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OFFICIAL MAGAZINE GLOBAL GAMES AND GAMING MAGAZINE I DECEMBER 2015 I WWW.G3NEWSWIRE.COM I WWW.G3-247.COM INTERNATIONAL GAMING NEWS I KNOWLEDGE I STATISTICS I MARKET INFORMATION I DIGITAL AND PRINT WWW.G3NEWSWIRE.COM Brazil WWW.G3-247.COM - THE GAMING MEDIA VAULT Brazil’s Chamber of Deputies has taken the first 0 8 step in a wide ranging gambling study GeorGia CAI has launched its new casino in the recently opened Hilton Hotel Batumi 1 4 US The Fontainebleau Las Vegas has been put on the market by billionaire owner Carl Icahn 2 BRAZIL MARKET REPORT Sports-betting, lotteries, casinos, online, poker, horse-racing, the animal game and more... INTERACT WITH G3 VIA GOOGLE+, FACEBOOK, TWITTER, LINKEDIN, G3I AND G3NEWSWIRE APPS FROM THE APPLE STORE, GOOGLE PLAY AND BLACKBERRY WORLD 4 aUStralia Australian operator Crown Melbourne is adding 2 8 a brand new luxury six-star hotel tower Subscribe Subscribe at G3-247.com to read every G3 magazine, download every market report and much more... Download The latest magazine is available to digitally download via G3-247.com or via the App Store and Google Play Store Contents DECEMBER 2015 04 02 05 03 06 08 07 01 south aMerica News 01: BRAZIL Brazil’s Chamber of Deputies has taken the first step in a wide ranging study on possible legalisation of gambling eMea News 02: GEORGIA Casinos Austria International (CAI) has launched its new casino in the recently opened Hilton Hotel Batumi. – G3Newswire pg 08 – G3Newswire pg 14 01: BRAZIL The Minister of Tourism for Brazil has come out publicly in favour of the legalisation of casinos and bingo halls 03: CYPRUS APEX gaming has recorded the successful trial and installation of its Pinnacle gaming slits at Casino Savoy in Northern Cyprus – G3Newswire pg 10 – G3Newswire pg 16 01: BRAZIL Brazilian government has announced that it is now preparing a tender for the private sector to run its instant games division 04: BELGIUM Belgium’s Casino Ostend has reaffirmed its commitment to the MEI SC83 note acceptor from CPI into the future – G3Newswire pg 12 – G3Newswire pg 22 North aMerica News 05: NEVADA The $3bn Fontainebleau Las Vegas has been put on the market by its billionaire owner, Carl Icahn, for US$650m asia & oceaNia News 07: AUSTRALIA Australian operator Crown Melbourne is adding a brand new luxury six-star hotel tower to its Melbourne casino precinct – G3Newswire pg 24 – G3Newswire pg 28 06: TEXAS The Alabama-Coushatta Tribe of Texas has been approved to open a Class II gaming facility on tribal lands 08: TAIWAN It’s groundhog day for the citizens of Taiwan’s Penghu island as the local government seeks referendum re-run – G3Newswire pg 26 – G3Newswire pg 30 05: NEVADA Las Vegas’ Jerry’s Nugget Casino has selected Konami’s SYNKROS Gaming Enterprise Management System 07: AUSTRALIA Australia’s Tabcorp has been performing strongly with reported net profit for 2015 up 157 per cent on the prior year – G3Newswire pg 27 – G3Newswire pg 31 Gaming Publishing Samson House, 457 Manchester road, Manchester M29 7Br, United Kingdom G3Newswire.com delivers daily international gaming industry news and information, with the G3Newswire newsletter circulated three times per week to a 8,000+ database of gaming industry influencers WWW.G3-247.COM Brazil Market report NEW LEGISLATIVE FRAMEWORK G3 examines the evolving state of the gaming industry across South America’s potentially most explosive gaming market – G3247.com Report pg 38 LATIN AMERICA ONLINE GAMING REPORT The final part of G3’s examination of the online gaming markets across South America concludes with Peru and Uruguay – G3247.com Report pg 54 AGEM CELEBRATES MOST EFFECTIVE YEAR AGEM President Thomas Jingoli looks back on the most productive year ever for the international trade association - AGEM – G3 Interview pg 34 MiaMi - host to Juegos MiaMi show THE CAPITAL OF LATIN AMERICA Clarion Events, with partners Urban Expositions, have announced the launch of Juegos Miami, a new event for the Pan-Latin American and Caribbean gaming industry. World Partner to Clarion Events – Events pg 36 0 3 Comment DECEMBER 2015 We spend a lot of time at G3 studying markets and delivering reports and analysis from all parts of the world. Gathering information for our latest report on Brazil I came across a report from research company Maplecroft that listed the countries around the world with the worst records on human rights.The figures are part of an annual Human Rights Risk Atlas (HRRA) that makes sobering reading as it list 197 countries, ranking those with the worst rights records at the top of the list, and those with low human rights risk at the bottom. What I found interesting is that if you look at the list wearing a gaming hat, the most stricking things is the number of countries that outlaw gaming to protect its citizens are the same countries that have the worst records on human rights. Some of the countries that have recently been downgraded as ‘extreme risk’ countries, Ukraine, Thailand and Turkey, are countries that have banned gaming only to send their citizens to neighbouring markets or to illegal gaming sites with no protection within their own borders. There are obviously countries that ban gaming on religious grounds and those countries currently suffering conflict and upheaval that must be taken into account, but on the whole, the greater the level of gaming restriction - the higher the risk within that country of human rights abuses. While I wouldn’t suggest that gaming plays any part in reducing the risk of human rights abuses, I do think that allowing people the freedom to gamble is a recognition by a state that it IF YOU’RE A trusts its citizens to exert their own control over their actions. Many times I’ve heard the argument COUNTRY AT THE of intensive regulation being part of a nanny-state, TOP END OF THE which feels like a somewhat cosy and benign term for the governments of countries appearing at the HRRA LIST, IT’S top of the HRRA list. GUARANTEED THAT YOU’RE ALSO STRICTLY OPPOSED TO GAMING. If you’re a country at the extreme top end of the HRRA list, it’s pretty much guaranteed that you’re also strictly opposed to gaming. Race down to the very bottom of the list and you encounter the opposite spectrum of countries, those that allow all forms of gaming, especially across multi-channels, from Internet, land-based and mobile. EDITORIAL ADVERTISING Editor Lewis Pek [email protected] +44 (0) 1942 879 291 Commercial Director John Slattery Email: [email protected] +44 (0)7917 166471 News Editor Phil Martin [email protected] +44 (0)161 236 6669 Advertising Executive James Slattery Email: [email protected] +44 (0)7917 166471 Associate Editor (MALAGA) Karen Southall [email protected] Advertising Executive Alison Dronfield Email: [email protected] +44 (0)1204 410771 Consultant John Carroll (BILLERBECK) [email protected] South America Correspondent James Marrison [email protected] Contributors David Addison Jeremy Thompson Hill Dr. Damir Böhm 0 4 PRODUCTION Senior Designer Gareth Irwin Production Manager Paul Jolleys Subscriptions Manager Jennifer Pek Commercial Administrator John Pek The MEI SCR… Events DECEMBER 2015 January 12-14, 2016 EAG International Expo 2016 Location ExCeL London Exhibition Centre, London, United Kingdom Organiser Swan Events Office 10, Clare Lodge 41 Hollybush Lane Harpenden, Herts United Kingdom AL5 4AY Tel: +44 1582 767254 Contact: [email protected] Email: +27 86 427 4944 Web: www.eagexpo.com January 20-21, 2016 Mobile Games Forum London 2016 Made for Germany The German gaming market is amongst the most demanding in the world. The MEI SCR note recycler was designed to meet those challenges. Several features that will raise expectations for performance and fraud protection were created by applying feedback from German manufacturers and operators. The result is a faster, more secure way to manage cash. Now, finally, there is a note recycler that will set a new standard for machine uptime and total cost of ownership—for Germany and the rest of the world. Please contact your CPI sales representative to review how the SCR can help your customers achieve newfound performance efficiencies that improve their bottom line. Location 155 Bishopsgate, London EC2M 3YD, United Kingdom Organiser Osney Media 64 Great Eastern St, Shoreditch London, United Kingdom EC2A 3QR Contact: Will Robinson Tel: +44 20 7336 4600 Email: [email protected] Web: www.mgflondon.com February 1-3, 2016 ICE Conferences 2016 Location ExCeL London Exhibition Centre, London, United Kingdom Organiser Clarion Events Fulham Green, Bedford House 69-79 Fulham High Street London United Kingdom SW6 3JW Contact: Stuart Dacre Tel: +44 207 384 8114 Email: [email protected] Web: www.icetotallygaming.com/ conferences February 2-4, 2016 ICE Totally Gaming 2016 Technology that counts. CranePI.com Location ExCeL London Exhibition Centre, London, United Kingdom Organiser Clarion Events Fulham Green, Bedford House 69-79 Fulham High Street London 0 6 United Kingdom SW6 3JW Contact: Stuart Dacre Tel: +44 207 384 8114 Email: [email protected] Web: www.icetotallygaming.com/ conferences February 4-7, 2016 London Affiliate Conference 2016 Location Olympia London, Hammersmith Rd, London, W14 8UX Organiser iGaming Business Electric Word, 2nd Floor 5 Thomas More Square London United Kingdom E1W 1YW Contact: Alana Jones Tel: +44 207 265 4153 Email: [email protected] Web: www.igbaffiliate.com/events/londonaffiliateconference/ February 25-26, 2016 Georgia Gaming Congress 2016 Location Tbilisi, Georgia Organiser Smile Expo 11/10 Letnikovskaya Str Moscow Russia, 115114 Schedule: Conference: February 25, Business Tour: February 26. Contact: Lyudmila Machuskaya Tel: +7 495 212 1128 Email: [email protected] Web: www.g3congress.ru/en March 1-2, 2016 The Cash Handling Show Africa 2016 Location Sandton Convention Centre, Johannesburg, South Africa Organiser Terrapinn Ltd 1st Floor, Modular Place Turnberry Office Park, 48 Grosvenor Road, Bryanston South Africa 2021 Contact: Katherine Marriott Tel: +27 11 516 4015 Email: [email protected] Web: www.terrapinn.com/exhibition/cash-handling-africa/index.stm March 1-2, 2016 Irish Gaming Show 2016 Location Red Cow Moran Hotel, Dublin, Ireland Organiser Gaming and Amusement Publications 8 South Ring Business Park Kinsale Road Cork, Ireland Contact: Susan Feery Tel: +353 (0)87 609 0109 Email: [email protected] Web: www.irishgaming.ie 0 7 G3Newswire SOUTH AMERICA NEWS www.g3newswire.Com Deputies stuDy new legalisation Brazil’s Chamber of Deputies has taken the first step in a wide ranging study on possible legalisation of gambling Brazil - Legislation la Cámara De DiputaDos De Brasil ha DaDo el primer paso en un estudio de amplio alcance sobre las implicaciones de una posible legalización del bingo, los casinos y otras actividades de juego, con la integración de una Comisión Especial para examinar diez propuestas sobre el tema. El Comité Especial del Marco Regulatorio del Juego en Brasil se ha creado a petición del diputado Nelson Marquezelli (PTB-SP), quien aboga por la legislación como una forma de estimular la creación de empleo y el turismo en el país. el DireCtor Del Comité De Control Del Juego De Colombia (Coljuegos) ha anunciado una importante ofensiva contra el juego online, y ha enfatizado las ventajas que tendrán sobre el sector las nuevas normas que regulan las carreras de caballos a nivel local. El Comité de Control del Juego también ha anunciado planes para bloquear los sitios web de juego extranjeros que ofrecen sus servicios a los residentes locales. el ministro De turismo De Brasil, henrique Alves, se ha declarado públicamente a favor de la legalización de los casinos y los bingos. Confirmó que ya ha enviado un proyecto de ley al director de la Secretaría de Gobierno, Ricardo Berzoini, que será estudiado por el Ejecutivo. la empresa española De Juego Cirsa poDría estar apuntando hacia Brasil, ahora que el juego ha vuelto a ocupar el foco del debate en el congreso brasileño. El director gerente de la empresa en Brasil, Miguel Santesteban Zorrilla, declaró ante la prensa local que si no se legaliza el juego a finales de este año, la empresa estaría lista para aprovechar la apertura del mercado el próximo año. a fin De reforzar los ingresos para el Estado, el Gobierno brasileño ha anunciado que se encuentra preparando el procedimiento de licitación para que el sector privado gestione íntegramente el funcionamiento de su división de juegos de premio instantáneo. Actualmente, los juegos de premio instantáneo están siendo gestionados exclusivamente por Caixa (banco estatal de Brasil). el proCeso De ConsoliDaCión De las operaciones entre las empresas chilenas fusionadas Dreams y South African Sun International se pondrá en marcha en diciembre. El proceso de consolidación se desarrollará durante aproximadamente un año, en un primer período en el que la empresa invertirá hasta 10 millones de dólares, entre otras cosas, en el desarrollo de sistemas y la unificación de los jugadores. town anD County leisure, la empresa dedicada al juego y el entretenimiento con sede en Birmingham, se ha hecho con los derechos de distribución del sistema Ticket2Go líder del mercado de JCM FutureLogic, que ofrece a los establecimientos pequeños y medianos una solución para las máquinas de juego que actualmente no están conectadas a un sistema TITO. inspireD, el proveeDor líDer De virtual Sports, Mobile Games y SBG Video Lottery, ha anunciado hoy que le suministrará a SNAI acceso a su primera colección de productos de juego de Mike Tyson para el mercado del juego italiano. greentuBe, la uniDaD De negoCio interaCtiva de Novomatic, ha anunciado que ha alcanzado un acuerdo sobre contenidos con el Circus Group. 0 8 Brazil’s Chamber of Deputies has taken the first step in a wide ranging study on the implications of a possible the legalisation of bingo, casinos and other gambling with the integration of a Special Commission to examine ten proposals on the subject. The Special Committee on the Regulatory Framework on Games in Brazil has been created at the request of Deputy Nelson Marquezelli (PTB-SP), who advocates legalisation as a way to stimulate job creation and tourism in the country. The joint committee will analyse, among other topics, the legalisation of games via the Internet, slot machines and the popular street lottery known as the Animal Game. Referring to the UN: “Of 193 countries, gaming is already established in 177 of them. 200,000 Brazilians will play in other countries, in particular in Uruguay, Argentina, Chile and Paraguay. We cannot let the currency flow out of this country. We have 2.5 million people playing worldwide and we have to make these people come to play in Brazil,” Mr Marquezelli said. These sentiments were echoed by Deputy Elmar Nascimento who said: “We cannot ignore that gaming is a source of tourism revenue in the more developed countries.” The members of the committee estimate that the legalisation of gaming could generate revenue equivalent to more than half of the US$10.5bn that the government is currently attempting to raise via the so called Provisional Contribution on Financial Transactions (CPMF) plan which is aimed at balancing public finances. The minister admitted that the issue is still controversial and that the any pro gaming legislation will meet fierce resistance from religious groups. However, the news comes just days after the Minister of Tourism for Brazil, Henrique Alves, came out publicly in favour of the legalisation of casinos and bingo halls. The Minister confirmed that he had already submitted a bill to the head of the Secretariat of Government, Ricardo Berzoini, which will be studied by the Executive branch. The creation of the committee is the latest in a number of fast moving developments after President Dilma Rousseff sought out the opinion of lawmakers on their stance on the issue in August. In the conversation with legislators, it is believed that the President admitted that the government was considering allowing gambling in order to improve the economy and reduce the fiscal deficit. Colombia brings in new rules for Online and Horse Racing COLOMBIA The Head of The Colombian Gaming Control Board (Coljuegos) has announced a major crackdown on online gaming and emphasised the benefits new rules of the local horse race will have on the industry. The Gaming Control Board has also announced plans to block offshore gaming sites offering their services to locals. The new rules follow the largest crackdown in Colombian history on the land based sector with the board announcing that is has broken the record when it comes to the confiscation of illegal gaming equipment and machinery. According to head Cristina Arango, the board has so far confiscated 2,512 pieces of gaming equipment in total and imposed fines of US$13.6m so far this year. The board plans to block sites via local police agencies in what could herald one of the strictest polices again online gaming in the entire region. “We have identified around 200 sites and the idea is to control them via a program in conjunction with the Ministry of Technology and Information and the Cyber Crimes Police. With them we are setting up a similar scheme to the struggle against child pornography in order to block these gambling pages on football, poker and some online lotteries,” Cristina Arango said. She also went onto to outline the reason for the recent tax break for the horse racing industry and how it compared favourably on the tax rate for other popular games in the region such as Baloto – a lottery which runs twice a week and Super Astro – a lottery type game based around the signs of the zodiac. The Colombian Gaming Control Board is aiming to provide a new impetus to the industry by cutting taxes and extending licences. Amendments to Colombia’s horse racing laws will cut taxes to just one per cent from five per cent on gross sales, extend licences for 10 years and give local municipalities more say over the industry. “This rate is lower than Baloto which stands at 32 per cent and compared to sports betting which stands at 24 percent and Super Astro which pays 10 per cent. It’s a significantly lower rate as what we are trying to encourage is this type of business which involves large investments with coordination between horse breeders horse track operates, jockeys and track staff,” she said. In its heyday the horse racing industry employed over 40,000 people in Colombia but has been sharp decline with a total of eleven tracks closing over recent years and there are now only a handful of thoroughbred breeders left. G3Newswire SOUTH AMERICA NEWS www.g3newswire.Com minister favours new Casino law the Minister of tourism for Brazil has come out publicly in favour of the legalisation of casinos and bingo halls Brazil - Government Casino ostenD sigue reafirmanDo su antiguo compromiso de usar aceptadores de billetes MEI SC83 de Crane Payment Innovations (CPI), una empresa de Crane Co. La dirección de este complejo recreativo situado en la costa de Bélgica empezó a especificar el MEI SC83 en todas sus nuevas adquisiciones de tragaperras en 2003. el ConteniDo omniCanal pionero De playteCh se ha lanzado en toda la gama de productos de Mecca Bingo, incluidos sus nuevos dispositivos móviles Mecca Max que le permiten a esta marca líder ofrecerles a los jugadores la experiencia de juego definitiva. tras un aJuste en su estrategia De Desarrollo empresarial, el operador de juego con apuestas bajas Praesepe ha confirmado la venta del centro de juego para adultos Crystal Rooms ubicado en Leicester Square, en el centro de Londres, al vecino y galardonado Hippodrome Casino. el multimillonario inversor Carl iCahn le ha pedido a la empresa inmobiliaria de Los Ángeles CBRE Group que se deshaga del complejo de hotel y casino Fountainebleu, en su tiempo valorado en 3000 millones de dólares, y que muchos han descrito como «un dolor para la vista» en la zona norte de la Franja de Las Vegas. Juegos miami, el nuevo ConCepto De evento para el sector del juego pan-latinoamericano y caribeño (del 31 de mayo al 3 de junio de 2016, en The Biltmore, Coral Gables, Miami), está recibiendo un amplio apoyo de un número cada vez mayor de destacados actores en el mercado. el Departamento De interior De estaDos Unidos (DOI) y la Comisión del Juego Nacional India (NIGC) han dado luz verde para que la tribu Alabama-Coushatta de Texas abra un establecimiento de juego de categoría II en zonas tribales conforme a la Ley de Regulación del Juego de los Indios. synkros, el sistema De gestión De Casinos De Konami Gaming, ha sido elegido por el Jerry’s Nugget Casino, ubicado justo al norte del centro urbano de Las Vegas. el australiano star entertainment group le pagará al Gobierno de Queensland 272 millones de dólares en compensación por el derecho a desarrollar el casino y complejo recreativo Queen’s Wharf, que generará más de 1000 millones de impuestos estatales a lo largo de 10 años. gaming laBoratories international ha obtenido recientemente la acreditación como establecimiento homologado de ensayos de juego online por parte de la Comisión de Supervisión del Juego de la Isla de Man. la isla taiwanesa De penghu está tomanDo en consideración una vez más el desarrollo de un casino, y parece que los residentes se disponen a votar sobre el asunto después de las elecciones presidenciales en Taiwán, que se celebran el 16 de enero. las Cosas marChan Bien para el grupo De apuestas australiano Tabcorp, que registró para el ejercicio fiscal 2015 un beneficio neto después de impuestos de 334,5 millones de dólares australianos, lo que supone una subida del 157 por ciento con respecto al año anterior. 1 0 The Minister of Tourism for Brazil, Henrique Alves, has come out publicly in favour of the legalisation of casinos and bingo halls. He confirmed that he has already submitted a bill to the head of the Secretariat of Government, Ricardo Berzoini, which will be studied by the Executive branch. “I have delivered a proposal to minister Berzoini so that the Government can carry out a preliminary examination of this project, which I know is controversial,” Mr. Alves said in comments reported by news agency Agencia Brasil. Speaking during the meeting of the Business Leaders Group (LIDE), in Sao Paulo, The Minister said that he had studied the laws currently governing gambling in various countries, including Spain, Argentina and Portugal, before drafting his proposal. According to Mr. Alves, the proposal is still being discussed internally by the government of President Dilma Rousseff. As reported shortfall in taxes generated by Brazil’s struggling economy has prompted the government to cut budgets and raise taxes. Rousseff and several cabinet ministers met with party leaders from the alliance last month to discuss the issue to see if the new proposals would have their approval, according to statements made later by a number of lawmakers to local media. If the government finally green lights gaming it would be one of the most momentous moments in Latin American gaming history and could open up a huge and as yet largely untapped market. One of the arguments put forward by the Minister for a change in legislation is that gambling is already legal in most of the countries that are part of the United Nations. “Of the 194 countries that make up the UN, 156 have legalised gambling, and those who do not, 70 per cent of them are Muslim countries where there is a very radical feeling when it comes to the legalisation of gambling,” he said. However any debate on the issue is bound to cause controversy in Brazil especially amongst religious groups and will meet fierce resistance from evangelical MPs, who have a strong presence in Congress. Argentina Lottery Córdoba has now opened Ansenuza Hotel Casino and Spa in Miramar, a city on the coast of the Atlantic Ocean, south of Buenos Aires. The world-class venture has opened with a modern casino, spa, golf course with nine holes, a spa and 60 rooms overlooking the lagoon Mar Chiquita. The Governor of Cordoba, Dr. Jose Manuel de la Sota, the National Senator, Adriana Nazario and the Minister of Infrastructure, Manuel Calvo shared the ribbon cutting along with executives from Córdoba Lottery. Marta Zabala, Head of the Lottery of Cordoba, said: “The hotel is one of the best in the province, meeting the objectives of the Governor, who want other private investors to follow this initiative and improve their hotels for guests.” Legislative change inspires Cirsa to invest in Brazil market BRAZIL Spanish gaming company Cirsa could be looking to Brazil now that gaming is once again the focus of debate in the Brazilian congress. Managing Director of the company in Brazil, Miguel Santesteban Zorrilla told local press that if gaming is not legalised by the end of this year then the company would be ready to take advantage of the market opening up next year. “Everything will depend on the law that is passed,” he said. While the exact figures for Cirsa’s investment plan in Brazil were not revealed the executive said that he expected most of the investment would be in big cities with a lot of investment in the area aimed at reviving old historical casinos in Brazil. The state of Minas Gerais would naturally stand out due to the fact that it has a long history associated with gaming, he said. Mr. Zorrilla said that around 70 per cent of the public in casinos in Paraguay and in Dubai are Brazilian. “There are Brazilians everywhere,” he said. “There are also direct flights from Brazil to Las Vegas. All these people are not going to stop playing, or play any more if it is legalised. Brazil has the opportunity for all the money which people spend on casinos outside to now stay in Brazil,” he said. He also criticised the current ban on gambling in Brazil, because he said it does not prevent illegal gambling and pointed out that players can currently play via offshore betting sites. Legalising gaming would not, he said greatly increase gaming addiction as the new law would not be about primarily promoting gaming in Brazil but rather legalising what already exists. Illegal gaming remains a huge issue in Brazil. According to some estimates illegal gaming could be worth almost double of the R$ 11.1bn generated by legal gaming which is composed of R$ 10.4bn generated by Federal lotteries, R$400m generated by the state lotteries and R$300m by horse racing. Casinos were first banned in 1946 by President Eurico Gaspar Dutra. Before the ban Brazilian casinos were some of the most famous in the world and generated significant revenue. G3Newswire SOUTH AMERICA NEWS www.g3newswire.Com latam – igt galaxis for ColomBia anD Chile International Game Technology’s Galaxis enterprise systems solution, (version 980 HF 006) recently received certificates of compliance from Coljuegos in Colombia and from Superintendencia de Casinos de Juego in Chile. IGT’s Galaxis system is a versatile casino management solution designed to streamline casino operations and to attract, reward and retain players. The scalable system solution boasts a modular design and an open interface, allowing for optimal operator customization. IGT’s Galaxis system is a prominent system solution in gaming markets around the world, including multiple installations throughout Peru. Brazil privatises instant games Brazil’s government has announced that it is now preparing a tender for the private sector to run its instant games division Brazil - Legislation In order to strengthen revenue for the state the Brazilian government has announced that it is now preparing the tender procedure for the private sector to run the entire operation of its instant games division. Instants are currently managed solely by Caixa (Brazil’s state owned bank). It is understood that measures which authorise Caixa to buy stakes in other banks, either directly or through subsidiaries, are being used to pave the way for Caixa to create a new company to operate instant lotteries. “We are pleased to introduce IGT’s Galaxis system solution to our customers in Colombia and Chile,” said Marcel Heutmekers, IGT VP of Commercial Gaming International. “IGT’s Galaxis continues to drive efficiencies and augment the player experience in markets around the world and we’re confident that our customers throughout Colombia and Chile will find this solution complementary to the many other IGT products and services in their casinos today.” Superintendent of the National Lottery Gilson César Pereira Braga told press that the tender model for the entire chain of instant lottery games is a requirement for foreign groups and confirmed that he had met with gaming company Scientific Games as well as six other companies to discuss the matter. panama- novomatiC liCenseD to thrill Novomatic has been officially licensed to sell slots in Panama via its local representative company Novo Panamá. Novomatic said it will now be able to ‘strengthen its position in the Panamanian gaming market and significantly increase its current market share in the slot segment.’ Well in advance of the official start up the Novomatic brand had already created a demand for itself among the country’s major operators, meaning that the company started operational business with a list of orders already pending. To avoid having to change legislation, Caixa, which has a monopoly on lotteries in the country, will continue as be the official “owner” of the company, but the operation of instants Under the leadership of Managing Director José Teng, who has acquired extensive experience in the Latin American gaming industry, Novo Panamá will increase its footprint in the local market, offering excellent local sales services, technical support and spare parts provision as well as product analysis and a strong customer relationship management directly on site. José Teng is positive that the local operators appreciate the company’s commitment to first class product, service and support: “Our entire team is determined and eager to grow and to become the best gaming supplier in the country. And we have had an excellent start: It has been only four months since the opening of our offices and we have already sold a significant number of slots to leading casinos in Panama. This goes to prove that the market appreciates the Novo Panamá offering.” Since the country’s government privatised casinos in 1997, Panama has become a hotspot of the Central American casino industry and is even called by some the ‘Las Vegas of Central America’. The country’s strong economic performance and determined investments in infrastructure development have helped the gaming industry generate significant growth during recent years. Today the local gaming landscape boasts a strong and broad based gaming entertainment offering, that ranges from casino gaming to bingo halls, slot parlors, sports betting, horse racetracks and lotteries. The Panamanian gaming market currently includes some 15,000 slots and 200 live tables with further potential for growth. Official figures for the year 2014 state total gaming revenues of US$515.24m and gaming tax revenues amounting to US$96.1m. 1 2 including pre-production, production, logistics, telemarketing, sales and after-sales will go to a single company or a consortium of private companies. Currently, only the distribution of instant tickets by mail, and printing are outsourced. The company which is awarded the tender may, it is believed, be also permitted to expand the point of sale network currently in place for instant tickets. Instant tickets are becoming increasingly popular in Brazil. Sales increased by 26.5 per cent from US$ 56,935,494.84 in 2013 to US$ 72,107,753.34 in 2014. The news comes after the Brazilian Senate approved laws which would allow for two new sports betting lotteries in July. The first new lottery will be an instant called Lotex and will be based around the theme of local football clubs. Argentina Novomatic has announced a significant appointment to the management structure of the Group’s Argentine subsidiaries with Fabian Grous, Managing Director of the Group’s system specialist Octavian de Argentina, taking responsibility for AGI Argentina, as the company’s overall new Managing Director. This new appointment will further strengthen and enhance the management capability in Latin America. Fabian Grous is a gaming industry veteran who can look back on 22 years of experience in various positions within the Latin American industry. He started his career as a casino manager and in 2003 switched from the operational business to become a supplier at the foundation of Octavian de Argentina. Sun International and Dreams move to consolidate operations LATAM The consolidation process of operations between the merged Chilean companies Dreams with South African Sun International will start in December. The consolidation process will run for about a year in the first period in which the company will invest up to US$10m for, among other things, systems development and the unification of players. General Manager of Dreams Jaime Wilhelm said: “According to the program that we have drawn up within a year we should have consolidated operations up and running and will be seeing the opportunities for expansion. It will be a one-year job, to evaluate operations, the markets, the players we have in common, to study the competition and regulations. The permits for casinos in these countries are shorter and there are several things to consider first. From that point on we will look at the opportunities for expansion,” he said. Dreams and Sun International finalised the merger between both companies creating Latin America’s largest gaming operator in September. The merger will create a group valued at around US$400m. Mr Wilhelm said that the company would begin a wide ranging study into other markets. “Firstly we have to analyse the different casino formats that exist in different countries and study how to export the Monticello type of casino model that is in Chile. In other countries casinos are smaller and are found in shopping centres, and are licensed according to the legislation of each country. We will establish best practices for each of the markets. After this exercise and based on the results of each one of the operations, we will evaluate where to start growth,” he said. The Latin American operations of Sun International, including Monticello in Chile, Ocean Sun Casino in Panama City and a project near completion in Colombia, will be merged in the deal which will see Sun International expanding its presence in the region. Dreams operates six casinos in Chile and has recently expanded into Peru where it operates four smaller gaming establishments in Lima. There are plans for it to expand further in the region G3Newswire EMEA NEWS www.g3newswire.Com Cai launChes new Batumi Casino Casinos austria international (Cai) has launched its new casino in the recently opened Hilton Hotel Batumi. Georgia - New Operations Das BrasilianisChe aBgeorDnetenhaus hat mit der Einsetzung einer Sonderkommission zur Prüfung von zehn Vorschlägen zu dem Thema ersten Schritt zur weitreichenden Untersuchung der Auswirkungen eines möglichen Gesetzespaketes zu Bingo-, Kasino- und anderen Glücksspielangeboten unternommen. Die Sonderkommission zu den rechtlichen Rahmenbedingungen für das Glücksspiel in Brasilien wurde auf Antrag des Abgeordneten Nelson Marquezelli (PTB-SP) eingerichtet, der sich für diese Gesetze als Möglichkeit zur Förderung der Schaffung von Arbeitsplätzen und zur Ankurbelung des Tourismus’ im Land ausspricht. Das oBerhaupt Der kolumBianisChen Glücksspielaufsicht (Coljuegos) hat eine größere Razzia im Bereich Online-Glücksspiel angekündigt und die Vorteile betont, die die neuen Bestimmungen für inländische Pferdewetten auf die Branche haben werden. Die Glücksspielaufsicht hat außerdem verlautbaren lassen, dass sie beabsichtigt, ausländische Glücksspielwebseiten zu sperren, die ihre Dienste im Inland anbieten. Der BrasilianisChe tourismusminister Henrique Alves hat sich öffentlich für die Gesetze zu Spielbanken und Bingohallen ausgesprochen. Er hat bestätigt, dass er dem Leiter des Regierungssekretariats, Ricardo Berzoini, bereits einen Gesetzentwurf zugeleitet hat, der jetzt von der Exekutive geprüft wird. Das spanisChe glüCksspielunternehmen Cirsa könnte jetzt, da das Glücksspiel erneut im Mittelpunkt einer Debatte im brasilianischen Kongress steht, erneut nach Brasilien blicken. Der Geschäftsführer des Unternehmens in Brasilien, Miguel Santesteban Zorrilla, äußerte gegenüber der örtlichen Presse, dass man bereit sei, wenn das Glücksspiel nicht bis Ende dieses Jahres legalisiert würde, die Öffnung des Marktes im kommenden Jahr zu nutzen. Die BrasilianisChe regierung hat verlautbaren lassen, dass sie zur Stärkung der Staatseinnahmen gegenwärtig ein Ausschreibungsverfahren für privatwirtschaftliche Unternehmen zum Betrieb des gesamten Instant GamingBereichs vorbereitet. Diese internetgestützten „Sofortspiele“ werden derzeit ausschließlich von der Caixa (einer brasilianischen Bank in Staatsbesitz) betrieben. Die zusammenlegung Der gesChäftstätigkeit des chilenischen Unternehmens Dreams mit der seines Fusionspartners, der südafrikanischen Sun International, wird im Dezember anlaufen. Der Konsolidierungsvorgang wird etwa ein Jahr in Anspruch nehmen, in der ersten Phase wird das Unternehmen bis zu 10 Mio. USD unter anderem in die Geräteentwicklung und die Vereinheitlichung der Spielerbasis investieren. town anD County leisure, Das lanDesweit tätige Glücksspiel- und Unterhaltungsunternehmen mit Sitz in Birmingham, hat sich die Vertriebsrechte für das marktführende Ticket2Go-System von JCM FutureLogic gesichert, das kleinen bis mittelgroßen Spielstätten eine Lösung für gegenwärtig nicht an ein TITO-System angeschlossene Spielautomaten bietet. inspireD, Der führenDe anBieter von virtuellen Sportspielen, Glücksspielangeboten für mobile Geräte und SBG Video-Lotteriespielen, meldet heute, dass er der SNAI Zugang zu seiner ersten Auswahl von Mike TysonSpielangeboten auf dem italienischen Glücks- und Unterhaltungsspielemarkt gewähren wird. 1 4 Casinos Austria International (CAI) has launched its new casino in the recently opened Hilton Hotel Batumi, which is becoming known as the Las Vegas of the East. Batumi, the capital of the Autonomous Georgian Republic of Adjara, is a key seaport on the Black Sea, a university town and, above all, is well on the way to becoming a major tourist center and gaming hotspot in the region. Guests from Turkey, the Russian Federation, Iran and the Middle East appreciate its prime location, enjoy its pleasant climate and are flocking to the city in rapidly increasing numbers. “Batumi is attracting increasing numbers of visitors from neighbouring countries – many of whom enjoy a night at the casino,” said Casinos Austria Director General Karl Stoss. “We are in the fortunate position of having been able to enter this market early with strong partners.” Casinos Austria International CEO Alexander Tucek added: “We were approached about three years ago by a group of investors. Our analysis quickly confirmed the strong potential, and so we accepted the offer and grasped the opportunity.” For Casinos Austria International, the new casino in Batumi is not only a project with strong potential, it is also an important signal. Mr. Stoss added: “We have had to work tirelessly in recent years to consolidate our business and address legacy issues. It is a good feeling to be taking the lead again and to be starting something new.” Designed by the architect Hans-Peter Schaffner, Casino International Batumi will create 180 jobs and welcome around 90,000 guests per year. Around €2.5m have been invested in the casino, with the project realized in cooperation with a group of investors, who themselves also invested some €60m in the construction of the Hilton Hotel. This group is currently also working on a further tourism project in Batumi: a huge entertainment park at the top of the 252-meter-high Anuria mountain on the outskirts of the city. Due to open next year, this project also has Austrian connections – the cable car that will take guests up to the park will be supplied by the Austrian firm Doppelmayr. UK Oxfordshire-based AstroSystems Ltd, manufacturers and suppliers of the Microcoin brand of coin acceptors to the EMEA region, are preparing for the forthcoming release of the new UK £1 coin. With the coin expected to enter circulation in 2017, AstroSystems are currently formulating factory configuration files which will be provided to customers at the earliest opportunity. Both Microcoin models supplied will be fully supported with updates: the fast-feed, gaming orientated QL, which is the default choice of many major OEMs, and the universally renowned, ultra-reliable SP. Leo Bateman, Sales Executive of AstroSystems, commented: “We fully understand the importance of the arrival of the new £1 to the coin-op sector. With this in mind, we will endeavour to provide secure, reliable configuration solutions in a timely manner, whilst maintaining the high levels of coin security that the Microcoin brand has become synonymous with.” Town and County win JCM distribution deal for the UK UK Town and County Leisure, the Birmingham headquartered national gaming and amusements company, has secured distribution rights to the JCM FutureLogic market leading Ticket2Go system, which offers small to medium-sized venues with a solution for gaming machines currently not connected to a TITO system. Ticket2Go fully supports the GBG (Gambling Business Group) UK TiTO standards and has been qualified with digital and analogue machines operating in the UK market, including SG Gaming (T7 and T8 cabinets), Novomatic, Merkur-Blueprint, Project Coin, Astra (Pluto 6) and Bell Fruit Games (Scorpion 6). Announcing the appointment, which was confirmed in advance of the Autumn Coin-Op Show in London, Jim Foster, Sales Manager, JCM Global, said: "Town and County is part of the fabric of UK gaming and has built a reputation for professionalism, indepth market knowledge and integrity. Paul Langham and his team have an intimate handson knowledge of the Ticket2Go system and the decision to appoint them was a 'no-brainer'. Their knowledge of Ticket2Go in effect makes them an extension of JCM as opposed to an arms length distributor or broker of product. I look forward to a long and mutually rewarding business relationship with Paul and his team." Paul Langham, MD of Town and County, added: "Ticket2Go is playing a central role in helping all sections of the industry to exploit the full potential of TiTO in terms of an enhanced player experience, machine security, maximising machine uptime and freeing up staff in AGCs and Bingo Clubs to do what they do best which is delivering high levels of customer service. I can safely say that Ticket2Go is the most reliable piece of kit that we have dealt with." G3Newswire EMEA NEWS www.g3newswire.Com the pinnaCle of luxury at savoy aPeX gaming has recorded the successful trial and installation of its Pinnacle gaming slits at Casino Savoy in Northern Cyprus Cyprus - Casino Installations Das kasino in ostenDe Bestätigt wieDerholt seine langjährige Verbundenheit mit den MEI SC83Geldscheinlesern von Crane Payment Innovations (CPI), einem Unternehmen der Crane Company. Die Leitung der Spielbank in dem belgischen Seebad hat die MEI SC83 erstmals 2003 für alle neu angeschafften Automaten als zwingend vorgegeben. greentuBe, Der interaktive Unternehmensbereich von Novomatic, melden den Abschluss eines Vertrages zur Lieferung von Inhalten mit der Circus Gruppe. Die BahnBreChenDen playteCh-inhalte für alle Kanäle kommen jetzt im gesamten Sortiment von Mecca Bingo einschließlich der neuen mobilen Mecca Max-Geräte zum Einsatz, wodurch der Markenführer seinen Spielern das ultimative Spielerlebnis bieten kann. im zuge einer umstellung seiner strategie zur Unternehmensentwicklung hat Praesepe, ein Betreiber von Spielautomaten mit niedrigen Einsätzen, den Verkauf seiner Spielhalle für Erwachsene, des am Leicester Square im Zentrum Londons gelegene Crystal Rooms Adult Gaming Centres (AGC), an das benachbarte preisgekrönte Hippodrome Casino bestätigt. Der milliarDensChwere investor Carl iCahn hat das Immobilienunternehmen CBRE Group aus Los Angeles beauftragt, die ehemals 3 Mrd. USD teure, mittlerweile von vielen als Schandfleck bezeichnete Hotel- und Spielbankanlage Fontainebleau im nördlichen Teil des Las Vegas Strip abzustoßen. Juegos miami, Das neue Veranstaltungskonzept für die gesamte lateinamerikanische und karibische Glücksspielbranche (vom 31. Mai bis 3. Juni 2016 im The Biltmore, Coral Gables, Miami), gewinnt weit verbreitete Unterstützung durch eine wachsende Zahl angesehener Marktteilnehmer. Das us-amerikanisChe innenministerium (Doi) und die Nationale Indianische Glücksspielkommission (NIGC) haben dem Stamm der Alabama-Coushatta aus Texas grünes Licht für die Eröffnung eines Glücksspieletablissements der Klasse II gemäß dem Gesetz zur Regulierung des von Indianerstämmen betriebenen Glücksspiels (Indian Gaming Regulatory Act) in seinem Stammesgebiet gegeben. Das nörDliCh Des staDtkerns von las vegas gelegene Jerry’s Nugget Casino hat sich für Synkros von Konami Gaming als Kasinoverwaltungssystem entschieden. Die australisChe star entertainment group bezahlt der Regierung von Queensland 272 Mio. USD für das Recht zur Erschließung der Spielbank- und Ferienanlage Queen’s Wharf, die auf zehn Jahre berechnet mehr als 1 Milliarde USD Steuereinnahmen abwerfen soll. gaming laBoratories international wurDe von der Glücksspielaufsicht der Isle of Man kürzlich die Akkreditierung als zugelassener Prüfbetrieb für OnlineGlücksspiele zuerkannt. Die taiwanesisChen penghu-inseln erwägen erneut die Errichtung eines Kasinos, worüber die Bevölkerung vermutlich nach der am 16. Januar stattfindenden Wahl des taiwanesischen Präsidenten abstimmen soll. 1 6 The Savoy Ottoman Palace is a five-star entertainment complex set amongst fabulous grounds on the island of Cyprus. The hotel offers over 100 luxury rooms with 15 Pasha suites and two Sultan suites. The Savoy Casino management recently welcomed the opportunity to trial the APEX gaming’s Pinnacle with EVO2 platform, installing the latest Pinnacle upright gaming machines. Once completed the trials proved a great success, with the Pinnacle slots performing at a high level for over six months. This success led to Savoy Casino management welcoming APEX gaming as a new supplier to their floor. Alp Karakoyun is the Slot Development Manager at the Savoy Casino. He commented: “The new Apex gaming machines, especially after the EVO2 upgrade, have found their next step to improve player satisfaction and casino revenue. The new Apex bank’s balanced mathematics, highly developed graphics and interactive bonuses have already proved they are the new champion for our players. The high performance of APEX here will surely lead to the numbers of Apex EVO machines to increase at the Northern Cyprus gambling destination.” Kubilay Özer, Global Sales Director at APEX gaming, expressed his thanks to the team at the Savoy Casino, stating, “The combination of our Pinnacle cabinets with the EVO2 platform has made a great impact here. We carried out the installation in this casino over six months ago. The Savoy Casino is very much a leading casino in Northern Cyprus and their choice of slots bears significance. I would like to thank Alp Karakoyun and his team for their willingness to get to know APEX gaming. This willingness has clearly paid off and this is the beginning of a strong business relationship with the Savoy Casino and further growth in this country in a whole”. UK Kiron Interactive joins the ranks as a Quickfire, powered by Microgaming, development partner. Kiron is the latest supplier to join the Quickfire platform. Starting out as a virtual horse-race betting specialist in 2001, the company now supplies a variety of bespoke virtual sports betting and gaming products across online, mobile, and land-based platforms. Through an agreement with Quickfire, Kiron’s recently launched remote game server (RGS) – BetMan Online, will be available to operators residing on the Quickfire platform. Football, horse racing, boxing and motor racing are among the sports to go live, with others to follow in due course. The first games are scheduled to go live early 2016. Steven Spartinos, Co-CEO Kiron Interactive, comments: “The deal will see an exciting line-up of virtual racing and sports games made available to their broad client base on a plug-and-play basis. We’re confident that the appeal of our games to both sports bettors and casino players will provide significant additional value to operators .” Inspired adds punch to SNAI line-up with Tyson products ITALY Inspired, the leading provider of Virtual Sports, Mobile Games and SBG Video Lottery, today announces it will be supplying SNAI with access to its first collection of Mike Tyson gaming products for the Italian gaming market. Inspired unveiled its long-term brand partnership with boxing legend Mike Tyson at G2E Vegas, which will include a suite of gaming products featuring ‘Iron Mike’ for sportsbetting, casino, slots, and social gaming. Inspired will be providing SNAI with firstmover access to its initial Tyson package for the Italian market, which includes its new Virtual Rush Boxing game for retail and online, featuring the boxing legend, as well omnichannel slots and table gaming content. The launches will be supported by exclusive Tyson marketing materials. SNAI is the leading Italian betting operator. Inspired already provides SNAI with a range of its industry leading Virtual Sports content. Inspired recently announced an extension to its Virtual Sports contract with SNAI, which has strengthened its position in the Italian market with SNAI’s impending rollout of additional betting shops, concurrent channel expansion and mobile deployment. Vitaliano Casalone, Presidente of Inspired Italia, comments: “Inspired is already renowned as having the best Virtual Sports content in the market, which keeps players coming back for more. Our new range of Tyson gaming products was met with a fanfare reception at G2E and we have been inundated with interest from operators across the globe. We are confident that these knockout products will go down a storm with Italian players.” Inspired supplies over 90% of the land-based, online and mobile virtual sports market in Italy. From a standing start, Inspired’s software has supported the development of a €1billion p.a. market in Italy in just one year. Its Virtual Sports are now available to Italian players in over 7,000 betting venues, and on all of the main web and mobile sites. G3Newswire EMEA NEWS ostenD extenDs Cpi Commitment www.g3newswire.Com uk - reflex gaming’s ian Chuter appointment Quentin Stott, Managing Director of Reflex Gaming, the UK-based independent low-stake gaming creator, has confirmed the appointment of senior gaming executive, Ian Chuter, as Non-Executive Director. Mr. Chuter, who has 30-years experience gained across the spectrum of gaming, started his senior career as Sales & Marketing Director at The Rank Group, going on to join adult gaming centre operator, Talarius in 1997. He subsequently moved to William Hill in 2001, becoming International Group Director of Operations in 2009. His most recent post was at Betfair. uk - new iom e-Business DireCtor appointeD Jonathan Mills has been appointed the Isle of Man’s new Director of eBusiness with immediate effect. He has over 30 years of experience within e-Business and is already familiar with the Isle of Man. He has held several chief executive positions in e-Business and has international experience of both starting a successful business as well as helping existing businesses to grow. As a result he has the necessary skills, experience and contacts to promote the Island’s growing e-Business industry. uk - gewete expanDs its uk sales team The change machine specialist of the Gauselmann Group GeWeTe is pleased to announce the appointment of Owen Thomas the UK sales team. Working under Mark Edmundson Owen Thomas will be tasked with continuing the excellent work and fantastic few years that GeWeTe UK has achieved. “We cordially welcome Owen to our team. We have thus now taken a further step in providing complete support in the UK, one of the most significant markets in Europe for us”, enthuses Aristidis Tsikouras, Managing Director of GeWeTe. polanD - granD paraDe appoints heavyweights Gaming technology specialist Grand Parade is delighted that long-standing gambling industry executives John O’Reilly and Martyn Miller are set to join a significantly boosted management team. O’Reilly joins as non-executive chairman, bringing with him over 25 years of experience within the gambling industry, first at Ladbrokes where he led the eGaming division from inception in 1998 to 2010, and latterly as MD of Coral Interactive where he was pivotal in reviving the fortunes of the now vibrant Coral online betting and gaming business. O’Reilly said what excited him about the opportunity to join Grand Parade was that it is at the forefront of the technology-driven changes that are set to transform the industry. Martyn Miller spent seven years at Gala Coral, latterly as director of website development for the group. He left Coral in 2012 to set up his own consultancy where he has worked on numerous sports betting projects including a sevenmonth contract with Ladbrokes heading up their eCommerce platform. 1 8 Belgium’s Casino ostend has reaffirmed its commitment to the Mei SC83 note acceptor from CPi into the future Belgium - Installations Casino Ostend continues to reaffirm its longstanding commitment to using MEI SC83 note acceptors from Crane Payment Innovations (CPI), a Crane Co. Company. Management at the Belgian seaside resort first began specifying the MEI SC83 on all new slot purchases in 2003. “In our business, note acceptors represent a critical entry port for revenue,” said Mr. Stefan Claus, slots manager at Casino Ostend. “How well they perform is critical to the satisfaction of our guests and, accordingly, our bottom line. That’s why we chose the MEI SC83 note acceptor. Its security, reliability and first-time acceptance rate are second to none.” SC note acceptors were first introduced to the market in 2002, only one year before Casino Ostend made the decision to begin specifying the SC83 on all new slot purchases. Since then, more than 1.5 million units have been installed worldwide, a testament to the importance operators place on the performance characteristics that directly impact their profitability – acceptance rates, jam rates, security and the cost of ownership. “We first began specifying the SC83 based upon comparative tests and market feedback,” said Claus, “but now we have years of player satisfaction – and their resulting loyalty – backing our decision. It is clear we made the right choice back in 2003, and I am pleased to say we will continue making the right choice with SC83 into the future.” Anette Jauch, CPI sales director for Gaming – EMEA, said, “A great product becomes exceptional when it offers the longevity and incremental improvements to maintain its benefits over time. The enduring success of the SC83 note acceptor is evident in Casino Ostend’s testimony, and their feedback today is just as, if not more, powerful as it was 12 years ago. On behalf of the CPI team, I sincerely thank Casino Ostend for sharing their experience with us.” UK OpenBet has announced plans to increase headcount by 10 per cent. The recruitment drive is supported by a new marketing campaign and corporate video. Filmed at OpenBet’s Chiswick HQ, the video features members of the company’s staff from a range of departments. It intends to highlight OpenBet’s positive work environment and culture, as well as the generous benefits package offered to employees. OpenBet CEO Jeremy Thompson-Hill said: "We have recently made a number of appointments across all levels of the company, but our search for the best talent in the industry and beyond remains constant. “OpenBet is a fantastic company to work for and we felt that commissioning a high-quality corporate video was the perfect medium to reflect that to potential new recruits. We are extremely pleased with the results.” Greentube signs content deal with Belgium’s Circus Group BELGIUM Greentube, the interactive business unit of Novomatic, has announced that they have reached a content agreement with Circus Group. Emmanuel Mewissen, CEO of Circus Group: “We’re very pleased to be among the first online platforms in Belgium to offer the popular Novomatic content. Our goal is to provide our players with a high-quality and varied assortment of casino games and these slots are defi- nitely a valuable addition.” Circus Group is the first client of the platform provider GAMING1 to add Novomatic games to its online casino offering. Novomatic´s blue chip slot games such as Book of Ra deluxe, Lucky Lady´s Charm deluxe, Sizzling Hot deluxe and many more are among the new games selection now featuring on Circus.be. Maintaining its market leading position in the online space, Greentube further expands in the iGaming industry sector by welcoming this new partnership with Circus Group. Gernot Baumgartner, Head of Marketing & Sales, commented: “We are delighted to now make our exciting content available for Circus Group customers. This promising collaboration with one of the main operators in Belgium allows us to provide the ultimate gaming experience to a broad new range of customers.” Sylvain Boniver, CEO of GAMING1, added: “The Novomatic games are known for their brilliant math models and authentic sound effects. Especially Book of Ra, one of the most played games in European land-based casinos, is a real asset.” G3Newswire EMEA NEWS www.g3newswire.Com greeCe – intralot strengthens its position Greek company INTRALOT, which operates the popular numerical game of Tinka and is the leading lottery and sports betting company in Peru, has announced plans to further consolidate its operations in Peru and strengthen its position as market leader. In order to achieve its goals the company will invest over US$4m to expand its outlets from 3,600 at to 5,000 by the end of next year. Vangelis Apostolakopoulos, Intralot CEO, explained that customers will be able to monitor bets on site via televisions and gaming machines. “We are now investing more in facilities and we are going to spend from US$2,000 to US$4,000 on each site,” he said. The refurbishing and modernisation of its betting shops will go hand in hand with the other activities it offers such as live sports betting. The company launched its in live sports betting in June which allows customers to bet on football matches. The company is also in talks with a number of local celebrities as well as a new football team over the promotion of its products. It is also in the process of increasing the number of sales points for its popular instant product Rapitinka. Combined this will strengthen further the 95 per cent market share it already has over the lottery and sports betting market in the region. For Intralot, however, the market still has great potential for further growth. According to Mr. Apostolakopoulos penetration of gambling is still low compared to other countries in the region as it currently stand at US$5 per capita, compared to US $13 in Ecuador and US $31 in Chile. Year on year growth is estimated to stand at 16 percent to 18 per cent this year. This will be lower rate of growth compared to 2014 which increased by 30 per cent due to FIFA World Cup in Brazil which saw a surge in interest in sports betting locally. uk – sg gaming ink Deal with eDen Bookmakers SG Gaming has signed a four-year agreement with Eden Bookmakers (Eden), a long-standing independent bookmaker with eight shops across the Home Counties. Under the new agreement, SG Gaming becomes Eden’s sole machine provider, replacing Eden’s previous machine supplier. The rollout will start in November and see the installation of HD Infinity terminals across all Eden shops. The new partnership gives Eden access to a new content suite, including popular titles such as Rainbow Riches and Key Bet Roulette. Eden will also have access to licensed content and titles from the Barcrest, WMS and Bally gaming brands. Eden will also benefit from SG Gaming’s unrivalled bespoke support programme, developed exclusively for independent customers. The package includes customised training for all Eden staff to help them fully utilise the new platform functionality and to master the new operational procedures. The new package includes a range of tools made available via the Videobet server-based gaming platform, including sophisticated and adaptable promotional functionality. SG Gaming will support Eden with a fully developed promotional support plan for launch, as well as continued support by utilising the yield management tools. 2 0 playteCh power meCCa Content Playtech oNe software and games enabled across all channels and devices including new Mecca Max handhelds UK - Bingo Playtech’s pioneering omni-channel content has been launched across Mecca Bingo’s entire product range including its new Mecca Max handheld devices enabling the leading brand to offer players the ultimate gaming experience. The ground-breaking, ‘anywhere-anytime’, seamless connection of Playtech ONE omnichannel games and systems across every channel and device – including Mecca’s retail, online, mobile and 12,000 in-hall bingo handheld terminals – is the first time a supplier has successfully launched a combined bingo software and content strategy. As part of the initial omni-channel content launch, Playtech’s best performing slot games, Adventures in Wonderland and Heart of the Jungle, have gone live across all channels and devices, including handhelds, and will be central to an extensive in-store and online promotional campaign Mecca is planning to launch in the coming weeks. The move follows the launch earlier this year of Playtech’s industry-leading retail serverbased software across Mecca Bingo’s entire suite of 2,300 UK terminals and a number of other successful omni-channel system integrations including the pioneering Coral Connect which has seen more than 260,000 customer sign-ups. The nationwide retail deal, signed in the summer in partnership with SG Gaming, boosted Playtech’s already sizeable share of the UK LBO market and is its largest ever within the UK retail bingo sector. It also complements its existing longterm online bingo partnership with Mecca, a key, tier-one Playtech licensee. Playtech Retail powers 40,000 terminals globally offering a full enterprise management system for land-based venues and providing licensees with complete operational control. Using powerful back office management tools, the system provides operators with all the tools they require to successfully run and manage their businesses giving them full site control and control of their estate and player base. Czech Republic A raise in taxes on gambling winnings is due in 2016 for the Czech Republic. Lawmakers have already approved the initial bill, but still have two more readings to get through before it becomes finalised. If approved, the country is looking to generate an additional $81.2m each year from gaming. Sports betting and lottery winnings will go from 20 per cent to 23 per cent. All slot winnings will be taxed at a 28 per cent rate. Last month government officials announced that they would scale back on the planned tax increases for the gaming and betting industry and commented that they were planning on increasing rates for slot machine play. An additional daily tax on each slot machine would rise to 80 crowns from 55. The original increase was supposed to be 25 per cent, but it was edged up to 28 per cent. Inspired Virtuals, mobile and SBG agreement with BTC UK Inspired will be supplying its full Virtual Sports product suite to the members of the Bookmakers Technology Consortium (BTC). The BTC represents 50 independent bookmakers in the UK, Ireland, Isle of Man and the Channel Islands, including Jennings, Chisholms and Corbett Bookmakers. As part of this agreement, Inspired will give each bookmaker access to its full range of Virtual Sports and Number games, which will be delivered in to retail locations via Inspired’s new Multi-Viewer system, providing multiple concurrent schedules of events. world leading Virtual Sports portfolio to be extended to over 300 locations. By completing this new agreement with the BTC we are confident that each member will enjoy an uplift in revenue, whilst enabling them to stay competitive and enhance their retail gaming proposition.” Steve Rogers, SVP Digital Games, Inspired, said: “We have over a decade of experience as sole provider to the UK and Irish betting shop market - the independent sector has been an extremely important part of this success story. We are delighted with this partnership with the BTC, which will enable our Howard Chisholm, MD of Chisholm Bookmakers and Director of the BTC, adds: “This deal is great news for BTC members – by launching Virtual Sports we will enhance our offering to customers, giving them a new exciting sports betting product that will keep them entertained for longer.” G3Newswire EMEA NEWS www.g3newswire.Com hippoDrome Buys Crystal rooms Praesepe has confirmed the sale of the Crystal rooms adult Gaming Centre to the neighbouring Hippodrome Casino UK - Operations the netherlanDs – Cash support replaCe hess The casino Redemption Terminal sector has a new name on the market with Cash Support BV being set up in The Netherlands to fill the void created by Hess Cash Systems’ decision to focus on its core banking sector. After cordial negotiations with Hess, Martin Grandia from REAC in the Netherlands has bought the rights to all protocols and technical information to enable a new entrant to appear in the casino voucher/card Redemption Terminal (VRT) market. Cash Support is developing a new VRT called CTM-ONE to offer around Europe and the world, this time free from any constraints and with no need to fit in with a wider portfolio - Erik de Kat will heading the marketing and sales department. Along with Mr. Grandia, Cash Support will boast a familiar name to the casino sector in Erik de Kat, who was the sales director of Hess Cash Systems’ gaming division for more than 10 years. Hess’ main business has always been cash handling, and their voucher/card Redemption Terminals (Scorpion) can be found all over Europe and the world, helping customers change TITO tickets and Smartcard credits into cash without the need for a visit to a manned cash desk. VRTs have never been the core part of Hess’ business however, with the banking sector being where they have always maintained their focus. With this in mind, Hess has taken the decision to move away from the casino sector and its unique demands to focus on the areas they are best placed to operate. Mr. de Kat said: “While Hess is a fantastic operator, there is always the issue of focus. With the casino market being a tiny part of what Hess offers worldwide, I felt that there was a better way to service the casino market and I’m delighted to be able to develop this product specifically targeted at casinos, using our 20 years of specific experience to make sure it ticks all the boxes a casino operator might need.” Servicing has traditionally been somewhat difficult for the casino VRT machines, again, from a global perspective, the small size of the sector makes it difficult to offer a dedicated servicing solution. However, once again Cash Support will be in a great position to make sure sales are followed up with well tuned servicing arrangements, and Mr. de Kat is in position, with Hess’ blessing, to take over servicing of all existing Hess casino equipment as well as new sales of his CTM-ONE product. portugal - gang targeting Casinos Caught Portugal’s National Counterterrorism Unit has arrested six gang members who carried out at least a dozen armed kidnappings on casino customers leaving Estoril and Lisboa casinos. Aged between 23 and 29 years, most with a history of petty crimes and all from Lisbon, the group is suspected of kidnapping, aggravated robbery, injury and criminal association. They followed their victims attacking them either on their way home or once they had reached their abodes. At least one of the victims was known to have won a significant jackpot in Grand Lisboa before being targeted. The gang is thought to have carried out its first crime in May on a Chinese man, followed after playing in the Estoril Casino to home. The Counterterrorism Unit carried out ‘Operation Casino Royal’ which required more than two dozen search warrants and six arrest warrants. They believe that more victims may now come forward. 2 2 Following an adjustment of its business development strategy, low-stake gaming operator, Praesepe has confirmed the sale of the Crystal Rooms Adult Gaming Centre (AGC) situated in Leicester Square, central London, to the neighbouring and award winning Hippodrome Casino. The sale has completed for an undisclosed sum. Explaining the shift in business focus for the company, Praesepe CEO Nick Harding said: "The Crystal Rooms is one of 71 AGCs that we operate under the Cashino brand throughout Greater London. We have enjoyed six years successful trading at what is an iconic gaming venue in the heart of central London's hospitality and leisure district. However, following a strategic review of the entire Praesepe business, which also includes Bingo Clubs and a growing number of coastal businesses, we believe the energy and overall resource required to remain at the top of the game in central London can be deployed more effectively throughout what is a growing business employing some 1,600 staff nationally." He added: "I am delighted that we have concluded a deal with Simon Thomas. Under his leadership and as a result of his vision and passion for gaming based leisure and entertainment, he has not only made The Hippodrome into the biggest and busiest casino in the UK, but he has also cemented its status as a cornerstone of the West End and London's most popular live entertainment venue." Simon Thomas, Hippodrome Casino, CEO, said: "This is a significant new opportunity for the Hippodrome business. It not only allows us to extend the current gaming offer but delivers a significant platform at street level to showcase the magnificent range of entertainment facilities within the building. We have ambitious new plans for the space in the months ahead, so watch this space." Spain Casino de Castilla y Leon has finally been given the green light from Valladolid City Council to transfer its licence and open a new casino in the building of the former Roxy cinema in Calle Maria de Molina in the centre of Valladolid. The Mayor of Valladolid, Oscar Puente, has given his own seal of approval for the facility, which will be called Casino Roxy. The casino’s owners believe the venue, which will be housed over three floors, will attract around 500 people a day. It will employ a workforce of about 100 people to serve customers, including 57 specialist dealers, pit bosses and supervisors. The transformation of the property will protect the facade of the building, which dates back to 1936. As well as 40 slots, tables and a dedicated poker room, Casino Roxy will boast a large cafeteria, a cocktail bar and a restaurant with capacity for 35 people. EGT widens market presence in Georgia’s expanding market GEORGIA Euro Games Technology in Georgia is reporting excellent results, having made several installations of its products. Over 130 machines, the Egypt Quest progressive jackpot system, the Vega Vision+ upright and slant top cabinets and the Premier R8 automated roulette are entertaining the local gaming community. EGT products can be found on the casino floors of Casino Peace at the Sheraton Hotel, Casino Campione, Casino Las Vegas, Casino Austria International at the Hilton Hotel, Casino Grand Intourist at the Hotel Intourist, most of them located in Batumi. Some of the operators are new part- ners for EGT, others, such as Casino Las Vegas and Peace, have had long-term fruitful relationships with EGT. “Since EGT machines came into our casino, the visitors have played them every day,” said Shota Amiranishvili, General Manager of Casino Peace. “They share that the Premier slots give them the opportunity to stay in the game longer. And this is one of the advantages, related to the advanced mathematical models of EGT’s products. Players also enjoy the amazing graphics and highquality sound of the machines. Their most preferred games from the Premier multi-game mixes are the fruit themed titles, especially the Burning Hot, which is the highest rated one.” In 2014, EGT in Georgia had a market share of 25 per cent with an equal preference of the customers towards the sales and rental services, while this year it has so far reached 33 per cent. Radostina Valcheva, director of EGT Georgia, commented: “Keeping the pace of our sales growth will lead us very soon to the position of a major supplier of casino equipment in the country. Till the end of 2015 we expect a few more important installations to take place, one of them in the Leo Grand casino in Batumi. As significant is our technical support services that covers the needs of all local operators. For this purpose we opened a 24-hour line for emergency calls and are able to react within the day, or even immediately, depending on the case.” G3Newswire NORTH AMERICA NEWS www.g3newswire.Com fontaineBleau in us$650m sale the $3bn Fontainebleau las Vegas has been put on the market by its billionaire owner, Carl icahn, for US$650m Nevada - Operations la ChamBre Des Députés Brésilienne vient juste de mettre en place une étude de large portée sur les implications d'une éventuelle légalisation des jeux de bingo, de casinos et d'autres jeux d'argent avec la création d'une Commission spéciale pour examiner les dix propositions faites à ce sujet. Ce comité spécial sur la structure réglementaire des jeux d'argent au Brésil a été créé à la demande du Député Nelon Marquezelli (PTB-SP) qui prône leur légalisation afin de stimuler la création d'emplois et le tourisme dans le pays. le DireCteur Du Comité De Contrôle Des Jeux colombien (Coljuegos) vient d'annoncer la mise en place de mesures répressives concernant les jeux d'argent et a mis en avant les avantages que les nouvelles lois sur les courses de chevaux locales vont avoir sur le secteur. Le Comité de contrôle des jeux vient d'annoncer son projet de bloquer les sites de jeux hors territoire qui proposent leurs services à la population locale. le ministre Du tourisme Brésilien, henrique Alves, s'est montré publiquement favorable à la légalisation des casinos et des salles de bingo. Il a confirmé qu'il a déjà soumis un projet de loi au chef du secrétariat du gouvernement, Ricardo Berzoini, qui sera étudiée par la branche exécutive. la soCiété De Jeux espagnole Cirsa va se pencher sur le marché brésilien tandis que les jeux d'argent sont de nouveau le point de mire des débats du congrès brésilien. Le Directeur général de la société au Brésil, Miguel Santesteban Zorrilla, a déclaré à la presse locale que si les jeux d'argent n'étaient pas légalisés d'ici la fin de l'année, le groupe se tient prêt pour l'ouverture du marché l'année prochaine. afin De renforCer les revenus Du gouvernement brésilien, celui-ci vient d'annoncer qu'il prépare actuellement une procédure d'appels d'offres destinée au secteur privé afin de gérer l'intégralité du fonctionnement de sa division des jeux à gratter. Les jeux à gratter sont actuellement uniquement gérés par Caixa (la banque de l'état brésilien). le proCessus De ConsoliDation Des opérations entre les entreprises chiliennes du groupe Dreams et la société sud-africaine Sun International débutera en décembre. Ce processus de consolidation durera dans un premier temps un an, période pendant laquelle l'entreprise investira jusqu'à 10 millions de dollars US pour développer entre autres les systèmes et permettre une unification des joueurs. town anD County leisure, la soCiété De Jeux et de divertissements nationale basée à Birmingham, vient de sécuriser ses droits de distribution à JCM FutureLogic qui gère le système Ticket2Go et propose aux salles de petite et de moyenne tailles une solution pour les machines à sous qui ne sont actuellement pas connectées à un système TITO. Casino ostenD Confirme son engagement sur le long-terme pour l'utilisation des accepteurs de billets MEI SC83 de Crane Payment Innovations (CPI), une filiale du groupe Crane co. Company. La direction du complexe balnéaire belge avait précisé utiliser le MEI SC83 sur toutes les machines à sous nouvellement achetées dès 2003. 2 4 The towering blue façade of Fontainebleau Las Vegas, a constant reminder of the harsh economic climate that gripped Las Vegas by the throat, is on the market for US$650m. Billionaire investor Carl Icahn has instructed Los Angeles real estate company CBRE Group to offload the once $3bn hotel and casino resort, which has been described as an eyesore by many, on the northern part of the Las Vegas Strip. The ambitious 68-storey project had the life strangled out of it when Bank of America and JP Morgan Chase annulled $770m in loans in April 2009. The casino’s original investor Miami-based real estate developer Jeffrey Soffer had spent $2bn on the project before being forced to file for Chapter 11 bankruptcy protection in 2009. Mr. Icahn bought the property for $150m in 2010, spending up to $7m a year on maintenance costs. The purchase price will just be the tip of the iceberg for any would be investor though. CBRE Executive Vice President John Knott relayed that whoever take on the unfinished project, which spans a 22-acre parcel of land, will have to spend at least $1bn to open the two-thirds completed project. Its original plans were for 2,882 hotel rooms, over 900 condos, large retail space. Mr Knott described the Las Vegas recession as more of a ‘depression’ but pointed to the fact that casino companies were one again ‘investing in and renovating properties.’ He believes that with quarterly revenue results stacking up again there was a ‘vibrancy’ highlighting that the recession was over. With tourism and room rates back at record levels, Michael Parks, Vice President with CBRE Las Vegas, believes that having held onto the project for six years now is the time for Mr Icahn to sell. “The time is ideal to realise the potential of this incredibly valuable piece of Las Vegas real estate,” Mr. Parks said. US Rock Gaming will begin to transfer operational responsibilities of Horseshoe Casino – Cleveland, Horseshoe Casino - Cincinnati and ThistleDown Racino from Caesars Entertainment in the coming months. It is expected to be completed by mid-2016. At that point, Rock Gaming will independently own and operate the gaming facilities. Turfway Park, located in Florence, Kentucky, completed a similar transition earlier this year. Rock Gaming bought Horseshoe Casino Cleveland, ThistleDown Racino, Horseshoe Casino Cincinnati, the Ritz-Carlton, Cleveland, Higbee Building, and a controlling interest in Turfway Park from Caesars in February. High profile gaming support gathers for Juegos Miami FLORIDA Juegos Miami, the new event concept for the Pan-Latin American and Caribbean gaming industry (May 31– June 3 2016, The Biltmore, Coral Gables, Miami), is winning widespread support from a growing number of notable players in the market. Just two weeks after announcing the launch of the event, which has been designed to embrace and meet the specific needs of the region, joint organisers, Clarion Events and Urban Expositions, have confirmed the support of a stellar list of gaming leaders including Novomatic, Merkur Gaming, Aristocrat, BMM, GLI and Ainsworth. Reflecting on the calibre of the organisations that have signedup to the inaugural edition of Juegos Miami, Courtney Muller, Executive Vice-President at Urban Expositions, said: “Our vision for an event created to meet the specific needs of the region and including product, a multi-stream conference programme, social and networking events, land-based and online training, has struck a chord with the industry. “From the outset, our objectives have been to bring the right people together, at the right time of the year and in the right environment. By working with and listening to the needs of the market, we have been able to secure the right timing and the right environment. I am delighted to say that the positive response from the supporting companies we have announced today, confirms that we are well on course to attracting the right participants to an event that is set to break the mould for business-focussed gaming in this extremely important region,” concluded Ms. Muller. G3Newswire NORTH AMERICA NEWS www.g3newswire.Com texas triBes’ Bingo is green lit the alabama-Coushatta tribe of texas has been approved to open a Class ii gaming facility on tribal lands Texas - Operations greentuBe, l'unité interaCtive De novomatiC, vient d'annoncer qu'elle a conclu un accord d'utilisation de contenu avec Circus Group. le Contenu multi-Channel pionnier De Playtech vient d'être lancé à travers l'ensemble des produits de la marque Mecca Bingo, y compris sur ses nouveaux appareils portatifs Mecca Max, pour permettre à la marque leader d'offrir une expérience de jeux ultime. suite à un aJustement De sa stratégie De développement commercial, Praesepe, l'opérateur de jeux à faible mise, vient de confirmer la vente du Crystal Rooms Adult Gaming Centre (AGC) situé à Leicester Square, dans le centre de Londres, près du casino primé, l’Hippodrome Casino. l'investisseur milliarDaire Carl iCahn vient de demander à l'agence immobilière de Los Angeles CBRE de revendre le Fontainebleu, un complexe hôtel et casino d'une valeur d'origine de 3 milliards de dollars US situé sur la partie nord du Las Vegas Strip et considéré par beaucoup comme une aberration. Juegos miami, le nouveau ConCept évènementiel du secteur des jeux en Amérique Latine et dans les Caraïbes (du 31 mai au 3 juin 2016 au Biltmore, Coral Gables, Miami) rassemble de plus en plus de joueurs de renom du marché. le Département De l'intérieur amériCain (Doi) et la commission nationale indienne sur les jeux (NGIC) viennent de donner leur feu vert à la tribu Alabama-Coushatta du Texas pour ouvrir une salle de jeux de classe II sur les territoires tribaux conformément à la loi réglementant les jeux sur les territoires indiens. le système De gestion De Casino synkros De Konami Gaming a été choisi par le Jerry's Nugget Casino, situé au nord du centre de Las Vegas. la soCiété australienne star entertainment Group versera la somme de 272 millions de dollars US au gouvernement du Queensland en échange du droit de développer le complexe 'Queen's Wharf casino and resort', qui devrait générer plus d'un milliard de dollars de taxes sur 10 ans au profit de l'état. gaming laBoratories international s'est récemment vu obtenir une accréditation en tant que structure de test des jeux en ligne approuvée par la Commission de supervision des jeux de l'Île de Man. l'île taïwanaise De penghu ConsiDère à nouveau la possibilité d'installer un casino. Les résidents de l'île prendront certainement une décision par vote sur le sujet après les élections présidentielles de Taïwan qui auront lieu en janvier 2016. tout va Bien pour le groupe De paris australien Tabcorp, qui a enregistré un résultat net après impôts de 334,5 millions de dollars australiens pour l'année fiscale 2015, soit une croissance de 157 % comparé à l'année précédente. inspireD, leaDer Dans la DistriBution Des sports virtuels, des jeux mobiles et de loterie vidéo SBG, a annoncé aujourd'hui qu'il sera le fournisseur de SNAI avec accès à la première collection de jeux Mike Tyson sur le marché italien. 2 6 The US Department of Interior (DOI) and the National Indian Gaming Commission (NIGC) have given the green light for the Alabama-Coushatta Tribe of Texas to open a Class II gaming facility on tribal lands in accordance with the Indian Gaming Regulatory Act. Class II includes bingo and electronic versions of bingo whilst Class III refers to casino style gaming. The Alabama-Coushatta Tribe’s gaming Entertainment Center was closed in 2002, with the tribe battling to open it ever since. Nita Battise, Tribal Chairperson of the AlabamaCoushatta Tribe, said: “Past Tribal Councils have worked hard to get where we are today with this approval. The Tribe’s perseverance has paid off. It is a testament to the dedication and support of our Tribal Members that helped accomplish such a major milestone in our tribal history. A Class II facility will allow the Tribe to better address the needs and functions of the Tribal government, and take care of our people. Not only will it benefit the Tribe, it will benefit the entire region in southeast Texas because an entertainment business attracts visitors to the region and we will be able to provide employment in the area.” The facility is expected to open early next year on a site covering 10,000-acres on an Indian reservation in east Texas, south of Livingston. Carlos Bullock, a spokesman for the tribe, said: “When we were open before, we generated about $1 m a month. When we closed, it was devastating to the tribe. It was a huge impact to lose that kind of revenue, and all those jobs.” There are three Indian tribes left in Texas; the Alabama-Coushattas, the Tiguas and the Kickapoos in Eagle Pass. The Tigua Indians are planning to open a gaming facility on Ysleta del Sur Pueblo reservation near El Paso. The Kickapoo tribe has run the Lucky Eagle Casino in Eagle Pass with more than 3,300 slots since 1996 without interruption as it gained federal recognition at a time when different laws were in place. California California’s Viejas Casino & Resort has officially opened its second luxury hotel tower and expanded casino, which has seen 1,000 slots added to the floor. Thousands were in attendance for the grand opening ceremony for the new five-storey tower. Separated by the hotel pool area and the Park at Viejas, a designated space for concerts and special events, the $50m hotel tower features 109 deluxe rooms and luxury suites, a fitness center and business center, a spacious bar and lounge, and nine state-of-the-art meeting spaces including the Oak Ballroom, accommodating up to 1,200 attendees. Upgraded amenities in the VIP suites include multiple HDTVs, handcrafted furniture and décor, oversized shower, Jacuzzi whirlpool baths, and more. This expansion creates an additional 50,000 square feet of indoor and outdoor multifunction resort space, and increases current hotel accommodations to a total of 237 rooms and suites. Developer silent as Baha Mar is placed into receivership THE BAHAMAS The Supreme Court in the Bahamas has placed the $3.5bn Baha Mar project into receivership after approving an application from the EXIM Bank. The aim now is to ensure that the relevant parties co-operate to get the resort completed and open. However the court has already appointed liquidators to make 2,020 Baha Mar employees redundant due to the financial insolvency of the project. Attorney General Allyson Maynard Gibson said: “We will only take steps that are in the best interest of the Bahamian people. We want Baha Mar remobilised, opened and operational.” However with Baha Mar developer Sarkis Izmirlian, who has spent $850m to $900m in the project, sidestepped in the move, which also takes away any decision making power from him, some observers are seeing it as a hostile takeover. Free National Movement Chairman Michael Pintard said: “It is safe to assume that there is going to be further litigation and if we were to judge this matter by any other receiverships we have observed in this region, this could lead to a protracted struggle, causing further delays in opening the resort. If Baha Mar’s developer is not factored into discussions going forth it is reasonable to expect that the investor is going to engage in what will turn out to be a protracted fight to protect the $900m he has invested.” “The other thing that raises concern for us are charges of nationalisation,” he added. “Some say it is a hostile takeover. The FNM is not agreeing or disagreeing with that characterisation, but clearly that is a negative signal to the international community in terms of how the Bahamian government has chosen to operate. The FNM is concerned that such a message has the potential to have a negative impact on people wishing to do business in the Bahamas.” Jerry’s nugget seleCts synkros las Vegas’ Jerry’s Nugget Casino has selected Konami’s SYNKroS Gaming enterprise Management System G3Newswire NORTH AMERICA NEWS www.g3newswire.Com Nevada - Installations Konami Gaming’s Synkros casino management system has been selected by Jerry’s Nugget Casino, located just north of Downtown Las Vegas. For more than 50 years Jerry’s Nugget has served as one of the area’s premier mid-sized casino properties and is now launching Synkros across its operation with a focus on consistent quality and personalized customer engagement. The casino’s 550+ machine gaming floor will leverage a variety of Synkros marketing tools to grant its guests a fun and memorable experience unique to Jerry’s Nugget and consistent with its exceptional legacy. “As one the very first gaming destinations to cater to the Las Vegas locals, we’ve selected Synkros in part to continue that local customer focus with promotions and incentives that reward our valued players in new ways,” said Jeremy Stamis, President at Jerry’s Nugget Casino. The property will also be introducing floor-wide community bonusing events using Synkros’ acclaimed SuperSeries. With SuperSeries’ multi- level, multi-themed community bonusing games, carded guests at any slot machine will simultaneously compete for progressive jackpot awards. “Our MoreClub rewards members will see more personalized benefits to complement their visits and further reinforce Jerry’s Nugget as their casino of choice,” said Mr. Stamis. “And from an operational standpoint, Synkros’ proven reliability and highlytargeted marketing capabilities help align our business for long-term market success and technical dependability.” “Jerry’s Nugget is prominent Vegas fixture and we’re thrilled to be able to provide a new wave of systems technology to benefit their casino guests and organization as a whole,” said Scott Richards, Director, Systems Sales at Konami. “They have a longstanding reputation for quality customer care and attention. With what Synkros has to offer, Jerry’s Nugget will give players new opportunities for thrill and excitement for many years to come.” Florida The state of Florida has now filed a lawsuit in a Tampa federal court asking a judge to order the Seminole Tribe of Florida to cease operating blackjack tables. Florida does not have legal jurisdiction over tribal reservations. The Seminoles were supposed to remove the blackjack tables at the end of September. But the tribe filed a lawsuit seeking to keep blackjack and other banked card games in place. The request follows the end of a five-year deal allowing blackjack at casinos such as the Seminole Hard Rock Hotel & Casino locations in Tampa and Hollywood. The tribe was given a 90-day grace period to remove them but with that period coming to an end the tribe filed its own lawsuit. It believes it can continue operating the games while the lawsuit is under consideration. Ken Lawson, the secretary of Florida’s Department of Business and Professional Regulation, said: “Under the existing compact, the Seminole Tribe of Florida is now illegally operating their banked card games. In accordance with the existing compact, the state is asking the court to order the tribe to cease operations.” Fraser Downs Racetrack to become Elements Casino CANADA Surrey’s newest entertainment destination, Elements Casino, is set to open on December 17 . “The countdown is on and the entire team is looking forward to welcoming our guests and first time visitors to our Grand Opening celebration as we officially introduce Elements Casino to the community and marketplace,” said Michael Kim, General Manager, Fraser Downs Racetrack and Casino. Elements Casino will aspire to be an all-inclusive, full service gaming entertainment venue that will deliver unrivalled personalised service, exciting live entertainment options, unsurpassed dining experiences and gaming offerings consisting of casino games and standard bred horse racing. The property will feature more than 500 interactive slot machines along with table games such as squeeze baccarat, blackjack, roulette and poker. Guests will be able to enjoy new dining options focused on profiling fresh and modern menu styles all while experiencing live entertainment showcasing local and regional talent. Elements Casino will replace the existing Fraser Downs Racetrack and Casino located in Surrey, BC, one of the fastest growing cities in Canada. “We look forward to the grand opening of Elements Casino as it will give us an opportunity to elevate, improve and diversify the entertainment experience within the Surrey marketplace, a region that is currently growing and projected to be the most populated city in Metro Vancouver by 2020,” said Chuck Keeling, Vice President, Stakeholder Relations and Responsible Gaming, Great Canadian Gaming Corporation. us – aga sports aCtion plan Following months of study and deliberation, the American Gaming Association’s (AGA) Board of Directors have issued a set of recommendations that mark a major shift in the industry’s approach to sports betting, which is currently illegal in all but four states. AGA will build a broad coalition that will determine whether a rational alternative to current sports betting law exists. Such an alternative could include strict regulation, rigorous consumer protections and robust tools for law enforcement to eliminate illegal sports betting and strengthen the integrity of games. The 2016 effort will include robust research, aggressive communications and partnerships with a variety of voices with interest in sports betting. Those voices will include, but not be limited to, gaming leaders, law enforcement officials, regulators, legislators and professional sports leagues. us - Bmm appoints marC lee as svp teChnology BMM Testlabs, the world's leading gaming testing laboratory and technical consultancy is pleased to announce Marc Lee as SVP Technology. Lee, an expert in regulatory, compliance, large systems applications development and implementation for remote gaming, will be based out of BMM's headquarters in Las Vegas. Lee joins BMM with 25 years experience in the IT industry, 11 of those spent in the gaming industry. us – gli hires teChniCal ComplianCe manager GLI has expanded its Technical Compliance team with the addition of Mark Roy, Manager of Technical Compliance. Roy joins GLI with a wealth of knowledge and expertise in the gaming industry. As Manager of Technical Compliance, Roy is responsible for providing overall direction and leadership for all activities in his respective department, including managing client relationships and evaluating and implementing company procedures for maximum efficiency and cost containment. us - tom rafferty interBloCk general Counsel Interblock has named Tom Rafferty the company’s new global General Counsel. Rafferty is based in Interblock’s North American headquarters in Las Vegas. Interblock CEO John Connelly said, “When evaluating Interblock’s options for the future, it became clear we needed to hire a General Counsel capable of handling transactions experienced by some of the largest companies in the world. I feel extremely fortunate that Tom has joined our organization. Tom will be a member of the Company’s Executive Management Team and will play a major role in all future moves Interblock is contemplating.” 2 7 G3Newswire ASIA & OCEANIA GAMING NEWS www.g3newswire.Com queenslanD’s $1Bn star earner australian operator Crown Melbourne is adding a brand new luxury six-star hotel tower to its Melbourne casino precinct CamBoDia – glorywin Buys Chateau De Bavet Glorywin Entertainment Group, one of Asia’s premier casino operators and junket service providers has bought Chateau de Bavet, a luxury casino in Cambodia. The boutique hotel and casino, located on National Road in the border town of Bavet, operates with 183 slot machines. With the massive revenues brought in by the gaming industry throughout the region, this recent development has the company poised for substantial growth. The number of casinos in Cambodia has almost doubled since last year with a total of $2bn brought in by the country’s gaming industry for 2014. Tourism to the region has grown tremendously, driving the increase in the average mass-market wager size. Major US investment firms maintain a positive outlook on the Asian gaming sector as well as a Big Four accounting firm stating “Asia Pacific will be the fastest-growing region for casino gaming spending over the coming five years.” Foreign investment is coming onto the scene as well, with a listed company in Australia paying close to $400 million for another luxury casino in Cambodia. Glorywin Entertainment has extensive experience promoting casinos in Asia, as well as implementing fraud and risk control procedures, payment processing and compliance protocols. In addition to their recent land-based casino acquisition, the company operates their business through the introduction of sub-junkets and the provision of information technology infrastructure to casinos and receives an agreed percentage of total bets as revenue, seeing over $1 billion in total bets placed for 2014. Glorywin’s stock currently trades on the OTC Venture Marketplace at $2.00 per share under the ticker symbol GWIN. The company expects to see significant growth in both their online and land-based casino operations with Company Chairman Mr. Wenwei Wu stating, “We continue to strive further in the gaming industry to be in the best position possible to provide results for our consumers, partners and shareholders. With our own regulated land based casino, we shall achieve maximum flexibility in arranging our IT systems to provide a superb online gaming experience to our gamers.” Glorywin provides junket services to 25 sub-junkets. The company provides technical support and record keeping of sub-junkets to their online casino operators and promotes their online casino websites through their list of sub-junkets, including VIP room junket promotion directly to consumers and existing land-based casino consumers which include individuals within legal gambling age in their respective territories across the world. 2 8 Australia- Operations Australia’s Star Entertainment Group will pay the Queensland government $272m in exchange for the right to develop the Queen’s Wharf casino and resort, which will generate over $1bn of state tax over 10 years. Premier Annastacia Palaszczuk and Star Chairman John O’Neill have now signed the final contract for the A$3bn casino resort on the Brisbane waterfront. When the new integrated resort in Brisbane opens in 2022 it will be known as The Star, Brisbane. Following Star Entertainment’s name change from Echo Entertainment, Jupiters Hotel & Casino will rebrand as The Star, Gold Coast, whilst Treasury Casino & Hotel will become Treasury by The Star. The first instalment for The Star Brisbane of $272m has now been paid to the Queensland Government. Premier Annastacia Palaszczuk said: “Another guaranteed $880m will follow from casino taxes over the first 10 years of Destination Brisbane Queensland’s operations from 2022. It’s a large amount of money, it’s a significant sum of money and in total it is more than $1bn. It does mean there is a huge injection of cash that is going directly to pay down debt on our state budget. We would expect to see more than one million tourists coming to south-east Queensland over the coming years. The project will create 2,000 construction jobs and 8,000 operational jobs but we will see overall some 10,000 jobs over the coming year.” The deal includes a 25-year casino exclusivity period for 60km from the Brisbane CBD for the casino’s 2,500 pokie machines. It has also been granted unlimited gaming tables, including ‘electronic’ gaming tables. The Star, formerly Echo Entertainment Group, has partnered with Hong Kong based Far East Consortium and Chow Tai Fook in the formation of the Destination Brisbane Consortium. Star Chairman John O’Neill said: “While the government drives a hard bargain, we’re delighted with the outcome. It will be quintessentially Brisbane, it will be quintessentially Queensland and will reverberate right around the world.” Mr O’Neill added that the aim was to attract an additional 1.4m international tourists each year to Queensland, bringing an estimated spend of $1.69bn. China’s emerging middle class would be a key demographic for the development. The first phase of the build will get underway in 2017 with the old state government buildings being demolished. The development will include five new hotels and an integrated resort including a casino, a link across the Brisbane River to South Bank and a new live theatre, with a $1.3m business centre. GLI Australia licensed to test online gaming for Isle of Man AUSTRALIA Gaming Laboratories International was recently awarded accreditation as an approved online gaming testing facility by the Isle of Man Gambling Supervision Commission. This opportunity extends GLI’s global coverage, allowing the company to better service its customers not only within the region, but also from around the globe. It also demonstrates GLI’s commitment to investing in the gaming industry; as technologies become more advanced and complex, GLI is dedicated to providing professional service to its customers quickly and more cost effectively. GLI Australia’s Chief Operating Officer APAC Espee de Robillard said, “With GLI’s customers looking more and more toward ‘porting’ games from land-based gaming machines (EGMs) to iGaming, we need to be ready. Being accredited, licensed and aligned with other GLI locations better equips GLI’s customers in their drive toward greater global coverage. What is important is that GLI continues to invest in the gaming industry as technologies become more advanced and complex, and at the same time, customers are looking for a committed professional service provider wanting to go the extra mile.” GLI has been operating in Australia for more than 20 years and serves regulatory clients and supplier customers throughout Australia, New Zealand and the Western Pacific. GLI’s three Australia-based labs – located in Adelaide, Melbourne and Sydney – are collectively known as GLI Australia. Recently, the labs in Australia welcomed the addition of multitude of new staff members due to the ever-increasing demand of existing and new customers. G3Newswire ASIA & OCEANIA GAMING NEWS www.g3newswire.Com penghu Casinos BaCk on agenDa it’s groundhog day for the citizens of taiwan’s Penghu island as the local government seeks referendum re-run Taiwan - Legislation philippines – frontier to Buy CasaBlanCa Australia-based Frontier Capital Group is buying the Casablanca Casino in the Philippines’ Clark Freeport Zone, along with the adjoining Stotsenberg hotel, in what it says is Asia’s fastest growing gaming market. In a filing to the Australian Securities Exchange, Frontier confirmed the price for the deal would be A$26m with January 2016 earmarked for the completion date. Themed on the film with the same name, Casablanca Casino has a total of 190 slot machines, 36 gaming tables and two VIP rooms. The Stotsenberg Hotel has 239 hotel rooms and a convention centre. Located 1.6 km away from the Clark International Airport, Frontier believes that the scheduled A$450m Passenger Terminal expansion project at the airport will double the number of passengers annually to 8m and increase the number of customers frequenting the Stotsensberg Hotel and Casino. Frontier’s recently appointed Chief Operating Officer Ken Wong, who has over 15 years of experience working in the gaming sector, said: “Research conducted by Citi and Macquarie Research has found that the Philippines gaming industry is the fastest growing in the Asia. Our entry into the gaming industry is well timed to capitalize on this potential.” The Taiwanese island of Penghu is again considering a casino development with residents likely to vote on the matter following Taiwan’s presidential election on January 16. The local government’s Referendum Screening Committee has approved a proposal to hold a referendum. This will now be put before Taiwan’s Cabinet the Executive Yuan. If five per cent of the local population, amounting to 4,113 people, sign a petition, it will be sent to the election committee to prepare for a referendum. In the previous referendum, which took place on September 26, 2009, a total of 17,369 votes, or 56.44 per cent of the total valid ballots, voted against the introduction of a casino, while 13,397, or 43.56 per cent, supported it. Taiwan lifted the ban on gambling on the outlying islands of Kinmen, Matsu and Penghu in January 2009. Residents on Matsu voted for casinos in a referendum, in July 2012, however Taiwan’s Parliament has yet to approve the draft casino bill. Claremont Partners wants to develop a casino on the island of Penghu, however a referendum held in 2009 saw locals vote against a casino. The company’s Carl Burger said last year: “Penghu very much remains a viable location. We anticipate that the supporting Taiwan legislation will finally pass in 2014 and set the stage for gaming operators and investors to enter a new Asian jurisdiction.” Weidner Resorts Taiwan, headed by former Las Vegas Sands executive Bill Weidner, has also shown its blueprint for a Taiwanese casino resort with luxury hotels and convention halls. Operating giants such as Sheldon Adelson’s Las Vegas Sands and MGM Resorts are believed to have analysed the opportunity of gaming in Taiwan due to closeness to China and large potential markets such as Korea and Japan. Mr. Wong is a former executive of Genting Hong Kong. The gaming floor and the hotel will though be managed by E!xcite Gaming and Entertainment. SJM currently operates an average of 458 VIP gaming tables, down from 564 for the third quarter last year), 1,263 mass market gaming tables, up from 1,190 last year and 2,737 slot machines, down from 2,806 for the quarter a year ago. E!xcite has provided a five-year profit guarantee of $5m a year per annum. E!xcite will be given 142.2m shares in Frontier Capital. saipan – imperial paCifiC to form Junkets Imperial Pacific is to hold an official opening ceremony for the temporary casino that it opened on the island of Saipan in the Pacific on November 27. The temporary casino was opened back in July as the group looks to build the US$7.1bn casino that it committed to when it won the 25 year licence. Operating in the tourist shopping mall DFS T Galleria in Garapan close to a Hard Rock Café, it opened with 10 tables and 48 slot machines. It generated US$500,000 in bets in the first two days. The number of slots has since been doubled. However the group has just confirmed that the first phase of the permanent $7.1bn resort will cost over $600m to build and will have 300 gaming tables and 500 slot machines. It believes it will start getting a return on its investments between 12 to 18 months after its hotel opens by the end of 2016. Imperial Pacific has said it will begin agreeing strategic alliances with junket operators next month. Best Sunshine International COO Matthew Harkness said they are not solely focused on Chinese tourists. “There is a huge commitment on the part of Best Sunshine to continue to promote, to grow the Japanese tourist base here on Saipan,” he said, adding that Korean and Russian tourists were also important. Imperial Pacific/Best Sunshine Senior Vice President Tao Xing Xing added that they will hold a familiarisation tour especially for Japanese and Korean tour agents ‘to help them promote their businesses.’ 3 0 Total VIP chips sales came in at HK$160bn, down from HK$360bn for the corresponding quarter last year and the VIP gaming hold percentage was 3.36, compared to 2.88 per cent. SJM profits slashed by 81 per cent as Macau gloom holds MACAU SJM Holdings has lost more than just market share in the third quarter, reporting a fall in profit of over 80 per cent. Gaming revenue for the three months ending September 30 fell by 38 per cent to HK$11.2bn (US$1.45bn), with earnings dropping 49.5 per cent to $884m and profit down a staggering 81 per cent to $285m. The group said: “Profit was affected by an impairment loss on an available-for-sale investment of HK$250m incurred in Q3 2015 (Q3 2014: Nil), without which profit would have decreased by HK$3,104m in the first nine months of 2015.” This would have seen profit fall by 65 per cent and not 81 per cent. During the quarter, the group’s VIP gaming revenue suffered, generating just $5,442m, a decrease of 47.5 per cent from $10,375m from the third quarter of 2014. Mass market gaming revenue was $5,529m, a decrease of 24.9 per cent from $7,359m, and slot machine (and Tombola) revenue was $272m, a decrease of 23.8 per cent from $357m. The Grand Lisboa Hotel achieved an average occupancy rate of 85 per cent and average room rate of $1,743 per night, as compared with average occupancy rate of 90.5 per cent and average rate of $2,261 per night in Q3 2014. Dr. Ambrose So, CEO of SJM, said: “While challenging conditions in Macau’s market continued in the third quarter, with gaming revenues continuing their decline for the sixth consecutive quarter, SJM is making progress in controlling costs and enhancing customer service. Our strong balance sheet positions us well for the completion of the Lisboa Palace project which remains on schedule and on budget, and we remain optimistic about the future.” G3Newswire taBCorps integration pays off australia’s tabcorp has been performing strongly with reported net profit for 2015 up 157 per cent on the prior year ASIA & OCEANIA GAMING NEWS www.g3newswire.Com Australia - Corporate The going is good for Australian betting group Tabcorp who reported a net profit for the 2015 financial year after tax of A$334.5m, up 157 per cent on the prior year. Whilst this figure has been inflated by two significant one-off income tax benefits, net profit after tax, excluding these items from continuing operations was up 14.7 per cent to A$171.3m. Revenues for the group were A$2.16bn, up 5.7 per cent. Tabcorp now operates Wagering, Keno and Trackside licences in the ACT, complementing existing operations. ACTTAB was rebranded in August, so that Tabcorp now operates under a single TAB brand across the ACT, New South Wales and Victoria. The completion of media rights arrangements for NSW and Victorian thoroughbred racing means that TAB’s apps and tab.com.au are the only digital channels where customers can watch every single race across every racing code. This is a major competitive advantage and a real point of difference for the company. Tabcorp Gaming Services business, TGS, has evolved from being a Victorian-only business to one which is building a presence in NSW with the signing of a number of new venues in that market. The Keno business has been transformed, with a new brand identity and a more contemporary and appealing customer experience. Keno jackpots are now pooled between NSW and Victoria, with Queensland planned to follow in due course. Tabcorp’s MD and CEO, David Attenborough (above), said: “Customers are responding positively to our wagering offer and our results demonstrate the value of our integrated retail, digital and media assets. Revenue growth was 6.9 per cent, while EBITDA was up 7.2 per cent. Total racing revenue growth was 5.1 per cent, while sports revenue was up 16.2 per cent. However, racing continues to drive the bulk of our wagering turnover, with fixed odds products underpinning racing’s growth. Media revenue continued to grow, driven by increased international vision and co-mingling arrangements, such as those in place with Hong Kong, Singapore and South Africa.We have also put in place new media rights for NSW and Victorian thoroughbred racing.” australia – gli reloCates syDney laBoratory Gaming Laboratories International (GLI) will relocate its Sydney, Australia-based laboratory from Rosebery to Seven Hills in the coming months, moving closer to New South Wales manufacturers that have moved further west of Sydney’s Central Business District. The laboratory relocation, which is in line with GLI Australia’s long-term expansion program, will provide the majority of New South Wales manufacturers and other clients easier and faster access to GLI’s laboratory, services and personnel. In addition, the new space will afford a 30 per cent increase in engineering staff as well as a 25 percent increase in laboratory floor space. With an increasing demand for GLI’s testing, certification and professional services, GLI Australia is adapting in order to ensure all customers’ needs are met. GLI Australia’s Chief Operating Officer APAC Espee de Robillard said, “This is a very exciting time for GLI, and especially for GLI in Australia and the Asia Pacific region. Expanding our offices, employing more staff and investing in the gaming industry means we can accept a greater workload from across the region, truly support our regional offices in Macau and the Philippines, and maintain the expectations and trust of our customers. ROULETTE TABLES BLACK JACK TABLES PUNTO BANCO TABLES POKER TABLES ACCESSORIES PLAYING CARDS SEATING PST River Drive South Shields NE33 1LH, UK T: +44 (0) 191 456 6209 F: +44 (0) 191 427 1118 E: [email protected] www.pstseating.com MEMBERS NEWS AGEM AGEM KEY BOARD OF DIRECTORS ACTIONS: l MEMBERSHIP NEWS MEMBER PROFILE Company – aDliNK technology, inc. Web address – www.adlinktech.com AGEM Membership level – associate Member of aGeM Company Description – aDliNK technology is enabling the internet of things (iot) with innovative embedded computing solutions for edge devices, intelligent gateways and cloud services. aDliNK’s products are application-ready for industrial automation, communications, medical, defense, transportation, and infotainment industries. our product range includes motherboards, blades, chassis, modules, and systems based on industry standard form factors, as well as an extensive line of test & measurement products and smart touch computers, displays and handhelds that support the global transition to always connected systems. Many products are extreme rugged, supporting extended temperature ranges, shock and vibration. aDliNK is a Premier Member of the intel internet of things Solutions alliance and is active in several standards organisations. aDliNK is a global company with headquarters in taiwan and manufacturing in taiwan and China; r&D and integration in taiwan, China, the US, and Germany; and a network of worldwide sales and support offices. Forthcoming events / exhibitions you will be attending – aDliNK will be attending iCe totally Gaming in london from 2-4 February 2016 and also embedded World in Nuremberg, Germany from 23-25 February 2016. this show focuses on security for electronic systems, distributed intelligence, the internet of things or e-mobility and energy efficiency. l l l l In line with AGEM’s pledge to support educational initiatives, the members recently agreed to extend the annual Scholarship program with Drexel University into a 3year commitment. AGEM has supported Drexel’s hospitality management / gaming program with an annual $10,000 sponsorship. The Drexel team has been committed to promoting gaming education at the school and through the gaming lab that has been established with help from the suppliers. Another educational scholarship was renewed at the November meeting, this time for the American Indian College Fund. The organisation has undertaken good work and AGEM members were happy to extend their support for a further year with a donation of $10,000. Director of Responsible Gaming, Connie Jones, represented AGEM at the joint conference of the International Association of Gaming Regulators and International Masters of Gaming Law in Lima, Peru from the 13-16 October. The event was well attended by approx. 235 delegates made up of international regulators and attorneys and provided a good opportunity for AGEM to showcase its commitment to Responsible Gaming during the session on new developments in ‘Duty of Care’. Two events were recently approved for sponsorship, the 11th European Conference on Gambling Studies and Policy Issues and the annual National Council of Legislators from Gaming States (NCLGS). The European conference will be held in Lisbon, Portugal from 13-16 September 2016 and was supported by a 3000 Euro donation. AGEM will be sponsoring the NCLGS and has pledged a $2000 sponsorship with Vice President of Government Relations, Steve DiMasi representing AGEM and participating on a panel discussion that will focus on skillbased gaming. The NCLGS will be held from 8-10 January 2016 in Orlando, Florida. AGEM welcomed 3 new members to the roster in November. Bronze member, Century Gaming Technologies and Associate members, CDC Gaming Reports and Casino Connection Int’l.. EVENTS AND ACTIVITIES l AGEM will once again have a stand at the ICE Totally Gaming Show in London. The stand is located in the North Halls at N1-356. Preparations are underway for the show and AGEM looks forward to meeting all it’s members at this time. AGEM INDEX After reporting two consecutive month-to-month declines, the AGEM Index rose in October 2015. The composite index ended the month at 197.21, which represents a substantial gain of 13.87 points (+7.6 per cent) compared to September 2015. Compared to a year ago, the AGEM Index netted 10.22 points to the positive (+5.5 per cent). In October, eight of the 13 global gaming equipment manufacturers reported month-to-month gains in stock price, with three up by more than 10 per cent. Of the four manufacturers reporting monthly declines in stock price during the month, two were down by more than 10 per cent. The broader stock markets also reported improvements from September 2015 to October 2015. The S&P 500 increased from 1,920.03 to 2,079.36, which represented a gain of 8.3 percent. The Dow Jones Industrial Average ended the month at 17,663.54, rising 8.5 percent from the prior period. aGeM is an international trade association representing manufacturers of electronic gaming devices, systems, and components for the gaming industry. the association works to further the interests of gaming equipment manufacturers throughout the world. through political action, tradeshow partnerships, information dissemination and good corporate citizenship, the members of aGeM work together to create benefits for every company within the organization. together, aGeM and its member organisations have assisted regulatory commissions and participated in the legislative process to solve problems and create a positive business environment. 3 2 AGEM RETROSPECTIVE 2015 AGEM CELEBRATES ITS MOST ACTIVE AND EFFECTIVE YEAR YET On behalf of our 146 member companies from 21 countries around the world, I am honoured to share highlights of a very busy calendar year for AGEM and our members First of all, we are pleased with our continuing relationship with G3 magazine, editor Lewis Pek, commercial director John Slattery and the entire G3 staff. We truly appreciate having a forum to share news and updates each month. For G3 readers not entirely familiar with AGEM and its mission, we represent manufacturers and suppliers of electronic gaming devices, systems, table games, online technology, key components and support products and services for the gaming industry. AGEM works to further the interests of the world’s gaming equipment suppliers through political action, regulatory influence, trade show partnerships, educational alliances, information dissemination and good corporate citizenship. Thomas Jingoli, aGeM President responsiBle gaming For G3 readers not entirely familiar with aGeM and its mission, we represent manufacturers and suppliers of electronic gaming devices, systems, table games, online technology, key components and support products and services for the gaming industry. aGeM works to further the interests of the world’s gaming equipment suppliers. What started with AGEM’s inception in 2000 and a focus initially on Nevada has evolved into a trade organisation with global influence as our members sell their products and technology into every legal and regulated gaming jurisdiction in the world. exeCutive DireCtor With that in mind, 2015 was our most active year yet, starting in January with the election of new Officers and then throughout the year in these main categories: The AGEM Board in February approved a 3-year contract extension for Executive Director Marcus Prater, who has helped guide the organization to new heights since early 2008. new agem offiCers “BuilDing Better Business” January brought a revamped Officer team, including the addition of the new Vice President of Government Relations title. The AGEM Board of Directors approved the slate presented of President Tom Jingoli, Konami; First Vice President Dan Savage, Scientific Games; Second Vice President David Lucchese, Everi; Vice President Of Government Relations Steve DiMasi, GTECH / IGT; Secretary Mark Dunn, Aristocrat; Treasurer Tom Nieman, JCM Global; Co-General Counsel Mike Dreitzer, Ainsworth, and Co-General Counsel Harper Ko, Scientific Games. AGEM initiated Senate Bill 9 in Nevada allowing for variable-payback percentages on slot machines that will introduce true skill-based and arcade elements to casino floor for the first time. Following the unanimous passage of SB9 and the signing of the bill by Nevada Governor Brian Sandoval, AGEM worked closely with the Nevada Gaming Control Board on the new regulations and technical standards that will govern this exciting new form of gaming. 3 4 other factors on overall slot revenues in the U.S., continuing an industry discussion designed to optimize slot floors for the benefit of all. AGEM also released a detailed report by the respected firm of Applied Analysis on the effect of slot hold and The AGEM Board in February approved the contract renewal of AGEM Director of Responsible Gaming Connie Jones and she had a very active year as AGEM continued to financially support a wide variety of organisations dedicated to responsible gaming initiatives, including the National Center for Responsible Gaming, the National Council on Problem Gambling, the Nevada Council on Problem Gambling, The Problem Gambling Center and GamCare in the United Kingdom. international influenCe With Director of Europe Tracy Cohen based in London and AGEM addressing issues in markets ranging from Austria to Chile to Macau, the organisation continues to broaden its reach. eDuCation AGEM has remained committed to the educational component in its mission statement, including funding separate AGEM scholarships at or contributions to the UNLV Lee Business School, Nevada State College, Drexel University, the American Indian College Fund, the Global Gaming Women Charitable Education Fund, Atlantic Cape (N.J.) Community College, the International Center for Excellence in Gaming Regulation at UNLV, Las Vegas Discovery Children’s Museum and Spread the Word Nevada. assoCiate memBer Committee In order for non-voting members to have a larger voice in the organization, AGEM created a formal Associate Member Committee comprised of Tracey Chernay, TransAct Technologies; Jim Roberts, James Industries; Rodney Hammond, JCS Technologies; Eric Olsen, Olsen AGEM RETROSPECTIVE 2015 Gaming / Spectronix; Skip Davis, Gary Platt Manufacturing and Tabitha Jackson, YESCO. inDustry partnerships AGEM led an effort with the American Gaming Association (AGA) to highlight the growing problem of “8-liner” machines in Texas that are often at the center of illegal gambling operations. AGEM also partnered on other issues and events with a wide variety of other industry associations, including the Gaming Standards Association (GSA). helping guide the overall gaming discussion as the industry continues to await the passage of a new federal gaming bill designed in part to provide a more stable business environment where operators and suppliers can prosper. regulatory reform AGEM has remained focused on improving the overall regulatory climate for its members, an effort that led to the organization helping shape the discussion this year in more than a dozen U.S. states and multiple foreign countries. traDe shows AGEM exhibited at G2E, G2E Asia, ICE and NIGA and continues to work with trade show organizers around the world on the important topic of maximizing value for exhibitors and attendees. mexiCo The AGEM Mexico Committee active in Mexico City grew in influence throughout the year and now is honoring inDustry leaDers AGEM announced the creation of the Jens Halle Memorial Award Honoring Excellence in Commercial Gaming Professionalism and the Peter Mead Memorial Award Honoring Excellence in Gaming Media & Communications. Halle and Mead passed away within weeks of each other, much too young at ages of 57 and 54, respectively. aGeM has remained committed to the educational component in its mission statement, including funding separate aGeM scholarships at or contributions to the UNlV lee Business School, Nevada State College, Drexel University, the american indian College Fund, the Global Gaming Women Charitable education Fund, atlantic Cape (N.J.) Community College, the international Center for excellence in Gaming regulation at UNlV, las Vegas Discovery Children’s Museum and Spread the Word Nevada. Overall, 2015 will rank as AGEM’s most active and effective year to date and we look forward to riding this momentum into 2016 and beyond. 3 5 Events JUEGOS MIAMI MIAMI: THE CAPITAL OF LATIN AMERICA AND NEW EVENT HOST Clarion Events, which owns and organises a suite of world class gaming events including EiG, GiGse and ICE, together with partners, Urban Expositions, organisers of NIGA, has announced the launch of Juegos Miami, a totally new event concept for the Pan-Latin American and Caribbean gaming industry. Clarion's Kate Chambers explains a little more about an event whose foundation stones are relationship building and top level networking, set against a strong commercial backdrop. why Do you Believe the inDustry neeDs another event in this part of the worlD? I think that the region needs an event that brings together all of the top decision makers. This is not to say that the existing events don’t have a place in their respective markets, but for some time major suppliers have been asking for something that they can use across the whole region. The market has been extremely clear about the importance of attracting the key operators, the legislators, the big buyers, the business owners and their most trusted and influential decision-makers to a single prestigious event. We have received a very straightforward brief from our stakeholders and that is to create a branded event which is the Who's Who of Pan-Latin American and Caribbean gaming. The industry has been asking for an event that will truly embrace the region and reflect an entire continent of gaming excellence. Our challenge and that of our colleagues at Urban Expositions, is to deliver that brief and in the process satisfy the very specific needs of the industry that we serve." how long have you Been researChing the market? In total we have been looking at this for over a year, engaging with all sectors of the gaming industry active in Pan-Latin America and the Caribbean. Most importantly, we have listened to the market in order to understand exactly what it wants from an event. I think some people may have assumed that we would simply take the successful ICE template and apply it to this part of the world – but that could not be further from the truth. It's absolutely clear that one size does not fit all – you can't lift the London experience and recreate it in Miami and if you did, it probably wouldn't see its' second birthday! By working with, listening to and understanding the market we, in partnership with 3 6 Kate Chambers, Managing Director, Clarion. events The region is very different to other areas of the gaming world. It is made up of a range of different countries with different market needs, many travelling at different regulatory and cultural speeds. The global supplier market however, is looking for a cost effective way to target this vast region and this has allowed us to create a truly bespoke event that our research indicates both operators and suppliers will engage with. where Does Juegos miami sit in the Clarion gaming portfolio? Urban Expositions, in which we are now a majority partner, have created a unique, bespoke event for this incredibly important region. why is latam any Different from europe or north ameriCa? The region is very different to other areas of the gaming world. It is made up of a range of different countries with different market needs, many travelling at different regulatory and cultural speeds. The global supplier market however, is looking for a cost effective way to target this vast region and this has allowed us to create a truly bespoke event that our research indicates both operators and suppliers will engage with. It sits with the ICE team but has a dedicated group of people both in the UK as well as in the Urban offices in the US who can invest the right amount of time to ensure it gets the attention it requires to be successful. All new events need focus and attention to ensure they are successful and meet the needs of the market. It's essential that we have the right management structure in place to be able to respond to the needs of the market and are able to make the right decisions quickly. what other events will you Be working with urBan on? This is the first truly joint event we are working on but Events JUEGOS MIAMI world gaming, so any comparisons aren't really valid. It will be an international event but with the vast majority of attendees drawn from the region. we are also supporting their NIGA event. Urban will continue to run this successful event as their own project but with the additional support of the Clarion team, delivered predominantly but not exclusively courtesy of the access to market we have outside the USA. what are your long term plans for the event? where Do you see visitors travelling from – will it Be international in the same way that iCe is? Quite simply, this is something that the market will decide. We aim to run the event in its current format allowing it to develop in a way that works best for its supporters. As long as it works we intend to organise it. Miami is a fantastic location, in that it is the gateway to Latin America as well as being a great place to spend some time. Essentially, Juegos Miami is for the PanLatin America and the Caribbean gaming markets so we are looking at all jurisdictions from Mexico down. Don't forget that ICE is the most international event in Can you outline the Juegos miami usps in a few sentenCes? An intimate gathering allowing networking and relationship building for the Pan-Latin America and the Caribbean market in one place, a refreshing mix of Juegos Miami is organised by Clarion Events and Urban Expositions, the leading producers of gaming events globally. These include ICE Totally Gaming, NIGA, GiGse and EiG along with the Totally Gaming Academy – a series of training events for the industry. With a successful track record bringing buyers and sellers together in cost-effective and convenient settings, both Clarion and Urban have the experience and industry relationships with this type of specialised trade show audience. product, learning, knowledge-exchange, training, networking and socialising, utterly focused on the region, delivered in an intimate and dedicated environment. The plug and play pricing structure allows suppliers to access key buyers and decision makers in a cost effective way where the only additional cost is shipping equipment and flights for their staff. All accommodation, exhibit costs and F&B are included. 3 7 Review SAGSE ARGENTINA 2015 SMALL BUT MEASURED A small number of exhibitors greeted a suprising volume of visitors at this year’s SAGSE show. There was an optimistic mood shared by all thanks to Argentina’s change of government and Brazil’s intentions to legalise gaming Although smaller than previous years there was a decidedly upbeat mood at this year’s SAGSE conference held on the Costa Salguero in Buenos Aires. Many operators were keen to highlight the fact that SAGSE was still a very good platform from which to launch their new products to visitors coming from all over the region and the conference as always, attracted some of the world’s most innovative and largest suppliers of gaming machines, equipment and technology highlighting the fact that while it may have diminished in size SAGSE still remains a key date in the Latin American gaming industry calendar. G3 interviewed a series of SAGSE exhibitors to find out about the current state of the marketplace in South America and especially, Argentina. Marzio Panelli, CEO - 3 Bet Gaming “3 Bet Gaming is a service provider company. We are licensed in Malta and the Malta Gaming Authority and we have our gaming platform in which we have our main product - which is a sportsbook and we are presenting this product for the first time. We were also present at the ICE conference and we are planning to go again in February . . . We are adding new features and solutions to our software and to the modularity of the software. In fact you can combine the different modules, platforms or just the sportsbook for our third party service and you can combine it according to your needs so you don’t need the full package. So you can choose and set up your website according to your needs. Our sports book is very flexible so you can, for example, decide on the margin for an entire championship or on a single event and it is very flexible for these kinds of events and for focusing and targeting on specific markets that maybe you want to have as part of your sportsbook. This is the first time we’ve been at SAGSE. We have some contacts in Latin America and we want to explore the opportunities available in this region. Not only in Argentina but we are also thinking about 3 8 “We make games for the online market. We have brought to SaGSe all of our set of games. We have more than one hundred slot machines as well as all the table games such as roulette, blackjack, video poker besides the games for the desktop. We also do mobile games., Both ioS and android versions. We will be in ice in london in February where we will present our HtMl5 games as well . . . We have a platform as well but we are actually focusing much more on games and slot machines are very much required.” Gabriele De Lorenzi , Games Development Manager, World Match Colombia, Peru and Brazil in the future so this is the first time that we will have an idea of what is going on and to see the reaction to our products from the clients. some European market especially the Italian market and other Mediterranean countries. This year we are trying to enter the Latin American market to see if we can start to cooperate with some operators here. This is our first time at SAGSE . It’s been good so far. The second day was very good. The third day was much quieter but we were expecting that. Our impressions are that some of the operators really know about the online market while some of the others want to know more about it and what to start. There is a wide variety of different situations. We are beginning to enter the Latin market. We met some people last year in London ICE and so we think that the market can be really ready for business so we think this could be the right moment to develop the business and to expand here. There is not one market in which we are particularly interested in. Of course we have met many Argentines here during the show but we’ve also met people from Peru, Uruguay Chile and they’ve all seemed very interested in our products.” Luca P.Vingiani, Chief Global Office, sirplay Our main market is Europe... We have clients in Italy and Spain but we can also provide our service to clients who are in different jurisdictions and we are focusing now on Latin America. So SAGSE is the first step for us into this region. “ Gabriele De Lorenzi , Games Development Manager, World Match “We make games for the online market. We have brought to SAGSE all of our set of games. We have more than one hundred slot machines as well as all the table games such as roulette, blackjack, video poker besides the games for the desktop. We also do mobile games., Both iOS and Android versions. We will be in Ice in London in February where we will present our HTML5 games as well . . . We have a platform as well but we are actually focusing much more on games and slot machines are very much required. We are developing many others which are quite strong in “What we do as our core business is sport booking and that’s what we brought to the market this year as well as poker and casino so we have pretty much an end to end solution which can pretty much cover all products. In terms of Latin America it is the strongest market we have but we are pretty spread out across the globe but in Latin America especially. Colombia and Argentina are our strongest countries. We have about 15 years experience in sport betting so that is definitely one of the values that we can bring to the table regardless not just in Latin America. The fact that we have 80 per cent of our customer base in Latin America shows how much we are appreciated here because we can pretty much understand the market and we can meet the requirements of the market. The market . . . in terms of behaviour of players they have moved merely from more sports betting to more to poker and casinos. Especially in Latin America and Review SAGSE ARGENTINA 2015 Brazil we are seeing poker growing more than sports. We were here in 2014 with a very small booth measuring around 30 square metres. This time around it is more than 100 metres, so we are growing. We have staff here of more than 20 people on a daily basis to give you an idea of the investment we’ve made. What we are trying to do now is to differentiate our model based on the country. Brazil is a market which we are looking at in terms of market share and we are trying to adopt our go to market strategy to meet the requirements from a legal standpoint as well as a sales point of view because Brazilian customers have a completely different set of requirements from Colombian customer or from Argentine customers. That is why we are differentiating our go to market based on the country.” Daniel Cuacci, President Dayco Gaming “We’ve been working in the country for twenty five years now. We develop electronic games and we also develop systems for casinos for Ticket in-Ticket out (TITO) and for online as well . . . . and that is basically speaking our strengths. In Argentina there are four or five manufactures of roulette and we are one of the leaders . . . We are only present in Argentina as getting involved in other markets can be complicated when it We have exported in the past to Uruguay and Colombia and Bolivia and Guatemala but lately there has been more of market here in argentina than abroad. it’s more difficult to import than to export here and we provide support abroad. We know everyone here and it’s a good chance to see people and and talk to them personally.” Exequiel Garzon, Administrator, BCM comes to roulette as they are complicated machines and they require maintenance and you have to set up an office aboard for support. Things are all right here. I have my clients and with this we do well. I have a small business not huge but it keeps me going. We first came to SAGSE in 2003. It is really small year this year. The big companies aren’t here this year because of issues in the country and there are problems when it comes to bringing in their equipment into the country and other issues but it’s really small. But it’s important to be here to talk to people. It’s a good chance to talk to clients such an owner of a casino - something you don’t usually have a chance to do and they all come here to talk. They tell us about their problems and it’s much more personal otherwise it’s very difficult to get access to these types of people in person.” Exequiel Garzon, Administrator, BCM “We’ve brought a new product to SAGSE this year: the ibet s2g. It’s a new roulette module . . . which is based on previous models which we have been working on. It is an electronic roulette multi-N terminal machine with an electronic cylinder . . . We’ve been at SAGSE since it began and this year we also brought the ibet7 which is also an electronic mechanical roulette wheel which can support seven players at the same time and it simulates conventional roulette based on the Spanish version. We brought it here a year ago but we have been perfecting it since then. It can be operated electronically or by a croupier manually as well. It has both options. At the moment we are more focused on the Argentine market. We have exported in the past to Uruguay and Colombia and Bolivia and Guatemala but lately there has been more of market here in Argentina than abroad. It’s more difficult to import than to export here and we provide support abroad. We know everyone here and it’s a good chance to see people and and talk to them personally.” 3 9 Brazil asinos were first banned in 1946 by President Eurico Gaspar Dutra claiming they spread prostitution and encouraged the mafia and money laundering. This saw the immediate closure of around 70 casinos. Before the ban Brazilian casinos were some of the most famous in the world and generated a significant proportion of government finances. While horse racing was still permitted it wasn’t until 1993 when the government approved the Zico Law, which first allowed for the establishment of bingo halls in order to raise money for sports, that the industry was expanded. Later these began to spread nationwide at a fast pace and just as the government was looking at regulating the sector in a wider legislative framework the industry was hit by a national corruption scandal that went so deep that the President Luiz Inácio Lula Da Silva was forced to ban them altogether under decree. C To this day gambling in Brazil remains the most politically charged issue in the region due primarily to the proven links between gambling and organised crime. The Animal Game, an illegal street lottery, is played widely and numbers runners have 4 0 According to a 2012 poll, over half of legislators in power were ideologically opposed to casinos and gambling on principle. Making matters worse is the fact that the Brazilian Congress is more conservative now after elections held last year. been found to operate bingo halls and offer politicians and local officials bribes in return for closure. The “Mensalao Scandal,” as it was dubbed at the time led President Lula Da Silva to ban all bingo halls in Brazil by Presidential Decree in 2004 – an act which was later overturned by the Senate. Due to the sensitive nature of the issue there has been very little political will in the past to address the issue of casinos directly and while there have been a number of attempts to give casinos the green light, with the impetus coming mainly from the Senate, they have met with a lukewarm response from lawmakers. Furthermore, according to a poll carried out in 2012, over half of legislators in power were ideologically opposed to casinos and gambling on principle. Making matters worse is the fact that the Brazilian Congress is more conservative now after elections held last year. However, there have been major developments in the last two months which could herald some of the biggest changes in the market for many years. The developments are in response to Brazil’s worsening economic crisis which could well lead to a complete about face when it comes to gaming. New proposals now on the table could allow for online gaming, as well as land based casinos and could legalise the animal game in order to generate resources for the state. If the government finally green lights gaming it would be one of the most momentous moments in Latin American gaming history and could open up a huge and as yet largely untapped market. With a population of almost 180 million Brazil is the most Report LATIN AMERICA REPORT - BRAZIL FACTS AND FIGURES l l l l l l populous country in Latin America and offers a potentially huge market for the gaming industry. Brazilians love to gamble especially on lotteries and Brazil boasts one of the most advanced and most popular lotteries in the world. Brazilians are also gambling in increasing numbers online. Today it is estimated that about 8.7 million Brazilians play some form of online gambling. With online gaming on the rise and the Brazilian economy currently in a recession this is a crucial time for the industry with lawmakers increasingly aware of the need to legislate on gambling so that they may reap the tax benefits of a regulated industry. Even before the current crisis reached its peak a number of proposals had been put forward in the National Congress which were already seeking to liberalise the land based casino market and legalise the infamous animal game. Combined with the present crisis this has added to the impetus for change. In fact the legalisation of the animal game as well as other proposals put forward in the Senate are leading to one of the most important and open debates on the industry in several years. Brazil once tried to sell an aircraft carrier on ebay. Rio de Janerio was once the capital of Portugal (1763), making it the only European capital outside of Europe. The biggest Japanese community outside of Japan is in Brazil. Rio de Janerio means January River, and it was called so by mistake. A Portugues explorer thought the bay was the mouth of a river. The 2016 Olympic Games in Rio de Janerio will be the first time a South American country has had the right to host them. There’s an underground river 4km beneath the Amazon river that is as long as the Amazon, but is hundreds of times wider. The Zico law was amended in 1998 by Edson Arantes do Nascimento, Pele. Under the “Pele Law,” in order to raise additional income for sports, bingo halls would be permitted to house slot machine parlors as annexes to their property. Bingo anD slot maChines The Zico law in 1993 legalised bingo. Zico was the nickname of soccer player, Arthur Antunes Coimbra, who served as Minister of Sports in the early 1990’s. Under the Zico Law, bingo halls were permitted in order to raise tax income for ailing sports clubs. This law was amended in 1998 by Edson Arantes do Nascimento, better known as Pele who also served as Minister for Sports. Under the “Pele Law,” in order to raise additional income for sports, bingo halls would be permitted to house slot machine parlors as annexes to their property. In addition thanks to the somewhat ambiguous wording of the law an array of electronic devices were covered in the new act, and bingo halls resembled casinos without card tables and roulette. Meanwhile the governments of Rio de Janeiro, Paraná and Mato Grosso continued to pass their own bingo laws which complicated the matter further and the Maguito Law, which would have enforced a ban on all bingo parlours, failed after operators appealed to local courts. Bingo halls began to spread quickly and by 2003 there were over 1,000 bingo halls dotted around Brazil many of which were large scale. By 2004, Brazil had around 100,000 video gaming machines that could be found in thousands of bingo halls throughout the country. In 2004, President Lula da Silva and his party created a commission to look into more fully regulating the sector. Under new proposals, tax income made from the industry would have been designated to combat poverty. There was also evidence to suggest that the government was also paving the way for other types of gambling. But just as the government was considering new legislation, Brazil was hit by one of the largest political scandals in its history. In 2004 proof of corruption in the bingo industry came in the form of an undercover video. Filmed two years earlier it showed the then head of the State Lottery of Rio de Janeiro, Waldomiro Diniz, soliciting a bribe from well known illegal gambling boss and numbers runner, Carlos Ramos. This led to a number of other revelations which showed that criminals, who had made their fortunes running numbers, had not only become involved in the bingo industry, but they were also found to be bribing members of the Worker’s Party (da Silva’s party) and other high ranking government officials in return for stays of closure and influence. Consequently, the government was forced to take urgent action. Every single bingo hall was closed by President Lula da Silva under Provisional Measure 168/04. Bingo workers took to the streets in protest all over the country and two and a half months 4 1 Brazil later the act was declared unconstitutional by the Brazilian Senate. In 2007 the Supreme Court declared that all licences handed out by local governments were void. However, the majority of bingo halls have been able to remain open under stays of closure granted to them by local courts and have remained open in a legal limbo while around 100,000 gambling machines in Brazil remains operational. At the same time illegal bingo halls continue to thrive. Since 2014, a number of attempts have been made to regulate the industry but none have succeeded. Bingo owners, who had gone bankrupt, have been demanding that the government provide them with compensation, and the Brazilian Association of Bingos has made a number of formal requests in court on behalf of the owners demanding that they receive compensation. Bingo owners, who had gone bankrupt, have been demanding that the government provide them with compensation, and the Brazilian Association of Bingos has made a number of formal requests in court. The fight for changes to Brazil’s gaming laws has not, however, been limited to bingo hall owners and a number of Congressmen want to see major changes to Brazil’s gaming landscape. Proposals to allow bingo halls are often part of much wider legislation which seek to open up the gaming market. Since 2004, more than ten bills have been out forward some of which would open the market while others seek to tighten the restriction on bingo halls and gambling altogether. Those in favour of liberalising the market claim that the government is losing out on huge amounts of tax revenue while illegal gaming continues to grow unchecked. However the topic is so highly charged that there has been a marked unwillingness to tackle the issue head on. Despite these setbacks the outlook looked positive in November, 2009 when legislators who were allied with the new government of Dilma Vana Rousseff put forward proposals that were quite similar to the suspended legislation of 2004. Under the new bill, slot machines and bingo games would have to return 70 per cent of the stake back to the player and 14 per cent of gaming tax revenue would be destined for the health sector. It was estimated that a more closely regulated industry would generate US$4bn in gaming tax revenue per year and money generated from the bingo halls and slot 4 2 parlors would be designated to fight poverty and improve the health sector. It was believed that Rousseff was in support of such measures. New legislation was then put forward in December. But the law was ultimately rejected, by a majority of 212 to 144, under accusations that the industry had illegally sought influence among members of the Lower House and claims that bingos in Brazil were used for money laundering and only added to the problems of organised crime. Matters have not been helped by the fact that the issue still remains highly charged. Although Ramos, who was implicated in the scandal in 2004, was never convicted police continued to investigate him. In 2012 it was revealed that via wire taps police had found that Ramos had remained connected to politicians and construction companies, some of which had been granted state contracts to build facilities ahead of the upcoming 2016 Olympics. As a result of this investigation, the Brazilian High Court blocked the assets of Ramos and another six of his business associates. Meanwhile, a Senate committee was formed to look into the infiltration of criminal gangs into both houses of Congress. Report LATIN AMERICA REPORT - BRAZIL FACTS AND FIGURES l l l l l Brazil is the fifth largest country in the world and has the second highest number of airports after the US. Eight of the 12 host cities for the 2014 FIFA World Cup in Brazil are among the 50 most violent cities in the world. Brazilian prisoners can reduce their sentence by 4 days for every book they read and write a report about. 92 per cent of all new cars sold in Brazil use ethanol as fuel, which is produced from sugar cane. The largest population of catholics in the world is in Brazil: 213 million or 64 per cent of its population. Apple’s iPhone is almost twice as expensive in Brazil than it is in the US. Shortfall in taxes generated by Brazil’s struggling economy has prompted the government to cut budgets and raise taxes. In September the government unveiled a US$7bn package of spending cuts after the government announced that its economy fell into recession. However undeterred another attempt to regulate the industry came in 2014 when Senator Ciro Nogueira, put forward legislation that would authorise the animal game, casinos, bingo halls and betting around the country. The law would put stiff penalties in place for non compliance including jail terms. online industry and the land based industry. Arguing that Brazil now remains one of the very few member nations of the United Nations who do not allow gambling, the bill was submitted to the Committee on Regional Tourism Development in the Senate. Brazil’s Crisis anD new measures According to Senator Ciro Nogueira a state regulated gambling industry would increase tax revenues, create jobs and promote wealth. The purpose of the bill was to “legalise what today exists even if it is hidden,” and the bill seeks to establish clear rules when it comes to both the While it was initially believed that Senator Ciro Nogueira’s law would in all likelihood languish in the committee stage for several years there could be fundamental changes to Brazil’s gaming law. Indeed events are now moving at a fast pace with Brazil closer than ever to allowing gaming. This was after breaking news in September that Brazil could legalise gambling in order to raise money and help weather the recession. A move is also under foot to push forward Senator Nogueira’s law as a matter of urgency in the Senate. Shortfall in taxes generated by Brazil’s struggling economy has prompted the government of Dilma Rousseff to cut budgets and raise taxes. In September the government unveiled a US$7bn package of spending cuts after the government announced that its economy fell into recession, shrinking 2.6 percent from a year ago. 4 3 Brazil In September Rousseff and several cabinet ministers met with party leaders from the alliance to see if new proposals which would allow for gaming in Brazil would have their approval according to statements made later by a number of lawmakers to local media. According to the Deputy Domingos Neto, the government could also permit online gaming as during the meeting the President highlighted the fact that currently Brazilians use international credit cards in order to gamble via offshore betting sites and leave no resources for the government. Legislators said, however, that the project could face fierce resistance from Deputies and Senators with ties to the church but, but agreed to consult their constituents. The proposals would mean fundamental changes to Brazil’s gaming laws and could allow for the operation of bingo halls, large scale casino resorts, sports betting and could allow for other types of gambling as well. Pressure has continued to mount and a month later in October Senator Benedito de Lira asked for the Senate’s approval for Senator Noguiera’s 2014 law. Speaking in a plenary session, the Senator asked for the approval of Senate Bill 186/2014, arguing that in times of crisis and due to lack of resources, the regulation of gambling in Brazil could significantly increase tax generated by the state. Among the benefits of regulation, he said were the 4 4 In September Rousseff and several cabinet ministers met with party leaders from the alliance to see if new proposals which would allow for gaming in Brazil would have their approval according to statements made later by a number of lawmakers to local media. promotion of tourism, an increased investment in infrastructure, job creation and increased tax collection. Benedito said he had submitted a proposal to President Dilma Rousseff and had carried out an informal consultation with members of both houses. The majority of respondents were in favour of the idea, he said. During the debate Senator Ciro Nogueira reinforced Senator Benedito’s arguments, noting that for every three reals, two reals are played illegally. The author of the proposal also said that the project may be included in the list of matters including in Brazil Agenda a wide sweeping set of proposals designed to stave off the current political crisis. Casinos Casinos remain illegal under the terms of the Criminal Contravention Act which bans in general terms gaming in Brazil. In 2008 there was an attempt to introduce measures which would have seen six casinos in tourist zones while the opening of any other casinos would be restricted for another five years. The law after being introduced to The Commission of Economic Development, Industry and Commerce of the House of Representatives in Brazil did not make it through the committee stage. Legislation which would allow casinos was also introduced in 2014 by Senator Ciro Nogueira as part of the legislation which would have allowed for an expansion in the market. According to the draft proposals, casinos would be able to offer a full raft of casinos games. Licences would be valid for twenty years and casinos must hire preferably local workers. the animal game anD new legislation One of the key issues in Brazilian gaming industry is the jogo de bicho or animal game which was at the very heart of the Mensalao scandal. It could also herald major changes in the industry should the government take the bold step of legalising the game. The animal game was founded in 1892 by Baron Drummond Joao Batista Viana, founder and owner of Rio de Janeiro Zoo. To overcome a crisis in its Report LATIN AMERICA REPORT - BRAZIL FACTS ANF FIGURES l l l l l l l l finances, the baron had the idea to create the lottery and allowed the bettor to choose 1 of the 25 animals in the zoo. Each species is associated with a sequence of four numbers ranging between 1 and 100. It is believed that the game is so popular today that it matches the federal lottery in terms of revenue. Today the game is worth billions of dollars each year. The game is particularly popular in Rio de Janeiro where it is currently controlled by clandestine and criminal organisations, whose leaders, known as’ bicheiros’- usually finance the impressive and world famous Carnival parades. The lottery-type drawing, operated on a regional basis by criminals known as contraventores, has been illegal since 1946 in 25 of the 26 states with Paraiba being the only state where the game is legal and regulated. The Animal Game is still cause for major concern in Brazil and continues to regularly make headlines. In 2012 Brazilian newspaper Globo, revealed that local police forces were investigating the links between numbers runners and their connection to casinos in Argentina, Ecuador and Uruguay. Local police sources revealed that criminal gangs that run the animal game had formed alliances with other criminal groups based in Israel and Russia that specialised in money laundering and tax evasion. The gangs were thought to have been targeting countries in Latin America where casinos are legal. There’s a colony in Brazil founded by 2,000-4,000 Confederate refugess who left the US after losing the Civil War. About 4 million slaves were taken from Africa to Brazil, about 40 per cent of all in the Americas. Brazil was the only independent South American country to send ground troops to fight in WWII, with over 25,000 soldiers. In 2010, a clown called Tiririca announced he would run for congress in Brazil. He became the most-voted-for congressman of the election. Brazil’s government spent US$53m in public funds for Pope Francis’ visit in 2013. In 2013, the world’s 7th richest person, Brazilian Eike Batista, lost his US$30bn fortune and now owes US1bn. In Brazil, just 43 per cent of adults have a high school degress. In Sweden the figure is 87 per cent. There is an island in Brazil where civilians are forbidden to go. It has up to five snales per sq.m. A special committee in the Brazilian Congress has now been charged with reviewing proposed legalisation which would legalise the animal game. The act, read by Deputy Vitor Valim (PMDB-CE), at its meeting on June 2 this year, creates a special committee to consider the proposal. Last year the government also launched a major crackdown on the game across several states called Operação Trevo (Operation Shamrock). According to police sources, the gang had been active in 13 states and the scheme involved the both the animal game and illegal slot machines. Police sources estimated that the organisation handled approximately $R1.5bn in assets. The arrests were the culmination of a nine month investigation into illegal gaming in Brazil. Arrests of those involved in the animal game have continued apace this year with arrests and raids continuing along with confiscation of equipment in states all across Brazil. A special committee in the Brazilian Congress has now been charged with reviewing proposed legalisation which would legalise the animal game. The act, read by Deputy Vitor Valim (PMDB-CE), at its meeting on June 2 this year, creates a special committee to consider the proposal and contains other clauses which would also legalise bingos and casinos in resorts. The cross party commission, which was established at the initiative of the President of the Lower House, Eduardo Cunha, is made up of 26 lawmakers. They have 40 sessions in order to discuss draft law number 442 which dates back to 1991, before a vote is taken. When the law was first introduced in 1991, the author of the project, former deputy Renato Vianna argued that the animal game should be decriminalised, so that it could be regulated saying that the game finances “crimes such as arms and drug trafficking drugs and illegal slot machines. It is also a powerful instrument of corruption, as crime lords use it to bribe police and lawyers.” The act, however, was shelved before being resurrected over twenty years later. Deputies arguing for change today say that the act is more relevant than ever and that revenue generated by a legalised version of the game could be allocated to municipalities where it could be used for education and health. 4 5 Brazil The re introduction of the law was initially put forward in March by Representative Nelson Marquezelli, who said he wanted to discuss “all of Brazil’s games” to regulate them and get them out of the control of the “underworld.” A long-time advocate of legalising gambling the lawmaker pointed out that Brazil was losing out on millions of dollars of tax and also added that he wanted to end the monopoly of CAIXA (Brazil’s state owned bank) on gaming, “The first world countries all have gaming. If Brazil wants to be a first world country, it needs to be equipped for this,” he said. The re introduction of the law was put forward by Nelson Marquezelli: “The first world countries all have gaming. If Brazil wants to be a first world country, it needs to be equipped for this,” he said. In addition to legalising the animal game, the special committee will have to consider other projects that have now been joined to the original text. Consequently although the debate revolves around primarily the legalisation of the animal game the debate goes much further. A total of eight proposals are now attached to the project which would liberalise the market and relate to casinos, bingo halls, sports betting and online gaming. in Brazil. Through the internet, you can bet and transfer funds online. . . Therefore, it is time for the National Congress to overcome hypocrisy, discuss the matter and regulate gaming in the most appropriate way to meet their entertainment and leisure purposes, and which could contribute resources to finance social welfare programmes,” she said. One of the amendments was presented on May 8 by Congresswoman Renata Abreu. The new text would grant the federal government with the right to allow bingos and other types of gambling. Mrs Renata Abreu argued that “The animal game is a social fact 4 6 Another proposal put forward by Darci Pompeo de Mattos, which also comes as an addendum to the Renato Vianna bill, would establish the creation of a municipal lottery. The lottery would be run by the municipalities themselves or by means of a concession to private companies. Fifty per cent of revenues for the new game would be used for heath and for education. lotteries In Brazil the largest state owned bank runs lotteries while a number of state lotteries are still also permitted. The Federal Lottery was set up in Brazil as a monopoly in 1961. Caixa Econômica Federal, known locally as CAIXA, is the biggest public bank in Latin America. In the first quarter of 2015, CAIXA’s customer base reached 80.2 million of account holders and savers, an increase of 8.7 per cent in 12 months and 2.3 per cent in relation to the latest quarter of 2014. In addition to Caixa, states are also permitted to operate their own state lotteries and they outsource running of the operators to outside companies. Products run by the state lottery of Minas Gerais, for example, are run by Intralot. Only 15 states are authorized to run lotteries but out of these states, only Rio de Janeiro, Minas Gerais, Paraíba, Pernambuco and Mato Grosso operate them. The largest are the lotteries of Rio de Janeiro and Minas Gerais. The CAIXA run federal lotteries are among the 12 largest in the world. In 2014, sales totalled US$5bn. JUEGGOS MIAMI M se celebra la capital rAN en Mia de América Latina! AN EXCLUSIVE INVITATION TO THE SHOWCASE EVVENT FOR THE LATIN AMERICAN ANDD CARIBBEAN GAMING COMMMUNITY juegosmiami.com Brazil This is an increase of 18.5 per cent compared to 2013. Of this amount US$2.4bn was channelled to a wide array of social welfare programmes and US$1.8bn was handed out in prizes. With MegaSena sales alone standing at around US$290m a year, the Brazilian lottery is hugely powerful and is a major contributor to social welfare schemes. According to CAIXA’s latest annual report from 2009 until 2015 more than US$9.4bn were distributed into investments in such undertakings as social security, sports, education, public safety and culture. Around half of the income generated by CAIXA run lotteries is ploughed back into Brazilian society and is channelled to its beneficiaries. Sports funding is managed through the Ministry of Sports, the Brazilian Olympic Committee and the Brazilian Paralympic Committee. Education, through the 4 8 The CAIXA lottery sales network is extremely well developed and extensive and encompasses the entire territory. In Brazil there are a total of 45,333 CAIXA lottery shop terminals which register an average of 13.7 million transactions per day. Financing Fund for the Higher Education Student (FIES). Security, through the National Prison Funding (FUNPEN); Culture, via the National Culture Fund (FNC), while almost half is put back into the social security system. From the amounts collected in the lotteries portfolio in the first quarter of 2015, approximately R$1.0bn were transferred to social programs from the federal government in areas of social security, sport, culture, public safety, education and health. 18.8 per cent was destined for national sport. 8.2 per cent went to the penitentiary fund. 7.7 per cent went to the national cultural fund. 0.1 per cent went to the national health fund. 45.9 per cent went to social security fund and 19.3 per cent went to financing student programmes. The CAIXA lottery sales network is extremely well developed and extensive and encompasses the entire territory. In Brazil there are a total of 45,333 CAIXA lottery shop terminals which register an average of 13.7 million transactions per day. These include lottery and non-lottery related transactions. There are now 35,000 service outlets Report LATIN AMERICA REPORT - BRAZIL FACTS AND FIGURES l When the World Cup was hosted by the US in 1994, the country spent US$30m on infrastructure improvements. For the 2014 World Cup, Brazil spent US$11bn. l The main exporter of Brzail nuts is not Brazil - it’s Bolivia. l There’s a 10,000-seat replica of Solomon’s Temple in Sao Paulo, Brazil. l l l l Rio de Janerio’s beaches have 1.7 million times the disease causing viruses of what would be considered hazardous on a California beach. There’s a prison in Brazil that allows inmates to pedal stationary bicycles, providing electricity to a nearby city in exchange for reduced sentences. In Brazil, just 43 per cent of adults have a high school degress. In Sweden the figure is 87 per cent. Half of the Top 20 cities in the world with the highest murder rates are in Brazil. stood at R$ 2.7bn and sales increased steadily in 2014. Total annual inflow reached US$5bn in 2014, an increase of 18.55 percent compared to sales in 2013. Sales for Quina, Lotogol and Loto Fácil increased by 32.5 per cent, 27.0 per cent and 11.9 per cent, for the first quarter of 2015 respectively compared to the same period last year. Timemania has also shown a surge in popularity. Timemania was designed so that it would raise US$250m in order to aid cash strapped football clubs. Although slow to start off with revenues made from the game are rising and Timemania registered the sharpest annual growth in 2014, with expansion of 68.7 per cent compared to 2013. Timemania was designed so that it would raise US$250m in order to aid cash strapped football clubs. Although slow to start, revenues are rising and Timemania registered the sharpest annual growth in 2014, with expansion of 68.7 per cent compared to 2013. Caixa’s ten lottery proDuCts nationwide including 13,251 lottery shops. Brazilians can also pick up benefit cheques at lottery offices and carry out basic banking services giving lottery outlets greater appeal. For now betting on CAIXA’s products is limited to its internet banking system. However, plans are underway to offer all of its products online so that the entire federal lotteries portfolio will be available on virtual channels including Smartphones and tablets. Online availability of lotteries is now being developed as a priority and it is hoped that once in effect that it will attract a wide number of newer players and should have appeal especially amongst those who are not in the habit of visiting lottery shops. In the first quarter of 2015, CAIXA lottery revenue CAIXA’s most popular product is the Mega Sena. Drawn twice a week it prizes are awarded to those who chose four or five numbers from a total of 60. The minimum bet is on 6 numbers and today a ticket costs US$ 0.94. Mega Sena reported growth of 31.6 per cent in 2014. Rising from US$ 1,786,497,357.62 in 2013 to US$ 2,351,831,129.01 in 2014. These figures were helped by the fact that the government allowed a hike in the minimum cost of a ticket from US$ 0.75 to US$ 0.94 in May. Dupla Sena allows players to pick 6-15 numbers from 50. The numbers are drawn twice doubling the chances for the player to win with the same numbers. In order to win a prize, the player must correctly select four, five or six numbers in either the first or second drawing. The Dupla Sena is held every Tuesday and Friday and the minimum bet is six numbers, with a cost of just US$ 0.38. Sales decreased by 3.3 per cent in 2014 from US$128,277,024.19 in 2013 to US$ 124,086,584.53 in 2014. The Federal lottery offers five major prizes per draw and is dawn twice a week. The Federal lottery is the oldest and most traditional of the CAIXA lotteries and offers the highest chance of winning the first prize: one chance out of 95,000. Sales increased by 3.5 per cent in 2014 from US$ 106,053,603.90 in 2013 to US$ 109,775,174.15 in 2014. CAIXA has also introduced a number of sports themed lotteries. Loteca which is based around football and allows players to guess on the outcomes of fourteen matches is drawn once a week. Sales increased by 9.8 per cent from US$ 4 9 Brazil 33,651,056.11 in 2013 to US$ 36,962,624.39 in 2014. Another football themed game is LotoGol which allows the player to bet on the number of goals a football team will score in five matches. Sales increased by 24.2 per cent from US$ 4,960,657.14 in 2013 to US$ 6,161,922.38 in 2014. Its most high profile sports betting lottery game is Timemania which is based around the theme of local football clubs. Money raised from the game are used to help football clubs pay tax debts and CAIXA transfers resources directly to each one of the creditors every month for this purpose. Sales increased by 68.7 per cent from US$ 94,891,866.94 in 2013 to US$ 160,133,660.88 in 2014. LotoFacil allows the player to choose 15 to 18 numbers, from 25. Winners receive a payout if they choose 11, 12, 13, 14 or 15 of the correct numbers. It is held three times a week. Sales increased by 10.9 per cent increasing from US$ 1,125,274,177.42 in 2013 to US$ 1,247,747,808.26 in 2014. Lotomania allows the player to choose 50 numbers. Drawings are held on Wednesdays and Saturdays. Sales decreased by 8.2 per cent from US$ 230,371,221.32 in 2013 to US$ 211,447,369.09 in 2014. 5 0 Quina, meanwhile, allows the player to choose 5, 6 or 7 numbers from 80 with payouts on 3, 4 or 5 numbers. The game is held six times a week. Sales increased by 6 per cent from US$ 730,740,963.65 in 2013 to US$ 774,586,696.19 in 2014. Instantanea are instant tickets and these too are becoming increasingly popular. Sales for instants increased by 26.5 per cent increasing from US$ 56,935,494.84 in 2013 to US$ 72,107,753.34 in 2014. sports Betting Brazil offers a huge and as yet untapped market when it comes to sports betting. One of the reasons behind the huge popularity of online sports betting in Brazil is that there is no bricks and mortar solution in place to meet demand because of the 1947 act. As a result sports enthusiasts have no choice but to turn to offshore betting sites. Sports betting remains banned under Brazil’s gaming laws and the only legalised form of sports betting (apart from a small number of Codere horse race betting shops) is via lottery type games offered by CAIXA. This is nowhere near enough to meet demand and Brazilians have been tuning to offshore gambling sites in increasing numbers. Although online gambling is currently banned in Brazil it is estimated that Brazilians gamble Local daily Folha de Sao Paulo reported that the Ministry of Sports had commissioned a study into the issue which found that in 2011 Brazilian sports betting turnover made via offshore sports betting sites amounted to a massive US$300m on Brazilian sports. US$600m a year via offshore sports betting sites. The issue became increasingly pressing ahead of last year’s World Cup where it was believed that the government could have given the green light for some expansion of sport betting online but no action was taken on the issue although it did raise the profile of sports betting in the media. The government is also showing increasing awareness and the issue has in recent years been considered by a number of government bodies including the Ministry of Sport, the Ministry of Finance and the Brazilian Lottery (CAIXA). Report LATIN AMERICA REPORT - BRAZIL and the State Championships and could be managed by Caixa. Under the proposal, 16 per cent of the proceeds would be allocated for investment in sports in primary schools. According to the proposals money generated by online football betting would be destined for the government and for football clubs so that they could pay off their debts. However the vote on the issue was suspended in an increasingly acrimonious debate. The commission tried four times to approve the proposals but the fourth attempt was suspended due to a lack of quorum and a lack of consensus on the issue. As a result so far the government response to the issue reflects the somewhat conservative mood of the country with a tendency to keep the 1946 ban in place. As a result while the market seems to be opening up it is only opening up slowly and the sports betting offer is still extremely limited. It is believed that for now that sports betting could be expanded but will be limited short term to CAIXA products. This is a far less controversial solution than green lighting sports betting via the internet or in bookmakers. Apart from lottery based sports games the government has been looking at ways to regulate the online and land based markets. In November 2011 it was revealed that the government was looking into allowing sports betting via the internet and sports betting shops. Local daily Folha de Sao Paulo reported that the Ministry of Sports had commissioned a study into the issue which found that in 2011 Brazilian sports betting turnover made via offshore sports betting sites amounted to a massive US$300m on Brazilian sports. In June 2012 the issue came up for debate in a public hearing held by the Commission for Tourism and Sports of the House of Representatives. This time the impetus came from the state of football club finances. Under current laws Brazilian soccer clubs cannot take advantage of the growing online sports betting industry even though millions of dollars are bet locally on the outcome of Brazilian football matches. As such a number of lawmakers stated that the opening up of online sports betting could be a way for clubs to generate much needed revenue. The Legal Studies Committee within the Sports Ministry has also looked at the creation of an agency to regulate sports betting while the Finance Ministry has also in the past looked at legislation which would liberalise the market. However, for now it looks like lawmakers generally speaking favour plans where they would grant the Brazilian state lottery the right to offer sports betting via contract with an operator or would develop sports betting in house. Indeed the Brazilian Lottery could well be key to the future of sports betting in Brazil and according to some proposals could be the only body which will be allowed to offer online sports betting in the future. The latest development came in May 2015 when the special committee of the House, which is responsible for strengthening the Program of Olympic Sports, met to try to adopt text that would create the Fiscal Responsibility Law of Sports. The project includes, among other things, the legalisation of online betting on football matches. Proponent of the law Deputy Otavio Leite argued that the main aim of the law was to prevent tax evasion in the country. According to the deputy, a study by the FGV (Getulio Vargas Foundation) shows that Brazil loses R$600m a year in bets on foreign websites. According to the draft proposals, bets would be permitted during Brazilian Championship matches such as, the Brazilian Cup The first new lottery will be an instant called Lotex and will be based around the theme of local football clubs. Seven per cent of revenue will be destined to sports in schools while three per cent will go directly to Brazilian football clubs. The first product aimed to help football clubs was Timemania which is now the fastest growing CAIXA lottery product in Brazil. Timemania was designed so that it would raise US$250m in order to aid cash strapped football clubs. In July 2015 the senate passed a new law which will allow for two new sports betting lotteries. Once again the new products are designed specifically to raise revenues for football clubs and will go into effect once President Dilma Rousseff signs the new act. The first new lottery will be an instant called Lotex and will be based around the theme of local football clubs. Of its total revenue, 10 per cent will be earmarked for projects related to school sports while 2.7 per cent will go to the football clubs. The other product is a quiniela sports game based on the results on local football matches and other sporting events. Seven per cent of revenue will be destined to sports in schools while three per cent will go directly to Brazilian football clubs. 5 1 Brazil The law sets a deadline of 20 years in 240 monthly instalments for payment of debts. In return for lower interest rates and a reduction in fines football clubs must agree to commit to good management practices in the future as set down by the new act. The new lottery games will be overseen by the Ministry of Sports and its prizes are exempt from income taxes. The new sport based quinela game will be in all likelihood operated by CAIXA. Meanwhile, private operators will be granted the right to offer the football based instants Lotex. horse raCing Like many jurisdictions in Latin America Brazilian horse racing is in decline. The golden age for the industry came between the 1950’s and 1980’s but the industry has for years been losing out in the face of other types of gambling such as lotteries and bookmakers. Moreover, from the time that the races began to be televised, the public began to stop going to the racetracks. Nationwide annual membership to horse racing clubs has declined by as much as three times since the mid 1990’s. Today horse racing is no longer covered in the sports pages of many top selling newspapers as Brazilians The Jockey Club de São Paulo was founded in 1875. In 2010 the government threatened to turn the track into a national park if the track was unable to pay its tax debts. In 2010 it was estimated that the debt amounted to around three times its annual gross income. become more interested in other sports such as football. They can also bet on a wider arrange of lottery products made available to them by CAIXA. Although extremely small scale when compared to the size of Brazil and its population the last ten years has seen small some improvements in the industry with some cause for optimism in recent years. Although clubs in some case have had to sell off assets in order to pay off debts they have managed to survive and their global potential is only now being tapped into via recent agreements to simulcast Brazilian races worldwide. In addition tracks as are being used as venues for other entertainment options such as art exhibitions and concerts due to their central location as is the case for The Jockey Club de São Paulo. There are a number of recent developments on the way which look likely to revitalise the industry further, namely the commingling of Brazilian horse racing with international horse race activity. 5 2 Through a number of agreements Brazilian race tracks are now being broadcast live around the world commingling local races into single pools betting which means that the industry could benefit from modern, global pari-mutuel industry standards. And those outside of Brazil can now bet directly on the outcomes of Brazilian horse racing for the first time. Jockey Clubs own racing tacks and are responsible for running them whereby each track is granted a licence to offer horse race betting in betting shops in the area in which they are licensed. Nationwide there are now over one hundred and fifty betting shops which are officially recognised by the Brazilian Jockey Club and there are now four tracks nationwide. The sales volume stand at around US$193m, while estimations of Codere put the potential market at US$542m. Of the R$1bn that racehorses generate a year in revenues, the stakes represent R$600m. The remaining R$400m come from animal husbandry, trade and auctions. Besides the Jockey Club de São Paulo, the main racecourses are Gavea in Rio de Janeiro, Cristal in Porto Alegre, and the Tarumã rack in Curitiba. The Jockey Club de São Paulo was founded in 1875. Races take place on Saturdays and Sundays and on Monday. The track has gone through an extremely turbulent time and in 2010 the government threatened to turn the track into a national park if the track was unable to pay its tax debts. In 2010 it was estimated that the tax debt faced by the Jockey Club amounted to around three times the annual gross income generated by horse racing at the track. But the track managed to renegotiate its debt and agree to a repayment package with the government. After being badly managed for so many years the track has finally managed to reduce the debt and has paid off around 80 per cent, leaving 20 per cent to be normalised. This was after the track agreed to sell off large parts of its property specifically a farm in order to offset Report LATIN AMERICA REPORT - BRAZIL Sul, José Vecchio told press that the move follows the global trend of simulcasting races and that in the long term the club hopes to incorporate races from its tracks into the international market. Meanwhile, André Gelfi CEO of Codere Brazil said that the launch follows international standards in place by the global industry and that bets can be taken over the telephone, over the internet and via off track betting shops The Hipódromo do Tarumã racetrack in Curitibo was inaugurated on December 10, 1955 and is run by the The Jockey Club of Parana. In February Codere announced an exclusive joint agreement with the Jockey Club Parana to share its signal with other racing jurisdictions on a comingled basis, including the United States, Australia, Asia, and other Latin countries. Spanish Gaming Company Codere has 10-year exclusivity agreements with some of the main national Jockey Clubs through licences granted by the Ministry of Agriculture allowing the company to broadcast races live in the company’s sports betting shops. Codere began its operations in Brazil in 2005 with a proposal to develop horse racing. Under brand name Turff Bet & Sports Bar Codere in 2006 announced its intention to open thirty sports betting shops in Brazil over the next ten years. The company now runs a total of seven sports betting shops in Brazil. These are located in Pelotas, Porte Alegre, Rio de Janiero and Curitiba. In 2012, CODERE signed an agreement with United Tote that enables the company to extend its services to Brazil and Latin America racetracks, as well as to its off-track betting network throughout the entire region. In 2014 Codere reported income of €2.8m and EBITDA of €(0.4)m from its horse race betting operations in Brazil. poker the debt of R$2017m it owed the city government. In 2013, CODERE signed an agreement with the Jockey Club São Paulo and Bandeirantes Group in order to provide content and technological services to the Jockey Club in São Paulo. inaugurated in 1959. Earlier this year the Rio Grande do Sul Jockey Club in Brazil announced the launch of a totalising system that allows the simultaneous transmission of horse racing in Brazil and Uruguay with real-time interaction. The Hipódromo da Gávea is located in Gávea neighbourhood, Rio de Janeiro, Brazil. It has a capacity of 80,000. It was built in 1926. It has 3,000 seats. It is the largest racecourse in Brazil and covers an area of around 640,000 meters. Horse races are usually held Friday, Saturday, Sunday and Monday. It is the largest horse race betting centre in the country. However between 2002 and 2009 the volume of bets fell by as much as 30 per cent. As a result the Jockey club has opened up a number of restaurants and galleries to attract crowds. The new system will allow customers to bet into one common betting system from either Uruguay or Brazil. The new system will link betting from races taking place in the Cristal Race Course in Porto Alegre and with those from the Maroñas and Las Piedras racetracks in Uruguay. The Hipodromo Crystal (Crystal Racecourse) is located in the state of Rio Grande do Sul in the city of Porto Alegre Brazil, where 60 per cent of the Brazilian breeding industry is located. It was first The initiative marks an important moment in the Brazilian horse racing industry as for the first time in history two gaming markets in Latin America will be integrated through a totalizing system which places both tracks in Uruguay and the Cristal Race Course into a single system of parimutuel simulcasting. The President of the Jockey Club of Rio Grande do Around 2 million Brazilians practice poker online. Poker is becoming increasingly popular and is recognised by the Ministry of Sports as a “game of the mind”. As a result the number of tournaments is increasing as they are given permission by the Brazilian Ministry of Sport. Growth has been driven in part by the Brazilian Series of Poker (BSOP), the country’s biggest poker tour, which was sponsored by PokerStars in 2012, initiating the beginning of a major marketing campaign locally. Brazilian player Politano became the first Brazilian player in history to reach the final table World Series of Poker Main Event last year coming in at eighth place which has added to the overall popularity of the sport. Poker is also being provided with an increasingly high profile media presence thanks to two football players in particular. Ronaldo is a keen player of the sport and in April 2013 he became one of the famous faces representing Team PokerStars. Poker is also being promoted by Brazilian football captain and PokerStars ambassador Neymar Junior. 5 3 Brazil Although online gambling is currently banned in Brazil it is estimated that Brazilians gamble around US$600m a year via offshore sports betting sites. Today it is estimated that about 8.7 million Brazilians play some form of online gambling. It was also announced that at the end this year that BSOP will team up with The Latin American Poker Tour (LAPT) to host the end of this year’s Latin American Poker Tour in São Paulo. The BSOP Millions is the largest and most popular poker tournament in Latin America. Igor Federal, Chief Executive Officer of the BSOP said in a statement: “The BSOP Millions and the LAPT Grand Final are the two most important live poker events in Latin America. The region has seen a massive increase in player numbers in recent years, with the BSOP reporting a 218 per cent increase in tournament entries since last year. Bringing together the two tours means that we can combine our efforts to create one amazing festival, and we are expecting record numbers of players.” online Although online gambling is currently banned in Brazil it is estimated that Brazilians gamble around US$600m a year via offshore sports betting sites. Today it is estimated that about 8.7 million Brazilians play some form of online gambling. The Brazilian market for online betting, generated in 2013, about R $1.8bn. It is estimated that, in 2014, this reached R$ 2.2bn. Social casino gaming in Brazil is becoming increasingly popular which 5 4 could translate to real money games should Brazil eventually green light online gaming. The payment industry is also maturing While online gaming has grown there have been a number of moves in both the Senate and House of Representatives to ban online gambling outright. In February 2011 Congressman and long standing opponent of gambling Luiz Carlos Hauly, announced the creation of Bill 57, which would have prohibited “the placing of bets on sporting event in nature via the internet” along similar lines to restrictions similar to that as enacted in the Unites States under the Unites States Unlawful Gambling Internet Enforcement Act of 1996. Crucially, it also led to a wider discussion on online sports betting with a number of Congressmen stating that they were against the bill and instead supported a regulated online sports betting industry as it would raise much needed tax revenue. The latest attempt in the Senate to ban online gaming altogether came in 2012 when a proposal, which had previously been put forward in 2008 by Senator Magno Malta, was re considered by a Senatorial Committee on Science and Technology. The proposal would have blocked credit card transactions with online betting sites but in common with the majority of similar moves it slowly lost momentum. However since then government sponsored studies have consistently proven that the government has been losing out on millions in tax revenue and the government has sought a more pragmatic approach when it comes to the issue of online gaming. As mentioned earlier in 2014 a bill put forward by Brazilian Senator Ciro Nogueira sought to permit online and land based gaming and would reflect similar legislation in place in countries in Western Europe. The bill seeks to establish clear rules when it comes to both the online industry and proposed opening up the land based industry as well. Another recent proposal was put forward by Deputy Vanderlei Sirach in April 2014. He proposed legalising online gambling and presented studies arguing that a regulated online gaming market could yield up to R$15bn in taxes a year. The passing of the Brazilian Internet Bill of Rights which was passed in April 2014 could have a major impact on the industry in the future. The bill made all online transactions subject to Brazilian law and gave the state the authority to block sites accused of flouting local conventions. The bill sets to implement restrictions on the use of unlicensed online gambling and sports betting operators. This could give the government more power when it comes to targeting offshore operators and would give authorities the right to block foreign websites. It is widely believed that the bill could see the implementation of future restrictions on unauthorized operators. Restrictions could include ISP blocking. Further sanctions would see Brazilian banks impose blocks on payments to unlicensed online gaming operators. For now it is very hard to tell how the government could use the new powers granted to them in the new act when it comes to online gaming. However, a cornerstone of the new act is that internet service providers open to Brazilian customers are now subject to Brazilian law. While the law does not specify new rules for online gambling in theory should the government choose to take a tougher stance on online gambling then authorities could access records of local users when it comes to online betting and may choose to prosecute them for going against local gambling laws. Interactive COMTRADE GAMING A Year in Review Comtrade Gaming’s Ales Gornjec summarises the year of gaming technology that was 2015 and looks ahead to the coming 12 months and the next set of advances for the global gaming industry We are approaching the end of 2015. It is therefore a good time to look back and reflect on the events that have influenced the gaming industry the most, and new technologies or products that were introduced. Comtrade Gaming, a technology supplier to the industry, is trying to help our clients modernise their environments and help in their digital transformation journey. As a part of bigger group that is also active in other industry segments, from finance, telco to data storage, we have experienced that a lot of IT investments this year have been driven by digital transformation initiatives. The gaming industry – especially at the big enterprise level where we usually operate – has also started numerous initiatives to transform not only their IT, but their entire business. The role of IT in the process is increasing its importance as a strategic business infrastructure. Comtrade Gaming is finishing one of the most successful years in our 15-year history. In 2014 we were able to finalize some big new product investments that then kept us very busy with customer implementations in 2015. Our strategy to focus on areas where we excel has, in one way, limited the portfolio of our products, but in others improved our solutions on the platform side. We get a specific view of the gaming industry and its current and future development through our focus on providing open gaming platforms. It seems that the technology innovations that are progressively changing the way we consume other products are now also penetrating the gam5 6 ing industry. Players might still prefer to play slot games that have been around for many decades, but now they can consume this game via various channels – slot machines, desktops, mobile phones. Operators are now trying to make that activity more integrated by offering the same game content across all channels driven from one central system that manages a single player account. Our business is built around three levels of gaming platforms that help operators run their business. Firstly, ‘iCore, The Enterprise Gaming Platform,’ which allows operators to differentiate their offering by providing the option to choose best-of-breed content and central management of all player activities. Secondly, ‘sCore platforms,’ which operate by connecting terminals from all leading EGM suppliers to a central server, from where terminals can be monitored and configured in real time. Last but not least, we have ‘gCore,’ our game server platform that we use as central system to implement and distribute games across online, mobile, and server-based gaming channels. They are all already in production, with our clients in Europe and Asia, and we are now actively working on opening other markets. The iCore platform, which enables centralized management of all player activities and connects various products, has been upgraded with a number of features. We are launching iCore 2.0 in Ales Gornjec General Manager, Comtrade Gaming Players might still prefer to play slot games that have been around for many decades, but now they can consume this game via various channels – slot machines, desktops, mobile phones. January 2016, and this will be the first major upgrade after a very successful launch three years ago. We invested a lot of time and effort into performance and other technical improvements to make the platform scalable for the largest operators that accept several thousand bets pet second. On the functional side, a lot of attention was given to the sports betting side where we Interactive COMTRADE GAMING have added the new automated sports betting bonusing. We started with gamification concepts already last year when we released our ‘Universal Free Spins’ that are now part of a bigger Award Games suite, which are an extension of the iCore Bonusing system. Award Games allow operators to bonus their players in a form of engaging games instead of a more traditional “match the deposit” approach. Award Dice and Award Horses bonus games are the first two running on the new HTML5 game development kit with attractive WebGL powered 3D animations based on a platform-driven physics engine. We have also signed some strategic partnership agreements that extend our portfolio of gaming partners with some of the leading content providers in the industry, such as: Blueprint and OneWorks, which were very important for our new Asian markets where we experienced the biggest growth. On the gCore – the Game server platform – side, most of the new development was invested into a mobile game development kit (gCore GDK) that now supports a wider set of devices and features and can be used for development of new games that run both on mobile devices and on desktops. gCore GDK was also extended with WebGL support, enabling the implementation of 3D games on mobile phones. On the land-based side, Comtrade Gaming offers solutions for gaming machine management in Trends are moving in the direction of combining all angles of the gaming industry – mobile/online and landbased. Because of this, more and more operators and regulators are leaning towards investing into advanced technology. both casino and distributed environments, combined with central solutions for player management, responsible gaming, and regulatory control. All of our solutions were originally designed and developed around Gaming Standard Association’s G2S protocol, but were last year optimized and extended with multi-protocol support to connect legacy environments and distributed environments running on mobile networks like GPRS. All variants of server-based gaming are supported with random number or even game logic running on a central system. In the year of 2016 we intend to open new markets for our main products. Having comprehensive support for new requirements in regulated markets like responsible gaming and central monitoring, we are prepared for new markets where regulators define more rigorous frameworks for operators. Being capable of integrating support for both worlds – casino/retail and online/mobile – we aim for operators that manage a full portfolio of products and channels, and look into diverse, regulated markets across the globe. Modernisation of the gaming industry has always given close scrutiny of regulators who often slowed down certain innovations because they could not follow the usually quite strict rules. But no so long ago regulators began to help, or sometimes even formally adopt new requirements that force operators and vendors to modernise their still very traditional environments. Trends are moving in the direction of combining all angles of the gaming industry – mobile/online and land-based. Because of this, more and more operators and regulators are leaning towards investing into advanced technology. Comtrade Gaming is a part of the Comtrade Group, a large company with over the 1,500 employees. Working in industries like telco and finance, Comtrade has gained a strong expertise in the IT markets that demand first class performance. We have transferred all this experience into our gaming business and strengthened it with gaming-specific expertise in both, the online and land-based areas. 5 7 Interactive IGT ONPREMISE INTERVIEW Charles Cohen, Vice President of Mobile, iGt A fascinating premise Revealed for the first time at G2E Las Vegas, the OnPremise solution from IGT is an all-encompassing omni-channel solution that links mobile to land-based casino floors. G3 speaks to Charles Cohen, IGT VP of Mobile, about the launch and future of IGT OnPremise What is IGT OnPremise and how does it differ from other omni-channel solutions on the market right now? Absolutely. There are now 2.5 billion millennials globally, and they’re the first generation to grow up in a fully digital world. IGT OnPremise is our complete solution for mobile that extends the player’s gaming experience from the casino floor to smartphones and tablets, within designated boundaries such as a casino resort. These digital natives prefer to experience the world through their mobile phones and tablet devices. Whether they’re communicating, shopping, viewing content or playing games, the millennial generation interacts primarily through mobile devices. In recent years, IGT solutions have gone through a transformation from cross-channel applications, to omni-channel applications and now to fully integrated mobile gaming. This development is about creating a seamless and easy-to-use experience across all channels. It’s more than just being able to play a game across different platforms; it’s about connecting the entire experience for a player at a resort. This could include introducing new games to play, providing various conveniences such as player rewards and redemption of mobile wallets, and even going beyond a resort’s boundaries with Play-for-Fun at home. OnPremise is about a total connection that improves the whole gaming experience for players. At G2E, Charles, you stated that IGT OnPremise addresses the problem of attracting millennials to play slots. Is the way to tap into the millennials market through their mobile phones? 5 8 Our own market research shows that 84 per cent of casino visitors carry smartphones or tablets and players often check their phones between spins. In the modern world, everything revolves around a player’s device, so there needs to be a solution that keeps players, and their devices, inside the casino’s environment. Players now expect more from their games, such as social interaction, skill elements, videos and sounds and personalisation. OnPremise delivers this and more. Who is the target user of IGT OnPremise? Is it a tool to attract new customers or an additional asset for encouraging existing players to play more? What’s the target age-group for IGT OnPremise and is there a particular agegroup/player-profile most likely to play on their mobile on-site? “Features such as mobile wallet, or the ability to pay through rewards and voucher redemptions via a loyalty club, provide benefits that a standard interactive gaming platform is not able to offer.” The millennial generation – from roughly 18-35 years old – will certainly be the age group that are most comfortable with the mobile and tablet capabilities of IGT OnPremise. However, as the solution is designed to encompass all channels, there is a large amount of crossover between the younger, mobile player and the typically older, traditional bricks-and-mortar casino customer. That’s the strength of the product – it will help casinos to crosspollinate and engage players across all of their available channels. We know that more than 90 percent of people, up to the age of 65, have a mobile phone. We’re enabling our customers to activate those potential new players, par- Interactive IGT ONPREMISE INTERVIEW ticularly as older mobile users are now savvier than ever with digital technology and catching up with the younger age group quickly. IGT OnPremise can both attract new players and encourage current customers to engage more. We’re making it easier than ever for players to access their profiles, build relationships with operators and remain active customers for longer. Another important aspect of IGT OnPremise is the introduction of mobile sports betting, and more specifically in-game betting, into the casino experience. It is a massive draw for male users of all ages, in particular, so its inclusion will increase overall appeal and playability within casinos. In the last ten years, the amount wagered on sports online has increased threefold, a figure that can’t be ignored. Is IGT OnPremise primarily targeted at the US market, where online/mobile gaming is restricted so heavily? How would IGT OnPremise work in Europe, for example, where players are used to playing on their mobiles whatever the location? IGT OnPremise is ideal for the US market, as it enables land-based casinos to explore the benefits of interactive gaming within a tightly regulated space and expand gaming revenues. Plus, you have the Play-forFun aspect incorporated which can be used effectively in the US. Elsewhere, it offers a versatile extension of the gaming floor. Consider, for example, smokers in European or international markets who want to continue playing their games even when they are required to leave the gaming area. Features such as mobile wallet, or the ability to pay through rewards and voucher redemptions via a loyalty club, provide benefits that a standard interactive gaming platform is not able to offer. “We know that more than 90 percent of people, up to the age of 65, have a mobile phone. We’re enabling our customers to activate those potential new players, particularly as older mobile users are now savvier than ever with digital technology.” IGT OnPremise is a global product and we’re receiving interest from operators across all regulated markets. How do you continue to incentivise a player when IGT OnPremise switches to play-for-fun and virtual currency? Play-for-Fun is a way of continuing to engage players. The challenge for casino operators is keeping customers active within their location, which includes both retail and online. OnPremise keeps that connection going when customers leave the property and go home. It might be through a Play-for-Fun option that earns points and rewards, which can then be redeemed at a casino location, increasing footfall and encouraging customers to return in the future. There are also social aspects which keep people playing, such as tournaments, badges and the ability to unlock games and features. Operators will also be able to market directly to a customer’s device, which offers huge potential in creating a direct conversation between operator and customer. How do you get the player to install the IGT OnPremise App on their phone? The key is to make it as easy as possible to get started. Our ‘one touch’ design philosophy means that the app not only downloads quickly, but it will populate details which are then presented to the player for an easy, quick review and confirmation. Creating awareness of the benefits of the app is done through near-field marketing and the use of advertising, however, employees are crucial in this area. Operators can offer customer and employee incentives to get people joining, and then employee enthusiasm within casinos can support those marketing campaigns. The more people that experience the benefits, the more that will be prompted to share and encourage others to take part. Are player rewards granted through IGT OnPremise or are these part of an operator’s existing player loyalty tools? We designed IGT OnPremise to be adaptable to either rewards approach. However, we believe that bringing everything together in one, easy to use experience is the best strategy. Having all rewards funnelled through one loyalty tool makes it easy to earn and easy to redeem. How does the player add credit to their phone to play using the IGT OnPremise App? How do they then manage their account and what information can the operator see in relation to the movements and transactions of the player? A huge benefit of IGT OnPremise is that it connects all data in one experience. This secure profile means that wherever you add money to your single player account from a credit card, scanning casino receipts or even by taking cash to a cashier, the money is easily accessed, added, withdrawn and managed by the player on his or her own mobile device. 5 9 Interactive IGT ONPREMISE INTERVIEW It creates a safe environment for players, who can clearly see how much money has been wagered, and manage their experience accordingly. It also makes it easy for operators to have a 360-degree view of player activity, enabling tailored assistance and the opportunity for a more personalized experience. Are you incentivising players to play within the IGT OnPremise mobile environment and visit the slots and tables, or is the idea to capture and hold the player so that their whole experience is delivered through the App? IGT OnPremise complements land-based gaming, offering a wider experience in addition to the physical slots and tables within a casino. It not only provides new games and ways to play, but ties back to traditional game delivery, enabling players to get more out of what a casino has to offer. Players can enjoy the best of both physical and digital gaming. What information is IGT OnPremise able to give the operator about the player above and beyond a traditional card-based loyalty programme? IGT OnPremise enables operators to have a real indepth view of their players and how they interact with games through the device. It provides much more detailed information on the gameplay, the interactions a player has with the interface and their playing habits, likes and dislikes. Everything can be tracked and used to help refine the player experience. We know that mobile operating platforms are hugely diverse on the Android side particularly, how do you overcome the huge variety to deliver a consistent experience for all players? Our platforms are designed using the latest technology, with HTML5 and our dynamic content portfolio working on the vast majority of devices. Having an adaptable and responsive design in the front end, bolstered by robust and stable platforms in the back end, is crucial to creating a high-class product. 6 0 We’ve been working in the mobile space for a decade and, like all of our other products, OnPremise is created to work with as many devices as possible. The different solutions we saw at G2E aimed at attracting millennials placed players in a highly social environment. Are players visiting a casino to play on their mobiles more or less social? Playing mobile and socializing are not mutually exclusive. Many players will engage with their mobile devices and friends while playing games. It’s normal among millennials to connect via their games, playing with or against each other over a network. Players view their mobile as an extension of themselves, using it as the primary form of communication with friends and family. Modern casino players aren’t more or less social than in the past, they merely use different forms of communication and technology within their social spheres and activities. Does the player swap from bingo to sports-betting, slots to poker, transferring their credit from one game to the next - or can they play different games and make bets (for example) at the same time? Many of the games include multiple opportunities and credit moves freely between games. This is all part of the seamless, complete experience. In some games, such as bingo slots, there might be the ability to place a sports bet – all from the same wallet. How does the zoning technology work? Many casinos have very strict zoning areas, even ones that split floors on different levels. How do you restrict real money gaming outside of these areas and is the switch-over instantaneous? How does this work in practice? In highly regulated areas, such as the US, we have worked hard to ensure that gaming cannot take place outside of gaming areas. It is possible to limit the avail- “IGT OnPremise enables operators to have a real indepth view of their players and how they interact with games through the device. It provides much more detailed information on the gameplay, the interactions a player has with the interface and their playing habits, likes and dislikes.” ability and reach of a Wi-Fi service, meaning that only those within the premises or designated area can access the online experience. We partner with the best geo-location providers to ensure games work where they should and do not where they should not, having done so for our other Interactive products around the globe. Should operators create specific on-site environments for players to arrive at a casino looking to play games and place bets on their phones? With IGT OnPremise, players use their own device. Mobile lounges are a way of engaging those players within a land-based offering, but it’s really about those players enjoying an extended experience anywhere they wish to access it within a casino area. Bringing the added digital experiences to a land-based casino offering is going to help the sector move into an exciting new phase. IGT OnPremise is already playing a key role in driving this forward and we’re looking forward to developing this area of omni-channel delivery even further. Interactive PLAYER SECURITY - MYPINPAD PIN-teresting solution Biometric technology is grabbing all the headlines in the financial services sector and retail at the minute, with Apple Pay enabling users to make payments using their fingerprint and iPhone. New company myPINpad is convinced that mobile payments are the future of secure, convenient transactions, but is looking to the past for its inspiration - the ‘PIN’ The concept behind myPINpad is simple, the ability to verify the identity of an individual on an unsecured electronic device ie. a mobile phone, tablet or PC, across an unsecured network. myPINpad’s answer is to use the PIN (Personal Identification Number). Consumers have demonstrated for decades that they are comfortable with entering a PIN to access personal details, private information and financial transactions. However, inputting PINs into electronic/mobile devices and transmitting across networks is a security disaster waiting to happen. infrastructures. Innovation in new technologies for authentication also leads to problems of integration and adoption, which can’t add complexity or friction to the payment process without impacting on the purchase. Customers must feel secure in making their payments, as shown in recent surveys detailing the fact that 35 per cent of all abandoned website carts are due to security concerns. 18 per cent of consumers abandoned their carts because they felt the security was excessive, while 17 per cent abandoned their cart because they had concerns about insufficient security. A recent survey found that 67 per cent of UK consumers thought the four-digit PIN number would soon be obsolete, with a third suggesting they thought this could happen within five years. These worries stem from a lack of innovation and fear that the PIN can more easily be compromised on mobile devices, which is why myPINpad verify the PIN at the point of entry, on the mobile device, but send only the verification across the network, not the actual PIN. Speaking to myPINpad’s CEO and Chairman, Phil King, he explained that the common denominator and starting point for every customer is their mobile device. “Every consumer is confident in the use of their mobile and we believe this confidence extends to using a PIN on their smartphone device,” said Mr. King. “It’s a triangle, wherein you need to respect the presences of regulation and security, but you can’t overlook the need for convenience and trust. If you add friction to the buying process that becomes downright annoying and frustration leads to abandoned sales. We believe that if a PIN is good enough in a face-to-face scenario, why not use it in a non-face to face scenario?” Increasing the security of a device is a balancing act between convenience and security. The consumer’s desire for an easy-to-use payment environment and for that to also be a secure one presents challenges to the merchant, who is looking to improve the customer journey while constrained within existing payment 6 2 Registration and customer verification allow two things, it allows the individual to prove they know their Phil King, Chairman and Ceo, myPiNpad We can integrate into a mobile app branded by the operator, which demands a PIN at the point at which the player makes a bet. It’s a verification tool that will prove hugely beneficial to the operator. PIN and it allows the merchant or service provider to confirm for itself that the customer meets the appropriate age requirement. Once you have confirmation you can then supplement with other KYC (Know Your Customer) information, which is fundamental to a gaming industry looking for an additional level of verification to reduce the costs of both charge-backs and merchant service fees. “We can integrate into a mobile app branded by the operator, which demands a PIN at the point at which the player makes a bet,” described Mr. King. “It’s a verification tool that will prove hugely beneficial to the operator. “At present we are in substantive contract negotiations with major primary market banking services, where fraud and attendant risks are massive as technology moves towards the device that everyone carries with Interactive PLAYER SECURITY - MYPINPAD them 24/7 - the smartphone,” continued Mr. King. myPINpad also links to other movements in the finance world, away from cards to wallets. However, as Mr. King points out, just because you have a digital wallet, doesn’t mean that you don’t need to authenticate who’s using it. “The primary market for myPINpad is banking and financial services, but it’s a solution that perfectly fits into the context of gaming and gambling,” added Mr. King. “We are currently dealing with major global banking brands, debit card schemes etc, who will be the first to benefit from MyPinPad, but that level of integration then rolls out into gaming, travel, services and health.” The concept is brand new, but myPINpad is looking to secure its first client by year end, with a major announcement that will propel its sales cycles thanks to a proven reference site. “We have taken a very patient approach, “ stated Mr. King. “The process has taken over two years, whereby we have been talking with banks and regulators to understand their viewpoints and the standards to which we must comply. We have also gone through rigorous penetration tests by industry trusted third-parties, with verifications of the technology establishing its credentials to the highest levels.” The concept of myPINpad was born nearly three years ago and having gone through proof of concept in its first year, myPINpad has spent the remaining time meeting with various industry bodies to implement all the changes they required, building upon the technology through independent testing and verification. Designed specifically to secure digital commerce transactions irrespective of their origin, myPINpad enables secure authentication of transactions on mobile phones, tablets and personal computers, without disrupting existing bank or Card Scheme protocols. Through direct PIN entry, the solution facilitates improved security, reduced risk and fraud, and improved convenience. The company is based in Wales, where all the propri- There are some complex mathematical and cryptographically process and elliptical concepts bound into the solution, but essentially the number that is entered on the mobile device is not the number sent via the network. etary patent-pending technology has been developed. “The technology is very flexible and powerful, but it’s also light and easy to implement,” stated Mr. King. “Where we have spent a huge amount of time is upon making sure the implementation and integration process is easy and straightforward to use. After three proofs of concept, we’re now ready for roll out.” As with all great ideas, it all seems much simpler after you’ve launched it. The reality is that myPINpad’s Chief Technology Officer started by utilising his background in mobile and cryptography to look at how mobile technology and payment security are converging. What stood out like a sore thumb, was that every transaction requires authentication. Key to entering the Cardholder’s PIN securely into the user’s device is the ability to completely bypass the various system buffers and memory including the screen and keyboard buffers while at the same time combining other forms of authentication in the background. This provides true multi-factor assurance with that same minimal level of effort as when entering the PIN alone. To achieve this, a unique real-time tokenisation and encryption system that renders the PIN unreadable and unrecoverable is required. This is similar to the principle of a physical prism, but instead of refracting light, it totally randomises the PIN input through a multi-layer refraction process that presents an alternative keypad to the user every time. The device and ALL buffers/memory are then totally convinced a different number to the real Cardholder PIN was correctly entered by the user. “We are not using a simple prismatic effect,” explained Mr. King. “There are some complex mathematical and cryptographically process and elliptical concepts bound into the solution, but essentially the number that is entered on the mobile device is not the number that is sent via the network. It is simple to understand and use, but a huge amount of thought and technical understanding has gone into the process.” After years in development, myPINpad arrives at a time of heightened focus and interest in alternative payment methods, especially with the launch of Apple Pay rolling out across retail and banking locations worldwide. However, it’s a shift in public awareness that Mr. King actually welcomes. “We would say and have said, that we have a proposition that is just as valid to Apple Pay as anything else,” stated Mr. King. “NFC transactions are limited to small amounts of money so, for larger transactions, secondary authentication, in the form of the PIN, is required. Regardless of the method deployed it is very likely that single factor authentication including the use of biometrics will remain insufficient. So, for both face-to-face and remote transactions, there will still be a critical role for the PIN. I’m not looking to denigrate Apple Pay, but if you go down the mobile path then it has to be done securely and we can demonstrably prove that the mobile device can be used so that a pin or credential, of which the mobile has no record, is the safest solution.” While this article might be your first encounter with myPINpad, as the company continues to sign contracts and build confidence with major global banking and retail brands, you can expect to hear lots more from myPINpad in 2016. 6 3 Products LAND-BASED & INTERACTIVE 01 top guN Omni-Channel Slots Playtech Playtech has launched a supersonic, premium branded, and officially licensed slot game themed on the iconic action classic top Gun. launched simultaneously across all desktop and mobile devices, the game will take your breath away with its high-speed action and incredible bonus rounds that feature the famous F-14 tomcat fighter jet flown in the film by tom Cruise’s character, Pete ‘Maverick’ Mitchell, and his wingman ‘Goose’. wheel of fortuNe triple extreMe spiN the 2-4-3 ways game feels the need for speed with a series of pulsating features including multiple free spins alongside original movie action clips, and ‘Dog Fight Wilds’ which, once activated, see the F-14 lock, load and fire missiles into the reels unveiling a barrage of top Gun win symbols. the timing of the launch could not be better with the classic film celebrating its 30th anniversary in 2016 and Cruise saying earlier this year that he “would like to fly those jets again” in a sequel currently being written. 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