Global Gaming Business, May 2020 by Global Gaming Business

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GGB Global Gaming Business Magazine

BEYOND THE CARD CUTTING THE WIRE ACT MASHPEE MOMENT AGA’S BILL MILLER

May 2020 • Vol. 19 • No. 5 • $10

Psyching the Slots

VEGAS Makeover

What makes a

popular

The Covid-19 shutdown gives operators a chance to reposition the Strip

game?

Flouting the Law

Illegal slot machines continue to operate during crisis

Association of Gaming Equipment Manufacturers

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CONTENTS

Vol. 19 • No. 5

may

Global Gaming Business Magazine

COLUMNS

20 COVER STORY

Reinventing Vegas, Again

10 AGA Doing the Right Thing

The shutdown of the Las Vegas Strip amid the coronavirus pandemic will pose unprecedented challenges to Strip operators, but also an opportunity to reinvent the gaming capital once again, with elimination of onerous fees and, perhaps, a new value proposition that will bring back the mass market.

Bill Miller

By Steve Gallaway

DEPARTMENTS

Cover and break photo by Erin O’Boyle Photographics

4 The Agenda

FEATURES 14 Battling Unregulated Machines Even as casinos across the United States are shut down due to the Covid-19 crisis, the illegal “skill games” in small retail locations that have been targeted by the industry in many cases remain open.

34 The Mashpee Battle The latest decision by the federal Department of the Interior strips Massachusetts’ Mashpee Wampanoag of its land-into-trust rights in the latest of hundreds of years of injustices. By Judith Shapiro

12 Fantini’s Finance The Long Road Back Frank Fantini

45 Making My Point Seeing It Through Roger Snow

6 By the Numbers 8 5 Questions 13 AGEM 41 Cutting Edge 42 Emerging Leaders With Eureka Casino Resort’s Bashivi Patel, The Innovation Group’s Brian Wyman, and Venetian and Palazzo’s Christopher Wilcock

By Frank Legato

44 New Game Review

26 Revisiting the Wire Act Despite the most recent opinion from the U.S. Department of Justice that the 1961 federal Wire Act applies to online gaming, industry stakeholders argue that the act cannot be applied to the internet. By Bill Sokolic

30 Slot Psychology In addition to juggling program math, bonus feature pay and jackpots, today’s slot designers look at how the player views a game, and what will maintain a positive experience, win or lose.

46 Goods & Services

38 Instant Recognition

48 Frankly Speaking

Facial recognition technology, smartphone apps and other advancing technology mean casinos will soon recognize players the instant they sit down.

49 People

By Dave Bontempo

With Bill Miller, President & CEO, American Gaming Association

50 Casino

Communications

By Marjorie Preston MAY 2020 www.ggbmagazine.com

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THE AGENDA

All Together Now By Roger Gros, Publisher

Vol. 19 • No. 5 • MAY 2020 Roger Gros, Publisher | rgros@ggbmagazine.com twitter: @GlobalGamingBiz Frank Legato, Editor | flegato@ggbmagazine.com twitter: @FranklySpeakn Marjorie Preston, Managing Editor mpreston@ggbmagazine.com Monica Cooley, Art Director | mcooley@ggbmagazine.com Terri Brady, Sales & Marketing Director tbrady@ggbmagazine.com

fter more than 40 years in the gaming business, I thought I had seen everything, but the world had another trick up its sleeve—coronavirus, or Covid-19. In less than two weeks, the world stopped spinning and everyone was on lockdown. At GGB, we immediately realized nothing would ever be the same. We always understood that original content is a necessity in this business, so we committed to doing daily updates on the impact of the virus. You can visit any of our websites—GGBMagazine.com, GGBNews.com or CasinoConnection.com—to find a link to the content. We’ve been fortunate to have lots of experts weigh in, people like Bill Miller from the AGA, John James formerly with Foxwoods, Paul Burns from the Canadian Gaming Association, Brendan Bussmann from Global Market Advisors, Steve Callender from Eldorado Resorts and many others. We’ve covered the unintended—and potentially positive—consequences, such as the growing importance of iGaming, esports and cashless transactions. So if you haven’t been receiving these reports, it’s easy to sign up. Visit GGBNews.com to subscribe, using the coupon code GGB180 for free access. It’s amazing how many areas of the industry have been impacted. Because we’re all in this together. Operators, of course, have been shut down for nearly a month as I write this. While the virus seems to have peaked in some parts of the U.S., there still is no definitive timeline for reopening. And once casinos do reopen, what will they look like? Clearly, social distancing will have to continue for the time being. That includes turning off every other or two out of three slot machines to maintain a safe space. Three or four players at table games will undoubtedly be the norm. Shows and meetings will be off for at least a couple of months. Restaurants will space out tables. And of course, everyone will be washing their hands continually. Smart operators aren’t waiting for things to restart. They’re actively engaged with their customers, keeping them abreast of developments and taking reservations. These same operators are stressing the cleanliness and safety of their properties once they reopen. Operators have also seen firsthand now how online gaming revenues can be a backstop, and prevent a complete loss of all revenue. They are going to clearly make online gaming a priority when this thing is over. For employees, a slow ramp-up toward reopening is

Global Gaming Business MAY 2020

not a good sign. The gradual return of business will also mean the gradual return of jobs. Just because a casino reopens doesn’t mean all employees will come back at once. It’s going to be a long, slow, painful process before full employment returns. Suppliers are dead in the water with their customers shut down. And even when the operators reopen, they’re going to be careful with every dollar. Unless suppliers come up with new, got-to-have products and services, the rebound is going to take quite some time. Again, smart suppliers are already reconnecting with their clients, partnering with them to get through this period, finding unique and innovative ways to work together. I want you to pay special attention to the advertisers in this month’s magazine. These companies are at the forefront in support of the industry, and will be leaders in the recovery. I don’t want you to read too much into the ads you don’t see, however. I’ve been assured by most of our regular clients that they will be back, and are formulating plans to be innovative in this difficult time. Because we’re all in this together. Tribal casinos are in a unique spot now. The difference between commercial and tribal casinos crystalizes in this kind of market. While the shareholders in a casino company might not be happy with no revenue flowing in, tribal members are hit with a double whammy. Their governments won’t get the money needed to support community organizations, which provide a lifeline to many. And many tribal members are also casino employees, executives or regulators, making the impact even more devastating. For state governments—particularly in Nevada, where gaming contributes 40 percent of state funds, and the rest is largely dependent on gaming’s success— tax revenue has stopped rolling in, never to be replaced. That puts a strain on any budget, especially a budget built on gaming. Will lawmakers try to make it up by raising taxes in the future? Let’s hope not. That’s a recipe for disaster. The times have clearly changed, and will never go back to “normal.” The companies and individuals who thrive and prosper going forward are those who adjust more quickly and innovate to serve a new audience, whose wants and desires also will never be the same. Gaming has changed. We welcome your thoughts and expectations about how it will be different, but better. Remember, we’re all in this together.

Floyd Sembler, Business Development Manager fsembler@ggbmagazine.com Becky Kingman-Gros, Chief Operating Officer bkingros@ggbmagazine.com Jessica Walker, Operations Manager jwalker@ggbmagazine.com Lisa Johnson, Communications Advisor lisa@lisajohnsoncommunications.com twitter: @LisaJohnsonPR Columnists Frank Fantini | Bill Miller | Roger Snow Contributing Editors Dave Bontempo | Steve Gallaway Christopher Irwin | Judith Shapiro | Bill Sokolic __________________

EDITORIAL ADVISORY BOARD Rino Armeni, President, Armeni Enterprises

•

Mark A. Birtha, Senior Vice President & General Manager, Hard Rock International

• Julie Brinkerhoff-Jacobs, President, Lifescapes International

• Nicholas Casiello Jr., Shareholder, Fox Rothschild

• Jeffrey Compton, Publisher, CDC E-Reports twitter: @CDCNewswire

• Dean Macomber, President, Macomber International, Inc.

• Stephen Martino, Vice President & Chief Compliance Officer, MGM Resorts International, twitter: @stephenmartino

• Jim Rafferty, President, Rafferty & Associates

• Thomas Reilly, Vice President Systems Sales, Scientific Games

• Michael Soll, President, The Innovation Group

• Katherine Spilde, Executive Director, Sycuan Gaming Institute, San Diego State University, twitter: @kspilde

• Ernie Stevens, Jr., Chairman, National Indian Gaming Association twitter: @NIGA1985

• Roy Student, President, Applied Management Strategies

• David D. Waddell, Partner Regulatory Management Counselors PC Casino Connection International LLC. 901 American Pacific Drive, Suite 180 • Henderson, Nevada 89014 702-248-1565 • 702-248-1567 (fax) www.ggbmagazine.com The views and opinions expressed by the writers and columnists of GLOBAL GAMING BUSINESS are not necessarily the views of the publisher or editor. Copyright 2020 Global Gaming Business LLC. Henderson, Nevada 89014 GLOBAL GAMING BUSINESS is published monthly by Casino Connection International, LLC. Printed in Nevada, USA. Postmaster: Send Change of Address forms to: 901 American Pacific Dr, Suite 180, Henderson, NV 89014

Official Publication

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BY THE

NUMBERS Share of companies exposed to financial risks from coronavirus by industry

Taking The hiT O

f all the industries in the U.S., one of the most susceptible to the economic impact of the Covid-19 coronavirus is gaming. With a full dependence upon gambling, tourism and hospitality, any crisis that disrupts those industries causes pain for gaming operations. Only the airlines are more dependent upon these segments than gaming, but it’s close. When most of the states issued shutdown orders, all these industries were impacted, but none more than gaming. And when casinos reopen, the impact will not disappear quickly. It’s going to be a gradual process toward recovery, but once customers feel safe and healthy, gaming will come roaring back. This chart first appeared on the Axios.com website.

The Fair Share

he “Fair Share” measurement in the Eilers-Fantini Central Game Performance Report is an important matrix for the slot machine industry. The metric compares the number of slot machines or EGMs and the total theoretical win percentage. The higher the net theo versus the number of games indicates higher performance of the company’s games. Individual suppliers with less than 0.5 percent floor share are grouped into “Other.” The chart excludes all video poker, keno, skill and ETG units. To obtain a copy or subscription to the Eilers-Fantini Central Game Performance Report, contact Todd Eilers at teilers@ekgamingllc.com. The Eilers-Fantini Central Game Performance Report currently includes relative performance data on 244,516 slots, 6,590 unique game themes, and 328 casinos across 33 jurisdictions, with performance data dating back to January 2017.

Global Gaming Business

Supplier Fair Share—Overall

MAY 2020

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NUTSHELL

“They

5QueStionS Nick Bogdanovich Director of Trading, William Hill US ports betting has taken a major hit during the coronavirus shutdown. In mid-March, on the very brink Sdown—March of the NCAA season, at a time when legal sports betting was booming in the U.S., everything shut Madness, the NBA and NHL seasons, golf, tennis, football (soccer) and the start of Major

Said It”

“I know what it’s like to not know where your next meal is going to come from or where you’re going to sleep that night. I’ve been incredibly fortunate to be successful in business and in my personal life. I never take my blessings for granted.” —Joe Asher, CEO, William Hill US, on his decision to donate his salary to a foundation for U.S. employees of the company

League Baseball. GGB Managing Editor Marjorie Preston spoke with Nick Bogdanovich, director of trading for William Hill US, about how the sportsbook kept the bets going, despite the dearth of sports. GGB: How on earth do you make odds on sports, teams and players you may never have heard of before? Bogdanovich: It was difficult, to say least, but luckily, our company is headquartered in Leeds (U.K.), and

1 2 3 4 5

we’ve been booking EU sports forever, so we just leaned on them. We scanned the globe to see what was being played on the field, and came up with darts, sumo wrestling, chess, Belarus soccer, Russian ping pong— anything that was left to bet on. Then we found lines on them, mostly relying on our European big brother. We wanted to get some content out there for our customers—not for making money, because there’s no chance of making money in this environment, but for them to have something to do to get them through the doom and gloom. There’s always something that pops up: esports was the latest one. We did iRacing with the NASCAR people. The NFL draft is very popular.

Do you find that Americans are willing to put the time in, and acquaint themselves with these obscure sports so they can bet on them?

Yes. With everyone sequestered at home, they’re scouring the internet, doing research—it’s amazing what Wikipedia and Google can do for you. A lot of people already know about esports; there are a lot of gamers out there. As far as darts, not so much, and they’re not familiar with sumo wrestling and chess. But once they bet it, they get a foundation. Then they build off that and start forming opinions. So yes, it’s a good puzzle for people to figure out with all the time on their hands. What people bet on has clearly changed. Has betting itself changed? How can I place in-play bets on a sport I don’t know or players whose names I can’t pronounce?

In-play is a little more difficult, because you want to be watching, and there are no live feeds. But believe it or not, people are betting on Russian table tennis, even though they can’t see it. You can follow a scoring update online that shows you the points. But you don’t get the enjoyment you get when you’re watching, as you would with 99.9 percent of all the other in-play products you’d bet. It was impressive when your CEO, Joe Asher, waived his salary and donated it to a fund for employees.

It was a classy move, no question, and hats off to him and to a lot of William Hill employees who donated to the fund. Like most companies, we had to furlough quite a few employees, so the money is going to help a lot of really good people, and hopefully get them through the tough times until we can open and come back to a good work environment. Thumbs-up to Joe for spearheading that charge. How do you think sports will resume? How about Major League baseball, for example?

It is anyone’s guess. I think we’ll have a season. I don’t think it will be your typical 162-game season, but listen, we’ll take anything, whether it’s 75 games, 140 games or seven games. People are just looking for some normalcy, and any sport helps lighten the dark times. I can’t wait for baseball to come back in some form or fashion. Let’s face it, we’re a sports nation. It’s a huge part of the American fabric. William Hill is the largest bookmaker in the state of Nevada, and in recent times, we were moving into other jurisdictions and picking up major steam. People found that it’s a little more fun to watch the game with a $20 bill on it, as opposed to just watching it and rooting for your favorite team. So obviously, we hope sports come back sooner rather than later—for everyone’s sanity.

Global Gaming Business MAY 2020

CALENDAR EDITOR’S NOTE: Since every conference and trade show set for April, May and June has either been canceled, rescheduled or modified, below are their new dates and/or status. VIRTUAL May 13-14: ICE North America 2020 & Southern Gaming Summit, New Orleans Convention Center, New Orleans, Louisiana. Produced by Clarion Gaming. For more information, visit ICENorthAmerica.com. VIRTUAL June 8-10: ICE Asia and SiGMA Manila, Produced by Clarion Gaming and SIGMA. For more information, visit ICE-Asia.com. CANCELED June 16-18: IAGA International Gaming Summit, Culloden Estate & Spa, Belfast, Northern Ireland. Produced by International Association of Gaming Advisors. For more information, visit TheIAGA.com. RESCHEDULED July 28-30: G2E Asia 2020, Venetian, Macau. Produced by Reed Exhibitions and the American Gaming Association. For more information, visit G2EAsiaMacau.com. RESCHEDULED September 22-23: ASEAN Gaming Summit 2020, Shangri La BGC, Manila. Produced by Asia Gaming Brief. For more information, visit aseangaming.com. RESCHEDULED October 26-27: East Coast Gaming Congress, Harrah’s Resort, Atlantic City. Produced by Spectrum Gaming, Cooper Levenson, the Friedmutter Group and Sysco. For more information, visit EastCoastGamingCongress.com. RESCHEDULED December 1-3: Betting on Sports America, Meadowlands Exposition Center, East Rutherford, New Jersey. Produced by Sports Betting Community. For more information, visit SBCEvents.com.

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AMERICAN GAMING ASSOCIATION

Doing the Right Thing Gaming is under stress, but there’s more work to be done

Editor’s Note: This column was written at the beginning of April. For updates on the AGA’s most recent efforts, visit AmericanGaming.org.

he U.S. casino gaming industry came into March with great momentum: American attitudes towards gaming had never been stronger, expected casino visitation was up year-over-year, and the expansion of legal sports betting continued across the country. But instead of gearing up for a blockbuster March Madness, in a matter of days the gaming industry was moved to a complete standstill due to the Covid-19 pandemic. Because unprecedented government mandates closed all 989 commercial and tribal casinos in the country, more than 650,000 direct gaming employees are unable to go to work. The impact goes beyond casino jobs, to the 17,000 gaming supplier employees and 350,000 American small business workers who are supported by the gaming industry. These closures endanger more than $74 billion in wages annually for our employees and their families. When our doors close, it deeply impacts every community where we operate. Our industry supports thousands of local small businesses and more than $41 billion in annual taxes and tribal revenue-sharing that fund local hospitals, first responders and essential public services. That’s why gaming leaders are taking action in this time of crisis to help local communities in countless ways, like donating meals to local food banks, contributing protective gloves, masks and other essential supplies to health care providers, and setting up emergency funds to support employees. Gaming steps up because it’s the right thing to do. It’s also why Americans in record numbers support gaming, creating a deeper bench of champions for our industry when we need them

Global Gaming Business MAY 2020

By Bill Miller President and CEO American Gaming Association

most. We saw this at work during the debate over the CARES Act, the $2 trillion relief package for employees and businesses devastated by the Covid-19 pandemic. Previous federal responses to natural disasters and financial crises have explicitly excluded gaming companies from economic assistance available to the broader business community. We worked nonstop to make sure history didn’t repeat itself. As a united industry, we ensured that the CARES Act would give gaming access to economic relief on equal terms with every impacted industry, delivering essential support for gaming employees, communities and businesses. Specifically, the CARES Act includes relief in four key areas the AGA fought for: access to $454 billion in loans and loan guarantees to help impacted businesses, tribes and governments; important tax relief measures for gaming businesses; $8 billion in targeted aid for tribal communities; and extended benefits for furloughed casino employees. Our work is far from done. As Congress continues to consider relief efforts, the AGA will continue to work with our members to ensure that we’re pushing for the highest-priority relief measures in each successive package. This includes ensuring government loan programs are accessible to all segments of the gaming industry, advancing measures that protect AGA members from additional economic harm and enhance financial solvency, and policies to aid the industry’s recovery over both the short and long terms. Most importantly, the AGA is working closely with leaders at both ends of Pennsylvania Avenue to stop antiquated discrimination against our industry and make sure gaming gets what it needs— and deserves. If there’s one thing I know for certain, it’s that the gaming industry is incredibly resilient. I am confident we will emerge stronger from this crisis, with deeper connections to our communities, employees and customers. The AGA is here to see this industry through these challenging times.

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FANTINI’S FINANCE

The Long Road Back A gaming industry recovery may represent buying opportunities for the savvy investor

e’ve reached the point in the Covid-19 pandemic where it’s time to look forward to when the economy—and the gaming industry—reopen. The timing of reopening is unclear. If the U.S. is past the pandemic’s peak and the number of new cases declines steadily, casinos might start to reopen in May or June. But if the decline is slow and/or new hotspots erupt, reopening could be months later, in some unpredictable future. Regardless, there will be a reopening. Here are some thoughts as to how it might look, and who may be the first to benefit. There will not be an all-clear signal bringing pent-up crowds of gamblers rushing to casino doors. The reopening is likely to be measured, cautious and in stages. Governments will not want to risk renewed epidemics. Customers are more likely to be wary than celebratory. Many will also be financially damaged, having gone through a stretch of time with no or reduced income, and they will have more immediate uses for their money than gambling. Finally, social distancing will be the rule for some time. A bank of eight slot machines might become four operational games. A bank of six might become two. The number of seats at table games will be halved, and no standing, please. A restaurant that sat 150 might now seat just 75. Casinos will have to bear more costs in cleaning supplies and in policing social distancing. On the flip side, customers will be encouraged to not accept daily room cleaning, which will help casinos save money and let the cleaning staff avoid handling soiled personal items of guests. Regulators will implement rules to assure a safe environment. Regulators from key states have shared some of their ideas in that regard in Fantini’s Public Policy Review. You can get a free copy and trial of this service by contacting Alex

Global Gaming Business MAY 2020

By Frank Fantini

at ACapitle@FantiniResearch.com or by calling +1-302-730-3793. There has been considerable discussion that the Covid-19 crisis will change the way people act, do business and are entertained. Maybe some, but not entirely. Eventually, normal interaction will resume. Human nature was developed over millennia of being hunters and gatherers. It will not change overnight. Human beings are social creatures, and so they shall remain. Risk-taking is an essential part of human nature; gambling is atavistic. People need entertainment. Combine those three elements and you have people patronizing casinos for the foreseeable future. Consumers have rebounded from greater crises than Covid-19, as serious as it is. For example, the twin traumas of the Spanish Flu and World War I were followed by the Roaring ’20s—an era of flappers, speakeasies, the golden age of sports and one of the greatest bull markets in history. So, the question isn’t whether the casino industry will survive and prosper. It’s who the survivors will be and how long will it take for them to prosper again.

GO LOCAL One plausible scenario is that locals casinos will recover first, followed by larger regional markets, and the Las Vegas Strip last. When people tire of sitting around the house, it will be a relatively easy choice to hop over to the local casino for the night, especially as locals casinos are structured for neighborhood entertainment—movie theaters, fast-food courts, and even bowling alleys and day care centers in some cases. This column is not intended to look at the financial health or cash positions of companies. The intention is to look at which businesses might bounce back quickest. Here are a few candidates: • Slot route operators. If regional casinos are local, slot routes are hyper-local. A patron goes down to the corner bar or off to the legion hall or,

in Nevada, even to the corner pharmacy. The pure-play slot route operator among public companies is Accel Entertainment. Golden Entertainment gets 30 percent of its revenue from routes. • Red Rock Resorts is nearly a pure play on the Las Vegas locals market. And it’s worth remembering that, regardless of any current problems, Las Vegas is a fast-growing Sun Belt metropolitan area and is likely to remain so. • Boyd Gaming is also a big Las Vegas locals operator. Plus, its regional casinos throughout the country are really locals casinos. Boyd has a peculiar part of its business that it controls—chartering Hawaiians to Las Vegas to fill its Downtown casinos. • Churchill Downs likewise operates locals casinos. Its other businesses, horse racing and Twin Spires account wagering, can take advantage of remote gambling. Finally, the Kentucky Derby is a unique franchise. The current Churchill leadership has demonstrated it knows to grow and develop that brand into what will become a global franchise. • Monarch Casino gets half its Reno business from locals, and much of the rest from Californians driving over the Sierra Nevada Mountains. Monarch also has a growth kicker—the transformation of its Monarch Casino in Black Hawk, Colorado, into a destination-quality resort, and one that’s just a drive—not a flight—from potentially lucrative Denver. Other companies can surprise: • Eldorado. The stock price has collapsed along with other casino stocks, but the still-planned merger with Caesars has transformational potential. • Golden Entertainment, as mentioned before, is big in slot routes, but it also has two Las Vegas locals casinos and the Stratosphere, which, while a destination property, is not as sensitive to group business or high rollers as its more upscale competitors on the Strip. Frank Fantini is the editor and publisher of Fantini’s Gaming Report. For a free 30-day trial subscription email subscriptions@fantiniresearch.com.

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AGEMupdate AGEM Board of Directors Actions â&#x20AC;&#x201C; April 2020

AGEM MEMBER PROFILE

Fennemore Craig, P.C., founded in Arizona in 1885,

is a regional business law firm in the Mountain West with more than 130 attorneys. Enjoying nationally recognized strength in regulatory, transactional and litigation practices, Fennemore has offices in Las Vegas, Reno, Denver, Phoenix, Tucson and Nogales. Fennemore professionals are consistently recognized in Chambers USA, 84 lawyers are listed in Best Lawyers in America, and 74 attorneys hold the AV Preeminent Peer Review Rating, from Martindale-Hubbell. The law firm is single-minded on one goal: using its talent, experience and technology to help clients start, grow and sustain their businesses. Fennemoreâ&#x20AC;&#x2122;s Gaming and Hospitality Practice is chaired in Las Vegas and Reno by Dan Reaser, former chief counsel for Nevadaâ&#x20AC;&#x2122;s state gaming regulatory agencies. He is joined by Katherine Hoffman in Reno, and in Las Vegas by Richard Bryan, who served Nevada as United States senator, governor and attorney general. They are supported by more than a dozen business lawyers and litigators in fields such as corporate law, real estate, construction, taxation, intellectual property, land use, labor and employment and creditorsâ&#x20AC;&#x2122; rights, who have experience representing gaming businesses and leverage expertise from many other industries to achieve holistic, cost-conscience client solutions in five core competencies: â&#x20AC;˘ Transaction structuring, negotiation and documentation with specialized regulatory requirements â&#x20AC;˘ Corporate governance, mergers and acquisitions, financing and restructuring â&#x20AC;˘ Licensing, approval or rulemaking proceedings, regulatory and taxation compliance guidance, and legislative advocacy â&#x20AC;˘ Gaming technology design, development, production and deployment â&#x20AC;˘ Sweepstakes, lottery and promotional contest compliance advice Fennemore is particularly focused now on aiding clients in weathering the challenges of the Covid-19 global pandemic. To support the immediate situations businesses face, there is a dedicated resource center at Fennemoreâ&#x20AC;&#x2122;s website and a specialized team. The law firm also is prepared to back clients as they meet the obstacles of returning to stability and growth. The law firm proudly supports AGEM as an Associate Member. For more about Fennemore, timely insights and other information, visit FennemoreCraig.com.

â&#x20AC;˘ Due to the Covid-19 pandemic, AGEM held its first fully remote monthly meeting on April 14 with more than 100 members dialing in for the conference call. President Luke Orchard told members that in these unprecedented times, AGEM intends to remain an important resource for the industry and will still be dealing with issues that affect the supplier segment of the industry. The officers are talking at least twice a week to discuss any updates or progress. In addition, Executive Director Marcus Prater is representing AGEM on twice-weekly calls hosted by Nevada Gaming Control Board Chairwoman Sandra Morgan, along with casino and restricted license representatives. Morgan has stated she stands ready to assist if AGEM members have any Nevada regulatory concerns during this crisis. â&#x20AC;˘ AGEM members were informed of the sad passing of Robert (Bob) McMonigle, who will be remembered as a driving force behind the founding of AGEM in 2000, and as the organizationâ&#x20AC;&#x2122;s first president through 2005. While at IGT, Bob collaborated with arch-enemy competitors at Aristocrat, Bally and WMS to help create AGEM and bring all of the gaming suppliers together for a common good. That spirit lives on today, perhaps more than ever, given the circumstances of the current situation. Bob made his mark at IGT as arguably the greatest slot salesperson ever, commanding 70 percent market share in jurisdictions throughout the U.S., but he also helped elevate other gaming companies until the end, and was the representative at AGEM meetings for Associate Member Rising Digital until his untimely passing. Bob will be missed, but he will not be forgotten. A celebration of his life has been delayed until the current crisis passes. â&#x20AC;˘ With the closure of all casinos in the U.S., the fight against unregulated gaming machines has taken on an even more important role as players may be tempted to turn to these machines instead. AGEM and the American Gaming Association recently released a fact sheet designed to help combat the spread of unregulated machines in multiple markets throughout the U.S. There has been some success with Utah and Wyoming both signing bills addressing machines in their states. Missouri and Pennsylvania were initially allowing play even when the casinos closed due to the pandemic, but these too have now shut down. Vir ginia approved an outright ban, but the governor kicked it back to the state regulator to tax the machines to long-term problems for the to raise funds for the Covid-19 effort. This short-term mistake could lead regulated industry, but AGEM and the AGA will continue to work together to highlight these issues. â&#x20AC;˘ Will Wise, vice president of Reed Exhibitions, addressed AGEM members at the recent monthly meeting to update the situation regarding G2E Asia and G2E Las Vegas. The Macau show has already been pushed back once to the end of July from its original dates in May, but even the new dates are now seen as untenable due to the spread of Covid-19 globally and continuing lockdowns. Both the AGA and Reed are committed to G2E Las Vegas, and Wise reiterated they are working to support the industry and understood that it will not be â&#x20AC;&#x153;business as usualâ&#x20AC;? once the lockdown is eased.

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The AGEM Index decreased by 156.39 points in March 2020 to 312.52 points, a 33.4 percent decline from February 2020. Twelve of the 13 AGEM Index companies reported significant stock price declines as global markets reacted to gaming industry shutdowns, historic unemployment claims, and a widening The stock for Aristocrat economic freeze due to the Covid-19 pandemic. price Leisure Limited (ASX: ALL) dropped by 35.5 percent, accounting for an 83.03-point decrease in the AGEM Index, while Crane Co. (CR) experienced percent stock price drop that led to an index contribution of negative 20.32 a 27.6 points. All three major U.S. stock indices decreased as the Dow Jones Industrial Average and the S&P 500 experienced monthly declines of 13.7 percent and 12.5 percent, respectively. The NASDAQ also experi enced a drop of 10.1 percent.

MAY 2020 www.ggbmagazine.com

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‘Skill Games’ Still Defying Shutdown ted “skill la gu re un ith w g in al de e ar es at st e m So the ite sp de g in nn ru d an up ill st e ar at th games” nationwide coronavirus shutdown By Frank Legato

n Monday, March 16, the Pennsylvania Gaming Control If the skill games were a concern before the current national emerBoard ordered all casinos in the state which had not already gency, they are much more so now. Because they are not subject to reguladone so to shut down, part of the larger nationwide effort tions or laws—all their manufacturers, of course, claim they are perfectly to slow the spread of the deadly coronavirus. The following legal—until recently, no one had specifically ordered them to be shut down day, the gaming boards in Missouri and Kansas folduring the crisis, and many of them remain live lowed suit, and in less than a week, the entire legal today, some in rows of machines in small areas of gaming industry was at a standstill. various retail businesses. Many in the industry had initially thought that “These machines are still out there, and shutting down two or three slot machines between they’re still illegal,” says Pete Shelly, spokesman each active game would allow casinos to remain open for Pennsylvanians Against Illegal Gambling with social distancing, but after the Centers for Dis(PAIG). “We still see people playing machines ease Control revealed that the Covid-19 virus can around central Pennsylvania. Here we are, the survive up to two or three days on stainless steel, casinos have closed down—20,000 workers idle. plastic and other nonporous surfaces—like the player And their customers’ health and safety come interfaces on gaming machines—an industry shutfirst.” down was unavoidable. PAIG, formed last October, is funded by the But as recently as April 10, convenience stores, Parx Casino in Bensalem, the state’s most profpizza parlors, gas stations and other retail locations in itable casino. Parx is united with other regulated Pennsylvania, Missouri and elsewhere still had live land-based casinos in the state in battling the ungaming machines operating. They are the so-called regulated machines. “skill games” that had been cropping up in several “We are working with Pennsylvania’s listates prior to the crisis, the subject of an effort censed, regulated and supervised casinos, as oplaunched in February to battle them by the Associaposed to the skill games operators, which are “It’s tough to practice tion of Gaming Equipment Manufacturers (AGEM) none of the above,” Shelly says. “Our goal is to social distancing when and the American Gaming Association (AGA). down these illegal slot machines. So, we’ve you’re standing shoulder- shut The games are unregulated machines that purlaunched the website, had some paid media, and to-shoulder with a couple we’re getting a lot of traction on social media, port to offer better results if the player uses skill. However, the dubious “skill” involved is typically with reporters paying attention to the issue all of of other people playing nothing more than receiving a winning spin on a a sudden.” illegal slot machines machine (a machine that looks a lot like a slot maAccording to Shelly, there are more than packed in the corner of chine), and deciding whether to wager on the next 20,000 of the unregulated machines operating in a convenience store.” spin. In many cases, the player can opt not to even the state. There are gas stations that have built use the “skill” feature, which means they play just extra rooms on as gaming parlors featuring as —Pete Shelly, Pennsylvanians Against like a slot machine. many as 50 or 60 of the machines. Shelly says Illegal Gambling (PAIG) spokesman

Global Gaming Business MAY 2020

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The organization has sent members out to take pictures at the locations, and has published a rogues gallery of photos that show the games——which pay out in cash or tickets that can be redeemed for cash——are easily accessible to children.

some businesses have put up tents to house the games. In addition to gas stations and convenience stores, the machines can be found in businesses as unlikely as the corner laundromat. The organization has sent members out to take pictures at the locations, and has published a rogues gallery of photos that show the games—which pay out in cash or tickets that can be redeemed for cash—are easily accessible to children. One photo shows a man playing a slot-like device with his daughter, a toddler, in his lap wearing pajamas. “It’s tough to practice social distancing when you’re standing shoulder-toshoulder with a couple of other people playing illegal slot machines packed in the corner of a convenience store,” Shelly says.

Call to Arms PAIG’s efforts to publicize the problem of unregulated machines has already yielded results. The Pennsylvania State Police has stepped up its efforts to enforce the governor’s Covid-19 shutdown by ensuring the unlicensed machines are shut down. “The Pennsylvania State Police reminds licensed liquor establishments to refrain from having patrons remain in their buildings to operate illegal video gambling devices,” said the state police organization in an April 2 press statement. “The Pennsylvania State Police Bureau of Liquor Control Enforcement (BLCE) recently received an influx of public inquiries related to liquor licensees allowing patrons to remain in their establishments to operate video gambling devices, sometimes marketed as ‘games of skill,’ in violation of restrictions in place to mitigate the spread of Covid-19. “While our position on the legality of these devices remains unchanged, ensuring public safety in the midst of the ongoing health crisis is our top priority,” added Major Jeffrey Fisher, director of the state Bureau of Liquor Control Enforcement. “Liquor licensees are cautioned that in addition to potential unlawful gambling charges, they are subject to citation if they fail to take steps to prevent patrons from remaining on premises to operate video gambling devices.” From March 18 to April 2, BLCE completed 12,877 checks at licensed liquor establishments throughout the commonwealth and issued 53 warnings and four notices of violations (which are pending an administrative citation).

Two establishments have had their liquor licenses suspended. “We are encouraged by Pennsylvania State Police’s proactive efforts to address this glaring public health risk,” noted Shelly in a statement released the day after the police agency’s release. “As Pennsylvania State Police pointed out, these games of skill are already illegal in the commonwealth, yet now they pose the real potential to put lives at risk.” Of course, the directive does not apply to corner stores, laundromats and other establishments that do not have liquor licenses. Despite the efforts, as of press time, Shelly says rogue machines were still operating in central Pennsylvania. “If you go to any restaurant or pizza parlor, or anywhere I’ve gone personally since Covid-19 hit Pennsylvania hard, all the chairs are turned over,” Shelly says. “Nobody’s sitting down anywhere; you’re not to congregate. But these skills games still have machines open. There’s one in a small town right across the river here from Harrisburg, and they have three machines, and people are sitting there playing what is an illegal slot machine. There’s no supervision, no regulation. If they were a licensed, legitimate, regulated, supervised casino, they’d be shut down. “Basically, they’re thumbing their nose at the state, and they have been for the year and a half these machines have been out.” Before the current crisis, the Pennsylvania State Police had confiscated skill games in several raids across the state. The largest manufacturer of games in Pennsylvania, Pace-O-Matic, is currently in an ongoing legal battle against seizures of its “Pennsylvania Skill”-branded games. However, since the Covid-19 crisis began, the police obviously have had other issues to address. Meanwhile, Shelly says PAIG has been fielding calls from across the state since the organization released its first press statement. “We started a toll-free number, and we’ve gotten north of 200 phone calls and emails from people,” he says. “There’s a machine at the gas station around the corner, there’s a machine at the pizza parlor. There’s a convenience store across from a church and my back yard and elementary school... We are getting some traction. People do want these machines out.” The Pennsylvania Gaming Control Board may soon figure in the fight against unregulated machines as well. The board operates a grant program MAY 2020 www.ggbmagazine.com

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for local jurisdictions meant to battle illegal gambling. Thus far, the Local Law Enforcement Grant Program has been used to thwart a variety of forms of illegal gambling, but not for enforcement action against unregulated skill games. However, Gaming Control Board spokesman Doug Harbach says prior usage does not restrict the program from being used in enforcement efforts against the skill games going forward. “The grant program that we oversee per the Gaming Act is far broader than skill games,” says Harbach. “It is for law enforcement agencies to ‘investigate violations of and enforce laws relating to unlawful gambling in this commonwealth.’ For example, I remember a grant to the city of Harrisburg that was used in particular to thwart dog fighting.”

How to Spot an Illegal Game

n February, the Association of Gaming Equipment Manufacturers released a fact sheet in partnership with the American Gaming Association to industry stakeholders including state and local law enforcement agencies and regulatory agencies across the country outlining the characteristics of the illegal machines operating around the country. The fact sheet describes the characteristics of each type of unlicensed machine, and provides a list of three elements common to all: • The games have not been affirmatively approved by the state under a regulatory system administered to protect the public. • The operators of the games are not subject to the suitability examinations and licensing for gambling operators imposed by state law. • The sponsors, proponents and operators of the games always claim reliance on some exception or “interpretation” that the machines are not gambling games because: either consumers use their skill, knowledge or dexterity to play and therefore there is no “chance” involved in the game; or, the game is made available without the consumer paying money into the machine to play, although the consumer may have given valuable consideration for some other good or service as a pretext to gain access to use the machine.

“Unregulated gaming machines designed to look like regulated slot machines to fool players into thinking they are getting a fair chance,” the fact sheet reads, “rarely include any responsible gaming features and enrich only the unregulated machine companies and locations while creating a burden for law enforcement, health care providers and regulators. Furthermore, unregulated gaming increases social costs and criminal activity and provides questionable tax or other benefits for the states where it exists.”

Global Gaming Business MAY 2020

Harbach says the program aids state police where no municipal police force exists, but nothing in the law prevents the state police from using such funds in shutdown or seizure efforts regarding unlicensed skill games. “The Pennsylvania State Police could apply (for the grants) with some restriction,” Harbach says. “The grant guidelines regarding the PSP state that the money can be applied for and used by them ‘when conducting unlawful gambling enforcement and prevention activities in a municipality which does not have a municipal police department.’”

Nationwide Problem The problem of unregulated games operating despite the Covid-19 shutdown is by no means restricted to Pennsylvania. A few days after PAIG released its press statement, the St. Louis Post-Dispatch published results of its own research showing that skill-game operators were defying Missouri’s shutdown order as well. The newspaper found unregulated machines still plugged in at gas stations in the Columbia area, and there are estimates that around 14,000 of the games are located in gas stations, clubs and bars around the state. The largest manufacturer of the unregulated devices in Missouri, Torch Electronics, is embroiled in its own legal battle. The company’s leaders face felony illegal gambling charges in Linn County; the first hearing in that case was scheduled for April 23. “We would hope that the criminal case proceeds,” says Mike Winter, executive director of the Missouri Gaming Association, “and if the General Assembly does not pass a bill this year to deal with the illegal machines, that court case and court decision may give them some guidance on possible directions to take.” Meanwhile, on March 27, the Missouri Department of Health and Senior Services issued a directive banning the operation of gaming machines installed by Torch Electronics at gas stations and truck stops in the past year. The agency previously had not taken a position on the legality of the machines, but took action when advised they were operating despite the Covid-19 crisis. “Due to the potential unnecessary exposure associated with individuals playing coin-operated amusement devices… and slot machines, all persons should avoid using such devices or machines and the owner of such devices or machines shall be prohibited from operating them for public use through the duration of this order,” wrote DHSS Director Randall Williams in a statement published by St. Louis Today. The order, which went into effect March 28, is set to last as long as the state is under an emergency declaration. According to LeAnn McCarthy, public information coordinator for the Missouri Gaming Commission, while the agency has received three formal complaints concerning illegal machines since the March 17 order shutting down casinos, there have been no complaints since the DHSS order. Torch spokesman Gregg Keller told the newspaper the company would abide by the order. “Torch is complying with the government’s call to shut down coin-operated machines, as they do with all government laws and regulations,” Keller said. “We are closed, and are not able to have our patrons come to our fa-

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As the casino shutdown continues, so does the national effort by the gaming industry’s operators, regulators and manufacturers to rein in the problem of illegal, unregulated machines.

cilities,” says Winter at the casino association. “But these machines are still out there being operated. We’ve voiced our concern about the machines, and will continuously monitor the court cases as they move forward. If there are opportunities that we can participate to get the illegal machines out of play, we’ll take every opportunity to do so.” Neither Pace-O-Matic in Pennsylvania nor Torch Electronics in Missouri responded to requests to comment for this article.

Legislative, Regulatory Efforts Both Pennsylvania and Missouri have outright bans of the unregulated machines pending in bills that are currently stalled in committee, and neither is likely to see any movement this year as the pandemic plays out. “We testified in support of the two bills that were filed in the Senate that try to get a handle on the illegal machines currently in use across the state,” says Winter. “We think it provides a good framework for law enforcement and prosecutors, and gives them the tools to actively go after illegal machines that are in place.” As the casino shutdown continues, so does the national effort by the gaming industry’s operators, regulators and manufacturers to rein in the problem of illegal, unregulated machines. In February, AGEM published a fact sheet that identifies the different types of unregulated machines out there (see page 16), and a few weeks later, Gaming Laboratories International followed up AGEM’s effort with a white paper focusing on the national problem. “Illegal and unregulated gaming is a rapidly growing problem in the U.S.,” said the executive summary of the GLI study, available at the organization’s website, gaminglabs.com. “Sophisticated technology allows developers to circumvent vague or obsolete criminal gambling statutes, resulting in lost revenue for states and tribes. Moreover, it markedly increases risks for consumers, especially underage and problem gamblers. “The best way to effectively protect states, tribes and consumers from the harms of unregulated and illegal gambling is through a modernized regulatory framework appropriate for this modern era.” “We were very supportive of working with AGEM and helping GLI to get their recent white paper out,” said Bill Miller, president and CEO of the American Gaming Association, in an interview with Roger Gros published in late March by GGB News. “When I spoke at NCLGS in San Diego earlier 18

Global Gaming Business MAY 2020

this year about the illegal market, I didn’t know why we call them ‘gray market’ machines. They’re simply illegal machines. “Remember, these machines don’t have any responsible gambling elements. They are not regulated. While some might say they’re regulated by some local entity, they’re certainly not regulated by the states. We need to shine a spotlight on this illegal activity in the same way that we shine a spotlight on local criminal enterprises, like illegal bookmaking and the illegal offshore market.” “It’s beyond outrageous in states like Pennsylvania and Missouri that these unregulated machines that rip off players are still powered on,” says Marcus Prater, executive director of AGEM, “as regulated casino gaming goes dark and casino workers are losing their jobs. Local authorities need to do the right thing once and for all and shut them down for good.” PAIG’s Shelly notes that the Pennsylvania State Police has released statements warning that the unregulated machines are ripe for corruption, money laundering, loan sharking and other crime, adding that they have led to robberies at many retail locations. “A couple of these places have been knocked over—a laundromat, a convenience store/mini-mart,” Shelly says. “These machines are illegal, and they must go. Slot machines belong in licensed, regulated and supervised casinos. Period. “The casinos provide hundreds of millions in tax revenue every year. They send $200 million-plus to the Horse Racing Development Fund every year. The local share provides grants and funds to local fire companies, EMS, senior centers—and all that is on hold right now, because they’re closed. And yet, these illegal operators who don’t pay a gaming tax, who don’t have to provide a local impact, who don’t employ 20,000 employees, who aren’t regulated, supervised or licensed, are still out and about, basically taking money away from the lottery and other programs here in Pennsylvania. “The governor has made it clear, the PGCB has made it clear that as long as these machines are out there and are not shut down, taped off or wrapped in bubble wrap during this pandemic, there is a risk that as people gather to play these machines, the risk of community spread is heightened. Casinos are doing the right thing, and some of these other operators clearly are not.”

Honor the Sacred. PROTECT THE AIR.

The next generations have spoken. The number of adults who smoke cigarettes continues to decline every single year, and the time has come to respect the voice of the future and honor the ancestors of the past by protecting everyone from the dangers of commercial tobacco use and secondhand smoke exposure. www.smokefreecasinos.org The mural above was created from community members and stories on their vision of what health and traditional tobacco looks like in their communities. We worked with artists Mario Henriquez (VOTAN) and Gregg Deal. This mural is at the Minneapolis American Indian Center. The project was funded and supported by ClearWay Minnesota in collaboration with the Native Youth Alliance of Minnesota and community members.

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Strip reSet

Covid-19 is definitely challenging, but does the crisis present opportunities for a Vegas makeover? By Steve Gallaway Photo by Erin Oâ&#x20AC;&#x2122;Boyle Photographics 20

Global Gaming Business MAY 2020

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“You can shear a sheep many times, but skin him only once.” —Amarillo Slim

as Vegas soared until recent years, but we’ve reached the tipping point, where it’s necessary for the Strip to redefine itself again. Las Vegas is like no other place in the world. It’s the entertainment and sports capital of the world. It has the most amazing resorts. It just needs to remember our industry’s roots, redeliver on customer service, and provide value. Covid-19 has devastated the industry and the greater Las Vegas economy. With the resulting industry shutdown, the city must take the opportunity to develop a strategy to reopen, reinvigorate and recapture its guests. For the first time in well over a decade, both Caesars Entertainment and MGM Resorts, which between them operate 18 Las Vegas Strip resorts, have new leadership teams. These teams are comprised of seasoned casino industry professionals—not outsiders from professions other than hospitality—who have the ability to make these changes. An enormous amount of data is available. With the right analytics, know-how, customer offers and the willingness to take risks, the Strip can pop when it reopens. But operators must show that they care about their customers and deliver the experience they expect. The key to success is as much about the offer as it is showing customers that they’re wanted. This is the opportunity for Las Vegas to hit the reset button.

Why Reset? The Las Vegas Strip originated as the go-to destination for people to gamble, drink and play. Customers were treated like royalty, and it was fun! A new era was ushered in with the introduction of the first true integrated resort, the Mirage, built by Steve Wynn in 1989. Visitation soared. Between 1989 and 2000, Las Vegas tourism grew 6.9 percent annually, adding an average of 1.6 million visits per year. This growth was spurred by the thirst for new construction, which saw nearly all of today’s resorts built. In addition to those that were finished (or partly finished), many other properties were discussed, from the 4,000-room W to the 1,500-room Las Ramblas and the planned New Frontier property that Phil Ruffin sold to the El-Ad Group for $1.2 billion in 2007. The growth was also spurred by Las Vegas Sands (LVS) introducing the focus on MICE as a key driver to the destination. Many resorts integrated this strategy into their business plans. Las Vegas established itself as the mecca for adult fun. It was known for the best entertainment, great food, the largest nightclubs, outstanding bars and a high-quality gaming experience. The Las Vegas Convention and Visitors Authority (LVCVA) slogan, “What happens in Vegas, stays in Vegas,” introduced in 2003, was a perfect description of the Las Vegas experience.

Caesars Palace had been open continuously from August 1966 until it closed due to Covid-19 on March 17, 2020

MAY 2020 www.ggbmagazine.com

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“Over time, at some point there’s going to be the straw that breaks the camel’s back. I don’t think we’re there yet, but I want us to be very judicious and cautious about taking those rates any further.” In the mid-2000s, a number of Las Vegas gaming companies installed CEOs from outside the industry. Several multibillion-dollar resorts were constructed. In some cases, they simply did not pencil out. As non-gaming revenue began to overtake gaming revenue, operators started to charge more for F&B, entertainment, etc. The profit margin that stems from asking $10 more for a hotel room or $2 more for a gin and tonic is 100 percent. However, there’s a breaking point for how much more can be charged. In 2008, the Great Recession befell the industry. Companies were forced to make hard decisions to survive. Boyd Gaming, which preaches the value of the customer experience, had identified a Strip project that was feasible pre-recession: the $4 billion Echelon. It had partners developing the retail component, three to four hotel brands and other amenities. But Boyd saw the writing on the wall, and in mid-2008, ordered pencils down. Originally delayed, the project was eventually canceled. Other operators chose to stay the course, and made big sacrifices to complete their resort developments. This created a problem. Many Strip gaming companies had billions of dollars in debt to repay, and were only seeing low single-digit returns. In part due to the poor performance of many of these resorts, public companies started to focus too much on earnings per share (EPS) while forsaking the customer experience. A myopic view was taken on the yield equation. It was believed that operators could increase customer spend across various categories (short-term gain). This approach neglected the fact that doing so might risk of the loss future visits (long-term loss). In addition, by increasing spend in categories such as F&B, operators reduced the amount of wallet available for people to spend on the casino floor, one of Vegas’ key competitive advantages against other entertainment destinations, and which gives operators higher profit margins than other revenue departments. As a result of this approach, prices increased precipitously, while staffing and service at many resorts was cut back. It was the beginning of the price-gouging that took the Las Vegas Strip by storm. When Aria opened, a visitor could expect to pay $9.50 for a Bud Light and $17 for a martini in the now-closed Gold Lounge. Although that doesn’t seem like much today, this was more than 10 years ago. More recently, a visitor would pay $12 for a draft beer at Caesars, and an incremental $4 for a large ice cube at a luxury whiskey bar. These pricing levels have become widespread on the Strip, and deviate considerably from the prices patrons pay at home or at other vacation destinations. While pricing has gone up in Las Vegas, visita-

—Tony Rodio, CEO, Caesars Entertainment

tion has not. Excluding convention visitors (as those individuals don’t choose where they visit), the number of visitors coming to Las Vegas decreased from 36.4 million in 2015 to 35.9 million in 2019. This decline occurred despite robust growth in disposable income across the United States, which averaged 4.5 percent growth over the past five years.

Resort and Parking Fees Similar to other tourist destinations, Las Vegas resorts began charging resort fees. The problem with its use in Las Vegas is that it simply got out of control. If a resort fee amounts to 10 percent to 15 percent of the average daily rate (ADR) of a hotel room, the fee is likely more palpable to a consumer. But when the fee is more than half the rate—very typical at numerous properties across the Strip—it simply angers the customer, particularly if they don’t see value and a positive impact on their experience. The detrimental effect of an overpriced resort fee can be observed in an evaluation of RevPAR (which includes resorts fees) at MGM Resorts, where RevPAR growth has been steadily declining since 2014 and experienced a big decrease in 2019. This example illustrates that, prior to Covid-19, while the U.S. economy was in a boom, Las Vegas was in a flatline, if not a slump. It’s not just resort fees. Onerous parking fees are hitting people’s wallets as well. This especially affects those driving in from California, one of the main channels of the Las Vegas visitor. People expect to pay for parking where parking is a valuable commodity. In Las Vegas, there’s no shortage of parking. Because a significant percentage of travelers drive in, they now have to accept an incremental $15 to $35 fee per night to park on the Strip. The only resorts without these fees today include Wynn/Encore, Venetian/Palazzo, Tropicana, Sahara and Treasure Island, where both self-park and valet parking is free. Wynn used to charge for parking, but removed the fee after listening to their customers. This meant a lot to tourists, and started bringing back locals who come to enjoy Wynn restaurants and the casino floor. Parking fees have clearly had a deleterious impact on Strip visitation. In 2010, 52 percent of Strip customers drove to Las Vegas. That number dropped precipitously in 2018, to 44 percent, according to research from the LVCVA. Parking fees don’t just impact tourism, they also directly impact the desire of locals to

Operators must show that they care about their customers and deliver the experience they expect. The key to success is as much about the offer as it is showing customers that they’re wanted.

Global Gaming Business MAY 2020

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Scenes from the Strip: Covid-19 Pandemic, April 2020

MAY 2020 www.ggbmagazine.com

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visit the Strip. Today, few locals want to venture to the Strip, as it’s simply too expensive. For two friends to meet at Caesars and each valet their cars for less than an hour, they would spend $30. At Bellagio, a two-hour dining experience would incur valet fees of $48. Las Vegas has likely hit the breaking point that Tony Rodio, CEO of Caesars Entertainment, predicted during an earnings call in August 2019: “Over time, at some point there’s going to be the straw that breaks the camel’s back. I don’t think we’re there yet, but I want us to be very judicious and cautious about taking those rates any further.” Interestingly, three operators that provide a quality customer experience (Wynn, LVS and Cosmopolitan) have some of the lowest combined resort and valet fees as a number, and some of the lowest resort fees as a percentage of ADR. This illustrates that customers don’t mind paying rate for a hotel room when they’re satisfied with the value of the experience they receive.

Losing Market Share There’s no town like Las Vegas, but it’s definitely losing market share to other cities. LVCVA research shows that repeat visitation is down, and overall visitation is flat. As people consider where to go for an adult weekend, they’re increasingly finding new destinations. People can drink and eat for less elsewhere, and also experience higher levels of service. While the hotel rooms are often more expensive, patrons know what they’re paying before they arrive, versus having, in some cases, an additional 50 percent in mandatory fees tacked on. Destinations like New Orleans, Nashville, New York City, Los Angeles and Seattle each experienced remarkably strong year-over-year growth in both

visitation and expenditures in the last year, while Las Vegas experienced declines in both categories.

Before the Great Shutdown Immediately prior to the Great Shutdown brought on by Covid-19, Las Vegas had become unaffordable to many, and for those who stayed in the wrong resorts, it could best be described as an overpriced mediocrity. Many operators focused too much on raising prices and cutting costs. They neglected the entrepreneurial spirit that the best customer-focused resort developers and operators relied on to build Las Vegas into the mecca of entertainment that it is. Despite the lack of quality offerings among several operators on the Strip, a few operators have succeeded due to their business plans and products. Wynn Resorts, Las Vegas Sands and the Cosmopolitan all have been successful with individualized strategies. Wynn continues to be the only resort in Las Vegas that offers a true fivestar experience. It’s able to deploy that plan across all business segments including FIT, casino, F&B and MICE. While its prices are among the highest on the Strip, its quality of product and service results in consistently high rankings in terms of customer satisfaction. LVS has excelled at focusing on the MICE customer while still reinvesting appropriately in its gaming customers and leveraging its database with its properties in Asia. From the start, the property catered to a diverse array of segments and provided them with luxury amenities, including an all-suite hotel and numerous highly regarded F&B outlets. Additionally, LVS is the only major Strip operator that never deployed parking fees, retaining the value

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of that amenity. Finally, as Cosmopolitan has evolved over the past decade, it’s established itself as a premium entertainment destination. The resort provides outstanding food, quality rooms, good bars and nightclubs, and can charge handsomely for these experiences. There are only so many people who can afford the luxurious offerings at Cosmopolitan, but there are many places Cosmopolitan customers can go for affordable fun. For example, a tequila Blanco and soda at the speakeasystyle Ghost Donkey bar is only $8.

The Customer Experience Hospitality is about the customer experience, and gaming has historically taken great care of its customers. People want to come to Las Vegas for fun and feel value for their dollar. There’s a reason why Downtown Las Vegas has experienced strong growth over the past few years. One can afford to go and gamble, and its properties offer a great value proposition to customers. One can sit at a table at the Golden Gate and know that drinks will be readily available and served. On the Strip, too many resorts have cut back on cocktail service, making getting a drink at a table or slot machine nearly impossible. Most people who gamble do so for entertainment purposes. It’s similar for F&B experiences. Would you want to return to a restaurant if the staff struggled to deliver food and drinks in a timely fashion? Casino floors are the same way. Customers expect and deserve service; it’s the mentality our industry was founded on. But some resorts have gouged prices off the casino floor and provided inadequate service on the casino floor. And it’s had a direct impact on Strip gaming revenues. Over the past five years, despite a booming economy, the Las Vegas Strip’s gross gaming revenue has been nearly flat, growing at a paltry 1.1 percent. Compare that to Downtown, where resorts give good value for the experience. There, gaming revenue has grown at an average of 6 percent per year.

trons and reach out to them with the right message. Players are looking for a call to action. People are looking for a reason to return to Las Vegas. They just need to know that they’ll have fun and be left with enough money to return in the future. The future is not about “What happens here, only happens here.” It’s letting customers know, “Vegas is back, baby!” Steve Gallaway is managing partner of Global Market Advisors (GMA), the leading provider of consulting services to the gaming, entertainment, sports and hospitality industries.

LET US HELP YOU WITH THE DETAILS Gaming, Employment, and Regulatory Compliance

An Opportunity to Reintroduce Las Vegas During the Great Shutdown, Las Vegas operators can strategize on how to reinvigorate existing customers and entice new visitation. The time is now to eliminate or significantly reduce resort fees, eliminate parking fees, lower drink prices on the casino floor, and go back to basics by listening to and putting customers first. Stock prices are already depressed, and investors expect to see reduced revenues. When Las Vegas reopens, it can reintroduce itself as a destination where patrons of all levels get a great experience for their dollar. Operators can rely on extensive databases to communicate with their pa-

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High Wire Act Interpretations of the ’60s-era Wire Act have been used to prohibit online gambling, and also to permit it. With iGaming rapidly expanding, could the Wire Act be redefined again? By Bill Sokolic

he federal Wire Act of 1961 was championed by then-Attorney General Robert F. Kennedy to clamp down on mob-related bookmaking. In its first iteration, the legislation banned betting across state lines through transmission using wires, the technology of the day. As the years passed, few thought much about the Wire Act and its implications. Then came the late 1990s, and the introduction of the internet, an allpervasive form of transmission that, for the most part, knew no boundaries across states or even countries, and didn’t involve wires. “The Wire Act sprang back into prominence as a tool to prosecute online gambling offenses,” wrote Michelle Minton in a 2014 research paper for the Center for Gaming Research at the University of Nevada,

“The government’s reinterpretation of the statute strains credulity. The original purpose of the Wire Act was to relate only to sports wagering.” —C.J. Fisher, Partner, Fox Rothschild LLP

Global Gaming Business MAY 2020

Las Vegas. “However, from the beginning of the Wire Act’s use in the online gambling arena, there has been debate about the act’s scope, including if it can be applied to internet gambling, and most importantly... whether or not its prohibitions extend beyond sports gambling.” Two separate rulings defined the meaning of the Wire Act in the age of the internet. In 2011, in response to requests from Illinois and New York for clarity on whether the Wire Act prohibited sales of lottery tickets online, the U.S. Department of Justice (DOJ) reaffirmed that it referred to sports gambling only. “Because the lottery proposals do not involve wagering on sporting events or contests,” the DOJ ruled, “the Wire Act does not, in our view, prohibit them.” That opinion opened the door to the introduction of state-regulated online lotteries and online poker, as well as internet gambling, says C.J. Fisher, a partner and gaming attorney with Fox Rothschild in Atlantic City. “You saw the rise of that in New Jersey,” he says. In 2013, New Jersey introduced internet gaming, but the servers that operated the system were based in the state—specifically, in Atlantic City. Using a technology called geofencing, bettors could be traced to the locations where they wagered. If geofencing showed that gamblers were trying to play at a New Jersey online casino while based in Pennsylvania or Connecticut, well, all bets were off. 2013 also saw the launch of online poker in Nevada, then Delaware and New Jersey, and later included a multi-state compact in which the states shared poker players, something that clearly crossed state lines. In 2018, when the Supreme Court overturned the federal law banning sports betting, the floodgates opened, with New Jersey—the state that brought the suit to begin with—leading the way to institute wagering on sports, including online. In this case, however, the Wire Act prohibited accepting bets from beyond state borders, which explains why New Yorkers would take a ride to Hoboken to place bets, and then head back across the Hudson. It was all well and good until January of last year, when the DOJ’s Office of Legal Counsel again stepped in, this time to reverse the 2011 ruling

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“How does a New Hampshire resident purchasing a Powerball ticket from the New Hampshire Lottery over the internet implicate the Wire Act, while the same resident buying a Powerball ticket at a gas station in New Hampshire does not?” —Andrew Silver, Associate, Ifrah Law PLLC

that limited the Wire Act’s use to sports wagers. “It now extended to all forms of gambling,” Fisher says. The decision raised the ire of online bettors and an emerging industry. Would it kill off the interstate poker compacts between New Jersey, Delaware and Nevada, and stop Pennsylvania from joining in? In fact, even in-state online betting may be illegal if any of the internet data crosses state boundaries. Just as importantly, the ruling could derail multi-state lotteries such as Powerball and Mega Millions. The prospect led the New Hampshire Lottery Commission to file a lawsuit to stop the DOJ ruling, a decision which will allow the lotteries to keep operating while the litigation is in progress, Fisher says. The DOJ decision also brought a sharp rebuke and a threat from New Jersey Senate President Stephen Sweeney, who demanded that the body rescind its opinion or the state would take it to court. “The 2019 opinion, which took 26 pages of tortured analysis of sentence structure and comma placements to determine that the clear language of the Wire Act applied to all forms of gambling, was contrary to the much better-reasoned opinion of the Fifth Circuit and the thorough review of the Department of Justice in 2011,” Sweeney wrote to Deputy Attorney General Rod Rosenstein. Since New Hampshire filed its legal action first, New Jersey and other states filed an amicus brief with the First Circuit. Whether these states are more than friends of the court depends on the ultimate outcome of the New Hampshire case. New Hampshire Governor Chris Sununu spoke in support of the lottery commission, saying, “New Hampshire is taking action to protect public education. The opinion issued by DOJ puts millions of dollars of funding at risk, and we have a responsibility to stand up for our students.” In the case of the New Hampshire Lottery and other lotteries that participate in multi-state games such as Powerball, it’s difficult to understand the DOJ rationale, says Andrew Silver, an associate with Ifrah Law in

Global Gaming Business MAY 2020

Washington, D.C. “How does a New Hampshire resident purchasing a Powerball ticket from the New Hampshire Lottery over the internet implicate the Wire Act, while the same resident buying a Powerball ticket at a gas station in New Hampshire does not?” asks Silver, whose practice focuses on gaming issues. “In both cases, a New Hampshire resident is buying a lottery ticket in New Hampshire from the New Hampshire Lottery.” A federal judge in New Hampshire has answered that for the moment by setting aside the DOJ’s new interpretation in what Silver calls “a wellreasoned ruling. The judge recognized both that the government’s reinterpretation of the statute strains credulity, and that the original purpose of the Wire Act was to relate only to sports wagering.” That case is currently before the U.S. Court of Appeals for the First Circuit. In the end, Silver thinks the DOJ will lose. “Having now had the opportunity to review the government’s opening appeal brief and the responses filed by the New Hampshire Lottery Commission and its service provider, I’m optimistic that the New Hampshire court’s decision will be upheld on appeal.” The government’s final brief is due to be submitted later this month, and the case will likely be argued at some point later this year, barring added delays caused by the Covid-19 outbreak, Silver says. It’s conceivable that whoever does not prevail before the First Circuit could ask the U.S. Supreme Court to take the case, but there’s no guarantee that the high court would accept the challenge, Silver says. “Most typically, the Supreme Court only accepts cases in which multiple federal circuit courts of appeal have issued conflicting opinions (known as a ‘circuit split’). Absent this, the Supreme Court would be less likely to hear an appeal.” Fisher, too, thinks the DOJ’s reversal opinion will fail and be a win for the gaming industry. “I think ultimately the litigation will conclude favorably,” he says. “That is my hope.”

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Mind Games: The Psychology of Slots

n the old days, slot games were pretty straightforward. You deposited a coin, yanked on the handle and hoped for a row of fruit symbols. If you were lucky, you walked away a little richer. If you weren’t, you walked away grumbling about one-armed bandits. Compared to that primitive model, today’s slot machines are wonders of sophistication. Many games are played on giant, curved-screen cabinets for a more immersive experience. They come with compelling graphics and surround-sound, along with showers of coins, dancing pandas and leapin’ lizards. Some have seats that vibrate in sync with game events. It’s been said that designers once tuned the audio component to the key of C major, because it created a pleasingly harmonic player journey. There’s a lot of talk about that journey, which is carefully choreographed. With 70 percent or more of casino revenues derived from slots, the experts make a study of player psychology: the features that attract them and keep them coming back. That doesn’t mean they get it right all the time—or even most of the time, says Keith Kruczynski, vice president of game development

Global Gaming Business MAY 2020

Slots bring in more casino revenue by far than table games— by some estimates, up to 70 percent or more of the total. These are the games that win friends and influence people, so designers must create an experience that makes them come back for more. By Marjorie Preston

and design for Gaming Arts. Kruczynski has plenty of successes up his sleeve. In his days at Bally Technologies, he helped produce hits like Hot Hot Habanero, Gaucho’s Gold and Mustang—a roster of games that are still popular today. “But the list of games that didn’t perform well is probably longer than those that did,” he says. “You’re considered really, really successful—exceptionally so—if you bat .300, meaning a third of your games go out and do well. It’s really tough to make a great game, or even a good, solid game.” There’s more to the success of a game than math, mechanics and spinning reels. Success also depends on the timing, the market and even the game’s placement on a casino floor. “A game could do absolutely gangbusters in Minnesota but do horrible on the Las Vegas Strip,” says Kruczynski. “But then you have games like (Aristocrat’s) Lightning Link, which are perfect and fantastic everywhere you put them.” If there’s a rule of thumb at all, he says, it’s this: “The art will get players there, and the math will keep them there. It’s balancing those two things that really makes a game successful.”

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“The art will get players there, and the math will keep them there. It’s balancing those two things that really makes a game successful.” —Keith Kruczynski, Vice President of Game Development & Design, Gaming Arts

‘The Ride’ Creating a great game is a collaborative effort, says Kruczynski. “Whether a per“Nobody wants to sit there and wait five or 10 minutes before they son is a game engineer, mathematician, artist, producer or the vice president of see something cool,” says Kruczynski. “We really strive to have somegame development, all our titles start with game developer. Everyone has the abilthing fun that’s financially beneficial happen in the first $20—for us, ity to look at game and say, ‘Hey, this doesn’t make sense to me,’ or ‘Wouldn’t be that’s the first eight to 10 or 15 spins.” cool if…?’ He cites Gaming Arts’ “Pop’N Pays” feature as an example of “A lot of times, one person comes in with idea A and another with idea B, “something cool,” a people-pleasing event in which symbols pop and and A plus B equals a great game.” reveal the amount of a prize. Pop’N Pays go off with enough frequency From end to end, he calls the player journey to keep players on the edge of their seats. “the ride.” “What kind of a ride is the player going to To know what players will enjoy in a new game, “take a look at the experience when he puts in $20, $40 or $100? successes you’ve had,” says Greg Colella, vice president of games prodThat’s the game identity. That’s the ride.” uct management for Konami Gaming. Mathematicians must be “immensely cre“One of our biggest franchises is China Shores, one of the first ative” in determining where the money goes, he games to allow players to hit multiple free games. It’s something people adds. “We have a set amount of money. continue to gravitate to. So you see multiple versions of China Shores, Whether the game’s paying back 90 percent or 96 percent, whether that money comes from the where you take a key element and continue to design around it.” base game or from a feature that happens every Like other game manufacturers, Konami also conducts focus 120 plays, it all makes a difference in the psygroups—directly asking players what they like and don’t like—before chology of the game and what the player feels. taking a game to market. “The trick is not to lead people to the anWe tweak with frequencies. The minutiae is so swers you’re looking for—you want a genimportant.” uine unencumbered response,” says Colella. From the first build through production, “It’s a critical step in the design of these where a game may be debuted at G2E or games.” NIGA, “we go through the ‘fit and feel,’ playing So, what keeps slot players playing? the game for multiple sessions, for hours upon What Kruczynski calls “the ride,” Colella —Greg Colella, Vice President of Games hours,” says Kruczynski. “You actually watch calls “the chase.” Product Management, Konami Gaming the bankroll go up and go down, then get to“Most of the time when you play, the outcome is not necessarily what you want it gether afterward and say, ‘Hey, I felt like I to be, so for the player, there has to be a waited too long to see this feature,’ or, ‘I didn’t sense that, ‘I could beat this thing.’ It’s a see enough big wins.’ It’s a matter of borrowing careful balance of rewarding them enough from Peter to pay Paul. If you want more so they enjoy the experience—that adrenamoney going to the base game, then it’s got to line thrill they get by seeing the first symbol, come out of that feature. That’s the balance.” then the second symbol, then closing in on Ultimately, for the gambler it’s all about the third symbol to trigger the feature. winning—or not losing enough that it hurts. That’s what keeps them coming back.” But without fun along the way, who’s going to play?

Building on Success

“Ask players what they like in a game, and almost every time, they’ll say they like winning.”

MAY 2020 www.ggbmagazine.com

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Reeling ’Em In Dan Whelan

Vice President of Product Development, Incredible Technologies GGB: What are a few of your most popular games, and what elements made them catch on big with players? Dan Whelan: One of our most popular games, Crazy Money

Deluxe, has all the right ingredients: great math, art and sound. It was the first game on our Infinity Skybox cabinet, which has a massive overhead screen. We focused a lot on visibility of the wheel from afar. The biggest key was honing in on the math to create the right hit frequency of the wheel. When the game is in a bank, someone is usually hitting the wheel, which results in a great advertisement to other players to see how the features work. One of the newest games on our Infinity V55 cabinet, Happy 8’s, does a great job introducing a new twist on the popular “persistent” bet feature. The fact that awards you collect during free spins carry back to the base game feels great. The game does a good job enhancing the persistent bet experience. How do you get into the mind of the player when you’re building a new slot game?

Since we don’t have a mind-reading app on our phones—yet—playing games on our own is key to understanding the psychology behind player decisions. All our game designers and mathematicians play slots. We also hold monthly player focus testing run by our marketing department. This process is very beneficial to game development. How has technology changed game design?

High-resolution LED monitors, lightning-fast processors and video cards have allowed us to create any game we can dream up. There’s no limitation to game design. We try to utilize new technology to enhance the player’s experience. It’s critical to marry any new technology with the right math and bet structure. How do you appeal to younger players’ desire to “level up” in a game?

I feel younger players are used to a high level of interaction with any game they play. They grew up on video games and smartphones. There’s a bar that’s set in their minds when they sit down at a slot game. It’s our job to ensure the experience matches their expectations. This is true of any player. No matter what age they are. Typically, we utilize bonus games as key moments for player interaction. We’re also expanding our iGaming presence, which I feel may reach a younger audience. Why is the hold-and-spin feature so popular?

Because it’s simple to understand. It appeals to the masses because of simplicity. I view it as though a new ice cream flavor was invented. Now players expect it to be on your “menu.” We’re constantly trying to invent new flavors. It’s hard to do, but it’s a daily goal of game development. How do you weigh responsible gaming issues when designing a slot game versus the desire to keep players in their seats and engaged?

We’re sensitive to the issues of responsible gaming. We work very hard to make our games easy to understand. The easier the game design is to understand, the better the information is to make good betting decisions. Our goal is to provide a memorable experience and not take advantage of players. In the end, a clear game design benefits both sides of the equation.

Global Gaming Business MAY 2020

That’s Entertainment Kimberly Cohn, director of game development for Scientific Games, is all about storytelling. She says a great slot game “is like a movie you watch over and over again. Our goal is to make experiences that are repeatable and enjoyable.” A former Disney animator, Cohn was part of the team that created the Titanic slot, based on the film that made superstars of Leonardo DiCaprio and Kate Winslet. So, how do you make an entertaining slot game out of a sinking ship? Easy—concentrate on the love story. Reel symbols include a steamer trunk, a ship’s compass, the famous heart-shaped blue diamond, and that car in the ship’s hold where the randy lovers rendezvoused. Almost ironically, considering the real Titanic’s history, you can buy into the game with first-, second- and third-class tickets. Of course, players can’t get away from Celine Dion warbling the hit theme, “My Heart Will Go On.” To interpret mega-movies into licensed slot games, says Cohn, “you have to use the content in a way that people can relate to— ‘Oh yeah, I remember when that happened, that’s the part I want to see again.’” The Titanic slot game has realistic graphics and actual snippets of film footage: Rose and Jack dancing, Rose and Jack standing at the prow of the doomed liner. Scientific Games’ popular Cash Wizard tells a different story, in a wholly different way. Its animation recalls a Saturday morning cartoon, full of candy-colored dragons and unicorns, magic wands and beribboned gifts, as well as the titular boy wizard. An online review notes the video slot’s “longevity,” with multiple bonuses that let players hit regularly, so they can keep winning and top up their balance. Building anticipation is a big part of the player experience and central to the designer’s

Con

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“Like the movie you watch over and over again, we want to make gaming experiences that are repeatable and enjoyable.” —Kimberly Cohn, Director, Game Development, Scientific Games

job, says Cohn. “You’re telling a story during your play session, with all kinds of peaks and valleys and turns along the way. Above all, a game has to be fun—that’s always No. 1.” As slot machines continue to evolve and the player base shifts, the innovative game of today may be considered low-tech in a decade. “‘Skill-based’ has really been the term du jour for two or three years now,” says Kruczynski. “I think at some point we’ll really figure out how to combine gambling with that experience—I don’t think it’s been done yet, but people have gotten close.” Then there are so-called “persistent-state” games, like Gaming Arts’ Dice Seeker, which feature a chase for credits, multipliers, progressives or other rewards within a finite time; the player sees his or her own progress to-

ward a goal, and just has to stay at the game at least until it plays itself out. “The persistent side is really opening doors for a whole new genre of games,” says Kruczynski. “If the standard game is your starting point and skill-based is your end point, then the bridge between those two could be this persistence factor.” According to Cohn, her job is “to have fun, solve puzzles and figure out the best possible way to entertain players. We’re game makers. “Only players know what players like,” she adds. “To understand the psychology of the players, you have to be a player yourself.” On thing has never changed, and probably never will, says Colella. “If you ask players what they like, almost all the time they say they like winning.”

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Who Trusts the Trustee? Massachusetts’ Mashpee Wampanoag is under attack again, and all of Indian Country should be concerned By Judith Shapiro

andemic news in Indian Country: the Interior Department called Mashpee Wampanoag Chairman Cedric Cromwell to announce that the Mashpee Reservation was to be disestablished, and its land removed from trust. The date of the call, March 27, 2020, was the first day that Covid-19 deaths in the United States exceeded 1,000 in a single day. The chairman thought the call’s purpose was to offer support in the tribe’s desperate fight against contagion. It was, instead, the next assault in a 400-year cruel war against Mashpee. The department may have been surprised at the immediate outrage in Indian Country and beyond. Mashpee now must add land defense to its other immediate and urgent priorities.

How Did We Get Here—Again? In 2009, the Supreme Court decision in Carcieri v. Salazar greatly diminished the ability of the secretary of Interior to acquire land to be held in trust on behalf of Indian tribes, by forcing an applicant tribe to prove that it had been “under federal jurisdiction” as of 1934. The land-in-trust power was central to 75 years of Indian policy under the 1934 Indian Reorganization Act, whose stated purpose was to protect and restore native homelands—an explicit reversal of prior federal practice, which had dismantled native communities through assimilation, Indian schools, prohibition of cultural practices and dissolution of tribal land bases. For the Mashpee Wampanoag, who had gained federal status in 2007, the Carcieri decision posed a significant barrier to rebuilding their nation. Located in Eastern Massachusetts, the Mashpee Wampanoag have been engaged in an existential struggle to protect people and land since the first Europeans appeared in North America. The Wampanoag lost two-thirds of their people to a plague brought by the first European visitors. When the Mayflower landed in 1620, the Pilgrims gave thanks for having found good, cleared, farmable land. Patuxet—the home of a recently deceased Wampanoag community—became Plymouth. American foundational stories recount how the Wampanoag nurtured those early weak and sickened 34

Global Gaming Business MAY 2020

Mashpee Wampanoag Chairman Cedric Cromwell is appealing to Congress for a legislative solution to the issue

settlers, culminating in the mythological “first Thanksgiving.” But the Wampanoag gave so much more. They ceded land for the prosperity of the new settlement, and entered into the first North American treaty to ensure mutual peace and prosperity. As with virtually all native treaties, land and power tended to flow in one direction, and the Wampanoag were soon struggling to retain a foothold in their own homelands. The current Mashpee crisis is just the most recent stage of a 400year-old ordeal. Among the first native peoples to come into sustained contact with European settlers, the Wampanoag faced the consequences of colonization long before most other tribes knew it was coming. The historical record is rich with Mashpee efforts to preserve at least a remainder of their home. In 1685, Plymouth Colony confirmed a deed from Mashpee Sachems that set aside a 14-square-mile tract of land for the Mashpee people forever, “to be perpetually to them and their children, as that no part of them shall be granted to or purchased by any English whatsoever, by the courts al-

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The tribe’s plans for the First Light casino resort, already derailed, are now secondary behind its quest to regain its land

lowance, without the consent of all the said Indians.” For nearly 200 years, through repeated encroachments, despite hostile overseers and venal missionaries, after countless tribal petitions for help from the colony, the English crown and the commonwealth of Massachusetts, that land remained home. Mashpee resisted removal and successfully controlled their land until 1870, when the commonwealth unilaterally removed tribal status and increasingly, pieces of their land came into the grasp of rich outsiders. The economic prize was Mashpee’s hardwood forest, the last remaining on Cape Cod. Mashpee land loss through allotment anticipated the federal policy by only 10 years. But Mashpee remained, as it always has. It governed itself as an “Indian town” and stayed relatively isolated until development pressure in the mid-20th century. In the 1970s, the tribe’s attempt to protect its homeland through a land claim suit backfired in a storm of racist arguments that disqualified the tribe from establishing status to bring its claim. Losses continued over the next 30 years, while the tribe documented its continuous history and finally achieved federal recognition of its sovereign status in 2007. The tribe began to plan for housing, health care, education, language reclamation, nation building, and the hope of future economic security. Then came the Carcieri case. After having proven its 400-year survival to achieve federal acknowledgment, the tribe was now forced to prove its eligibility for the remedial provisions of the Indian Reorganization Act (IRA). It documented repeated instances in which the federal government exercised jurisdiction over the tribe and its peo-

ple. To satisfy a separate test under the IRA, it documented the community’s continuous presence on the 17th century homelands that had been home to no other people from time immemorial through about 1960, well past the 1934 statutory criterion. The Interior Department found that Mashpee had satisfied the second IRA test by showing that the people were present, in 1934, on the tribe’s reservation. Portions of that land comprised part of the newly declared federal reservation. In 2015, the land that had always anchored the people also anchored the Interior Department’s decision to acquire 321 acres in trust, to be used for housing, a government center, school, the tribe’s historic meeting house and cemetery, ceremonial grounds—and a casino.

Why is Mashpee a Target? Despite overwhelming local support for the tribe’s planned casino in Taunton, Massachusetts, gaming plans attract gaming opponents. Mashpee’s plans would have blocked a proposed commercial casino. A small “citizens’” group— proxy for the commercial developer—mounted a well-funded challenge. Additional pressure emerged from competing gaming interests in Rhode Island, later shown to have ties to the Trump administration. Although the United States defended the Interior Department’s taking the land into trust, a Massachusetts district judge ruled against the action. Then Donald Trump took office. Federal defense of the Mashpee decision ended abruptly, at both the Interior Department and the Department of Justice, which represents Interior in court. When Elizabeth Warren sought sup-

Subjecting tribally owned land to local jurisdiction and taxation is antithetical to tribal sovereignty. The action threatens the tribe’s low-income housing, immersion school, police force, tribal court and much more. MAY 2020 www.ggbmagazine.com

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If the federal trustee is permitted to act with arbitrary cruelty, it will continue to do so. If the solemn governmental duty of holding land in trust can be so easily rescinded, it can happen again.

port for Mashpee through legislation, Trump tweeted his opposition. The policy switch is both telling and chilling. The Massachusetts district court read the IRA to say that Mashpee did not qualify for trust land based on its 1934 reservation, unless it also satisfied the Carcieri requirement of showing that the tribe had been “under federal jurisdiction” in 1934. Mashpee submitted additional evidence on the question to Interior. It answered the department’s inquiry about whether Massachusetts’ historic exercise of authority over the tribe might be a jurisdictional proxy for the United States, and generally showed it had met the standard established by the department in previous decisions, tracking the department’s comprehensive legal guidance, the “M-Opinion.” None of that was enough—and maybe nothing would have been enough. In September 2018, Interior ruled that Mashpee had not established that it was under federal jurisdiction as of 1934. The tribe sought review in the U.S. district court for the District of Columbia, arguing that the action was arbitrary, capricious and contrary to law, in violation of the Administrative Procedures Act (APA). That case has been briefed by the parties (Tribe v. Interior Secretary) and is awaiting the court’s action. Mashpee also seeks a political solution. In the years since the Carcieri decision, inter-tribal organizations, working together, have tried to achieve a “Carcieri fix” from Congress. A simple fix would abolish the chasm that now divides federally recognized tribes, a chasm created by Carcieri, and deepened by the Interior Department. It would ratify the trust land of tribes alleged, retroactively, to fall outside the Carcieri requirements. In May 2019, a general Carcieri fix (HR 375) overwhelmingly passed the House of Representatives, as did a Mashpee Reaffirmation bill (HR 312), despite Trump’s express opposition. But both bills languish in Senate Majority Leader Mitch McConnell’s graveyard of congressional legislation. Mashpee supporters are intensifying their efforts to achieve remedial legislation—either bill will do. Action has continued in the courts and at Interior. In late February, the First Circuit Court of Appeals rejected Mashpee’s appeal of the Massachusetts district court’s ruling against the tribe. The First Circuit construed the word “such” in the IRA as requiring the tribe to go back to prove “now” in another section of the IRA: back to the “under federal jurisdiction in 1934” gauntlet. In early March of this year, as people around the U.S. were withdrawing into Covid-19 quarantine, the Interior Department withdrew the M-Opinion that for several years had formed the basis for determining whether a tribe was “under federal jurisdiction” as required by Carcieri, despite the opinion having withstood repeated judicial review. In its place, the department issued “guidance” that would dramatically narrow eligibility, particularly for first-contact tribes, and those like Mashpee having treaties with colonial powers that pre-date the United States: the early colonization penalty that keeps on taking. Interior wasted little time turning “such” into a four-letter attack. Soon after the First Circuit ruled, Interior stated it had no choice but to take the land out of trust, announced that determination to the Mashpee chairman, and directed the Bureau of Indian Affairs regional director to give effect to 36

Global Gaming Business MAY 2020

that order. Interior provided no legal authority for its unprecedented move to take land out of trust. The tribe sought an injunction from the same D.C. federal district court considering the APA action. The United States has promised not to act to remove Mashpee’s trust status for 45 days until the parties can brief and argue the now-urgent matter to the judge, who at the same time, will hear argument on the APA challenge. A virtual hearing is scheduled for May 7.

Now What—And Who Should Care? Mashpee faces much more than the trustee’s criminal neglect. Threatened are access to important federal programs and the ability to exercise basic self-determination. Subjecting tribally owned land to local jurisdiction and taxation is antithetical to tribal sovereignty. The action threatens the tribe’s low-income housing, immersion school, police force, tribal court and much more. Certainly much more than the fight against a casino, in the middle of a pandemic it would cut off Mashpee’s access to Covid-19 emergency assistance. Rather than “termination,” the federal government now proposes “extermination.” All tribes should care. All people of good faith should care. If the federal trustee is permitted to act with arbitrary cruelty, it will continue to do so. If the solemn governmental duty of holding land in trust can be so easily rescinded, it can happen again. The 1934 IRA meant to reverse federal policy of assimilation and land seizure. Less than 20 years after that, in a complete reversal, Congress began to terminate tribes—and, not incidentally, taking the rich resources that tribes had stewarded. Federal policy reversed again in the 1970s to favor strengthening tribal governments. Some previously terminated tribes were “restored,” but not all. Federal Indian policy has long been subject to pendulum swings, from protective to destructive. Destruction of Mashpee’s territory may be only a first step—and a warning. Tribal lands still contain resources coveted by others. Tribal assertions of sovereignty and consultation rights can be inconvenient to those who would exploit those resources. Modern American government is increasingly intolerant of such inconveniences. What to do? Do not remain silent. Sign the petition (sign.moveon.org/petitions/standwith-the-mashpee) supporting Mashpee legislation. Write your congressional representatives in support of Mashpee reaffirmation and a Carcieri fix. Stay awake and vigilant. The United States is declaring war on Indian Country under cover of plague. For 400 years and counting, plague has been a means to take Wampanoag territory. Land-taking didn’t end there in 1620, and won’t end there now. Be vigilant. And wash your hands. Judith Shapiro is a Washington, D.C. attorney specializing in Indian law. She has spent decades working on issues of tribal sovereignty. Shapiro can be reached at jshapirolaw@earthlink.net.

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Facial Recognition & Other Tech: Boosting KYC So-called contactless apps let consumers tap debit cards to pay for meals and accrue points. Facial recognition sciences eliminate boarding-pass lines and can prevent crime. What can these technologies do for the gaming sector? By Dave Bontempo

ake it seamless, effortless, even cardless. Make it safe, accurate and fast. Gaming has entered the age of facial recognition and instant player identification. Properties that utilize these technologies can enhance customer service and get a marketing edge on competitors. Vendors offer cutting-edge products that either connect gamblers directly with games or store funds for quick deployment. Other elements of the new facial recognition age include player tracking, bonusing, management systems and ratings. On all fronts, vendors and operators recognize the value of this new, opportunistic technology.

New Connections Konami’s Synk Vision, part of the Synkros casino management system, officially debuted last fall, and is scheduled to undergo market trials in early 2022. Konami’s SynkConnect player mobile app was first revealed in 2018 during G2E in Las Vegas, and is currently operating live with select Synkros customers.

Synk Vision and SynkConnect are fully integrated into the Synkros player tracking module and are available exclusively to customers using the casino management system. “Synk Vision is the first solution to give operators the ability to automatically track all guests who play at the property,” says Tom Soukup, senior vice president and chief systems officer for Konami Gaming. “For years, casinos have leveraged loyalty card systems to track player activity, which requires a high level of ongoing consumer adoption and operator maintenance and doesn’t offer a way to incentivize uncarded players,” he says. “Synk Vision effectively opens automated loyalty tracking so casinos can start reinvesting in and understanding every on-site player.” New opportunities are created by this type of data capture. It can make people feel special, provide an individualized experience and keep them coming back, according to Soukup. Slot and table game players experience more in-game reward opportunities, relevant marketing touchpoints and potential service enhancements. Konami’s SynkConnect helps transform how players connect and engage with casino loyalty programs, using the technology conveniences already inter-

“For years, casinos have leveraged loyalty card systems to track player activity, which requires a high level of ongoing consumer adoption and operator maintenance.” Konami’s Synk Vision

Global Gaming Business MAY 2020

—Tom Soukup, Senior Vice President and Chief Systems Officer, Konami Gaming

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IGT’s Cardless Connect transforms a player’s smartphone into a loyalty card, which significantly streamlines the cardin process at the slot machine

laced through their daily life, Soukup adds. SynkConnect gives players a secure online interface to manage their loyalty accounts without the need for traditional player’s cards. Through the app, players can tap into their benefits, rewards and promotions anytime, with real-time updates in the palm of their hand. For mobile cardless connection, players can use their personal smartphones to log in by tapping the card reader bezel or using the app to read a QR code displayed on the player tracking screen. The card reader changes color: blue for an inactive/uncarded connection, green for a successful active connection, and red for a misread/failed connection. Once players use their personal smartphone to connect to their account, it remains active until they tap off to disconnect or the session times out from inactivity. Players can use SynkConnect offsite to review their offers and other promotions, which encourage them to make another trip to the casino. Soukup believes facial-recognition technology, still in its early stages of adaptation in the industry, will have a substantial effect on the market. Part of its role will be to help protect problem players from themselves. “While this application of biometric technology is fairly new to the gaming industry, it holds considerable momentum across other consumer sectors,” he says. “Today we’re seeing similar technology in mainstream business arenas used to streamline purchases, personalize offers, reduce wait times in lines and facilitate airport check-in.” Synk Vision specifically centers on the needs, considerations, options and interests of casino operators. It operates with the Synkros casino management system to provide frictionless player loyalty promotion for both known and unknown players. Synk Vision enables casinos to automatically detect self-excluded and/or casino-barred players and take the appropriate actions, whether that be locking a slot machine or notifying the pit manager to withhold service.

Pressing the Advantage Sophisticated technology embracing this sector has only begun tapping its potential. Ryan Reddy, IGT vice president of systems and payment products, sees a big upside. There’s ample room for U.S. casinos to offer far greater convenience to their players through systems-driven features such as contactless loyalty, payments and real-time promotional capabilities, he says. “We’ve developed the IGT Advantage Player Experience Suite of modules to deliver the same effortless experience to casino patrons that they currently enjoy elsewhere in their daily lives,” Reddy says. “Together, the three components in this suite—Cardless Connect, Intelligent Offer, and Resort Wallet with IGTPay—enable a player to enter a property and immediately engage in play while accruing loyalty points and receiving targeted offers.” Cardless Connect transforms a player’s smartphone into a loyalty card, which significantly streamlines the card-in process at the slot machine. Since most players carry their mobile with them everywhere, Cardless Connect

eliminates the problem of players forgetting their physical cards and diverting to the player’s club desk to print new ones. Resort Wallet lets players digitally transfer funds to and from gaming machines and pay for casino entertainment. Players can conveniently maintain slot, sports and online balances within the same digital wallet. When players use Resort Wallet with any Cardless Connect-enabled gaming machine, their smartphone becomes a secure digital wallet. They simply tap their phones to card in, then easily and quickly transfer funds. Balances in the digital wallet can be redeemed for cash at a kiosk or the casino cash desk, or securely maintained in the wallet for the next play session or property visit. “We’ve built flexibility into the solution to ensure that operators can offer multiple funding options to players, enabling the most seamless adoption possible,” says Reddy. “Players who prefer their physical loyalty card can use it to create a Resort Wallet account at the casino cash desk, and use their card to easily and quickly load funds either at the cash desk or at the slot machine, then transfer funds between machines and sister properties, redeem them at the ticket redemption kiosk or casino cash desk, or maintain them for the next session.” IGTPay takes the contactless mobile experience to the next level by integrating seamlessly with Resort Wallet for an effortless and secure cashless gaming experience, he says. It connects the player to secure external funding sources such as credit cards, debit cards, bank accounts and e-wallets. This enables the player to safely and easily move funds electronically in and out of the Resort Wallet MAY 2020 www.ggbmagazine.com

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Consistent Progress

“The components in this suite enable a player to enter a property and immediately engage in play while accruing loyalty points and receiving targeted offers.” —Ryan Reddy, Vice President of Systems and Payment Products, IGT

casino player account, then use the funds to make cashless transactions at gaming machines, Reddy says. “With IGTPay, IGT is the merchant of record and manages the external funding function from end to end, providing a fully turnkey solution that lets the operator focus on the rest of the operation,” he says. From a promotional standpoint, Intelligent Offer enables operators to factor real-time player behaviors and events in the evaluation and awarding of bonuses. This enables the venue to define the win criteria based on its specific campaigns and objectives, then notify players on the game screen— via IGT’s Service Window or the player tracking display—when they have met the criteria, according to Reddy. Intelligent Offer also amplifies operators’ real-time responsiveness by using beacons. These small USB dongles can be activated at a location on the gaming floor, such as near a bank of new machines or at an entrance. The beacon can transmit a specific offer to players who have the casino player app open on their mobile phone and are moving within a designated range, enabling the operator to deliver relevant, highly targeted promotions to them in real time. When integrated into an operator-branded loyalty app, Cardless Connect, Intelligent Offer and Resort Wallet with IGTPay can together increase carded play, player loyalty, time at property and velocity of money, while reducing loyalty card printing and labor costs and improving the effectiveness of promotional offers, Reddy says. “Notably, operators don’t have to worry about developing their own casino player app to enable these mobile features,” he adds. “We’ve been working with forward-thinking properties to introduce our IGT Advantage Player Experience Suite modules at their sites, and many other operators are eager to learn more. Each module in the entire suite—Cardless Connect, Intelligent Offer, and Resort Wallet with IGTPay—is tightly coupled with the IGT Advantage system, which makes it a turnkey, end-to-end contactless solution that can deliver these capabilities seamlessly and yield significant benefits.” 40

Global Gaming Business MAY 2020

Scientific Games anticipates a probable 2020 debut of part of its SG Vision technology package. Last year, the company showcased the revolutionary technology at G2E. It unfurled its object recognition technology across tables for chip and biometrics, EGMs and new form-factor gaming devices providing protection for players and the most accurate player tracking data solutions for operators. “We’ve taken it from an advanced concept to nearly a production release,” says Jeff Allen, senior director of product management for Scientific Games. “A great idea is very close to being deployed. There’s been a lot of work involved in this. We’ve talked to regulators and operators. We believe the time is right to introduce this foundational technology to the masses.” The technology could have a game-changing effect on table games, management systems, slots, bonusing, marketing, responsible gaming and anti-money laundering efforts. Scientific Games has partnered with Amazon Web Services (AWS) in this endeavor. AWS says it is the world’s most comprehensive and broadly adopted cloud platform, offering more than 175 featured services from data centers globally. Chip recognition would appear to be the first area that will be enhanced by SG Vision, followed by slot machines, provided current plans hold. Allen says SG Vision will provide the data, enabling each casino department to integrate new features into its products. Current plans call for cameras to be mounted atop table games and inside slot machines. The cameras can help reveal how many chips are out, what cards are being played, how many bills are on the table and the customer’s playing history, thus providing instant reward opportunities. They can also show how well a game is performing. The technology also frees supervisors to mingle with players rather than being preoccupied with recording information. The facial recognition component also will aid slot-play convenience. “Players will often forget or lose their loyalty card,” Allen says. “But using a camera mounted in a slot machine, we can use a form of facial recognition to ID each player by the uniqueness of their face. “Remember that a large fraction of the play is happening from uncarded players,” he adds. “These are players you haven’t been able to market to yet. They might represent half of the market.” SG Vision can become a bridge product, connecting modern convenience at a table with the time-honored, personalized customer interaction. There’s always a place for reminding customers of their status, as shift bosses did during the age when they eyeballed potential rewards players. It was an informal process that created a bond with major players, but was considered hit-or-miss for low- and mid-level gamblers. The new technology can make overall ratings more exact. Allen says the demos have generated strong response throughout the industry. “We’ve engaged regulators, operators, the players, the systems people, etc., and gathered their input. Most of the people looking at this say what we’re attempting to deliver is incredible.” In effect, the new technology will act as a hub, with each area of the casino deciding how to connect with it. With new tools come new ways to enrich customer relationships.

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CUTTING EDGE by Frank Legato

Secure Return PRODUCT: Thermal Detection Solutions MANUFACTURER: Pro-Tek Ltd.

he world has changed significantly as a result of the 2020 pandemic. People are now more concerned than ever about their health, and how to protect themselves. As the economy reopens, and people start to venture out in public, they will be looking for peace of mind. If the public feels less threatened in certain areas, they will be more apt to go and enjoy themselves. One way to ensure that the public has this sense of security is to screen people before they enter social gatherings. There are two main issues when attempting to screen larger numbers of people, the speed and accuracy of the screening process. If the process isn’t efficient, it will deter people from entering the property, and if it isn’t accurate there is a complete false sense of security. Pro-Tek Ltd. has thermal detection solutions that fit both needs. The Eye Pod is a small stand-alone device that allows operators to check each customer as they enter a premise. It is a small stand, designed to screen people in low-traffic areas where metal detection is not neces-

sary. It either gives an audible or visual alarm, or both, on the device itself. It is typically installed on a pole at the entrance, where a host or security person is available to monitor the traffic. The Eye Pod also can optionally attach to the network to provide facial recognition capabilities. The Eye Pod Facial can interface to the time-tracking system or provide alerts when VIPs or blacklisted people are recognized. The walk-through thermal gate combines metal detection and thermal imaging into a single-entry gate allowing quick and efficient screening for both metal and abnormal temperatures. The thermal gate comes in two option—stand-alone or networked. The main difference between the options is the inclusion of the server, which will provide DVR capabilities so operators can check earlier footage. For more information, visit pro-tekltd.com.

Presented by The Innovation Group and Global lobal Gaming Business

Does your organiza organization ation have young indiv individuals viduals exceeding yo your our expectations? Havee you noticed a youngg person in the public or private sector, sector, or in tribal enterprise who embodies a leadersh hip leadership believe from role? Or do you be elieve that your abilities abilitties set you apart fro om ELG your peers? The EL LG 40 Under 40 program program is designed to turn tuurn today’s today’s young exec executives cutives into tomorrow tomorrow’s ’s industry leaders. Nominations open n later this month. Visit theinnovationgroup.com Visit theinnovation ngroup.com for moree information.

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EMERGING LEADERS Science Meets Gaming Brian Wyman Senior Vice President, The Innovation Group rian Wyman is currently senior vice president of operations and data analytics and a partner of The Innovation Group, where he leads operational efforts as well as the data analytics group. With a Ph.D. in mathematics, Wyman gained experience in machine learning and predictive modeling while working on Wall Street. He envisions the gaming industry becoming much more tech-oriented and scientific in the way it operates. “Advanced analytics will have a considerable impact on the way we lay out our slot floors, purchase product, choose hold settings and send offers and messages to guests,” he says. “But it will also help us manage our floors and businesses efficiently, learning the things guests find most important so we can make the best use of our labor. I expect to see a huge transformation in the way casino resorts are managed in the coming years. You can see the beginnings of this already.” Wyman joined the industry seven years ago, making the leap from a highly technical Wall Street role to a management position at Pinnacle Entertainment, where he oversaw gaming and marketing analytics. “I wanted to continue my own growth,” he explains. “It was a real eye-opener to go from working day-to-day with 20 Ph.D. scientists to managing a diverse team and interacting with the C-suite of a publicly traded company.” Wyman says it was a significant learning experience, particularly navigating the politics and relationships. “I think a lot of people from the scientific community expect a complete meritocracy, that everyone will be judged solely on ideas and work product, and that the best ideas will always win,” he observes. “There’s a lot more to it than that, and I think this frustrates a lot of talented young people.” Wyman says he’s most proud of bridging that gap, moving the needle financially while keeping high-performing analysts motivated and engaged. Wyman notes two key mentors to his success. Dave Clark, his first boss in the industry, saw the potential in bringing an industry outsider into a

Global Gaming Business MAY 2020

key role. Wyman says Clark helped him understand the social and political challenges of his new roles, as well as how to adapt to the nuances of a new industry. He also heavily credits former colleague Geoff Goodman, also an Emerging Leaders of Gaming 40 Under 40 member and Clark’s replacement. According to Wyman, “Geoff’s and Dave’s styles couldn’t be more different, even though they were both brilliant and effective. Their different approaches really shaped the way I do my job today.” Their leadership and Wyman’s intuitive, hard-working and selfdriven nature were a perfect combination for success. Now a partner at The Innovation Group, Wyman has achieved a notable level of success, but is not someone to steal the spotlight. He’s quick to point out how much he learns from everyone around him— clients, partners, friends and mentors. “I’m not the most creative person, but I really think hard about what other people say. Whether it’s clients, coworkers or anyone else, I try to internalize and understand others’ viewpoints. Their perspective provides a lot of balance to my own approach and thoughts. I am much, much smarter and more effective thanks to them.” Gaming can be a truly difficult industry unless you love it. Wyman offers some advice to young upand-coming professionals in the industry. “It goes without saying that you’ll need to work hard, be visible and make sure your work is solid. But in order to have a great career, you also need to be proactive in your role—don’t wait to be told what to do!—and build relationships. Your network is the most important asset you have. Nurture and build it thoughtfully and authentically. Oh, and don’t burn any bridges. It’s a really small industry.” As for the 40 Under 40 award itself, Wyman has been a part of interviewing recipients and writing their profiles for several years. Still, when asked what it felt like to be on the other side of the table, he states, “It’s really an incredible honor, and it’s a testament to the really talented teams I’ve had the good fortune to work with for my whole career. I’m really humbled.” — Christopher Irwin, Director, Native American and Interactive Services, The Innovation Group

Speaking from Experience Bhavishi Patel Vice President of Experiences, Eureka Casino Resort orn and raised in Essex, England, Bhavishi Patel moved to New York at 21, armed with a bachelor of laws degree. She pursued a master of laws at Benjamin N. Cardozo School of Law, Yeshiva University in New York City, specializing in intellectual property law. When she graduated from law school, Patel knew one thing: she didn’t want to practice law in the traditional sense. She wanted to use her skills and education to help people. Working for a casino resort didn’t cross her mind, even when she moved to Las Vegas. That changed after she met Eureka Casino Resort founder and CEO Greg Lee at a high school lacrosse game where her cousin was playing. They hit it off, and Lee offered her a position as inhouse counsel, director of administration and head of the human resources department. “I couldn’t think of another industry that allows me to combine so many of my interests into an average day,” she says of Eureka. “My ultimate goal was to use the knowledge of the law and my critical thinking skills in a business operations role.” That could mean working on remodeling the property, helping to redesign restaurant menus, participating in conversations about branding strategy or assisting employees with challenges in their lives. Shortly after Patel landed the job, Lee sold the company to the employees, a rarity in the gaming industry. That move became one of Patel’s first major transactions. “My role has recently evolved to vice president of experiences. The title is our recognition that how the guest experiences our product is

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Back Home Again Christopher Wilcock Executive Director of Casino Optimization, The Venetian and Palazzo Casino Hotels hristopher Wilcock proves you can go home again. He was raised in Las Vegas, attended the Wharton School at the University of Pennsylvania, and graduated in 2005 with a B.S. in economics. “Going to college in a city like Philadelphia was a wonderful experience,” Wilcock says. “In school, I didn’t give much thought to where I’d live after graduation.” But when Wynn Las Vegas beckoned, it wasn’t a hard sell. Wilcock’s father Joe worked in the casino industry, in table games, and had shared stories about his experiences. “They were so incredibly unique and surprising,” Wilcock says. He went home. In 2015, after eight years at Wynn Las Vegas in various marketing positions, Wilcock joined The Venetian as executive director of premium marketing strategy. Then he was tapped for the intriguing role of executive director, casino optimization. The job brings together analytics, operations and strategy, identifying ways to increase revenue and reduce expenses. “We focus on product, pricing, floor positioning, game rules, labor efficiency, reinvestment, offer strategy, capital budgeting and a variety of other topics,” Wilcock says. He’s faced his share of challenges, chiefly during the Great Recession, when he worked as direct marketing manager. “We turned the marketing engine on full-blast. I was also working on my MBA at the University of Nevada, Las Vegas, so there were a lot of late nights. But hard work will help overcome challenges and you come out smarter and stronger,” he says. He was fortunate to connect with many mentors. Jim Thomason, who gave him his break-in job as a front desk intern at the Monte Carlo. During his senior year of college, he interviewed with Dawn Griffis, who oversaw resort marketing reservations at Wynn Las Vegas. “She took a chance on me,” Wilcock says, “and gave me a call center job about a month after Wynn opened.” Also at Wynn, Wilcock found mentors in Rob Oseland, Tom McMahon, Pete Landi and Andrew Pascal. He worked closely with Tyler Bain, Mike Volkert, Lance Gautreaux and Varun Nayak. “These people were willing to have long discussions and debates around why we do things and how we can improve,” he says. “They provided me with opportunities, but also helped me develop the mindset that extraordinary results come from challenging the status quo.” But the person most responsible for shaping Wilcock’s career is his father. “He spent decades working at resorts on and off the Strip. He’s done his best to pass his knowledge and experience on to me,” says Wilcock, who relaxes each day by playing classical piano. Wilcock doesn’t care to predict his future. “Throughout my career, when I’ve least expected it, an opportunity presented itself that changed my path,” he says. Wilcock’s father offered four pieces of advice when he started out; in turn, Wilcock would like to pass on that knowledge to those entering the business: Don’t turn down a shift. “Many people start out working on-call like I did. When your supervisor calls you to fill a shift at the last minute, do everything possible to accept.” Find a mentor. “Good supervisors and managers are happy to teach people, so don’t be afraid to ask questions and reach out.” Become the go-to person. “This is especially important in stressful situations. Make sure you can be relied upon.” Don’t make things up. “It’s best to know the right answer, but if you don’t, say, ‘I’ll find the answer and get back to you as soon as possible.’” —Bill Sokolic

most closely tied to the employee owners’ experience with the company,” Patel says. Despite the apparently seamless transition into Eureka, Patel faced her share of obstacles, the most critical being learning on the job. So many of the tasks she worked on at the outset were completely new to her, working in a new industry. Patel depended on two mentors, Lee and COO Andre Carrier. Their leadership through good times and times of crisis is unparalleled, she says. “I learned so much regarding innovation, leadership, problem-solving, and service to the communities which we serve, from working for them both. “As I look back,” she adds, “I couldn’t have asked for a better way to acquire the knowledge I have today. I didn’t have the time to question my ability to do the tasks. It was a case of, ‘Do or do not. There is no try.’” Patel is still surprised by her job, and no two days are ever the same, a situation she relishes. The Covid-19 crisis showed her the importance of being adaptable and leading through change. She considers Eureka her home. Her goal is to move forward in the next five years, being on the front line of new projects and pushing the organization to improve. Similar experiences await anyone interested in the legal side of the gaming industry, she says. “The Las Vegas legal community is unlike any other I know. I found everyone to be extremely willing to help and welcoming, especially as a young, new lawyer in town.” Opportunities abound to meet colleagues, from joining the Clark County Bar Association to attending CLE sessions. “Most importantly,” she says, “work for a company where you share the values of the organization and are part of something larger than yourself.” —Bill Sokolic

MAY 2020 www.ggbmagazine.com

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NEW GAME REVIEW by Frank Legato

Silent Hill

Konami Gaming

onami Gaming is releasing a video slot recreating one of the legendary video games released by the slot-maker’s parent company, Konami Holdings Corp., the blockbuster 1999 release Silent Hill. The game, also the subject of a 2006 psychological horror film, centers around an abandoned town that is host to supernatural subterranean creatures. To capture the style, Konami offers it on its new Dimension 49J cabinet, featuring a J-shaped 49-inch portrait monitor that displays 3D images of characters, scenes and encounters from the video game. Immersive merchandising packages include floor-to-ceiling banks. There are two inaugural games in the series, Silent Hill: Escape and Silent Hill: Return. The base game is a 1,024-ways-to-win video slot featuring a five-level progressive. In the primary game, if the Silent Hill logo lands on a “Blue Fog” spot, a credit prize or bonus game is awarded. If the logo lands in “Red Fog,” it triggers a progressive bonus event. Called the “Stay and Spin” bonus game, it also can be triggered by a roaming “spirit” on the reels. Three free spins are awarded at the start. With each spin, credit prize symbols and blank symbols appear. Any credit prize symbols

that land at the end of a spin are held over to the remaining spins, which reset to three. If all positions are filled within the spins, one of the five progressive jackpots is randomly awarded, with the top prize resetting at 1 million credits ($10,000 in pennies). There also is a separate free-game feature, in which three, four or five bonus symbols trigger 12, 15 or 20 free games, respectively. During the free spins, the strange spirits expand across multiple symbol positions and randomly bolt across the reels, increasing the odds for credit prizes and bonus events. Manufacturer: Konami Gaming Platform: Dimension 49J Format: Five-reel, 1,024-ways-to-win video slot Denomination: .01, .02, .05, .10, .25, .50 Max Bet: 750 Top Award: Progressive; resets at 1 million credits times denomination Hit Frequency: 33% Theoretical Hold: 6%-15%

Wealth of Coins: Golden Happiness Aruze Gaming

his new game on Aruze’s Muso Curve 43 cabinet features four progressive jackpots and a unique reel array. The base game is a five-reel, 34-line video slot presented on a 6-7-7-7-6 array (six symbols on the outer reels and seven symbols each on the three inner reels). During primary-game play, when one or more the “bag of gold” wild symbols land, it can randomly trigger one of several wild features or a Jackpot Feature bonus game that leads to one of the four progressives, which have reset levels of $10 (Mini), $25 (Minor), $800 (Major) and $10,000 (Grand). The wild features are Random Wild, in which up to six randomly determined symbol positions on reels 1, 2 and 5 and up to 7 symbols on reels three and four change to the wild symbol, and the pay is re-evaluated. In Wild Swap, any position with a royal symbol changes to a wild symbol. In Reels Wild, all symbol positions on two to three reels change to wild symbols. In the Jackpot Feature, the screen transforms into a field of 12 gold discs. The player selects discs until matching three symbols corresponding to one of the four jackpots.

Global Gaming Business MAY 2020

There also is a separate free-game feature. Three or more scattered money sacks trigger eight free games. Manufacturer: Aruze Gaming Platform: Muso Curve 43 Format: Five-reel, 34-line video slot Denomination: .01 Max Bet: 880 Top Award: Progressive; $10,000 reset Hit Frequency: Approximately 40% Theoretical Hold: 4.08%-14.75%

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MAKING MY POINT

Seeing It Through All golfers know you have to carry your swing through to the end— a lesson to be learned in today’s environment

iger Woods’ swing, back in his younger days at least, was like the coiling of a cobra at a mongoose and then—BAM!—the uncoiling of a mousetrap when something nibbled the cheese. Arnold Palmer, on his follow-through, cocked his head to the side, the way a dog does when you eat invisible food. As for John Daly— well, he was famous for just gripping it and ripping it. And infamous for sipping it and, when standing over a 3-foot putt, yipping it. Snowflakes are like golf swings, is how the saying should go, because, if anything, the latter are more distinctive than the former. Nicklaus, Lee, Furyk, Lee, Wie, Lee, Mickelson, et al. have etched their names on trophies and jugs with a unique chain reaction of shoulder turns, wrists cocks, weight shifts and forearm rotations. Given this, you might think there are an infinite number of ways to hit a golf ball and make it go where you want it to. And yup, you’d be . . . wrong. Dead wrong. Wrong like Roberto (“What a stupid I am”) De Vincenzo at the ’68 Masters, when he missed out on the playoff by writing down the wrong score on the penultimate hole. Because all these swings have things in common. Regardless of how they get to impact, whether it’s outside-in, inside-out, casting, pronating, supinating, lagging, all wristies, no wristies or laid off, impact is identical. Hands slightly ahead of the ball, and head slightly behind it. Weight shifting to the front foot. Spine angle intact. At the moment of truth, the moment of contact, the differences evaporate into conformity. Such TaylorMade comparisons are tailormade for the business world. As with swings and snowflakes, no two leadership styles are identical. You’ve got the wild-and-crazy guy (think Richard Branson), the frank-talking communicator (Ginni Rometry), the guru (Steve Jobs), the brainiac (Bill Gates), the sage

By Roger Snow

with age (Warren Buffet), the young buck (think Zuck), the empowerer (Meg Whitman), and the swashbuckler (think Elon Musk). Yet, despite the disparate natures of their outward appearances, their speaking styles, their social skills, their flamboyance or lack thereof, all great leaders, like all great ball-strikers, have one thing in common: They see their visions to all the way to the end. *** “I believe this nation should commit itself to achieving the goal, before this decade is out, of landing a man on the moon and returning him safely to earth.”—John F. Kennedy, 1961 True, whether you’re launching a spaceship or launching a toothpaste or launching a marketing promotion, you need a vision. But that’s not all you need. You must also implant that vision into the heads of everyone involved. Hence the old tale—whether tall or true—about the time Kennedy was at NASA headquarters in Washington, and saw a janitor mopping the floor. “What do you do here?” Kennedy asked. And the janitor, without hesitating, replied: “I’m helping put a man on the moon.” Not only do visions need accomplices, they also need timetables. Otherwise, they’re nothing more than fantasies. Take a second and go back to that Kennedy quote. He said we will put a man on the moon before the end of the decade. Not maybe one day. Not perhaps in the future. Not when you folks get around to it. By the end of the decade. Or, if you’re less of an aerospace buff and more of a cinema buff, think of the scene from The Shawshank Redemption, when the warden learns Andy Dufresne—a man falsely imprisoned, a man that knew all the sordid secrets about Shawshank, secrets that would put the warden himself behind bars—had escaped sometime between lights-out and daybreak. The warden, standing in Dufresne’s cell with a couple of prison screws, eh, guards,

made his vision as clear as the vein popping out of his forehead. “I want him found,” he says. “Not tomorrow. Not after breakfast. Now.” All leaders have visions. Even mediocre leaders can sometimes have great visions. But the truly great leaders, the ones that endure in lean times as well as fat ones, not only have these big, bold, ambitious visions, they also create a sense of urgency around their execution. Remember that nothing sharpens the mind like a deadline. If you want your vision realized, you need to turn over the hourglass, so everyone involved can see the grains of sand falling away, time that can never be reclaimed or recovered. And there’s one last thing to keep in mind, and it bears repeating. Repeating. Repeating. It’s not enough to tell your team once what you want them to do and when you want it done. You have to reinforce the message. Constantly. Unfailingly. Unflinchingly. Kennedy, up until the day he was assassinated, constantly spoke of this vision to put a man on the moon. It became ingrained into the national psyche, to the point where it wasn’t something out of a Jules Verne novel, but a foregone conclusion. Not only would we do it, but we would do it soon. This constant repeating, repeating, repeating made the vision seem real, long before it was ever realized. Makes it seem like something that is supposed to happen. Makes it seem preordained. Makes it seem, well, like destiny. Roger Snow is a senior vice president with Scientific Games. The views and opinions expressed in this article are those of the author and do not necessarily reflect the views and opinions of Scientific Games Corporation or its affiliates.

MAY 2020 www.ggbmagazine.com

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GOODS&SERVICES SUPPLIERS STRUGGLE, ANALYSTS REACT TO COVID-19 CRISIS

tock analysts covering the gaming industry have been paying particular attention to the supply sector, which was sent reeling as sales ground to a halt and their customers shut down for the duration of the Covid-19 pandemic. IGT, Scientific Games, Everi, AGS and others recently announced various levels of furloughs affecting employees across their markets. Gaming analysts have been adjusting earnings estimates as stock prices dipped and opportunistic investors decided when to snatch a bargain. Reports from analysts drew grim outlooks for the near term in the supply sector, but indicated most stand a good chance of recovering if the pandemic is over by the third quarter. A report from Caterer Goodman Partners on Scientific Games said the supplier could be a victim of its debt load unless one of a few options can bail the company out. “We list a few options SGMS has to avoid Chapter 11 by the end of Q2, but most seem likely to damage the long-term future,” the report said. “SGMS is a pass from us, and should the shutdown continue into June or longer, it is likely to be a short opportunity. “SGMS’s interest costs have exceeded cash flows for many years, despite steadily increasing EBITDA. Just last year we wrote that debt remained too high. Now it might be deadly... For our money, SGMS is a definite pass and is almost an excellent short opportunity.” Meanwhile, CDC Gaming Reports published research notes from Eilers and Krejcik Gaming principal Todd Eilers evaluating International Game Technology, Scientific Games and AGS. Eilers wrote that he does not expect commercial and tribal casinos to begin reopening until the middle of May, and most won’t return until July. “We are also assuming that player demand does not immediately return to prior levels and gradually improves throughout the year,” Eilers Todd Eilers wrote. Eilers told investors revenue estimates for the rest of the year for Scientific Games will be off by at least 8 percent, and as much as 20 percent for AGS. He estimated IGT will see a $1.2 billion drop in revenues. However, he believes all three companies

Global Gaming Business MAY 2020

will bounce back in 2021. “Our new model assumes a cash burn in the first half of 2020 and a return to positive free cash flow generation in the second half of 2020,” Eilers said. Eilers also wrote that IGT and Scientific Games stand to receive a short-term boost from soaring online gaming and social casino play. In March, Scientific Games announced an undisclosed number of furloughs, and pay and work-hour reductions for other staff. Top executives of several suppliers announced they would forego some or all of their salaries to preserve liquidity.

TCSJOHNHUXLEY MAKING FACE SHIELDS FOR HEALTH CARE

able game supplier TCSJohnHuxley has switched its production facility from manufacturing gaming equipment to produce disposable face shields for health care professionals on the front lines of the fight against Covid-19.

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GAUSELMANN GROUP BUYS MAJORITY STAKE IN BEDE GAMING TCSJohnHuxley engineers retrofitted an existing machine to produce the face shields

TCSJohnHuxley realigned the 3D printer at its Development Division in York, England to produce the much-needed plastic face shields for the National Health Service (NHS). It was anticipated the company would produce hundreds of shields over a span of weeks, filling the gap until larger manufacturers had injection-molded versions ready. “I am proud of our product development team that highlighted we could pivot our manufacturing capability to produce much-needed (personal protective equipment),” said TCSJohnHuxley Executive Chairman Tristan Sjöberg. “We are very pleased to be able to contribute ever so slightly to keep the NHS heroes, who risk their lives on the line every day, a little bit safer.”

ARUZE INTRODUCES NEW GAMES ON MUSO CABINETS

ruze Gaming has launched three video slot games on its Muso cabinet series. Cai Fu Yun Dragon, Cai Fu Yun Fortune and

he Gauselmann Group, the German amusement giant and parent company of Merkur Gaming, has bought a majority stake in Bede Gaming, a U.K.-based online gaming platform supplier. The acquisition will help Gauselmann increase its digital presence and gain a foothold in the North American lottery market, where it currently is a partner to the Ontario Lottery and Gaming Corp. Founded in 2011, Bede develops and markets gambling platforms and software to online casinos, online bingo operators and lotteries in regulated markets. Its system allows operators to integrate any third-party software into the platform or use its tools directly. Following the close of the transaction, Bede planned to operate as an independent business unit within the Gauselmann Group, maintaining its offices in the U.K., Bulgaria and Canada. “This acquisition will allow us to significantly broaden the existing technology base within the group, and at the same time enable us to offer it to our customers and partners,” said Paul Gauselmann, CEO and founder of the Gauselmann Group.

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Joe Saumarez-Smith, chairman of Bede Gaming, added, “We are delighted that the Gauselmann Group has acquired a majority stake in Bede. Gauselmann’s long-term prospects and financial strength will allow us to further enhance our range of products and services to existing customers as well as win new business partners.”

EVERI CEO FOREGOES SALARY

he management and board of directors of gaming supplier Everi Holdings Inc. have implemented measures “to maintain balance sheet flexibility and preserve liquidity,” given the disMike Rumbolz ruption caused by the Covid-19 virus and resulting casino shutdowns. In April, the company announced targeted furloughs and company-wide salary reductions. It also drew down $35 million on its revolving credit facility to provide additional near-term liquidity and canceled or delayed material capital expenditures. Everi President and CEO Michael Rumbolz cut his salary to zero and the executive team elected to reduce their salaries by 70 percent. The effect of those actions lowered the company’s future cash payroll expenses to less than $2 million per month. “As we face the challenges presented by Covid-19, the health and welfare of our teams, our customers, their guests and people everywhere are of our utmost concern,” said Rumbolz. “With essentially all revenue and the associated workload having been reduced to near zero and limited visibility as to when our customers may reopen for business, we have taken decisive actions appropriate for the current level of business and to prepare our company to withstand a potentially prolonged period of minimal industry activity.” He said the layoffs “are the appropriate steps to preserve our liquidity and manage our business in the current environment. “We expect these to be temporary but prudent steps, designed to ensure that Everi is best positioned to withstand this disruption and will be prepared to support our customers once they begin to reopen their facilities. We are also reviewing options to obtain additional capital resources on acceptable terms to provide additional financial flexibility.” Rumbolz said he and others at the company look forward “to resuming normal operations as soon as conditions permit and regaining our pre-

pandemic momentum to get back on track for a bright and successful future.”

JUMBO TECHNOLOGY TO PROCEED WITH 2020 LAUNCHES

aiwan-based slot supplier Jumbo Technology will move ahead with plans to release a series of new products to celebrate its 20th anniversary, despite worldwide shutdowns due to the Covid-19 pandemic. Jumbo hopes to help re-energize the market upon resumption via a new Long Yi Fa Jackpot Link and its Fortune Treasure slot game. “Players can now enjoy more betting autonomy with the multi-denomination feature and multiple ways to trigger the Grand Jackpot,” Jumbo said in the statement. “The Long Yi Fa Jackpot Link also has a Rising Dragon free game option which continues some features from the popular Yi Lu Fa Jackpot Link, such as multipliers and free spins. The game’s fascinating animations with stimulating audiovisual design will certainly attract more attention and players.” Jumbo said it is continuing to provide essential technical support and services to its customers during the coronavirus crisis and is committed to the safety of its employees and partners.

Jumbo has more than 12,000 machines deployed in more than 200 casinos and clubs around the world.

RESEARCH: CASINO EMPLOYEES NOT A HIGHER GAMBLING RISK

new study has concluded that casino workers are at no greater risk for developing gambling problems than the general public, and in fact, that exposure to gambling products can in some cases lower the chances of gambling addiction. The study, conducted by gaming academic Sudhir Kale and two problem gambling researchers, Zhonglu Zeng and David Forrest, was published in the Journal of Gambling Studies. It was aimed at debunking the belief that casino employees are at greater risk of problem gambling, a belief held by governments in a number of jurisdictions in Asia. “The results of our study instead suggest that indicators of heavy gambling involvement among casino employees were no higher than among other residents of Macau. In terms of gambling frequency, casino employees actually played less often than the general adult population in China’s gaming mecca,” said Kale, speaking to casino.org.

MAY 2020 www.ggbmagazine.com

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FRANKLY SPEAKING by Frank Legato

Corona Blues

Global Gaming Business MAY 2020

good pay schedules in Atlantic City. Online gaming is great, and it’s keeping at least part of the industry afloat right now. But I do love the live version. However, the live version may not be the same as before once the casinos open. My colleague and fellow wisecracking columnist, Roger Snow, put up a great piece for GGB News about what it’s going to be like when the casinos all power up again. I don’t like it. I might not be able to cram into a crowded craps table and high-five my fellow players, all gritty and smelly as we cheer a hot roll. (OK, I’m not smelly, but some are. You know who you are.) I can’t see myself elbow-bumping the guy next to me when someone’s on a hot roll. It just seems like it would take too much effort, and by the time we both maneuver ourselves so we don’t breathe on each other while we do it, the thrill will be gone. Heck, maybe the shooter sevens out before we even get the celebration elbow-bump done. Roger Snow thinks buffets are going to be extinct when the casinos power back up. I’m pretty sure I can live with that. After what we’ve been through, I can’t really see myself hanging around any food-service business that requires a sneeze guard. Also, the “all you can eat” concept always seemed a bit nauseating to me—you pay one price to see how much food you can cram in your face before it starts pushing against your esophagus. I can live without a buffet. But not a coffee shop, please. One of the things I find myself missing greatly right now is having someone refill my coffee cup, bring me my eggs, and call me “Hon.” And in a casino, I can do that at 3 a.m., for comfort after leaving a bunch of dollars on the felt or in a machine. There hopefully will be more goofy stories coming out of the industry soon on which I can “crack wise,” as they say. For now, though, I’m opening up my crate of old oneliners to pull me through: Man in Mask No. 1: “You know, I have a lousy memory.” Man in Mask No. 2: “Do you?” Man in Mask No. 1: “Do I what?” Stay safe out there. VICT OR RIN ALDO

id you ever wake up in the morning and just know you’re going to be drinking early? Too many of those days lately, what with us all sequestered in our homes. I can still work, as evidenced by the fact I’m actually writing a column right now. But after work, I’m wondering how many more times I can binge-watch all six seasons of Justified (I highly recommend it), not to mention reruns of Perry Mason and The Flintstones. Yabba dabba doo. Even going to the grocery store is different now. Everybody’s wearing masks. Half of them look like they’re about to scrub up to do a bowel resection, and the other half, using bandanas, look like they’re about to knock off a convenience store. As I write this, it is April, right before Easter, right when Atlantic City is usually gearing up for the return of springtime crowds. This is when I normally increase my frequency of stays at Atlantic City casinos, or maybe make a spring trip to Las Vegas to play $5 craps, in between watching baseball and hockey. No craps. No baseball. No hockey. No action, other than betting the over/under with my wife on how much dog poop I’ll collect in the back yard on a given day. Any takers? I’ll give you odds. Speaking of over/under, Hard Rock in Atlantic City is running a new promotion on its online casino, HardRockCasino.com. It’s called the “Hard Rock Heat Streak.” You can log in every day, look at a list of cities, and make a free over/under pick on the forecasted high temperature. There’s a list of rewards for consecutive correct picks, ranging from 20 free spins on an online slot for three in a row to 15 percent cash back on net iGaming losses for 25 or more correct over/under temperature picks in a row. Yes. It’s come to this. It’s certainly clever, and I do have access to online gaming, but as I’ve said before in this space, I’m not much of an online gambler. I like to get down and dirty with real folding cash—the moolah, the filthy lucre—on the table, or in the bill acceptor of a video poker machine. Lately, I’ve been going on videopoker.com a lot, just practicing my strategy as I wait for the day I can go back to treasure-hunting for

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PEOPLE CASINO MAGNATE KERZNER DEAD AT 84

n March 21, Sol Kerzner died of cancer at his home in South Africa. Born in Johannesburg, the son of Russian immiSol Kerzner grants studied to be an accountant, but in his mid-20s took a sharp right turn and bought an inn in Durban, South Africa. He then transformed the shabby property, the Astra, into one of the most popular hotels in the area. It was the start of a remarkable career that spanned six decades. With a combination of intelligence, moxie and vision, Kerzner far outstripped his peers to become one of the most influential entrepreneurs in South Africa and the world. Among his most notable achievements was the founding of two major hotel groups, Southern Sun and Sun International, which turned his home country into a tourist destination and earned him the name “the Sun King.” Kerzner may be best remembered for his ambitious Sun City resort project, arguably the first integrated resort. Starting in an undeveloped section northeast of Johannesburg, he built four hotels, a man-made lake, two Gary Player golf courses and a 6,000-seat entertainment venue that hosted artists like Frank Sinatra as well as world title fights. According to Forbes, “Kerzner defied the naysayers to train a best-of-breed workforce and to operate Sun City on a totally non-racial basis.” In 1994, Kerzner bought Paradise Island, a resort in the Bahamas, and turned it into the Atlantis, with 2,300 rooms and the Caribbean’s biggest casino. He later developed Atlantis resorts in Dubai and China. Over time, his influence extended to China and the United States. In 1996, working with his son, Butch, Kerzner built Mohegan Sun, his first U.S. development and one of the first significant tribal resorts, owned by the Mohegan Tribe of Connecticut. Kerzner retired in 2014, having made his mark in markets around the world. Looking back on his career, he said, “For me, it’s been an interesting journey. I have had tough times and good times and through it all, I’ve been determined to get it done. I can’t imagine doing anything else; it’s been a blast. Every day that I spent in business was a joy.”

GAMING SUPPLY EXECUTIVE BOB McMONIGLE PASSES AWAY

n March, the gaming world mourned the passing of former IGT executive Bob McMonigle. McMonigle, 75, succumbed to complications of injuries sustained in an accident. Bob McMonigle After graduating from Southeast Missouri State College in Cape Girardeau, McMonigle went to work in the magazine business in New York City, doing stints with Readers Digest, Rolling Stone and Outside magazines. He worked as an executive in the magazine distribution business from 1979 to 1986, then joined a small but growing slot company, International Game Technology. Under the leadership of Chuck Mathewson, McMonigle and a powerful team built IGT into the dominant company in the business for almost two decades. McMonigle later worked for several other gaming companies, including Gardner Wells/AGT, Suzo Happ, and finally Aristocrat Technologies, where he was employed as a consultant at the time of his death. He helped to found the Association of Gaming Equipment Manufacturers, which today represents more than 175 companies that serve the gaming business.

FORMER NIGC COMMISSIONER NORM DESROSIERS DIES

orm DesRosiers died in March after a short illness. DesRosiers was a regulator in Indian gaming for most of his career, which was highlighted by his term as vice chairman of the National Indian GamNorm DesRosiers ing Commission (NIGC) from 2007 to 2010. He served as a commissioner for several tribes, including the Buena Vista, Otoe Missouria, Graton Rancheria, Picayune Rancheria of Chuckchansi, Viejas band of Kumeyaay and the San Manuel Band of Mission Indians. He also served as an executive director of the San Carlos Apache Tribal Gaming Commission. In addition, DesRosiers worked for the Fort McDowell Yavapai Nation’s gaming commission as a supervisor of inspectors. DesRosiers was a Vietnam veteran and was honored with a Purple Heart. He was active in his community and in many different Native American organizations.

SANDOVAL LEAVES MGM FOR UNIVERSITY POST

rian Sandoval, former Nevada governor, is moving on from his role as president of global gaming development for MGM Resorts to become president of the University of Nevada, Reno, of which Brian Sandoval he is an alumnus. He had been leading MGM’s campaign to obtain an integrated resort license in Japan in partnership with ORIX Corp. That process has been delayed at least six months by the Covid-19 pandemic. MGM recently underwent a management shuffle. It began at the top with the departure of CEO Jim Murren on March 22, and his replacement by Bill Hornbuckle as acting CEO. Sandoval served two terms as Nevada governor and joined MGM in January 2019. Before that, in 2010, he was a U.S. district judge and the chairman of the Nevada Gaming Control Board.

SEGA SAMMY NAMES NEW CEO

apan-based gaming machine manufacturer Sega Sammy welcomed a new chairman and CEO on April 1. Scott Winzeler, former head of a group subsidiary, Sega Sammy Creation USA, will now oversee SSC’s global operations. He has more than 25 years of experience in the gaming industry and has held multiple executive positions, such as managing director of IGT Asia and IGT Japan.

GGB

May 2020 Index of Advertisers

AGEM . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 American Nonsmokers Rights Foundation .19 Aristocrat Technologies . . . . . . . . . . . . . . . .7 Aruze Gaming . . . . . . . . . . . . . . . . . . . . . . .2 Casino Player Media . . . . . . . . . . . . . . . . . .51 Dickinson Wright . . . . . . . . . . . . . . . . . . . .25 Emerging Leaders . . . . . . . . . . . . . . . . . . .41 Empire Technological Group . . . . . . . . . . .33 Erin O'Boyle Photographics . . . . . . . . . . . .24 Everi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 Fantini Research . . . . . . . . . . . . . . . . . . . . .47 G2E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29 HBG Design . . . . . . . . . . . . . . . . . . . . . . . .17 iGamingPlayer . . . . . . . . . . . . . . . . . . . . . .37 Interblock . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Konami Gaming . . . . . . . . . . . . . . . . . . . . .52 UNLV . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27

MAY 2020 www.ggbmagazine.com

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CASINO COMMUNICATIONS

Bill Miller President & CEO, American Gaming Association

he American Gaming Association played a crucial part in the passage of the CARES Act, which provides relief for the gaming industry in this critical crisis. On March 30, AGA President and CEO Bill Miller talked with GGB Publisher Roger Gros from his home in the Washington, D.C. area, to discuss how the process evolved and how the industry reacted. This interview was conducted prior to the Small Business Administration announcement it would ban small gaming companies from participating in the Payroll Protection Plan. For a full transcript of this interview, visit GGBMagazine.com.

GGB: Are you satisfied with the way the gaming industry was handled with the CARES Act?

Miller: Yes. It’s a terribly difficult time for the industry. For all intents and purposes, the entire gaming industry across the country is shut down right now. Our estimation was 650,000 direct employees and 350,000 small businesses that are part of that ecosystem, whether it’s in Las Vegas or Washington, Pennsylvania, or in Indian Country in Tulsa, Oklahoma. And then the suppliers and manufacturers are suffering just as badly. So across the industry, there’s a lot of pain. A lot of tough decisions have to be made by our member companies and their leadership. The dynamic of that is, if you don’t have any revenue, it’s kind of hard to continue to keep people on payroll. There was a chart (see page 6) published recently that puts the gaming industry right below airlines in terms of how brutally it would be impacted by the virus. And that’s certainly been the case.

It has. When going up to the Hill, we had great representation and advocacy by the Nevada delegation, but we also had a parade of advocacy by a number of other members of the Senate and House, on both the Republican and Democrat sides. They recognize the importance of our industry in the states they represent. That’s really important. 50

Global Gaming Business MAY 2020

We’re an industry that’s now in 43 states. And because of that, it wasn’t so terrible that we don’t have a figure like Harry Reid (former Senate majority leader and Nevada senator) to rely on. But I have to compliment the great work that the two Nevada senators and congressional delegation did. And because of our economic and community footprint around the country, we were able to draw on support from people from Pennsylvania, Louisiana, Mississippi, Ohio, Michigan—members willing to step up on our behalf at a time when it was needed. Your staff did a great job handling the optics on this. As you said, in the past we’ve been left out of some stimulus and aid bills because of anti-gaming rhetoric.

I think our team did exceptionally well. Our GR (government relations) folks were on it. I was making phone calls into the administration, talking to people on the Hill, trying to understand specifically which provisions were most beneficial to different elements within our membership. With a membership as diverse as ours— commercial, tribal, suppliers and manufacturers, companies that are domestic, international and regional or Vegas-based—trying to coalesce around a limited number of highly beneficial provisions is not always the easiest thing to do. And I would argue that in the past, infighting among people in the industry has hurt its ability to speak with one voice. In this case, both our team internally and the collective of the AGA membership really acted with a unified voice and with aligned priorities. And I think it really helped us. When did the AGA first come to grips with the fact that all U.S. casinos would close?

I remember going to Chicago to meet with Rush Street CEO Greg Carlin in March. It was

“Across the industry, there’s a lot of pain. A lot of tough decisions have to be made by our member companies and their leadership. The dynamic of that is, if you don’t have any revenue, it’s kind of hard to continue to keep people on payroll.” the day the Ohio governor was considering closing the casinos in his state, and the day after the governor of Pennsylvania began to talk about restricting gatherings of 250 people. I remember Greg and I talking about J.B. Pritzker, the governor of Illinois, who was also considering this. I came to the conclusion, probably on that day, that these dominoes were going to fall. One state may hold out longer than another state, but ultimately when these governors began to make these decisions around 250 people or 100 people or 50 people, we were in the crosshairs of that dynamic. It would be hard for us to remain open under what was increasingly an effort to reduce the number of people congregating in any place. What’s the AGA role going to be as we move toward reopening?

I think that we have multiple responsibilities right now. One is to make sure that all of our members understand what was in the CARES Act, and how they can participate and benefit from it. We’re going to be a 24/7 customer service center for our members to help them access benefits. Secondly and more importantly, when do you begin the process of understanding the American customer and what they need? What confidence do they need before they’re going to go to sporting events again? What will convince them to go to casinos and hotels and restaurants and have a good time? It’s important to understand those things, and sharing that with our members will be a very important exercise in advance of the opening back of America.

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