online and mobile casino and hosts 50 of VUETEC (IOM) LTD develops and supports the most popular casino games from software solutions and associated roulette, slots, card games, , video hardware for real casinos and online poker and poker games. There is no need casinos and provides customers with to download and games can be played Distance Gaming which enables patrons online or via your mobile. to participate directly in games being played in a real casino using their home This month (May) the company is about PC. Websites which use this solution to launch a new online and mobile site include dublinbet.com, 1spin.com, for TradaCasino.com and will be targeting dionbet.com, helleniclivecasino.com, iPhone and iPad users with its ‘Gaming rubymooncasino.com, on the Move’ promotions. The company luckylivecasino.com, 8blackclub.com, is highly focussed on player acquisition 1livecasino.com and casinoalmighty.com. and pays particular attention to customer Vuetec was granted the IOM licence in requirements. The licence in IOM was February 2009. granted in August 2011 and tradacasino.com went live in November WEBIS HOLDINGS PLC is a holding 2011. company with subsidiaries operating in the gaming and technology sectors. The TWLV GAMING LTD is a new company with company has two separate operations – a new game idea offering an online betinternet.com which is a fully featured gaming network via its site twlv.com sportsbook portal with fixed odds betting where people from around the world can on all major global sports and European play together and win together. TWLV is a Wagering Services which owns a game of chance and when you buy a totalisator hub located on the IOM which ticket this is then valid for 12 consecutive passes wagers directly into global monthly bingo game events. Each ticket racetrack betting pools in real time. This then allows you to invite 12 friends to is operated through link2bet.com as well play with you. They can then invite as a telephone call centre. The company friends and players then receive bonuses. holds betting licences in the IOM and the It has been called the new type of social Netherlands. Betinternet.com was network game and the online bingo site incorporated into the IOM in 1998 and was launched in January this year. the website was launched in 2000. In 2007 the company changed its name from Recently TWLV launched a unique betinternet.com plc to Webis Holdings Plc Influencer reward program which allows and also operates fcbetzc.com and the ‘Influencers’ to capitalise on their link2bet.com. status. With TWLV players can independently create a continuous flow of WELTON HOLDINGS LTD operates income by informing their followers about fun88.com which is an online gambling TWLV via their comments and opinions and entertainment company providing about the game. They also receive a sports betting and casino gaming via its unique link for their tweets, blogs or Philippines licence. It received the IOM social media posts which tags the referred licence in 2009. player to them earning them a share of future revenue and winnings. XELA LTD began in 2000 as Xela Technologies Ltd and grew as a The aim is to generate players from all technology provider to business. They kinds of target groups and spreading the supply bespoke web application game to a wider audience. TWLV received development including hosting provider, One type of licence The Isle of Man signed its first Tax its licence in the IOM in December 2011. domain registration service and covers all activities Information Exchange Agreement with application development. and there is a quick the USA in 2002 and now has agreements VELOCITY WAGERING LTD received its IOM 10-12 week licence with 20 countries. The country also has licence in October 2011 GROWTH OF GAMBLING application double taxation agreements with 14 Last year the IOM online gaming sector process, low countries. VIADEN GAMING LTD is an online gaming was responsible for pumping £165m into licensing fee and software vendor offering gaming solutions the local economy and contributed over duty rate and The gaming industry is governed by the from development through to delivery £15m in taxes in 2010. The online gaming sound technical Isle of Man Gambling Supervision and maintenance via its sites including industry in the Isle of Man has tripled in infrastructure. Commission (GSC) which was founded viaden.com, bigcasino.co.uk, size since 2006 and is expected to nearly back in 1962 whilst the Department of casinover.co.uk and casinomagic.co.uk. double this year. The industry employs Economic Development is authorised to Viaden has designed online casino and around 700 people. manage and support internet gambling poker solutions and is a company based business issues on the Isle of Man. in Belarus. Its partners include Openbet Despite the global economic downturn and Cayetano Technologies and the the Isle of Man’s economy has seen more The GSC is an independent body made company recently launched the new 2.9 than a quarter of a century of continuous up of a Director, a Policy Office, five online casino software featuring expansion and unbroken growth. The gaming inspectors and two secretaries. integration with Playtech gaming economy in 2010 grew by 2.1 per cent in The Commission approves and grants platform. The IOM licence was issued in real terms and the unemployment rate licences for online gaming operators, land January 2011. was running at about 2.1 per cent. based casinos, betting and slots.

April 2013 PAGE 62 Analysis ISLE OF MAN (PTII)

operator) for a Network Services Licence.

• Online gambling duty is:

1. 1.5% - for gross gaming yield not exceeding £20m annually.

2. 0.5% - for gross gaming yield between £20m and £40m annually.

3. 0.1% - for gross gaming yield exceeding £40m

4. 15% - for gross gaming yield from Pool Betting.

• Licences are issued for a five year period which is then renewable by applying to the GSC.

• The duty of the GSC is to supervise the operation of online gambling conducted on the island, investigate the character and financial status of anyone applying for a licence and to ensure all fees are payable to the Treasury.

• The following companies are approved by the Isle of Man Gambling Supervision Commission for testing of gaming software: BMM Compliance, Combitech AB, Compliance Testing Laboratory, Eclipse Compliance Testing, eCOGRA, Enex Pty Ltd, GLI Europe BV, Gaming Associates, iTech Labs, LGAI Technological Center SA, NMi Metrology and Gaming, QUINEL, SIQ, Software Quality Systems, Testhouse Ltd and TST Global.

In 2010 new legislation was introduced to enable the commission to move to an independent and autonomous statutory authority, whilst new regulations were added to the existing range of player fund protection laws currently in place to safeguard player deposits against operator One type of licence covers all activities Previously online gaming was regulated Peripheral activities defaults. and there is a quick 10-12 week licence under the Online Gambling Regulation such as marketing, application process, low licensing fee and Act 2001 whilst online betting was software provision Steve Brennan, Chief Executive said: “In duty rate and sound technical regulated by the Gaming, Betting and and back office terms of sector growth the number of infrastructure. Peripheral activities such as Lotteries Act 1998. However in 2007 all functions do not licence holders has increased over the marketing, software provision and back online gaming and betting came under require a licence year and we continue to be a jurisdiction office functions do not require a licence OGRA. The Online Gaming Regulation whilst there is also of choice for gambling operators looking whilst there is also a special legislation Act 2001 (OGRA) was amended in 2006 a special legislation to locate to a well regulated and respected for Disaster Recovery which permits and includes the following points: for Disaster jurisdiction. The Isle of Man will work to immediate switch over for up to 90 days Recovery which maintain its position as a premier without a licence. • An applicant for a licence shall pay to permits immediate licensing jurisdiction with an open, the treasury a £5,000 administration fee switch over for up transparent and professional approach to There are some basic requirements (this was formerly £1,000 but increased to 90 days without business that has been the hallmark of however. Businesses need a full business in September 2011). a licence. our success so far.” plan, have to bank locally and set up an Isle of Man company and have a • £35,000 per year is paid thereafter for a Meanwhile also in 2010 the Department of minimum of two directors and an full-licence or £5,000 annually for a Economic Development created a new e- operations manager based on the island sub-licence. business development group which is and the servers, where the bets are growing the e-business sector and struck, should be hosted on the Isle of • An annual fee of £50,000 is paid developing other niche areas. Man. thereafter (plus £5,000 for every foreign

April 2013 PAGE 63 Analysis ISLE OF MAN (PTII)

This involves a group of individuals from The Network approved to offer services globally to both the government and private sector Services Licence THE E-GAMING other businesses from the island. whose role will be to identify new e- was introduced in However this also means that players who business initiatives, to investigate and 2010. This new SECTOR HAS belong to operators in other jurisdictions evaluate their potential, define the network licensing BEEN UNDER- were not the responsibility of the IOM for proposition, facilitate testing and to regime means the first time. present a business case for further companies are SERVED development of these initiatives and also approved to offer HISTORICALLY “The Isle of Man’s Network Licence offers to champion any legislative changes services globally to operators a simple model that offers which may be required. other businesses AND IT IS NOW operators the flexibility for them to from the island. develop and grow the business,” added The group is headed by Chairman Alex However this also HIGH TIME FOR Mr Davies. “Since its introduction we Downie (member of the Department of means that players POSITIVE have had a number of operators looking Economic Development) and Tim Craine who belong to to establish a network licence or to (Director of Business Development operators in other ACTION. convert from their full licence to the new Agency). jurisdictions were structure.” not the push on with and there is a very strong Since the Business Development Agency responsibility of the team in place to face the challenges Technology is of course always at the was formed there have been several IOM for the first ahead. forefront of the e-gaming sector and the legislative changes. The Network Licence time. IOM is mindful of new developments. was introduced, the introduction of “Equally gratifying and important is the regulations for the establishment of ‘live’ excellent relationship that we have with Mr Davies added: “The rise of Cloud online dealer tables at the Sefton Palace the regulator which was exemplified with provides operators with a way to Casino plus the beginning of the process the introduction of the Network Licence. minimise costs whilst enjoying flexibility to develop a four star spa and second The e-gaming team works closely with of bandwidth. This ‘pay as you go’ model casino hotel. New legislation for online the regulator to identify a regulatory is an attractive offering for sports betting gaming tournaments is also being change that would offer significant where demands on bandwidth increase discussed in parliament. advantages to operators wishing to offer and decrease according to the timing of B2B and B2C across multiple international sporting events. Ray Davies, e-gaming Development jurisdictions.” Manager at the DED said: “It has been, “We will be mindful of how these types and remains, a busy time for the e- The Network Services Licence was of change can benefit our operators and gaming team, and while we’ve achieved a introduced in 2010. This new network ensure that our technology platforms lot there is still plenty on the agenda to licensing regime means companies are remain at the forefront of the industry.”

April 2013 PAGE 64 Analysis ISLE OF MAN (PTII)

developments in the US market.

One of the concerns for some licensed operators is that the successful pace of the e-gaming sector outweighed the development of the banking sector on the IOM. However this is something the government is now working hard on with the industry to change.

Confidence is low in the banking industry following the global economic crisis and although the IOM has good banking provision there can never be too much choice.

Ray Davies said: “Whilst our player protection requires suitable on-Island banking provision, occasionally we come across an applicant who is unable to bank here. For these situations, although rare indeed, the regulator has the ability under certain circumstances to consider dispensation for off-island banking solutions, and we have developed a number of methods that guarantee player’s unspent funds are fully protected whilst banking off-island. But it is fair to say we would welcome the provision of new banking solutions to the island.”

Meanwhile, in January 2012, Conister Bank launched the island’s first ever e-gaming dedicated banking product. Conister Bank ProTect has been created specifically for the Isle of Man’s e-gaming “Occasionally we agreement which has set up a formal operators and has been approved by the come across an WE HAVE agreement to cooperate and share GSC. applicant who is information between the Danish and IOM unable to bank SUCCESSFULLY authorities. It has been structured so that the bank here. For these SIGNED A MOU can accept gaming operators’ funds and situations, although This MOU will permit gaming systems to place them on a fiduciary service with rare indeed, the WITH DENMARK be located in each other’s country. other banks. The system also meets regulator has the AND HAVE Denmark also had bilateral cooperation player protection requirements set by ability under certain agreements with Gibraltar, Alderney and OGRA which requires player funds to be circumstances to EMBARKED ON A Jersey. The Danish authority aims to enter segregated from operational accounts. consider into more bilateral agreements with dispensation for PROGRAMME OF foreign commissions. Conister Bank’s MD Juan Kelly said: “The off-island banking INTERNATIONAL e-gaming sector has been under-served solutions, and we This in turn should create a range of historically and it is now high time for have developed a VISITS. commercial and business opportunities positive action and I am proud that number of methods for the IOM. The GSC is now talking to Conister Bank is the first bank on the that guarantee Although Europe is a key market for the numerous other European countries to island to step up to the plate.” player’s unspent IOM with 60 per cent of business coming replicate this agreement. funds are fully to the island with a European or UK Two key issues had to be addressed in the protected whilst focus, as European tax rates and licensing Ray Davies added: “Like almost all other development stage and that included the banking off-island. conditions are having a detrimental effect jurisdictions we have kept a close eye on ability to take funds on the bank’s own But it is fair to say on the gaming industry, the DED is now changes in the international regulatory balance sheet whilst also providing a we would welcome concentrating on the Asian and Latin arena. Our first steps have been fiduciary service or conduit for e-gaming the provision of American markets where there is successful with the signing of an MOU companies. It is thought ProTect will now new banking consistent growth. with Denmark and we have embarked also attract more e-gaming businesses to solutions to the upon a comprehensive programme of the country. island.” A trip in early 2011 by the Department of international visits which are currently RAY DAVIES, Economic Development to Panama and ongoing.” Although the e-gaming business on the e-gaming Costa Rica saw seven companies from island has been growing rapidly the GSC Development this area take licences in the IOM. In terms of future outlook the e-gaming did warn that the shortage of local Manager, DED. team believes Asia is a key market whilst banking facilities could potentially Last year the Isle of Man GSC and the bilateral agreements with EU members dissuade new business from coming to Danish Gambling Authority agreed the states will be a significant area plus they the island and this could create a barrier terms for a bilateral cooperation are continuing looking at the to future expansion.

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