December 2010 • MOP 30 • ISSN 2070-7681

Cotai at the Crossroads Sands China ponders its next move

In Focus: Macau Revenue Breakdown

Singapore: The Illusion of Lawmaker Control | How Cupholders Increase Your Hold WMS: Net Benefits | TCSJOHNHUXLEY: Champagne Supernova | Only the Best: Aruze Gaming

CONTENTS December 2010

Cotai at the Crossroads

6 Lost the Plot 10 Macau Revenue Breakdown 13 Net Benefits 16 Edge Wise 19 The Illusion of Lawmaker Control 23 Fresh Boost For LVS? 25 Only the Best 28 Test Bed 32 Champagne Supernova 34 Drawing to a Close? 38 Kentucky Sues to Recover Poker Losses 40 How Cupholders Increase Your Hold 10 42 ADVANCE Notice 44 Regional Briefs 46 International Briefs 48 Events Calendar

40 2 3 Editorial

Silence—Not So Golden Publisher Kareem Jalal

Director João Costeira Varela

Editor Michael Grimes

Contributors Desmond Lam, Steve Karoul I. Nelson Rose, Richard Marcus Shenée Tuck, James J. Hodl Andrew MacDonald William R. Eadington

Graphic Designer Brenda Chao

Photography Macau, like the motherland China, is a quota-driven society. In Macau, reams of statistics Ike on everything from gross gaming revenue to average length of visitor stay are prepared by civil servants and then earnestly pored over by government and media alike. No doctrinal conference of the Catholic Church ever paid more reverence to the articles of Christian faith Inside Asian Gaming than does Macau to its tourism statistics. is published by But when it comes to the big picture stuff—how strategic decisions are made in Macau Must Read Publications Ltd and public policy is formulated on things such as land and gaming development rights— 8J Ed. Comercial Si Toi silence reigns. Facts are few and far between. Instead, decisions are delivered miraculously, 619 Avenida da Praia Grande fully formed (or sometimes half-baked) like smoke out of a Vatican chimney following the election of a new pope by a conclave of cardinals. That’s what seems to have happened in the Macau row over Cotai plots 7 and 8 and the government’s strangely worded letter saying Las Vegas Tel: (853) 2832 9980 Sands Corp’s right to the land is “not approved”. Then, when the market has had a few days to digest the latest promulgation from the For subscription enquiries, Chief Executive’s office, and the awkward questions start to flood in, it’s left to public officials please email lower down the pecking order to explain or otherwise interpret what the ‘policy’ means. They stand blinking under the powerful lights of television cameras, like rabbits caught in car [email protected] headlamps, loyally trying to interpret the orders from above and hoping for the sake of their own careers they don’t get it hopelessly wrong and drop their superiors deeper in the mire. For advertising enquiries, An American journalist’s description of Macau as “a casino designed as a nation” has never please email seemed more appropriate. Except it seems in Macau’s case, the casino management is taking [email protected] its leadership lessons from Donald Trump rather than Kirk Kerkorian. or call: (853) 6680 9419 Eventually, Las Vegas Sands Corp will probably swallow whatever pill it is asked to take in relation to its Cotai land rights. It’s making too much money from its existing operations to press the nuclear button in its relations with the Macau government. www.asgam.com But Macau emerges from this fiasco with very little credit in the wider world. No one would suggest LVS Chairman Sheldon Adelson is a natural stand-in for the jolly grandpa in the Werther’s Original candy commercials. But he is a businessman of international standing Inside Asian Gaming who’s investing the best part of US$7 billion in Macau’s infrastructure. He’s surely entitled to is an official media partner of: better treatment in Macau than he’s receiving under the current dispensation.

Michael Grimes We crave your feedback. Please email your comments to [email protected]

http://www.gamingstandards.com

4 INSIDE ASIAN GAMING | December 2010

Cover Story

Lost the Plot The shenanigans over Sands China’s Cotai land rights do Macau little credit in the wider world

f we’ve learned anything at all from studying Macau government policy as it relates to the gaming industry, it’s this—when it comes Ito decision making, it isn’t over until it’s over. And even when you think it’s over it may not be over. At the time Inside Asian Gaming went to press, the possibility of Las Vegas Sands Corp. (LVS) getting back its ‘lost’ undeveloped land on Cotai known as Plots 7 and 8 appeared still to be alive. An interesting question is whether Sands China wants to hold on to Cotai 7 and 8 because it desperately and urgently wants to build on them, or whether it wants to hold on to them because it doesn’t like the idea of having Stanley Ho’s casino company SJM as a neighbour. SJM has repeatedly said it covets the site and is making all the right noises to the government about focusing a Cotai project on a more general entertainment theme. That’s in line with the government’s aspirations to focus more on tourism and a little less on gambling. Anyone who looks closely at the history of SJM’s operations and that of its Ho family predecessor STDM, however, will be taking the new ‘family friendly’ incarnation of SJM with a fairly large pinch of sodium chloride. Macau is all about casinos, no matter how much lipstick local politicians like to put on the gaming pig. Big picture And even if SJM were allowed to build a casino with a family friendly face, it doesn’t answer the question of what exactly Cotai is supposed to be. Relatively new Macau-watchers would be forgiven for assuming Cotai was always meant to be the Las Vegas Strip plonked down in the South China Sea. That’s not the case. Those who lived in Macau prior to the boom brought by casino liberalisation in 2002 will be aware that under a government plan drawn up in the early 1990s, Cotai was envisaged as primarily a residential area, supporting 180,000 residents and with only sufficient hotel and convention facilities to support 40,000 tourists at any one time. In 1999, that Cotai plan was amended and replaced with the casino-heavy zoning we know today. In 2002, reportedly against his initial better judgement, Sheldon Adelson, the Chairman and CEO of LVS, was persuaded to work with the government to turn what was a Parcelled out—land allocation for gaming on Cotai and Macau boggy reclamation area into a new casino zone. peninsula prior to the government’s decision.

6 INSIDE ASIAN GAMING | December 2010 Cover Story

In an interview with the Las Vegas Review-Journal in May 2006, islands. The Land, Public Works and when work on the US$2.4 billion Venetian Macao was already well Transport Bureau, which in theory under way, Mr Adelson described his original doubts. is in charge of land management “At first, I thought it was political exile,” Mr Adelson recalled. and urban planning, admitted in “I thought Stanley Ho had some influence that he got me off the the weekly Catholic newspaper O peninsula because that’s where he believes the centre of everything Clarim that it didn’t know anything is. All I was hoping was that I could get a location in which I could about the project. The fact that Ao really do something.” Man Long, a former director of the It’s possible to argue that without The Venetian Macao’s presence, bureau eventually ended up behind Cotai could never have taken off as an alternative gaming destination bars at the old prison for soliciting to the traditional downtown casino area on Macau peninsula, and and taking massive bribes on public SJM wouldn’t currently be sniffing around for a home there. It’s works projects might possibly have difficult to imagine City of Dreams having the pulling power by itself vindicated the government’s decision to bring in hundreds of thousands of tourists from China and around to keep the new building’s layout the world direct to Cotai. hush hush. Macau’s Chief Executive— Now such is the draw of Cotai and It’s not the case that Macau has Judge in disguise? such is the demand for land there no planning ‘rules’ at all. It’s quite good at setting out and enforcing that the government even allowed the contracts with the casino operators in terms of the proportions the selling off of a site there that of gaming space, hotel capacity and convention space there should had previously been reserved for an be at each property. The difficulty comes with the big picture stuff. extension to Macao University of Science These are the decisions that have strategic consequences and and Technology. That was much to the perhaps major cost implications for the operators over many months dismay of several lawmakers including or even many years. Ng Kuok Cheong, who said in the Macau The only person who can reasonably be assumed to have the media in February 2007: “The purpose big picture in planning for the gaming industry in Macau is the of use has been changed without any territory’s Chief Executive Chui Sai On. And he doesn’t appear overly announcement or public consultation”. anxious to share that information. Mr Chui’s role in Macau seems akin If anything, this example goes to show to Sylvester Stallone’s character in the 1995 Hollywood film Judge the depth of incoherence that exists in Sheldon Adelson—made Dredd, about a comic book hero who enforces a semblance of order Macau’s strategic land use policies. And the best of an unpromising in an otherwise anarchic and post-apocalyptic world. “I am the law!” with another 865 acres of land due to Cotai site states when a baddie questions his authority. be reclaimed from the sea in the next few years, the danger is that without some fresh coherence added to the planning issue, the same kind of mistakes will be made all over again. In Macau, facts related to policy on new gaming Added to the lack of coordination appears to be a dose of bad development are in relatively short supply compared faith directed towards Sands China. The idea that LVS may ‘lose’ Cotai to speculation on that topic. What facts do we actually 7 and 8—two parcels of land south east of the Four Seasons—tends know about the Cotai land allocation situation in to assume it was LVS’s in the first place. Technically, it was not. The relation to gaming and tourism projects? Here are a reason that the company had spent upwards of US$150 million on few key ones: preparing the ground for development is that Sands had previously been given the impression by Macau officials that the land was its April 2009—Stanley Ho, chairman of SJM, states he is to use. Under the old easygoing Macau, legal permissions on land interested in buying out LVS’s interest in Cotai 5 and 6. His were generally regarded by local developers and officials alike as a move comes in the wake of the global financial crisis that led in slightly tiresome technical footnote designed to provide lucrative November 2008 to LVS announcing it was suspending work on 5 employment for local lawyers. What really mattered under the old and 6 due to funding issues. Macau was getting political support behind the scenes. When that November 2009—LVS announces it has received a final draft was in place, all things were possible. land concession for Cotai 5 and 6, with an initial land premium of MOP700 million (US$87.5 million) and a total land premium The more things change ultimately of MOP1.9 billion. The US$4.1 billion project will have With political support, all things may still be possible, even in the 300,000 square feet of gaming space and 6,400 hotel rooms under new Macau. The problem is it’s difficult to know whether the rules the Sheraton, Traders, Shangri-La and St Regis brands. of ‘new’ Macau are simply the rules of ‘old’ Macau packaged more November 2009—LVS raises US$2.5 billion by floating its presentably and more slickly for the benefit of the outside world. local unit Sands China on the Hong Kong Stock Exchange. That’s because no one—apparently not even the public servants November 2009— LVS says it has been given an extension on that are supposed to administer the system—really seem to know the August 2011 deadline originally agreed with the government what the ‘rules’ are. Some evidence in support of this argument for the construction of Cotai 3—known as the Far East Consortium emerged in 2007, when the government was planning to build a site, next door to the Four Seasons. The site, originally slated to new prison on Coloane, the most southerly of Macau’s original two have a Holiday Inn, an InterContinental Hotel and an Emperor

December 2010 | INSIDE ASIAN GAMING 7 Cover Story

Hotel, is given a new completion deadline of April 2013. SJM would be interested in developing a project “possibly with an December 2009—LVS announces it has secured in principle emphasis on recreation facilities” on the site of Cotai 7 and 8. US$1.75 billion debt funding towards the US$4.1 billion cost of September 2010—SJM sends a letter to the Macau Cotai 5 and 6 and that it will recommence construction at the government asking to take over Cotai 7 and 8. earliest available opportunity. October 2010—Steve Jacobs, sacked in July as CEO of Sands March 2010—the Macau government says it will impose China, files a lawsuit against LVS in a Nevada court alleging breach a 5,500 cap on the number of live gaming tables in the market of contract. The deposition claims Mr Jacobs was asked to organise henceforward until the end of 2013. That reduces by roughly one- “secret investigations” on Macau government officials so that any third the number of live tables permitted for Galaxy Macau, Galaxy negative information could be used against them. Entertainment Group’s new Cotai project, and Sands China’s Cotai November 2010—LVS says a completion date on Cotai 5 and 5 and 6 in their first phase openings. 6 “is not determinable with certainty” until adequate labour quota April 2010—LVS says in its first quarter results filing to the is received for construction work. SEC that it could lose its entitlement to Cotai Plot 3, and with it November 2010—A company controlled by Angela Leong, US$35.6 million in capitalised costs, if it is not able to develop fourth consort of Stanley Ho, announces plans to build a the site. US$1.3 billion ‘theme park’ on two million sq. ft of land next April 2010—the Macau government announces a ‘one-for- to the Macao Dome, an indoor sports facility built for the East one’ policy on construction labour recruitment (i.e. one local hired Asian Games in 2005. for every imported worker). This effectively stops dead LVS’s plans 2nd December 2010—The government sends a letter to to ramp up building work on Cotai 5 and 6. Sands China, LVS’s Hong Kong-listed unit, saying its application May 2010—The developers for a land concession to develop the 1.1 million sq. ft Cotai land of the stalled Macao Studio City parcel referred to as Cotai 7 and 8, “has not been approved”. project on Cotai are sent a letter 2nd December 2010—LVS issues a filing to the US Securities from the Macau government stating & Exchange Commission giving notice of the decision. it is considering taking back the 2nd December 2010—LVS’s share price falls 4.2% to US$49.17 32.3-acre site unless there is some in 4pm trading on the New York Stock Exchange after hitting a low evidence that the project (currently of US$47.20 earlier in the day. mired in litigation between two of 3rd December 2010—LVS asks Macau’s Chief Executive to the partners) will go ahead. review the decision on Cotai 7 and 8. June 2010—Wynn Resorts 3rd December 2010—SJM again reiterates its interest in announces plans to build a new Cotai 7 and 8 – just in case anyone has forgotten. resort on Cotai with a hoped for 5th December 2010—Jaime Carion, Director of Macau’s completion date in 2014. The land Lands, Public Works and Transport Bureau, when buttonholed had previously been allocated to at the weekend by a journalist on the sidelines of a public event, Wynn on terms similar to LVS’s Steve Wynn—Cotai plans says the government is now looking at developing non-gaming neighbouring land concession; i.e., in principle but subject to final projects on Cotai. “We are looking at more diversification in the legal permission. Cotai area rather than being exclusively for the casino industry. June 2010—Ambrose So, Executive Director and CEO of SJM We want to promote more cultural activities, sightseeing and Holdings, calls on the government to re-tender the rights to Cotai recreation for families,” he states. 7 and 8. July 2010—Sheldon Adelson says a fourth quarter 2011 Just as interestingly, Mr Carion also said the Sands China completion date for Cotai 5 and 6 is possible. application procedure for Plots 7 and 8 was not fully complete August 2010—Michael Leven, acting CEO of Sands China, and the government would announce the result “at the most says the company has spent US$162 million on preparatory work convenient time”. for Cotai 7 and 8 and says, in response to SJM’s stated interest in “Everything relating to land management will be done the land that it will “certainly defend accordingly with the Land Law and its additional legislation. But positions on sites 7 and 8”. the procedures are still ongoing and there is no final decision yet. August 2010—Francis Lui, The government will announce the decision in the most convenient Deputy Chairman of Galaxy time,” said Mr Carion. Entertainment Group, tells journalists That phrase “not fully complete” suggests the door may still be the labour squeeze has “slightly open to LVS. As has been proven previously in Macau, though, such affected” the timetable for opening signals can mean everything or they can mean absolutely nothing. Galaxy Macau, the company’s US$1.8 Given this opacity and the shortage of hard facts, it’s hardly billion Cotai project. Privately analysts surprising that analysts and commentators are forced to resort to are briefed to expect a second quarter speculation regarding the future development of Macau’s gaming 2011 opening, not the first quarter sector. During the height of the Cold War between the Soviet Union launch originally planned. and the US, when the West sought to understand what was going on Ambrose So of SJM— September 2010—Ambrose So inside the Soviet leadership, such inspired guesswork was known as catching Cotai fever reiterates to Inside Asian Gaming that ‘Kremlinology’.

8 INSIDE ASIAN GAMING | December 2010 Cover Story

Inside Asian Gaming doesn’t claim to have an inside track on with the casino operators—the sort of cringe-making moments Macau government thinking, but it has spoken to people familiar experienced during Hong Kong businessman Richard Suen’s with the Cotai legal process. They suggest there is a real possibility lawsuit against LVS in Nevada—could become available to the that LVS may still get its hands on 7 and 8. That’s not because LVS media under the cloak of legally privileged court reporting. To has strong grounds for an appeal against the process (it apparently use the language of the Cold War, that could risk what military doesn’t). It’s because the government would probably prefer not to analysts of the nuclear missile standoff between the US and the have to pay LVS compensation for the work it has already done on Soviet Union used to refer to as ‘mutually assured destruction’ or the site and because any such compensation claim could mire Cotai ‘MAD’ for short. 7 and 8 in litigation that could effectively tie up the land and prevent Thus far, LVS is taking a subtler, and it hopes a more effective it being used by anyone for years to come. approach, based on administrative law. “For the last two or three years the government has asked “LVS didn’t appeal against the decision stated in the government’s Sands China to do consolidation work on lots 7 and 8. LVS has spent letter,” the contact told IAG. somewhere between US$100 million and US$150 million,” a source “A formal appeal means a court hearing. At that administrative told IAG. level it’s only possible to appeal when there’s someone higher in “The company could sue the government to reclaim that money, authority to appeal to. This decision “to not approve” was made by and I don’t think the government wants that. If that aspect of the the Chief Executive, so in terms of administrative law there’s no one matter goes to court, then the litigation could be endless. You could beyond him. What LVS has done instead is to ask the government to get a situation where no one will ever build anything on Cotai 7 and re-evaluate and reconsider the position stated in the letter. 8,” added the source. “Technically, the government has 15 days from the date of LVS’s request for re-evaluation to give the company an answer. In reality, Dirty linen it might take longer. But if it’s kept at that administrative level, the There are other consequences that could come from a court decision could take less than two months. battle between LVS and the government over Cotai 7 and 8. All “It’s still possible the government will reconsider and grant kinds of unpleasantness relating to the government’s relationship [Sands China] the land.”

Cotai—from gambling strip to family haunt in one easy policy shift

December 2010 | INSIDE ASIAN GAMING 9 In Focus

Macau Revenue Breakdown A relatively unlucky month at the hands of high rollers pushes Sands China to third place in the local market share race, while ‘House of Dancing Water’ at City of Dreams has done little to drive the property’s main floor revenues

acau’s casino revenues are dominated by VIP baccarat, below. The statistics don’t include slot revenues, which currently which, in turn, is heavily influenced by shifting fortunes, account for less than 5% of total gaming revenue. Mas measured by volatility in the VIP baccarat win rates Sands China’s relegation was largely the result of a slide in its VIP experienced by operators from month to month. baccarat win rate, from 4.08% in October to 3.42%—its lowest level For example, the industry average VIP baccarat win rate was this year—in November. 2.91% in October, compared to 3.33% in November. The differing Wynn Macau, by comparison, had a relatively lucky November, win rates meant that even though VIP baccarat turnover was 22.9% with its VIP baccarat win rate for the month rising to 3.77% from higher in October—owing to the week-long Golden Week holiday 2.61% in October. Wynn Macau had recently fallen to the fourth spot to mark China’s National Day from 1st October—than in November, in the Macau market share race, being overtaken by Melco Crown, actual VIP baccarat revenue recorded in October was a mere 7.6% but as we pointed out in our Asian Gaming Intelligence e-newsletter higher than in November. Meanwhile, total table gaming revenue last month, this was in large part the result of relatively lucky months was just 8.2% higher in October. at Melco Crown versus relatively unlucky months at Wynn Macau. The headline result in November’s table gaming revenue figures In November, the VIP baccarat win rates of Wynn Macau and Melco was Sands China’s slide from second place among the six operators Crown came back close to parity, allowing Wynn Macau to regain a in the local market share rankings to the third spot, with Wynn Macau comfortable lead. Furthermore, according to our sources, the recent assuming the number two position. Inside Asian Gaming undertook increase in VIP business at Melco Crown has been driven by the a closer examination of the numbers, with the breakdowns of the aggressive extension of credit to junket operators—a strategy that revenue figures for November and October shown in the boxes has proven in the past to be risky and short-lived.

Macau table gaming revenue by operator in November 2010 (excluding slot revenues) VIP Baccarat VIP Baccarat VIP Baccarat Main Gaming Total Revenue Share of Turnover Win Rate (%) Revenue Floor Revenue (HK$ bn) Revenue From (HK$ bn) (HK$bn) (HK$ bn) VIP Baccarat (%) SJM 122.97 2.99 3.68 1.62 5.18 71 Wynn Macau 61.79 3.77 2.33 0.41 2.74 85 Sands China 43.16 3.42 1.48 0.92 2.39 62 Melco Crown 53.50 3.73 2.00 0.35 2.34 85 MGM Macau 39.42 3.71 1.46 0.34 1.80 81 Galaxy 52.31 2.82 1.47 0.19 1.67 88 Industry Total/Avg 373.15 3.33 12.42 3.70 16.12 77

10 INSIDE ASIAN GAMING | December 2010 In Focus

Macau table gaming revenue by operator in October 2010 (excluding slot revenues) VIP Baccarat VIP Baccarat Win VIP Baccarat Main Gaming Total Revenue Share of Turnover Rate (%) Revenue Floor Revenue (HK$ bn) Revenue From (HK$ bn) (HK$bn) (HK$ bn) VIP Baccarat (%) SJM 153.94 2.72 4.19 1.62 5.81 72 Sands China 53.05 4.08 2.16 1.08 3.24 67 Melco Crown 68.93 2.96 2.04 0.38 2.42 84 Wynn Macau 72.56 2.61 1.89 0.47 2.36 80 MGM Macau 45.98 3.23 1.48 0.36 1.84 81 Galaxy 64.12 2.48 1.59 0.17 1.77 90 Industry Total/Avg 458.57 2.91 13.36 4.07 17.44 84

In October, MGM Macau for the first time rose from last place pulling potential: Melco Crown, operator of the expansive City of among the six operators in the local market share rankings to the Dreams resort, located across the street from Venetian Macao on the fifth spot, overtaking Galaxy Entertainment Group. Although MGM Cotai Strip. Macau maintained its lead over Galaxy in November, both October City of Dreams unveiled its much-hyped HK$2 billion (US$200 and November have seen Galaxy suffer particularly unlucky months million) ‘House of Dancing Water’ show in September, but the at the hands of high rollers, whereas MGM Macau has enjoyed results in October and November suggest the water show has yet especially lucky months. Galaxy generates far greater VIP baccarat to provide a significant boost to the property’s mass market table turnover than MGM Macau (HK$52.3 billion versus HK$39.4 billion in gaming revenue. Venetian Macao continues to provide a far superior November), and if both operators had experienced market average mass market draw, generating main floor table gaming revenue of win rates in October and November, Galaxy would have comfortably HK$681.0 million in October and HK$550.1 million in November, maintained its lead over MGM Macau in both months. versus City of Dreams’ HK$327.7 million in October and HK$302.8 Also, it appears the VIP baccarat turnover generated by both million in November. Galaxy and Wynn Macau has remained resilient in spite of the VIP baccarat price war reportedly instigated by neighbouring MGM Deciding factors Macau, which has, according to sources, begun offering major Commission price wars can be decisive in the war for VIP baccarat junkets a 47% share of revenues for basing their operations at its revenue share, as Melco Crown proved by grabbing a quarter of the property (compared to the industry norm of 42%). local VIP business at its modest—in terms of size and surrounding neighbourhood—in size and surroundings—Crown Macau (now Varying VIP reliance Altira) on Taipa by offering an unprecedented 1.35% commission The Macau market has become increasingly dominated by VIP agreement with junket consolidator AMA International in late 2007. baccarat this year. While VIP baccarat accounted for 70.7% of all table Melco Crown launched the price war at Crown Macau after the gaming revenue in 2009, it contributed a whopping 84% in October property had struggled for six months from its May 2007 opening to this year and 77% in November. Sands China is the operator least generate business using only its self-proclaimed six-star amenities. reliant on VIP baccarat—which comprised 62% of the operator’s total On the other hand, the contrasting main floor performances of table revenue in November—thanks to its sprawling main gaming the US$2.4 billion City of Dreams and the equally-priced Venetian floors at Venetian and Sands Macao and its diversified entertainment Macao just across the street demonstrate that the battle for the offerings. Sands China stands in stark contrast to the other Macau mass market will be decided by less tangible factors. These range operator which currently boasts significant mass-market crowd- from the ease with which visitors can find their way around the

Although MGM Macau maintained its lead over Galaxy in November, both October and November have seen Galaxy suffer particularly unlucky months Martket OutlookCity of Dreams unveiled its much-hyped HK$2 billion (US$200 million) ‘House of Dancing Water’ show in September, but the results in October and November suggest the water show has yet to provide a significant boost to the property’s mass market table gaming revenue.

property—City of Dreams’ layout is often accused of being user- 88% of its table gaming revenue from VIP baccarat in November. unfriendly—to the relevance of the entertainment, dining and This is not surprising given the small footprint of its flagship other non-gaming offerings. StarWorld property, necessitating a strategy focused on a relatively Galaxy is currently Macau’s most VIP-reliant operator, deriving small numbers of customers (namely, VIPs). However, Galaxy has significant mass-market capacity in the pipeline, with industry analysts predicting an opening for its Galaxy Macau mega resort on Cotai by May or June 2011. Galaxy Macau is tipped to be the only major new Macau casino property to open next year, and pundits are speculating on whether it will be able to draw mainland Chinese and other Asian tourists in the same way as Sands China has managed to do with its Venetian Macao property—effectively a ‘must see’ for the bulk of visiting Asian tourists from mainland China and, increasingly, India. The latest estimate for total investment in Galaxy Macau is HK$14.9 billion (US$1.9 billion). That’s a smaller outlay than was made for City of Dreams. Whether Galaxy Macau eventually offers a better rate of return on investment than City of Dreams may depend on whether Galaxy does a better job of anticipating what the mass- Venetian Macao casino market visitors arriving in Macau truly want.

Whether Galaxy Macau eventually offers a better rate of return on investment than City of Dreams may depend on whether Galaxy does a better job of anticipating what the mass-market visitors arriving in Macau truly want.

12 INSIDE ASIAN GAMING | December 2010 WMS

Net Benefits WMS Gaming reveals its latest innovations utilising downloadable entertainment and social networking

MS Gaming Inc., a subsidiary of WMS Industries Inc., machines through a single system and user interface. exhibited the latest developments in its networked gaming Wtechnology at the Global Gaming Expo 2010 in Las Vegas. WAGE-NET Portal Platform A standout feature of this year’s event was that WMS devoted The WAGE-NET system includes the Portal platform. This part of its exhibition space to the WAGE-NET® Tech Center. The Tech enhances the player entertainment experience and includes both Center enabled customers to engage with WMS’ technical experts a Central Game Controller™ server distribution application and the known as the ‘Tech Aces’ to learn more about the ease and value of FreedomPort™ network display interface. Importantly, by utilising adopting the multiple components of WAGE-NET. WMS’ FreedomPort Player User Interface windowing platform, WMS The WAGE-NET system is a suite of platform technologies and KONAMI will allow each other access to deploy gaming and and system applications with a range of functions and uses. non-gaming applications across their respective gaming machines. Key is WAGE-NET’s ability to allow operators to vary the game These FreedomPort enabled products include WMS’ Portal mix on the floor via remote download and configuration (RCD). application suite and KONAMI’s Player Tracking and Advanced That increases revenue generating capabilities and operational Incentives® applications. The full range of integrated solutions will efficiency of casino gaming floors. operate on both KONAMI’s gaming machines and Konami Casino On the first day of G2E 2010, WMS and the Japanese gaming Management System® (KCMS), and will be co-branded with WMS’ manufacturer KONAMI jointly announced that KONAMI products WAGE-NET networked gaming system. and systems are to be integrated with WMS’ WAGE-NET networked Regulatory approval for WAGE-NET 1.0 was secured in Nevada in gaming system. As part of the integration initiative, WMS’ WAGE- December 2008 and since then WMS has been adding refinements NET system will support the full array of remote configuration and functionality to the system. WAGE-NET 3.0, a solution that adds and download functionality on both WMS and KONAMI gaming Account Based Wagering and Patron Services platforms to the remote

December 2010 | INSIDE ASIAN GAMING 13 WMS

Good fit—WMS conceived WAGE-NET as a modular and powerful series of tools for casino operators

configuration and download and Portal platforms is the next phase slot experience. It debuted at G2E with Pirate Battle™, a 2-vs-2 of the WAGE-NET project. Community Gaming competition theme available exclusively in An important part of WAGE-NET’s appeal to casino operators is banks of four Bluebird xD cabinets with special 32-inch overhead its ability to work with systems and hardware produced by other monitors. These monitors join to form a massive, singular screen manufacturers. WMS’ WAGE-NET networked gaming solution is on which a bonus canon battle randomly occurs, as red and blue based on open architecture using industry standard communication teams compete for credit and progressive awards. protocols developed by the Gaming Standards Association (GSA) and is designed to be fully interoperable with other systems developed in compliance with GSA standards. For the first phase of its Portal application rollout, WMS has four distinct series—Ultra Hit Progressive®, Winners Share™, Metascreen™, and Mega Multiplier®. Ultra Hit Progressive (UHP) is WMS’ first commercially available Portal application family, and was demonstrated at G2E 2010 on both video and mechanical reel games. UHP adds a secondary mystery progressive bonus to the base game. Gaming operators can also use an intuitive back-of-house user interface to vary the players’ progressive bonus experience. Two themes for the UHP Portal family were on display: Jackpot Explosion®, featuring a volcanic theme, and Piggy Bankin®, with its swelling and ultimately cracking piggy bank theme. Winner’s Share adds a secondary bonus opportunity on top of video or mechanical reel base games to provide one player with a progressive game experience when the bonus is randomly triggered. Winner’s Share debuts at G2E with the Peng-Wins™ theme, Pirate Battle™ in which a penguin slides, bounces and slips through an interactive environment, collecting credit awards from 1% to 200% of the Mega Multiplier features bonus action powered by a real-time progressive jackpot. physics engine, and was displayed at G2E with Super Shot™ and MetaScreen provides what WMS says is the first true competitive four individual themed displays that can be swapped out on any

14 INSIDE ASIAN GAMING | December 2010 THE GODFATHER™ is the first multi-level progressive that allows players to win their way up progressive levels gaming machine connected to the Mega Multiplier Central Game Controller. Mega Multiplier randomly awards players credits. They can store and use the credits to trigger the Portal application at any time they choose to launch a into the top screen for a chance to multiply their stored credits up to 100x. Player’s Life Web Services WMS also exhibited its recently introduced Player’s Life Web Services. A total of 44 WMS games are enabled with Player’s Life Web Services, meaning the games can be played online away from the casino either via home PC or via mobile handset, subject to relevant jurisdictional approvals. Player’s Life also makes use of computer social networks to link the WMS brand and WMS games with players’ online activities. “Web Services, which is available for casino operators to offer from their web site, unlocks for the first time in the gaming industry the highly valuable potential of social networks by providing social games, discussion forums and real-time player accomplishment notifications, among other unique features,” says WMS. Web Services was recently launched in conjunction with the Adaptive Gaming platform, which allows players to save their progress through the game and resume play at a later time when they return to the casino. “Time on device for players that have created a unique Web Services login is nearly 70% longer than for players without a unique login,” says Larry Pacey, WMS’ Chief Innovation Officer. “These performance statistics clearly demonstrate how the availability of online casual games and content through Web Services provides new entertainment options for players, new insights for casino operators on their players’ preferences and increased coin- in. In this regard, Web Services is another example of how WMS leverages prior product successes to create the next innovative product that helps drive higher coin-in and increased player visits to casinos,” adds Mr Pacey. Of the 120 new games WMS had on display at G2E 2010, 63 are integrated with Portal applications and/or Player’s Life Web Services, to create new gaming experiences for players as gaming operators choose how they mix and match these value-added features with games on their slot floor. All of the 120 new games on display are expected to be commercially available before the end of calendar year 2011. IGT

Edge Wise IGT’s sbX® Floor Manager offers flexible tools to boost slot revenues and give an edge over rival operators

lot machine occupancy already appears to be consistently high at Resorts World SSentosa in Singapore and is ramping up in Macau. As that trend develops, Asian operators may want to tweak their slot price points in line with player demand. That already happens in the live table segment where minimum bet levels are increased at peak times. At the IGT Asia Network Systems Users Conference held recently at The Venetian Macao, IGT’s Eric Lancaster explained how the company’s sbX®Floor Manager can give operators the kind of flexibility on content and pricing that can improve slot yields. The powerful tools provided by sbX Floor Manager include remote real-time or scheduled game theme adjustment and protocol technology you had to go to IGT. between the game and, say, accounting,” pricing management. Now, if you want the GSA protocol, he adds. IGT’s sbX Floor Manager made big news it’s available on the Net, it’s available to when it went live in ARIA at CityCenter in Las everyone that is interested, on a common Real time and scheduled Vegas in December 2009 as part of MGM’s protocol,” adds Mr Gomes. Floor management can be done in real server-based gaming floor, and is eagerly “Think of sbX Floor Manager as enabling time as conditions on the floor change at anticipated at the Cosmopolitan property two new things,” Eric Lancaster, Manager, short notice, and it can also be done on a opening on the Las Vegas strip this month. Product Management for IGT, based in Las scheduled basis in anticipation of peaks and But the architecture of sbX is flexible enough Vegas, told conference attendees. troughs of activity. to be compatible with existing equipment in “It enables the management of games “It allows you to manage based on time older casinos—provided that the equipment from a desk rather then from the game of day, it allows you to manage on day of the has been written to the Gaming Standards itself, and it speeds the delivery of the game week, or week of the month, or month of the Association’s (GSA) open communication themes to market. year,” explains Eric Lancaster. standards. On a slot floor that’s not really possible “sbX Floor Manager allows you to “You get the core layer of sbX, that’s the with the older protocols and the older manage pricing targets. It allows you to G2S open protocol, and then you got our games. It’s so labour intensive to go out and manage your game mix to optimise for a product called Floor Manager,” explains Eric manage those games and change the price particular demographic or particular event. Lancaster. point or change the game themes that are You can tailor to your expected player and available to your players. you can also compete better when using Open standards The big thing that sbX Floor Manager sbX Floor Manager.” “The GSA protocol is something that does is to maximise your investment in your IGT says it typically takes a slot IGT has embraced because we believe game partners. You as an operator have a manufacturer some time to deliver a casino’s that the [slot] service window, with Media certain amount of space, and for you that’s order for a new slot game or a conversion kit management via sbX, is the way that the retail space selling a product. You need to for an existing cabinet. industry is going. This allows operators maximise your return on the investment in “Imagine if our new games just came to to touch players while on the casino that space,” states Mr Lancaster. you, every month,” says Mr Lancaster. floor. GSA protocol is needed to drive this “An interesting thing about Floor “Here they are. And you can put them on technology,” says John Gomes, Managing Manager is it’s independent of the casino any compatible cabinet you want. Now you Director of IGT Asia. management system. It’s a wire that goes don’t have to choose. They’re delivered to “Previously if you wanted to get your to the game and allows you to manage the you automatically every month. Using sbX hands on SAS [Slot Accounting System] game library but it does not interject itself Floor Manager, a key benefit is the game

16 INSIDE ASIAN GAMING | December 2010

IGT

simply manage the game themes. “These games are not necessarily all “You can start to manage some of the IGT games. You can click on the games of firmware that’s in say the bill validators, any manufacturer that’s implemented the and in the printers, and you can set game GSA’s open standards and see all the same options,” states Eric Lancaster. information,” adds Mr Lancaster. “For example, you can set your hand pay “sbX Floor Manager also maximises your options and you can set the clocks on these investment in your network infrastructure. games if you need to. This tool allows you to So whether you have a high-speed network completely manage the games, not just the or a low-speed network or a serial network, game themes. It also allows you to see your you have built that network for a reason. floor and to select based on certain criteria. That is to get player information back and You can click on the games and see all the forth, for processes such as accounting. game themes that are on those, and the Using sbX Floor Manager helps to maximise entire meter set. investment in that network infrastructure.”

Open House IGT is encouraging slot technology integration with an interoperability testing facility in its home base in Reno

IGT has shown its commitment to the development of GSA open standards by setting up a facility for equipment interoperability testing—the IGT Global Technology IGT’s Eric Lancaster—explaining the benefits and Interoperability Center—at the company’s home base in Reno, Nevada. of sbX “It is built with the primary purpose of bringing or allowing all the manufacturers to have a place to build and test their equipment and games,” says Eric Lancaster. libraries. There are well over 100 games “We test downloading and managing of other manufacturer’s games within our available in the [IGT] library in this [Asia] system. And those manufacturers can also take their systems into that lab and test our market. That allows you to take any of those games. I’m glad that IGT was able to do it. It was a very expensive thing to do, but it’s also themes to put on your main game. You the a certified GSA testing centre.” operator can then manage those games on “I want to reinforce the a scheduled basis.” point that GSA standards are not something that IGT controls or owns. Theming the floor It’s a commonly agreed platform A practical example of the benefits of among all the manufacturers,” adds remote content management is that it can John Gomes. be used to create a themed area within the “Everyone who wants to casino itself. implement it needs some R&D dollars “One property we work with is creating to put behind the implementation of an area in their casino to drive excitement, this protocol. It’s up to each company with new games,” says Eric Lancaster. how quickly or how slowly they do “So what they do when they get the that in terms of how much cash they new games via sbX Floor Manager every have behind it.” month is they will load all the new game “But I can tell you that the themes in that particular area of the manufacturers are very excited casino. And they have signage to support about these protocols. They are it and they award extra points for players very excited about GSA and we that go and play those new game themes. are very interactive with them. IGT This really helps your players to try new architects and engineers speak with things. The customer perception is that architects and engineers from those your technology can differentiate you companies on what seems like a from a property down the street. This daily basis. differentiation is really starting to drive “We take ideas to the GSA and how your players play, based on how you we get together. All the members want them to play. One of the new things must agree before it’s implemented. you can do with sbX Floor Manager is you If it doesn’t get agreed upon by GSA, can begin to choose your price point.” it doesn’t happen.” John Gomes, Managing Director, IGT Asia sbXFloor Manager does more than

18 INSIDE ASIAN GAMING | December 2010 Policy Outlook

The Illusion of Lawmaker Control Could Singapore allow junkets to operate at its casinos?

ingapore set the bar very high in terms as it is very hard to prove or disprove the of probity standards for casino junket claims that there are proxy junkets already Sagents wishing to operate from the operating out of Singapore. Proxy junkets city-state’s casinos. allegedly operate by getting a junket front With such tough rules, how easy will it be person to check in money representing for the Lion City to authorise junkets, even if himself to the casino management as a there’s a political will among lawmakers to direct premium player. The ‘front’ then do so? shares the chips with ‘friends’ who happen Singapore’s Casino Regulatory Authority to be customers of that junket. (CRA) confirmed recently that an unspecified This ambiguity regarding ultimate number of junket agents had applied to control of junkets and the difficulty in operate out of Resorts World Sentosa, policing the junket system is precisely why Genting Singapore’s integrated resort. Singapore drew up such tough regulations Analysts suggest as many as 20 agents in the first place. The junket regulations were initially applied. According to reports in the either designed effectively to outlaw junkets Singapore media, at least half of them— without stating it as a policy in so many following a lengthy background check of words, or they were designed to introduce about nine months—have moved on to the (perhaps for domestic political reasons) an interview stage, which could take several illusion of control and absolute certainty in more months. That leaves the possibility Casino Regulatory Authority of Singapore relation to regulating junkets, when in fact of some junket applicants being licensed Chief Executive T. Raja Kumar no such certainty is possible. before the end of the first quarter 2011. The CRA’s job in this context is quite The 29 pages of probity requirements room licence (as required under local rules) straightforward. It simply has to implement for junkets as set out in the Casino Control is rarely the ‘controlling mind’—to use a the relevant criteria and checks demanded (Junkets) Regulations 2009 and the phrase from English commercial law—of the by lawmakers to the best of its ability. If the supporting application forms include a business. The real boss or bosses are other CRA makes all the necessary background requirement for applicants to list all assets, parties usually from the junket investor or checks and finds no objections to the issuing foreign and domestic bank accounts and consolidator that feeds that particular room of one or more junket licences, would the business activities for the 15 years prior to and others with players. Singapore government still be able to make their application. Could a parallel system evolve in a political decision that keeps the door In Macau, there’s a widely held view that Singapore, i.e. where the entity and persons closed to junkets at RWS, or would it be it’s quite easy to get a junket licence. There, holding the junket licence are passed bound by the CRA findings? Given that the the licences are issued on a room basis, rather as fit, but the ‘controlling mind’ remains deliberations of the CRA vetting procedure than on a junket-by-junket basis. Industry elsewhere? It would potentially be very hard are not themselves made public, lawmakers sources say the individual named on the to prove or disprove outside influence, just could theoretically still exercise ultimate

December 2010 | INSIDE ASIAN GAMING 19 Policy Outlook

control over the process. MBS’s VIP action in the third quarter must Goods and Services Tax) will ensure that any There are a number of political and have come from direct premium players Singapore-generated junket play will still commercial factors that could potentially issued with credit directly by the casino. be more profitable than its equivalent in swing the government’s position either While Mr Adelson is known to be keen to Macau, where gaming tax is levied at 35%, way. Potential benefits include the fact the leave out the middlemen agents wherever with two further contributions of up to 2% nation’s leaders would prefer rich people, possible, in the same earnings call he also and 3% of the gross respectively for social and ideally foreign rich people, to be the alluded to one of the factors that could and economic purposes. ones losing the money at its casino tables, currently limit the growth of the Singapore Allowing VIP junkets to operate not its own low-income and middle classes, VIP segment—credit default risk. legitimately would potentially open the or even its neighbours’ less well off citizens. “We are building up steady stream Singapore casino market to even more There has been some negative publicity of business from Korea, from Japan. And mainland Chinese high rollers. Those VIPS recently about the casinos targeting lower- outside of that area Hong Kong is our cannot legally convert their renminbi wealth income local players rather than wealthy biggest contributor. China is, let me say, on the international market unless they have foreign tourists. equally as strong. So we get a lot of RMB accounts held in Hong Kong or Macau. Sheldon Adelson, the Chairman and business from China, but we are very Such an opening up of the Singapore Chief Executive of Las Vegas Sands Corp, cautious about granting credit only to VIP market could, however, potentially the developer and operator of Marina Bay people that we know.” have negative implications for diplomatic Sands (MBS), said during his company’s The granting of junket licences in relations between China and Singapore. third quarter earnings conference call that Singapore would remove some of the credit That’s unless China were kept notified about around 60% of his gaming “income” (his risk from the operators’ shoulders and likely whom among its citizens were signing up as phrase) at MBS was coming from VIP play. deliver a higher volume of foreign ‘whales’. Singapore junket customers and how much VIP rolling in 3Q 2010 at MBS amounted to The phrase ‘Asian junket’ is synonymous they were spending. Legal Singapore junkets nearly US$10.3 billion. in operators’ minds with the word ‘sharing’, in could also make life easier for gamblers from By definition, given that junkets are not relation to VIP commission. But Singapore’s jurisdictions such as Vietnam and Indonesia, currently authorised in Singapore, all of low tax rates (5% VIP gaming tax plus 7% where controls on currency exchange and

The casino at Resorts World Sentosa, Singapore

The nation’s leaders would prefer rich people, and ideally foreign rich people, to be the ones losing the money at its casino tables, not its own low-income and middle classes, or even its neighbours’ less well off citizens

20 INSIDE ASIAN GAMING | December 2010

Policy Outlook

currency export are maintained. casino gaming, RWS is also arguably issuing a the property may be paying them a lower A second political benefit for commercial challenge to LVS, which appears commission on their roll (generally a Singapore of allowing some junkets is that to have been very successful in recruiting a maximum of 1.3% according to Michael it would merely legitimise and regulate diverse collection of direct VIPs. Leven during the second quarter earnings what is allegedly already happening in Mr Adelson said during the 3Q conference call) compared to as much as 1.5% at RWS the form of proxy junkets. Inside Asian call: “I’ll tell you that I watch that [figures on (a figure quoted by Mr Adelson in the same Gaming would like to point out we make VIP gaming at MBS] every single day, but I only 2Q conference call). However, the advent of no suggestion that the 20 current junket have access to the top 20 what we call the hit licensed junkets at RWS would potentially applicants in Singapore are involved in sheet—the top ten winners, top ten losers create commercial pressure for MBS to operating proxy junkets. and the average number of countries that attempt to bring in its own junkets, or Arguably by licensing some junkets are represented—and those 20 customers surrender VIP volume to RWS in exchange legitimately, the CRA could create a ready- are [from] eight to nine different countries. for maintaining margin on the MBS direct made watchdog to guard against proxies We get countries from all over the Pacific, business. in the market. A junket that has gone to the from Laos and Cambodia and Myanmar. Let Even if MBS were to seek out and gain trouble and expense of getting officially me get back to the beginning and say that approval for junket partners as a defensive licensed will not want an unlicensed proxy our primary markets are Singapore, Malaysia commercial move in response to RWS, junket encroaching on its turf. The licensed and Indonesia.” it could have the unwanted side effect supplier will have a commercial interest in The potential arrival of licensed junkets of diverting new players—who might spotting and, if necessary, whistle blowing at RWS shouldn’t lose MBS any direct VIP otherwise qualify as the most profitable on anyone it suspects of being a proxy. business in the short term. Some direct direct players with MBS—into the arms of By endorsing what in effect is a mass rush players have apparently made a positive the junkets. That’s a scenario that has already by junkets toward the ‘in door’ of Singapore choice to go with MBS despite the fact played out to LVS’s annoyance in Macau.

Allowing VIP junkets to operate legitimately would potentially open the Singapore casino market to even more mainland Chinese high rollers… Such an opening up of the Singapore VIP market could, however, potentially have negative implications for diplomatic relations between China and Singapore

Marina Bay Sands

22 INSIDE ASIAN GAMING | December 2010 Fresh Boost For LVS? News that a Bollywood film producer is negotiating to shoot part of a US$4 million comedy film at The Venetian Macao looks like a heaven-sent marketing opportunity for Las Vegas Sands Corp

t’s no secret that LVS Chairman Sheldon due directly to the publicity surrounding the is a sequel to ‘,’ a comedy feature Adelson has been actively courting Indian film awards. released three years ago. The plot centres Ivisitors for his Macau properties and for In the past, sudden rises in visitor on four “lazy slackers who just don’t want to Marina Bay Sands in Singapore, even though numbers from non-core markets (i.e. outside work” according to producer Ashok Thakeria. anecdotally it seems in Macau not many mainland China, Hong Kong and Taiwan) Indians spend time at the gaming tables or have been linked to other factors such as slot machines. the launch of new direct air services. There A previous high profile event by the are no direct air services yet between India Indian film industry may have played a role in and Macau, but there is some anecdotal bringing Indian visitors to Macau in general evidence that the film awards event and The Venetian Macao in particular. The stimulated interest from Indian tourists. International Indian Film Awards were held An Indian visitor interviewed recently by at The Venetian in June 2009, and received a Macau newspaper specifically cited the widespread media coverage within India visit of Bollywood stars to The Venetian as and across the Indian diaspora. In February his own reason for coming to Macau. The 2009, Macau received only 1,507 package opening of a Macau Government Tourist Indian actor Abhishek Bachchan and his tourists from India. In February 2010, there Office (MGTO) in India may have also helped actress wife Aishwarya Rai Bachchan arrive were 5,194—a 244% increase year on year. push up the numbers. at the Venetian Macao to attend the 10th Without access to detailed market research, The proposed four-week Bollywood International Indian Film Academy (IIFA) it’s not possible to confirm that this rise was film shoot, ‘Double Dhamaal’ (Double Fun) awards in Macau in June, 2009.

December 2010 | INSIDE ASIAN GAMING 23 LVS

In the follow up, the four vie to con each offered rebates on airport service fees to other in a show of one-upmanship. the first airline to offer either direct routes The movie, featuring other Macau between India and Macau or indirect landmarks including Hotel Lisboa and routes with good connections and good Taipa, could start local production as early frequency. as January and provide potentially massive Some industry analysts have suggested marketing exposure for LVS at minimal cost. the Singapore casino resorts would be the In September this year, 12,210 Indian first choice of Indian tourists because they visitors came to Macau, an increase of 29.8% are nearer to home. That could be precisely over the equivalent month in 2009. In the a reason not to choose Singapore. There third quarter of this year, according to data are fewer bragging rights associated with from Macau’s Statistics and Census Service, a trip to a near neighbour than a trip to an 126,840 visitors from India visited Macau, up ‘exotic’ location. 66.4% compared to 76,227 in the equivalent It’s also worth noting that the period in 2009. 350,000-strong ethnic Indian community That growth could speed up if direct air resident within Singapore is very stratified. routes are established. The company that There is a small and rich elite segment, and Singapore’s Little India operates Macau International Airport has a much larger low-income group. The latter tend to do the lowest status jobs such as with 89.2% admitted to post-secondary labouring and are effectively looked down education, compared to 85.5% of Malays on by many Chinese and Malays. and 95% of Chinese. Anecdotally, the The socio-economic and educational social attitudes toward Indian residents of status of ethnic Indians in Singapore is, the other ethnic groups still appear to lag however, gradually improving. In 1999, only behind those changes. Indian tourists and 64.6% of resident Indians in the Singapore business visitors still need to pre-apply for educational system were admitted to post- a visa to enter Singapore, while Chinese secondary education, compared to 66.4% passport holders are granted visas on arrival. of Malays and 82.4% of Chinese, according That kind of atmosphere doesn’t necessarily to Singapore’s Ministry of Education. By make for a relaxing holiday if you’re a high 2008, Indians had moved into second spot caste, high status Indian tourist. A Sure Bet

Log onto www.asgam.com for the latest industry intelligence and a subscription 24 INSIDE ASIAN GAMING | December 2010 to our digital edition—all absolutely free Aruze Gaming

Only the Best Aruze Gaming accepts no compromises in game and product development

here’s a saying that practice makes geisha. We also have Chinese Queen™, which fish strikes the reel, it [the reel] actually perfect. But in the case of gaming is based on the story of Yang Guifei. She was vibrates and shakes and you can actually Tequipment manufacturer Aruze, a woman who was wooed by an emperor feel the ‘fish’ being pulled in. founded in Japan, it’s more a case of perfect of China and became an imperial consort. makes perfect. Steve Walther, Vice President So we’re telling more stories through our By adding that touch effect were you Marketing, Aruze Gaming America Inc, games and we’re getting more intricate with trying to create a home gaming-type explains how the company is continuing the our top boxes and our engaging interactive experience? Japanese tradition for excellence in product displays. We’re bringing the game closer to It’s about adding that additional research, development and delivery. what people want to see. opportunity of touch to the game. You’ve got the sounds, you’ve got the visuals, Inside Asian Gaming: What’s new from you’ve got the music, you’ve got the thrill of Aruze at G2E this year? the game, and now you’re literally putting Steve Walther: We have 50% more something in the palm of a player’s hand to product this year than we did last year, give them that extra gaming experience. and an almost 100% new line up of games. Despite the range of our game library we’re How important is it that your games very focused. We could come out with 300 really stand out on the floor? titles and know that only 20 are going to You can’t walk by the corner where work. Instead, we release 15 titles and know this year [at G2E] we have Paradise Fishing all 15 are going to work. We’re very deliberate without stopping and taking a look. The about the titles we release, and the quality of detail on the graphics is such that fish that the work. Our chairman [Kazuo Okada] has are swimming around at the front of the no compromises in terms of what product display then go to the ‘back’ of the ‘tank’. It’s goes out the front door. Even if we’ve sunk a a very realistic experience and a very fun Catch the bug—Paradise Fishing™, with its significant amount of money into it he’s very innovative Reel Feel™ Gaming Technology one too. happy to stop the development of a project until it reaches the quality where he’s proud At the very front of our exhibit area is of putting Aruze’s logo on the product. our Paradise Fishing™ product, which I There are still some old favourites like believe is the pinnacle of entertainment Jackpot Battle Royal™ [a G-LINK® linked because not only does it bring the exciting game] and Lucky Sic Bo™ [multi-terminal graphics, the sounds of the communal, game] etc, but predominantly we have a new competitive gaming that’s associated with line up of games. Our G-DELUXE multiple link-style gaming in today’s market, but bonus games that your readers may have also we added a feature there called Reel seen with Bow Wow Bucks™ and Vampire Feel™ Gaming Technology. When you hold and Beauty™ last year is rocking right now on to the reel that’s built right into the slot in the market. We have new products like machine, you can actually move the worm Oiran™ telling the story of the elite of Japan’s up and down on the screen and when the

Shoot to Win Craps™—picking up on the success of Lucky Sic Bo™ and its feeling of player control

You’ve seen the effect of putting the action into the players’ hands with the ‘bash button’ on Lucky Sic Bo. You’re now seeing it with Shoot to Win Craps™ out now in Macau.

December 2010 | INSIDE ASIAN GAMING 25 Aruze Gaming

There’s also our Lucky Big Wheel. It’s a Big Six there’s opportunity to move in and carve out games from a random number generator version of the game where the people that your own niche. to an electro-mechanical random number are betting actually pull the handle to make We have a very strong visionary leader generator. We really cross the gamut of the wheel spin. That’s another example of [Kazuo Okada] and he’s been featured in your what Aruze as an organisation can provide giving that extra angle, that extra flair on the magazine as such. He’s got a clear vision of to an operation. It’s almost like we’re a gaming floor. Gaming is no longer just about providing greater value back to the players best-kept secret ‘diamond in the rough’. winning combinations and presenting the and thus generating greater value for the But as that ‘diamond’ gets discovered our result. Gaming is more about the complete enterprise. I think we’re demonstrating that popularity grows. entertainment experience. here with a lot of the products that we have, in terms of the potential for interaction, the “Our chairman stories, the engaging nature of the games. has no compromises Tell us about the recent installation in terms of what product on the floor at The Venetian Macao. goes out the front door. We’ve actually carved out an Aruze Even if we’ve sunk a ‘area’ where we’ve banked into that area our multiple bonus games, some of our significant amount standalone product, some of our classic of money into it he’s free game style games with the features, very happy to stop the and we’ve moved in some of our Lucky Sic Bo and some of our Shoot to Win Craps. development of a project The bottom line is you’ve got an amazing until it reaches the quality area that’s dedicated to Aruze product. where he’s proud And when people are waiting to play one style of game, they’re easily entertained of putting the Aruze logo by another style of game. It’s really lifted on the product.” up the performance of that area from a banking and a grouping perspective. Are you going after particular competitors with this entertainment How did that strategy come about? strategy? It was just about getting to know and We’re looking to carve out our own understand your customer. It’s something niche on the gaming floor. Or you could I would advise for all operators that read think of it as a beachhead, so-to-speak. We your magazine. Have that dialogue with get known as a provider of high value high your general manager to discuss what the entertainment engaging games, and we needs are for your casino floor. Somebody start to expand our market share around is going to be able to fill those needs. We at the globe. A number of our competitors are Aruze have a broad portfolio. experiencing momentary identity crises. In this case we looked at the situation What do they want to be, how do they want and saw there was an area of the floor that to do it? When there’s turmoil [in the market], wasn’t performing as well as it might. We knew there were a few products that could bring some traffic to it. Once we bring traffic to it, what do we do with the overflow? That was another question. That’s exactly what we identified in this case. At the start the hook was Lucky Sic Bo but now the multiple bonus games are having a life of their own. And why should we let Lucky Sic Bo’s popularity benefit another manufacturer’s game if it happens to be nearby? If you look at what Aruze can offer a casino from a catalogue perspective, we’ve got the link games, we’ve got the standalone games, we’ve got the entertaining bonus Aruze Chairman Kazuo Okada—no games, we’ve got systems technology that compromises when it comes to product we’re working on for currency and credit Loyal following—Bow Wow Bucks™, a quality delivery. We’ve got a variety of multi-station G-DELUXE multiple bonus game

26 INSIDE ASIAN GAMING | December 2010

GLI

Test Bed Gaming Laboratories International Asia is seeing ever-greater levels of interoperability between gaming software and hardware

Ian Hughes, Managing Director, GLI Asia he push for increased The suppliers based out of came some expertise, and they were able to interoperability between Taiwan and Korea are looking continue that with the online gaming, and Tcasino gaming equipment to sell product not only to also transfer some of that over, which has developed by different traditional large Asian markets contributed to our growth in Macau. About manufacturers is creating like Macau, but also markets 30% to 40% of our work in Macau is testing new business opportunities like Central and South America. of online gaming products. for gaming test laboratories. They really have a global focus Ian Hughes, Managing in terms of what they’re doing “We try to work with Director – Gaming Laboratories out of Asia. jurisdictions to narrow the International Asia, spoke to Inside GLI Asia is able to help these Asian Gaming during G2E in Las Vegas to Asian regional manufacturers. Quite often room for interpretation. explain how the company is helping move we try and test close to where the content If something’s not clear, the this exciting industry development forward is developed, to have a close relationship last thing we want is for the and how GLI is expanding in Asia. with the R&D team. If there are any issues to discuss, it’s easier to consult with the regulator to understand it to Inside Asian Gaming: Can you give manufacturer in their own time zone and mean one thing, us an update on your business in Asia language. The manufacturer has a lot of say the manufacturer to Pacific following GLI’s acquisition of in terms of where they would like things to understand it to be Technical Systems Testing (TST) earlier be tested and evaluated. Of course, we can’t this year? always do that. We have certain restrictions, something else, and the test particularly in some jurisdictions in the lab something else again.” Ian Hughes: Everybody that was United States where we may not be allowed working for TST both in the Philippines to test a particular type of product. But that’s A number of traditional slot and in Hong Kong now works for GLI Asia. changing in the US. manufacturers are talking about or Our Macau office has doubled in size and We are doing a lot of testing for online actively pursuing development of continues to be a great base for our Asian in the Macau office now. Before, we weren’t game content for use online. What manufacturers. doing that. So with that TST acquisition impact has this had on GLI’s role?

28 INSIDE ASIAN GAMING | December 2010 GLI

What we’re noticing is a real policy is reflected in the way the regulator understood by a particular word or phrase. convergence of technology, where we wishes in terms of technical requirements. We can also use our experience and expertise test a gaming machine for a land-based For example, when technical standards are to show them what other jurisdictions have casino and it’s about game content, but the published, there may be some wording done to resolve a particular issue or question manufacturers are developing that content that is open to interpretation. So we try to of interpretation. for multiple platforms whether it be for work with them [the jurisdiction] to narrow online, for applications on say the iPad or that room for interpretation. If something’s What happens if the regulator wants for smartphone gaming. Our strategy and not clear, the last thing we want is for the some regulation unique to that approach to the testing is pretty much the regulator to understand it to mean one jurisdiction? same. The game has to play in accordance thing, the manufacturer to understand with its rules, regardless of whether it’s it to be something else, and the test lab If there’s anything we believe is online or terrestrial. It’s not a big step in something else again. That just creates a significantly out of step with the rest of terms of testing an online game to testing a huge cost, because the manufacturer will the world—if there’s a unique requirement terrestrial game. The support platform may build a product believing it’s conforming in there, we provide the regulator with be different. Sometimes when we’re testing to the criteria, and then the test lab looks an impact assessment. That sets out the a game we find we’re getting it early in the at it and says, ‘No that’s not the regulation’s potential downside as well as potential design cycle. And we know it could be going intent’. So GLI’s first task is to look through advantages of framing a regulation in a into an online platform 12 months later. We the technical standards and understand particular way. We say to the regulator: ‘It’s might be testing it today for a casino now, if there’s anything at all that’s open to your prerogative to do it that particular but a few months down the line we may be interpretation. way, but we would like you to consider the asked to test it for say an iPad application or We help the regulator dig deep into following impact or impacts that may have’. an online game application. the text and the definitions of particular Then they may or may not amend it. Our words—sometimes suggesting alternatives concern is simply to make sure they have a What’s happening in the Singapore or seeking clarification on what they well-informed decision. regulatory sector?

As you know, the CRA [Singapore’s Casino Regulatory Authority] must approve each test location used to test gaming equipment for the Singapore market. GLI has all its test locations in the United States approved, our locations [are] approved in Europe and we’re currently in the process of having our centre approved in Australia. So even though GLI is an approved SRTL—Singapore Recognised Test Laboratory—we can only do test procedures in those of our locations that have been CRA-approved. We are, however, adding more locations all the time.

How are you positioning yourself for the expected slot regulations in the Macau market?

We work very closely with regulators all around the world when they’re introducing their regulations. Regulators recognise the expertise GLI has in writing technical standards. We’re very fortunate that they engage us very early and provide us with drafts of the technical standards. We’re typically invited to comment on those technical standards. In some cases we write it [technical standards] under contract to the government involved. We talk to the regulator about what their objectives are, what their concerns are. GLI doesn’t set policy—it merely ensures that

December 2010 | INSIDE ASIAN GAMING 29 GLI

Is technology cooperation and Whereas if that equipment goes through a jackpots over US$1 million. So the potential research cooperation between lab and everything’s ironed out beforehand, for something going wrong is there. It can original equipment manufacturers and they don’t have that pressure of live games become a big problem very quickly. Issues the creation of open communication on a casino floor. It can be adjusted in a test such as fairness about players not being standards overseen by the Gaming bed environment. We’re seeing a lot of that eligible to win jackpots and how jackpots Standards Association (GSA) creating interoperability testing, and that’s going are disbursed when they’re decommissioned opportunities for GLI? to become more and more complex with creates a whole load of new requirements, convergence of technologies and multiple but nothing that other jurisdictions haven’t Yes. As systems become more complex, platforms for content. gone through. So we certify and test many and we’re getting G2S [the GSA’s Game controls and jackpot formats. to System] and S2S [the GSA’s System to There’s talk of new wide area jackpots System] interfaces, operators are really being introduced into the Macau What about jackpots between properties pushing in that direction. An operator might market to drive slot revenue growth owned by the same operator? say, ‘I want this system and I want this G2S and to create ‘life changing’ jackpots. implementation from two different vendors. What’s GLI’s role in testing such From a technology point of view, running And I want you two to sit down and work technologies? jackpots or any gaming networks between together on it, because that’s what I want properties is the same infrastructure and I’m buying the system’. Generally, regulators see progressive generally as running them within one More and more, we are seeing operators jackpots as a core part of the game property. Everything’s running on the same having a direct say in which company is functionality and a core part of their sort of topography—the same routers and selected for the testing process, because responsibilities as a regulator to make sure servers. All the technology that connects as they see it, ultimately, it is in their best the jackpots operate correctly. It’s not sites together—whether it’s in the next interest to ensure devices and systems uncommon in some markets, room or miles down the operate correctly when they are live on for example, to have road—is effectively the floor. Operators are telling us they are the same. choosing GLI because of our independence and expertise. As we start to get more complexity and interoperability, this is going to become an issue more and more. You might be surprised to learn it’s often being driven by the customer—the purchaser—of that system rather than the manufacturer saying ‘I want to make sure I work with “X” piece of equipment from another supplier’. That element is still there as well—particularly from the gaming device manufacturer’s side. There are eight or nine major online suppliers, and as new suppliers enter the market, they want to ensure their products work with all of the major systems. They turn to GLI and ask, “Can you hook my machine up with all these major systems and make sure it communicates correctly?” That’s much better than putting it straight on the floor of a casino and finding it doesn’t work—especially if the manufacturer is new to the market. Because if it’s a six-machine placement on a casino floor and it doesn’t work, then that’s a dead spot on the floor. The casino operator has very little patience for that. If machines are not working they are either off the floor very quickly or they’ll need a software update. If the manufacturer can’t get a software update to the casino quickly enough then the machines may be pulled [off the floor].

30 INSIDE ASIAN GAMING | December 2010

TCSJOHNHUXLEY

Champagne Supernova TCSJOHNHUXLEY’s new table bonus product is designed to boost player time at the table whatever the game

upernova Table Bonus System from any game, even one without a progressive $100,” says Mr Jackson. TCSJOHNHUXLEY exploded onto the jackpot, and just have it running in For markets where players like communal Sscene at the company’s VIP off site mystery mode. You could even put it onto table play, such as Macau; Supernova can event during the Global Gaming Expo in a roulette table if you wanted,” explains be configured—subject to any necessary Las Vegas. TCSJOHNHUXLEY Australasia Technical jurisdictional approvals—so that jackpots For the second year running, Director Harley Jackson, who headed up can be shared among all the players at the TCSJOHNHUXLEY built a temporary development of the system. table who have contributed to it. showroom in the sky at Palms Resort several “We’re talking about a jackpot controller miles from the main show at Las Vegas Sensors and obviously that’s going to require GLI or Convention Center. And for the second year Bets are made and recorded when chips other test lab testing and then regulatory in a row, the industry turned out in numbers are placed onto the Supernova sensors fitted approval,” explains Harley Jackson. to inspect what was on offer. to the table. Players can play the base game Supernova Table Bonus System is alone, or they can choose to play the base Flexible described by the company as a powerful game plus a mystery bonus and in many “Being a brand new system, how the progressive and game bonus product that cases a progressive jackpot too if supported jackpot levels are implemented drives increased revenues by adding higher by the base game. and how you reward players levels of player excitement and loyalty to “The multiple levels means you can get has all kinds of possibilities. You your table games. all the tables in your casino to contribute can, for example, have a multi- One of the most exciting things about to the prize pool or you can operate it on a level jackpot where there’s one Supernova is that it can be applied to any single table basis. The mystery trigger could top prize, or one shared prize.” table game. Its multi-level mystery bonus be, for example, somewhere between $50 Supernova also offers mode can be employed even on games that and $100 contributed to the prize pool. operators the flexibility to stay don’t normally run progressive jackpots. [From a ten-dollar chip] you the player could within their comfort zone in be contributing one dollar towards the terms of the margin (above and “It’s really going to drive mystery [jackpot] and maybe five dollars beyond the theoretical house to the main progressive and four dollars edge) they want to see on each participation towards the house. table. in the progressive bet “It’s really going to drive participation in “You can invent your own and therefore the base the progressive bet and therefore the base progressive. It can be based on game. Nobody’s going to get up and leave a game event such as a baccarat game.” the table if the table’s progressive pot has dealer dealing four eights in built up to say $90 and the players know one game. You just have to “You can add the Supernova system to that the upper limit of the mystery pool is figure out the odds of the event

32 INSIDE ASIAN GAMING | December 2010 happening and work out your contributions accordingly,” says Mr Jackson. “So the thing is not only self funding but there’s a little bit left over for the house as well.” Operators can also choose the reset level for the mystery jackpot after it’s gone off. “The more you as an operator make, the less, obviously, will be fed to the jackpot meters. The property may choose to keep zero commission and contribute all of the progressive or mystery jackpot stakes to the meters simply to drive participation in the base game.” A star is born “This product came about because we wanted to dramatically improve on the existing progressive table technology well established in the market—both visually and by adding mystery jackpot levels. We call it Supernova because when it goes off it’s bright and explodes with colour. You can theme it however you like, to suit your local market.” Supernova is also fitted with TCSJOHNHUXLEY’s Wide Screen Omni Progressive Display. It comes supplied with an intuitive touch screen dealer console and is easy to retro fit to existing tables. The display can contain multiple odometers representing the various progressive and mystery levels, and as with all of the Omni display range it can be graphically re- skinned and themed to integrate with the base table game and to reinforce the overall property brand.

Supernova from TCSJOHNHUXLEY—mystery prizes even on games without progressive jackpots

December 2010 | INSIDE ASIAN GAMING 33 Feature

DrawingDrawing toto anan End?End? Singapore is called on to limit Malaysians’ access to its casinos

he voice of one regional lawmaker It comes only weeks after the Singapore this in perspective, Johor Bahru, the capital does not a policy make. But the call government banned the integrated resorts of Mr Tang’s home state, Johor, is only eight Tlast month by a Malaysian politician to from providing free shuttle buses to miles from the Singapore border. Given that ban his fellow countrymen from being given Singapore residents. It’s one thing for the proximity, it wouldn’t be much of an expense ‘free’ trips to Singapore’s new casinos and lawmakers within Singapore to pontificate either for independent tour operators or even to charge them for entry could mark a about the dangers posed to their own the casinos themselves to lay on free bus new and unwelcome development. people by gambling. It’s quite another transfers to and from the casinos. thing when a lawmaker in a neighbouring It makes a lot of sense for the casinos sovereign country starts making threats to market to this population, given that against legitimate cross-border trade and Johor is so close and so affluent. It makes freedom of movement for his own citizens. the third largest contribution to national Were such a precedent to be set, it GDP of all Malaysia’s 16 states, according to could push the hinterland for the mass- the Department of Statistics Malaysia. Johor market visitors to the Singapore casinos also has a population of 3.4 million people— further and further from the Lion City. But around 50% greater than the population of that’s exactly what Tang Nai Soon, an ethnic the federal capital Kuala Lumpur, 300 miles Chinese state assemblyman for Johor, the and five hours by bus to the north. Malaysian province next door to Singapore, Perhaps more worrying for Genting suggested on 24th November. He called for Singapore and Las Vegas Sands Corp, the the Malaysian government to ask Singapore companies that run Resorts World Sentosa to stop its casinos from offering what he and Marina Bay Sands, respectively, is A Resorts World Sentosa shuttle described as “free” trips to Malaysians. To put that state assemblyman Tang also wants

34 INSIDE ASIAN GAMING | December 2010

Feature

of movement for its people is one of the economic levers to boost foreign tourism pillars that support Malaysia’s political and receipts, not to relieve Singaporeans of economic system. their wages. Such exceptions granted to There are political and cultural factors, Malaysians could also encourage populist Malaysia’s Iskandar economic zone, just a however, that could sway the Singaporean politicians in neighbouring Indonesia, few minutes drive across the causeway from government to be sympathetic to curbs the most populous Muslim country in Singapore on Malaysian gamblers. Until 1965, the world, to push for a similar exclusion Singapore was actually part of Malaysia. or limitation on their own citizens. And Singapore to impose a casino entrance fee She was expelled because of political that in effect would amount to a low-key on Malaysians and to limit each Malaysian to differences with the federal government regional trade war. a maximum 50 trips to Singapore’s casinos in Kuala Lumpur. Singapore, the city-state, per year. There is already rumour (so far is ethnically overwhelmingly a Chinese unsubstantiated) that Singapore might raise community (about 74% of residents are the daily casino entry fee to price its own low- of Chinese descent), but takes care to stay income citizens off the premises. on reasonable terms with its own Malay There may be some political minority and the Malay majority over the grandstanding in Mr Tang’s position. The border. A pipeline from Johor supplies population of Johor is predominantly just under 40% of Singapore’s water, and Malay and predominantly Muslim. The Malaysia has in the past used the threat of state’s biggest economic development cutting off that supply to exert political zone, Iskandar Malaysia just over the border pressure on Singapore. Significant tensions from Singapore, has attracted around US$2 between the different ethnic groups sharing billion investment from the Middle East, the Malay peninsula remain an important including sovereign wealth funds in Dubai political issue. and Abu Dhabi. Were Singapore to agree to in some Even leaving aside any cultural and way limit Malaysians’ access to its casinos, religious element to the casino issue, the though, it could cause significant damage The main gaming floor at Marina Bay Sands People’s Republic of China has already set to the government’s casino liberalisation a precedent for a paternalistic approach strategy. That was precisely to to casino access. But it used visas rather create than pricing as the mechanism. Under the PRC’s individual visit scheme, independent Chinese travellers can currently make a maximum of 12 trips per year to Macau. But Macau is part of China, albeit a semi- autonomous part under the ‘One Country Two Systems’ policy. Malaysia and Singapore are separate countries. Even with that political distinction, to outsiders it might not seem unreasonable for Malaysia to protect its people either by pricing the lower earners out of the Singapore casinos or limiting the number of trips they can make per year. But Malaysia is (in theory at least) a multi-party democracy, not a one-party state like China, and freedom

Advertise with Inside Asian Gaming For advertising enquiries, please email: [email protected] or call +853 2832 9980 36 INSIDE ASIAN GAMING | December 2010 December 2010 | INSIDE ASIAN GAMING 37 Kentucky

Kentucky Sues to Recover Poker Losses By Professor I. Nelson Rose

n 25th March 2010, Governor Steve uncollectable. It may seem strange that a every state, except Utah and Hawaii, has Beshear of Kentucky launched his 300 year old statute from another country— commercial gambling—including Kentucky. Olatest attack against online gaming it has an exemption for gambling in the You don’t have to be a lawyer to see the companies. Previously, he had tried to seize royal palaces—would matter in 21st century big issue: Is the operator of a poker room a Internet domain names using ancient anti- America. But the Statute of Anne is still the “winner” under these statutes? Gov. Beshear slot-machine laws. This time, he is suing law of every state, until it has been changed would have had a much stronger case if Pocket Kings, who he falsely claims is the by a court or legislature. If you don’t believe he had gone after online casinos. But he is operator of Full Tilt Poker, for all the money it, try suing a Nevada casino that refuses to obviously not a gambler. Since he does not lost by Kentucky online poker players, pay a jackpot. play the games he is trying to stomp out, he times three. Anti-gambling feelings ran so high in does not understand the difference between In the 19th century, the Kentucky early America that many states wrote into banking and non-banking games. Legislature passed a law allowing losers at their constitutions that they would never Modern cases don’t help Gov. Beshear’s gambling to sue winners. And, if the loser allow lotteries. And some legislatures crusade. The most recent one was in 1952 does not sue, then anyone else may sue and passed statutes allowing losers to sue and involved a husband suing a fraudulent get three times the money lost. winners, or allowing state attorney generals charity for his wife’s losses at bingo and slot Where does a strange law like this come to sue to get the money back, or even three machines. from? times the losses. As an interesting aside, three ancient In 1710, Queen Anne of England signed Of course, times change. A majority of cases involve operators suing their winning an Act making gambling debts legally the states today have state lotteries. And customers. Kentucky games were either

38 INSIDE ASIAN GAMING | December 2010 honest, or the players were better crooks But maybe Gov. Beshear’s next suits will be against the than the operators. Kentucky State Lottery and the Kentucky Derby. But the Governor’s lawyers did find a decision from 1890, in which the Court of Appeals of Kentucky ruled that a loser at poker could sue the partners who ran the card rooms, because they raked the pot. The case, Triplett v. Seelbach, involved a very big loser indeed: He lost $1,905, at a time when a “fine brick house” cost only $2,500. The Court must have wanted to help this big loser, at a time when virtually all gambling was illegal. But in an example of bad cases making bad law, the Court wrote, “We do not understand that the winner, in the sense of said statutes, must be one of the players with cards in his hands; but if he is to receive a per cent. [sic] of the winnings by the actual player, he is, in the sense of the statute, a winner. This per cent., [sic] or ‘take out,’ as it is called, is a part of the loser’s losses.” Today, we know that a poker operator’s interest is not the same as someone who actually plays a hand, whether in poker or a banking game like blackjack. The card club does not care who wins, any more than a lottery or a racetrack cares who wins. But maybe Gov. Beshear’s next suits will be against the Kentucky State Lottery and the Kentucky Derby. ------© Copyright 2010. Professor I. Nelson Rose is recognized as a leading authority on gambling law and is a consultant and expert witness for players, governments and industry. His latest books, INTERNET GAMING LAW (1st & 2nd editions), BLACKJACK AND THE LAW and GAMING LAW: CASES AND MATERIALS, are available through his website, www. GAMBLINGANDTHELAW.com.

December 2010 | INSIDE ASIAN GAMING 39 Profit Boosters

Todd Haushalter reveals a few useful tips to make your casino more profitable

There is nothing magical about a small plastic device that holds drinks, and it certainly does not have special powers that somehow increase the house advantage on a game. Nor will its presence on the table make players bet more, play longer, or make poorer decisions. So how is a cup holder going to increase your hold percentage?

hen a drink spills and spilled drinks cost time. A casino that it takes between has to spend six minutes a night cleaning up W45 seconds and spills on a table is losing six minutes of the five minutes to clean it up, 480 minutes in an eight-hour shift. At that, depending on the severity of these six lost minutes are more valuable than the spill. Some spills require other minutes because we can be certain cards to be replaced or chips there was play going on when the spill to be dried off, or even the rack occurred. To lose six minutes on an empty to be partially emptied of its game would cost nothing, but drinks rarely chips to soak up the Long Island spill on empty tables. Exactly how much the ice tea that Mr Big just knocked casino loses due to spilled drinks depends over when he slapped the table on the game type, average bets, etc., but to celebrate his blackjack. we know for sure that in this example you In table games, time is money, would reduce the number of hands dealt by

40 INSIDE ASIAN GAMING | December 2010 Profit Boosters

1.2% on that shift. Some casinos would see games, and more. The bigger the rack is, the too common (European casinos aside) to see their win drop by more than 1.2% and others more chips it can hold, and more chips on a roulette dealer let players make all their would see less of an impact—it depends on the game means less fills will be needed. You bets and spin the ball just before calling, the profile of the players, but it certainly can also use the extra space on a larger rack “No more bets,” letting the ball go for 20+ drops. Putting cup holders on your games to leave space for incoming chips, thereby seconds while nothing is happening. should allow you to nearly eliminate this reducing the number of credits needed. A way to increase the spins per hour is to problem, keep your games going, thereby Every time a game gets a fill or a credit it spin the ball early while the bets are being increasing your win, and ultimately your takes time and just like in the cup holder placed, then with about 5-10 seconds before hold percentage. example, it costs your casino money. the ball drops, call “no more bets.” With this Now that the stage has been set with simple change in dealing technique you the cup holder, we will look at other ways to Don’t Let Dealers Drop Their Tips could dramatically increase your roulette improve the speed and ultimately increase Of course I don’t mean that literally, you win. Great roulette dealers can sense the the win and hold percentages of your would have a revolt on your hands—they pace of the game and use the ball spin to games. should just color up their tips before they keep it moving at all times. drop them. Let five singles become a red Stop Shuffling chip or five reds become a green chip. This ------For some reason we still see some will keep more chips in the rack and result in Todd Haushalter has worked as a dealer, dealers give the cards a single riffle before the need for less fills. Most casinos are pretty run a scheduling department, opened putting them into the shuffler on their good about this, but for those not doing this properties, but mostly he is the guy who single deck games. I always ask why and I it is an easy way to keep the game going and figures out ways to make major casinos more am usually told that is, “just the way we do pick that “low hanging fruit” to increase your profitable—most notably Wynn Resorts where it”, or, “it is just to be extra sure.” It may only win a little. Also, encourage your dealers to he spent four years before joining Shuffle take an extra five seconds, but that is a full do this coloring up when the game has no Master. Now, as Shuffle Master’s Director of minute you lose every 12 rounds. This policy players or when there is a natural break in Product Development, he travels the world just eats away at your profits day-in and the action so as to not slow down play. working closely with casinos’ management day-out and adds nothing to the security teams to identify new ways to help make of the game. I promise you the shuffler will Stop Staring and Spin casinos more successful. give you a sufficient shuffle. Government The difference between a good roulette regulators and independent testing facilities dealer and a bad roulette dealer can be 10 all over the world also agree the shuffle is spins an hour. Losing 10 spins an hour can totally random, so please let the shuffler do have a devastating impact the shuffling. on your roulette win or, conversely, gaining “Changing $100” those 10 spins could Can we please adjust this figure for be fantastic. It is far inflation? How long have we been calling this out for now? Every time it is done the game stops and now with reduced supervision levels, the game often stops for longer than it should. This doesn’t just apply to buy-ins, but also cash-outs under a certain amount, certain winning bets, and check change. Certainly the dealer needs to keep the supervisor apprised of activity on their table for player rating and the like, but the game should not have to stop for this to happen. Casinos have no problem with dealers advancing thousands of dollars per round, often times involving complex payouts, but for some reason, we still have this tired old procedure in many casinos. Big Racks Are Great I have to admit, I do like big racks… or chip floats as they are sometimes called. They come in all different sizes—12 tubes, 15 tubes, double stacked, large wooden ones on baccarat

December 2010 | INSIDE ASIAN GAMING 41 MEI

ADVANCE Notice

shows off its latest and greatest bill acceptor and integrated soft count system

he growing integration of bill MEI product, the CASHFLOW SC 83, at the things that lead to more cash in the cash acceptance and soft count processes in Regency Casino Thessaloniki in Greece a few box. First, what’s your acceptance rate? It’s Tthe digitally networked management years back, it led to the casino management extremely frustrating as a casino customer of casinos was graphically illustrated at MEI’s specifying MEI in all its new slot machines. if your bill doesn’t get accepted,” states Mr booth during the Global Gaming Expo (G2E) “We believe there’s really three basic Reichlin. in Las Vegas. Among the products on display were the company’s latest bill acceptor, the SC Advance™, and the radio frequency identification (RFID)-enabled EASITRAX® Soft Count system. “In developing MEI SC Advance, we took our current CASHFLOW® SC bill acceptor and we improved some of the features, including acceptance rate and security, to bring extra value to the operators,” says JeanMarie Decker, Marketing Manager. “When someone wants to integrate SC Advance into their casino, they don’t have to buy all new products because SC Advance can work side by side with CASHFLOW SC. All you have to do is replace the head. It can be interchanged throughout your units,” she explains. Standing out In a competitive market with a number of bill acceptor suppliers vying for casino operators’ attention, MEI stands out. It has the world’s largest installed base of unattended payment systems, handling more than two billion transactions per week in more than 100 countries. MEI also hit on the idea of what it calls ‘value added trials’ or ‘VAT’ for short. This is where the company invites an operator to run a trial of MEI’s note validator product in a bank of six to 12 slot machines alongside a bank of slot machines using the casino’s existing bill validator system. “We can talk ‘til we’re blue in the face about the advantages of SC Advance, but what operators really want to see is more cash in the cash box,” says Andy Reichlin, Director of Marketing. SC Advance™ When VAT tests were done on another 42 INSIDE ASIAN GAMING | December 2010 MEI

“Second, what’s your jam rate? Because we are now making some good progress if the slot machine goes out of service you with SJM in Macau.” can’t take any notes. Third, what’s your security? Are you going to take real notes? EASITRAX You need to let the good ones in and keep MEI says its EASITRAX Soft Count the bad ones out. If you do those three system, which complements its bill validator things well, plus fourth, ensure you are a low systems, offers the prospect of rapid return maintenance product on the operations side on investment because of the time and of the casino, then that’s what really counts labour its saves on the drop box process. with a bill validator.” “The way it works is that there’s an RFID tag in the bill acceptor cash box,” states Ms Asian sales Decker. Although MEI hasn’t conducted any of “The information is taken from the bill its VAT trials in Asia because of jurisdictional acceptor head and written to the RFID EASITRAX® rules, the company has had considerable tag. So when the drop crews come and Soft Count system sales success there. take the cash box out, filled with money, “Asia’s a big market for us,” says Mr they go into the soft count room, and put acceptance rate was, and if any of their Reichlin. the bill acceptor on the EASITRAX reader cash boxes were full, meaning they would “We have a good presence in Macau, and base. The information from the RFID tag have to adjust the time between drops.” we won orders in both Singapore properties then goes into a database and can be “We’re saving 20 to 30 seconds per drop last year. We’re also in Resorts World Manila networked to the casino. If an operator per cash box,” adds Andy Reichlin. in the Philippines. owns several different properties, they “So if you think about how many “We have historically done very well can access all of the information on one hours that adds up to given the daily with Sands, so we have high hopes for network. Information from the RFID tag is drop routine, operators can get a return Cotai 5 and 6. Historically, we have also programmed into many different reports on investment within a year just based on done well with the MGM properties. And so the casino can find out what their labour savings alone.” Briefs

As Senior Director for Latin American and Asia, Marcel will be Regional Briefs responsible for leading ATRONIC´s Latin American and Asian teams, and for developing strategies to Sri Lanka bows to the inevitable on casino gambling further support and grow ATRONIC’s Last month’s final passing performance and presence in these of a law to legalise casinos evolving markets. in Sri Lanka looks less about Marcel´s experience spans opening up a new market and 13 years in the gaming industry, more about acknowledging a including his leadership at Holland fait accompli and regulating and Casino’s slot department, where he taxing what is already there. oversaw an installation base of 7,000 The Casino Regulatory Bill machines across 14 casinos. On the has been advertised by the supplier side, Marcel previously government as a move to boost worked with ATRONIC where he Marcel Heutmekers tourism. In reality, casinos are headed new business development already in existence and tourists and was responsible for the opening of various new markets across minded to visit them are already the world, as well as the introduction of new business models. His passing through their doors, combined experience as both an operator and supplier give him according to the country’s invaluable insight into operator requirements, and how player media. The move may be more behavior and desires have changed over time. a tax raising exercise after 26 In Asia, Lai Fatt Chiang will continue overseeing sales for the years of financially and morally region as General Manager Asia, reporting to Marcel. Chiang has draining civil war between the majority Sinhalese and the minority been with ATRONIC since March 2009 and has a detailed knowledge Tamil community. and understanding of the Asian gaming market and its specific ‘This will enable the government to streamline all casinos, which requirements, thanks in part to his previous assignment with Asian are now being monitored under various state institutions,’ Deputy gaming distributor RGB. Finance Minister Sarath Amunugama told parliament members before the bill was passed, according to a report in the Asian Tribune. SJM 3Q profit up 528% The timing of the Bill is interesting, however. The war came to an SJM Holdings Limited end in May 2009, and since then Sri Lanka has been rebuilding its announced results for the quarter economy and soliciting fresh foreign investment. ended 30th September. The group’s Local, small-scale operators currently populate the gambling gaming revenue in the quarter hall and casino market that grew up by default in the years of civil was HK$14.0 billion, an increase strife. One question is whether the Sri Lankan gaming market can of 69% from HK$8.3 billion in the attract and subsequently support large scale international gaming year-ago quarter. Adjusted EBITDA investment of the sort seen in the Philippines at the US$700 million of the Group for the period was Resorts World Manila. Sri Lanka is certainly attracting investor HK$1.2 billion, an increase of 135% interest in the mainstream hotel sector. In August this year, Hong year-on-year. Profit attributable to Kong-based Shangri-La Hotels said it wanted to build a new hotel shareholders was HK$867 million, property there. The company’s chairman, Kuok Khoon-Ean, flew to an increase of 528% from HK$138 Sri Lanka that month for talks with senior government officials. Mr million in the year earlier quarter. Kuok is the son of Malaysian entrepreneur Robert Kuok, whose name SJM’s gaming revenues Grand Lisboa was recently linked briefly (and erroneously) with a buy out of the accounted for 30.4% of Macau’s Philippines’ gaming regulator and operator Pagcor. casino gaming market during the quarter, as compared with Sri Lanka’s government has stated it aims to generate US$2 billion 26.8% in the year earlier quarter. The group maintained a strong annually in tourism receipts and 2.5 million tourists by 2016. In 2009, and liquid financial position, with HK$13.5 billion of cash and the country earned US$350 million from tourism. HK$4.4 billion of debt (excluding convertible bonds) as at 30th September 2010. Over half of SJM’s gaming revenues in 3Q 2010 was generated ATRONIC appoints Marcel Heutmekers Senior Director at so-called satellite casinos, which are generally run under SJM’s for Latin America and Asia licence but owned and controlled by third parties. Satellite casinos ATRONIC International announced that Marcel Heutmekers has (including fourteen third party-promoted casinos and one slot hall) been named Senior Director for Latin America and Asia. Marcel will accounted for HK$7.7 billion or 55.0% of SJM’s total gaming revenue report directly to Walter Bugno, CEO of Lottomatica Group’s Gaming in the quarter. SJM’s flagship Grand Lisboa casino generated HK$3.6 Division, which comprises ATRONIC and SPIELO. billion, or 26.0% of the group’s gaming revenue, with the remainder

44 INSIDE ASIAN GAMING | December 2010 Briefs

coming from other self-promoted casinos, including the old Casino the construction of the shell and core is about to commence.’ Lisboa, Casino Jai Alai, Casino Oceanus and three slot halls and Jim Murren, Chairman and CEO of MGM Resorts International, one tombola hall. However, the satellite casinos contributed only together with Gamal Aziz, CEO of MGM Hospitality, the company 26.6% of SJM’s HK$1.2 billion EBITDA (earnings before interest, tax, which will manage phase 1 of the planned US$4.2 billion project, depreciation and amortisation) in the quarter, while the Grand Lisboa and a delegation of senior representatives from MGM Resorts and alone contributed 51.0%. ACDL, recently visited the site of the future MGM Grand Ho Tram for During 3Q 2010, SJM’s VIP gaming revenue was HK$9.4 billion, consultations with the design and construction teams. an increase of 100% on the year-ago quarter. Mass market gaming Mr Murren commented optimistically on Vietnam’s attractions: revenue was HK$4.3 billion, an increase of 29%, and slot machine ‘Vietnam is an integral part of our strategic plans for ambitious revenue was HK$316 million, an increase of 32%. developments in Asia. We believe the Ho Tram development SJM’s total 3Q 2010 revenue of HK$14.1 billion (compared to is perfectly suited to complement Vietnam’s rapid growth in HK$8.3 billion in 3Q 2009) included hotel, catering and related international visitation, expanding domestic tourism, and increasing services revenue of HK$108 million (vs. HK$79 million in 3Q 2009). demand for luxury leisure opportunities.’ In the third quarter of 2010, SJM operated an average of 474 VIP gaming tables (vs. 239 in the third quarter of 2009), 1,274 mass market gaming tables (vs. 1,185 in 3Q 2009) and 4,370 slot machines (vs. 4,039 in 3Q 2009). SJM’s capital expenditure during the third quarter of 2010 was HK$186 million, which was primarily for work on the upper floors of Grand Lisboa and equipment purchases. Dr. Ambrose So, Chief Executive Officer of SJM Holdings Limited, commented: “The operating results of SJM Holdings for the third quarter of 2010 are very positive—in particular the increase of our net profit by 528% as compared to the year earlier quarter. „We have also maintained the strength of our balance sheet, which positions us well for future expansion of our gaming and gaming-related businesses in Macau. “For the year to date, SJM has outperformed the industry and gained market share in a highly competitive market. I am very pleased Rendering of the planned Ho Tram Strip to note that this progress has continued through October, which was a record month in gaming revenue for SJM, and our market share increased further to over 32%.” MGM holds ‘King of Baccarat’ finale On 20th and 21st November, MGM MACAU held the finale of the ‘King of Baccarat’ tournament, which is part of the ‘The Royal King of Venetian Macao opens marketing office in Sydney MGM MACAU’ tournament series that gives out an all-time high prize The Venetian Macao has opened an office in Sydney to serve the pool of HK$10,888,888. Australia, New Zealand and Pacific markets. It will have a strong focus ‘The Royal King of MGM MACAU’ tournament series includes the on MICE business. ‘King of Slot’ and ‘King of Baccarat’ tournaments. While the ‘King of Brendon Elliott, vice president of sales at The Venetian Macao said, Slot’ has just been crowned, the ‘King of Baccarat’ remains unknown, ‘Macau is an ideal destination for groups traveling from Australia and with players having to compete with hundreds of contestants to New Zealand. It’s easily accessible, affordable, and provides endless claim the ultimate throne. entertainment options.’ The ‘King of Baccarat’ finale attracted crowds of players and The Venetian has released its new Entertainment and Meeting onlookers at MGM’s Grand Ballroom, featuring a prize pool of Packages for groups of 20 or more. HK$1,674,000. Among the players was famous Hong Kong advertising The number of Australians travelling to Macau continues to grow. artist Kenneth Lee. A total of 82,000 Australians visited Macau in the nine months to the end of September, according to the Macau Statistics and Census Bureau. Australia is currently The Venetian’s 7th largest MICE market. The property has 3,000 suites, 1.2 million sq. ft of convention and meeting facilities as well as a 15,000-seat CotaiArena designed for sports events and concerts.

Jim Murren visits Ho Tram Strip site The long-delayed MGM Grand Ho Tram will be the first resort development for Asian Coast Development (Canada) Limited (ACDL). According to CEO Lloyd Nathan, ‘the foundations are being laid and Kenneth Lee

December 2010 | INSIDE ASIAN GAMING 45 Briefs

in continuing the growth of our industry-leading R&D efforts and portfolio of world-class gaming products. We look forward to International Briefs welcoming Randy and his Aurora Design group to Bally.” Hedrick previously served as Senior Vice President of Labs for IGT. He left IGT 20 months ago to become President of Aurora Design, Inc, Nevada regulators ready to revisit online gaming a Reno, Nev.-based design studio that develops advanced technology According to the Las Vegas applications for the global gaming industry, focusing on community Review-Journal, Nevada gaming gaming, new product creation, and intellectual property strategies regulators are prepared to revisit and licensing. the issue of online gaming Five of Hedrick’s team members at Aurora Design will join him at within the state should efforts to Bally, where he will lead a team focused on integrating sophisticated overturn federal laws prohibiting applications being developed by Bally for commercial deployment Internet poker be successful. throughout the gaming industry. His Reno-based team will also “We do have a statute in focus on special projects outside the scope of mainstream product Nevada that would allow for development in support of Bally’s Innovation Lab, reporting to Walt online gambling,” Nevada Gaming Eisele, Bally’s Vice President of Technology. Control Board Chairman Dennis Neilander said. “It’s something we’ve given quite a lot of thought WMS named one of America’s best small companies to over the years.” by Forbes In 2001, Nevada passed legislation that allowed the Nevada Gaming Commission, working with the Control Board, to adopt regulations governing the licensing and operation of online gaming in the state. Mr Neilander said there were three issues the state law needed to answer before it could be implemented, though, including if online WMS Industries Inc was named to Forbes’ 2010 list of “America’s gaming could be done in compliance with all federal laws. “We could 100 Best Small Companies,” based on its sales and earnings growth never meet that criteria, so we didn’t move forward,” he said. and return on equity in the past twelve months. Mr Neilander said if Senate Majority Leader Harry Reid’s efforts In determining America’s 100 Best Small Companies, Forbes’ to legalize online poker are successful, the state would be ready methodology considered publicly traded companies with annual to proceed. Before such regulations can be adopted, the state law revenues between US$5 million and $1 billion and a stock price requires regulators to determine if the federal law is “consistent with above $5 a share. The ranking was based on earnings growth, sales the public policy of Nevada,” and are there proper security measures growth and return on equity in the past 12 months and over 5 years. to “restrict access from prohibited jurisdictions and to keep minors Forbes also factored in the comparative share price performance of from wagering,” he said. each company with its competitors. On 3rd December, Mr Reid, D-Nev., began circulating a draft bill Over its past five fiscal years, WMS increased its industry ship to legalize online poker. Sports wagering and other forms of gaming share and generated compound annual revenue growth of 14.5% would still be illegal. The bill would also outsource oversight to state and compound annual earnings per share growth of 24.8%. By regulators and send taxes to both state and federal governments. consistently implementing continuous improvement initiatives over Mr Neilander said the Nevada Control Board and Gaming this period, annual operating margins grew to 21.9% in fiscal 2010 Commission would “not take a position” on Mr Reid’s proposal. from 7.9% in fiscal 2005. Nevada casino revenue should rise by 2012 Bally appoints Randy Hedrick as VP of Development Nevada’s gaming revenues will return to pre-recession levels in Bally Technologies, Inc, announced 2014, according to a report released by auditing and consulting firm that respected gaming-industry PricewaterhouseCoopers (PwC) on 7th December. executive Randy Hedrick will join the While PwC expects the state’s gaming industry will report a 2.9% company in December 2010 as Vice decline in 2010, it predicts it will start seeing mid-single-digit gains President of Development. between 2012 and 2014. “Randy Hedrick is a true superstar The Nevada gaming market, which includes Las Vegas and in our industry,” said Richard Haddrill, smaller areas such as Laughlin and Reno, is expected to grow at a Bally Technologies’ CEO. “As a veteran rate of 4.1% annually, from US$10.2 billion last year to $12.5 billion in of all aspects of product development 2014, the report says. within the gaming industry, he “The gaming industry is facing an evolution, which presents both brings a wealth of knowledge and challenges and opportunities for the industry’s established players experience which will be instrumental and those considering the market,” said Mary Lynn Palenik, director of gaming, entertainment, media and communications practice at Randy Hedrick PwC US.

46 INSIDE ASIAN GAMING | December 2010 Briefs

and Business Development for Bally Technologies. “We will continue to cooperate on this and other initiatives that mutually benefit our customers.” The player interface technology at the center of the two companies’ agreement is Aristocrat’s nCompass™ and Bally’s iVIEW Display Manager™ (DM). This type of technology has been approved by Gaming Laboratories International (GLI), is in the field today in multiple markets, and is backward compatible to work on older gaming machines as well as new gaming devices being purchased today. Ms Palenik said the increase in entertainment choices for Aristocrat and Bally are consumers “will make it more vital for the industry to produce an confident that their customers offering and experience that consumers want to spend money on.” want this type of technology to be In its gaming industry outlook report, PwC expected a relatively interoperable, highly configurable, gradual recovery in Las Vegas since gaming centers tend to lag about and available on an open network, 12 to 18 months behind a rebound in the economy. easily enabling third-party At the same time, significant new capacity has entered the Las applications and ensuring that Vegas market. This includes MGM Resorts International’s US$8.5 gaming operators have the freedom billion CityCenter development and the $3.9 billion Cosmopolitan of to create differentiated marketing Las Vegas, scheduled to open this month. and service experiences on the “As the global economy recovers, and international visitors return games they own. Aristocrat’s Nick Khin alongside domestic visitors, Nevada continues to be better placed to capitalize on the upturn than Atlantic City, since Nevada is less affected by competition from regional casinos,” PwC said in its 44- Leap Forward Gaming announces strategic alliance with page report. Shuffle Master Overall, PwC projects that US gaming revenue will increase to Leap Forward Gaming, Inc of Reno, Nevada, announced it had US$68.3 billion in 2014, which would be a 3.6% compound annual formed a strategic alliance with Shuffle Master, Inc. According to a jump. This compares with the 23.6% compound annual growth rate press release: “Through this strategic alliance, two distinct leaders it forecasts for the Asia Pacific market, which should hit $62.9 billion in the gaming industry come together to bring operators and in 2014. manufacturers worldwide an unmatched solution integrating the best products and content from Shuffle Master with the leading wireless technology offerings and solutions from Leap Forward Gaming.” Aristocrat and Bally agree to cooperate on main game Leap Forward Gaming CEO Ali Saffari commented: “Operators video and touch-screen technology are asking vendors to collaborate to address industry needs that Last month, Aristocrat Technologies, Inc and Bally Technologies, will drive efficiency and their ability to do more with less. Shuffle Inc announced that they have entered into a technology cooperation Master and Leap Forward share a vision that the gaming floor of the agreement that relates to the ability of the system to manage the future will be wireless, which allows for new opportunities and both main game screen’s video and touch-screen communications. companies are committed to working together to achieve this vision. Under this agreement, both companies reinforce their Our groundbreaking, patented, highly-secure wireless technology commitment to delivering system-driven solutions that use Gaming provides Shuffle Master with the ability to seamlessly offer new levels Standards Association (GSA) and computing-industry protocols to of connectivity throughout the casino floor in an economical way.” enable casino operators to create a picture-in-picture-style interface “Shuffle Master is committed to partnering with best-in-class on the gaming device to differentiate their slot products, regardless companies to help solve important industry problems,” said Jim of the manufacturer. Jackson, Senior Vice President of Business Development for Shuffle “Aristocrat and Bally have very similar views of both the current Master. “Leap Forward’s wireless technology complements our table and future technology needs of our gaming system customers,” said products and machines. Our initial area of collaboration will focus Nick Khin, President of Aristocrat America. “Both our companies have on wireless progressive solutions for the casino floor. We strongly decades of systems experience, and feel it is imperative we cooperate believe that the combination of LFG’s wireless technology and on this important issue.” Shuffle Master’s innovation will redefine the way gaming properties “Our companies have worked very well together on our interact with their customers.” download-and-configuration products and in demonstrating the The first innovative product of a multi-phase effort from the power of implementing the picture-in-picture-style interface with collaboration is expected to be available to the gaming industry in this approach,” said Bruce Rowe, Senior Vice President of Strategy spring 2011.

December 2010 | INSIDE ASIAN GAMING 47 Events Calendar

Events Calendar A more comprehensive events listing is available on our website, www.asgam.com.

24 - 25 January, 2011 13 - 14 April, 2011 5th Annual Legal Gaming in Europe FADJA 2011 Conference Bogotá, Colombia Millennium Gloucester Hotel in Kensington, The Andean Gaming Trade Show Website: http://www.fadja.com London Focusing on the future strategy and new market penetration for gaming businesses all across Europe, the conference brings 21 - 23 February, 2011 together the European Commission, leading lawyers and leading lobbying operators. 6th World Game Protection Conference Website: http://www.bulletbusiness.com/gambling- M Resort, Las Vegas conference/ The premier industry event for casino game protection professionals. Website: http://www.worldgameprotection.com/ 25 - 27 January, 2011 ICE 2011 3 - 5 March, 2011 Earls Court, London ICE covers the entire spectrum of gaming in all its many forms. It CIAE 2011 provides manufacturers and creators with the finest marketplace Pazhou Complex, Guangzhou for their products and services, and attendees with a unique The 7th China International Game & Amusement Exhibition, forum to discuss and exchange views and opinions about the featuring major suppliers from mainland China, as well as Japan, global market Korea and Taiwan. Website: http://www.icetotallygaming.com/ Website: http://www.chinaamusement.com/ 1 - 3 March, 2011 iGaming Asia Congress Grand Hyatt, Macau The region’s leading event for the interactive gaming community will return to Macau for another year of learning, networking and entertainment. iGaming Asia Congress 2011 provides an opportunity to bring together Western technology and experience with the in-the-trenches knowledge of those doing business in Asia. Website: http://www.beaconevents.com/2011/ igamingasiacongress2011/

denotes events where Inside Asian Gaming will be available. To list your event here and on our website, email [email protected].

48 INSIDE ASIAN GAMING | December 2010 May 2010 | INSIDE ASIAN GAMING 49 50 INSIDE ASIAN GAMING | May 2010