Slot Manager January-February 2012

contents

J A N U A R Y | F E B R U A R Y 2 0 12

COVER STORY: Ready, Aim, Fire!

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Slot games that incorporate skill into bonus rounds, or at least perceived skill, were among the most talked about products at last October’s Global Gaming Expo. And what’s clear, as conversations with top game designers at a number of the leading manufacturers reveal, there’s plenty more where that came from, especially if the initial round of games delivers in the coming year. By Charles Anderer

features

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departments

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SM Online

PRODUCT FOCUS:

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Editorial

Obser ve and Repor t

Ticket Printers

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Industry News

The information gathered by most CMS/

FutureLogic PromoNet system receives

CRM systems at slot machines can tell

BMM approval as the company gears

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New Games

you what has happened. What will happen

up for product launch in the Europe,

is another matter. That’s increasingly the

Middle East and Asia markets… Product

focus as casino operations move into a

descriptions of TransAct Technology’s

brave new world of business intelligence,

EPICENTRAL Print System and Appleton’s

data warehousing and predictive analytics.

Royale thermal paper.

By John Grochowski

By Paul Doocey

TECHNOLOGY/ OPERATIONS:

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Green Slots

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Thoughts from the Floor

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Ad Index

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Forum

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JAN | FEB 2012 SLOTMANAGER

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online

NEW on the Slot Manager site at www.casinojournal.com... CALENDAR OF EVENTS ICE 2012 Jan. 24, 2012 - Jan. 26, 2012 Earls Court, London www.icetotallygaming.com

FLORIDA GAMING SUMMIT

TECHNOLOGY/OPER ATIONS: Demanding Solutions

Feb. 27, 2012 - Feb. 28, 2012 Seminole Hard Rock Hotel & Casino Hollywood, Fla. USA www.floridagamingsummit.com

Few would argue that the gaming industry must modernize if it is to remain competitive in today’s increasingly transformative entertainment environment. This very question of survival is what continues to breathe life in the Gaming Standard Association’s (GSA) work on behalf of the industry to promote open standards and clear the path to a content-driven slot floor.

SPECIAL REPORT: G2E New Games Hundreds of new slot games were introduced at October’s Global Gaming Expo. Here are some of the themes and devices that caught the attention of Slot Manager editors.

MARKETING : C ommunit y C oncerns Gaming operators continue to drool at the prospect of social media and closer access to current and new customer bases. But as with any new technology, there are potential hurdles that need to be considered before jumping in.

REPORT: Games

& Technology

Be sure to check for the latest news in our Gaming Industry news feed.

eNEWSLETTERS: Visit www.casinojournal.com and click on the eNewsletter button to sign up for our two enewsletters. GAMES AND TECHNOLOGY REPORT, a bi-weekly newsletter covering the latest gaming and technology news and cutting-edge trends. PRODUCTS OF THE WEEK, a bi-weekly newsletter highlighting new slot games and other gaming-related products. Digital editions and archives of the past issues of the magazine also are available on our website.

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SLOTMANAGER JAN | FEB 2012

INDIAN GAMING 2012 April 1, 2012 – April 4, 2012 San Diego Convention Center San Diego, Calif. USA www.indiangaming.org

SOUTHERN GAMING SUMMIT/BINGOWORLD May 8, 2012 – May 10, 2012 Mississippi Coast Coliseum & Convention Center Biloxi, Miss. USA www.sgsummit.com

e ed d ii tt o o rr ii a a ll

Channeling Yogi in 2012 CHARLES ANDERER • [email protected] Five-plus decades on this planet have taught me you could do worse than to live by the Gospel According to Yogi. Whether all these kernels of wisdom came verbatim from the old Yankee catcher or not, who has dispensed more common sense on the existential plight of modern man than Lawrence Peter Berra? A tiny sampling includes “It’s not over until it’s over,” “Nobody goes there anymore, it’s too crowded,” and “It gets late early out there.” This last was about left field in the original Yankee Stadium, but, hey, I’m looking in the mirror. With time, however, a personal favorite has emerged: “Ninety percent of this game is half mental.” Oh yes it is. Take the economy, which has bedeviled all of us for the past four years. What preceded the fall of 2008 was irrational exuberance on a mass scale. People thinking their homes were an inflatable piggy bank that would never pop. Incomes weren’t really going anywhere for most of us, but expectations ran wild. The aftermath was marked by almost a mirror-image of the reverse. Global financial Armageddon was next on the menu, only a matter of time, and the New Normal meant chicken broth for dinner for the rest of our lives. Or something like that. Yoginomics says that any changes in the behavior, measurable or otherwise, are as good as any economic indicator. This holiday season, spending was up, and so was the mood of many operators in the slot business out there. This month’s Slot Forum asked about the outlook for 2012. You can read the responses on page 26; here are a few more: •Scott Eldredge, general manager, Buffalo Thunder Resort and Casino: “We are expecting double-digit percentage growth in gaming/slot revenue in 2012 for a few reasons: investing a significant sum to refresh over 25 percent of our floor at all three of our casinos; looking to add class II product to our Class III product; forecasting for significantly higher hotel occupancy which will create the traffic/critical mass we need to grow revenues. We are cautiously optimistic the economy is recovering; specifically in New Mexico with some large construction/ government projects that will spur job growth. •Paul Arsenault, slot operations project manager, Seneca Allegany Casino & Hotel: “I expect 2012 to be very interesting and profitable, and that, as the economy drags on, people have gotten used to the new normal and will spend more. That being said, I see the casino industry as a whole improving, and my casino improving also.” •Daniel Fried, director of slot operations, Sunset Station: “I do expect improved results next year. The Strip gaming revenue is up and seems to be putting together a trend rather than a spike. That trend tends to lead to better results in the Las Vegas locals market as well. I’m looking forward to 2012.” •John Dinius, director of slot operations, Sycuan Casino: “We have forecasted higher slot revenues for 2012 due to a multitude of factors. We recently completed a $27 million renovation of our existing property and have made significant changes to our player reinvestment model as well as to specific promotions to drive time-on-device and incremental visits. We have recently seen improved player head counts and have received great feedback from our guests on our positive changes. In addition, consumer confidence is beginning to gain momentum in our area and we hope it carries well into 2012 resulting in more liberal discretionary spending on entertainment.” With that, and thanking everyone who made this year necessary, let’s go out and have a good one in 2012.

www.slotmanagermag.com www.slotmanagermag.com BNP BNP Media Media Gaming Gaming Group Group Editorial Editorial && Publishing Publishing Offi Offices ces 2401 505 Big E. Capovilla Beaver Road, Ave., Suite Suite 700 102 Las Vegas,Troy, NV 89119 MI 48984 USA 914/948-5758 702/794-0718 For subscription information or service, please contact Editorial, Advertising Sales & Production Customer Service at: Tel: 847/763-9534 or GREEN Group Publisher RANDY Fax: 847/763-9538 or e-mail [email protected] 248/244-6498 Editor CHARLES ANDERER Editorial, Advertising [email protected] & Production 718/432-8529 Group Publisher RANDY GREEN Editor, MARIAN GREEN 248/244-6498 Slot Manager [email protected] Editor, CHARLES ANDERER 702/478-7105 Slot Manager [email protected] Art Director TAMMIE GIZICKI 914/948-5758 [email protected] Editor PAUL DOOCEY Production Manager SOUZAN AZAR [email protected] [email protected] 718/432-5421 949/830-0881, x3920 Art Director TAMMIE GIZICKI Associate Publisher, TERRY DAVIS [email protected] East Coast Sales [email protected] Production Manager SOUZAN AZAR 404/320-0072 [email protected] Western Regional, FLOYD SEMBLER 949/766-6779 Sales Manager [email protected] Associate Publisher, TERRY DAVIS 480/231-8433 East Coast Sales [email protected] Reprints JILL DeVRIES 404/320-0072 [email protected] Western Regional, KATRINA HARTWIG 248/244-1726 Sales Manager [email protected] 480/947-3293 Audience Development Manager LISADeVRIES DeWITT Reprints JILL Corporate Fulfillment Manager ALISON ILLES [email protected] Audience Audit Coordinator CAROLYN M. ALEXANDER 248/244-1726 List RentalDevelopment Manager Audience Multimedia Specialist

KEVIN COLLOPYLISA (Direct Mail) DeWITT [email protected] ALISON ILLES 800/223-2194 x684 SHAWN KINGSTON List Rental KEVIN COLLOPY (Direct(Email) Mail) [email protected] [email protected] 800/409-4443x684 x828 800/223-2194 SHAWN KINGSTON (Email) For subscription [email protected] or service, please contact Customer Service at: Tel: 847/763-9534 or 800/409-4443 x828 Fax: 847/763-9538 or [email protected] Single Copy Sales ANN KALB [email protected] Slot Manager Editorial Advisory Board P: 248/244-6499 F:248/244-2925 President, Ameristar Casinos, Las Vegas JOHN M. BOUSHY

Director, Slot Operations, CHUCK HICKEY SlotRanch Manager Barona Valley ResortEditorial & CasinoAdvisory Board President, Ameristar Casinos, Las Vegas JOHN M. BOUSHY Assistant GM, Canterbury Leagues Club, GREGG LEVETT Director, Slot Operations, CHUCK HICKEY New South Wales, Australia Barona Valley Ranch Resort & Casino Consultant, CHARLIE LOMBARDO Assistant Leagues Club, GREGG LEVETT SeminoleGM, HardCanterbury Rock Casinos, Florida New Wales, Australia VP ofSouth Slot Operations, FRANK NEBORSKY Consultant, Mohegan Sun Casino, Uncasville, Conn. CHARLIE LOMBARDO Seminole Hard Rock Casinos, Florida CEO, Detroit Entertainment LLC GREGG SOLOMON VP of Slot Operations, FRANK NEBORSKY Mohegan Sun Casino, Uncasville, Conn. CEO, Detroit Entertainment LLC GREGG SOLOMON

Corporate Directors Publishing TIMOTHY A. FAUSCH Corporate Directors Publishing JOHN R. SCHREI Publishing JOHNRITA R. SCHREI Corporate Strategy M. FOUMIA Corporate Strategy RITA M. FOUMIA Marketing ARIANE CLAIRE Information Technology KRYWKO Production VINCENTSCOTT M. MICONI Production M. MICONI FinanceVINCENT LISA L. PAULUS FinanceMICHAEL LISA L. PAULUS Creative T. POWELL Creative MICHAEL POWELL Directories NIKKIT. SMITH DirectoriesMARLENE NIKKI SMITH Human Resources J. WITTHOFT Human Resources MARLENE J. WITTHOFT Conferences & Events EMILY PATTEN Events SCOTTBETH WOLTERS Clear Seas Research A. SUROWIEC Clear Seas Research BETH A. SUROWIEC 2401 W. Big Beaver Rd., Suite 700 W. Big Beaver Rd., 248/362-3700 Suite 700 Troy, 2401 Michigan 48084-3333 Troy, Michigan 48084-3333 248/362-3700

BNP Media Helps People Succeed Mediawith Helps PeopleInformation Succeed inBNP Business Superior in Business with Superior Information Printed Printed inin the the USA USA Copyright Copyright 2011 2011 BNP BNP Media Media LLC. LLC. All rights reserved. All rights reserved. Supplement Supplement to to Casino Casino Journal Journal

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SLOTMANAGER JAN | FEB 2012

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industry news news industry

IGT Launches Cloud Computing Solution

▲ GALAXIS is one of several management systems offered by Spielo International.

Spielo International’s Galaxis Debuts in Peru Spielo International has signed an agreement with Lima-based Grupo Masaris, one of Peru’s largest gaming operators, to install its GALAXIS modular systems solution to manage the operator’s 25 gaming facilities throughout the country. GALAXIS is a modular system solution and consists of the various Star/MODULES for different applications in the casino. With its scalable design and customizable modular integration, GALAXIS offers a diverse casino management tool set for both slots and table games operations, especially when combined with Spielo’s online slots and table floor networks. “We are pleased to expand our relationship with Grupo Masaris by providing our online solution system,” said Tomás Mieles, SPIELO International’s casino systems director for Latin America. “This reinforces our strategy of winning in our home market. We’ve been present in Peru for 10 years, and we’re looking forward expanding our footprint here.” SPIELO International’s GALAXIS solution has been successfully approved under Gaming Laboratories International (GLI) GLI-13 Technical Standard, an independent certification of online systems that ensures the product’s integrity, fairness, security, and operation, as well its compliance with open standards technology. Peruvian law requires GLI certification for gaming system operation in the country, and Mincetur, the Peruvian government gaming authority, issued the formal registration in October. ▲

International Game Technology (IGT) announced the premiere of the IGT Cloud, a solution that allows operators to provide seamless gaming experiences across land based, mobile and online devices. The IGT Cloud delivers efficiency and value to casino operators utilizing Software as a Service (SaaS). These initial private, secure IGT Cloud services will ▲ IGT has developed a partnership program to promote enable casinos to its cloud computing package to European casinos. manage game content using IGT Floor Manager to access one of the largest game libraries in the industry. sbX Analytics will empower casino operators to increase marketing productivity and maximize floor wide performance with a variety of reporting tools. “IGT is leading the cloud computing transformation in gaming by offering operators innovative solutions to optimize their operations and casino floors,” said Chris Satchell, IGT chief technology officer. “Utilizing the IGT Cloud will let casino operators focus on what is important to them: players, games and performance.” The IGT Cloud solution is the result of collaboration with CA Technologies, an Islandia, N.Y.-based provider of IT management and security solutions. “Our turnkey CA AppLogic cloud platform will be instrumental in helping IGT to quickly move its advanced casino software to cloud based delivery,” said Roger Pilc, general manager of virtualization and automation for CA Technologies. The companies will continue to work together to innovate how casino games, systems and experiences are delivered. To help support and popularize the new technology, IGT has also launched the IGT Cloud Partner Program. Program partners will have access to private, secure IGT Cloud services which initially will allow casinos to manage game content using IGT Floor Manager and maximize floor wide performance leveraging sbX Analytics. Spanning the Europe, Middle East, Asia and Latin American markets, the IGT Cloud Partner Program currently includes casino operators such as Gala Coral, Olympic Casinos, Evian Casino and Codere.

Aristocrat will offer its latest game themes and software to Alberta’s VLT network.

ARISTOCRAT ENTERS CANADIAN VLT MARKET Aristocrat Technologies has signed a video lottery terminal (VLT) agreement with the Alberta Gaming and Liquor Commission, the first such VLT contract Aristocrat has initiated in North America. Under the agreement, Aristocrat will supply the Alberta VLT network with a suite of game content. The company will also supply the network with updated games and software when needed. Financial terms of the agreement were not disclosed. “This is an exciting opportunity for Aristocrat,” said Seamus McGill, chief operating officer for Aristocrat Americas. “We have

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SLOTMANAGER JAN | FEB 2012

been building momentum throughout 2011, and we are thrilled to be awarded this contract by Alberta in the Canadian lottery segment. This is another example of our continuing commitment to the North American market, and we are excited about expanding our business relationship with AGLC.”

new games BY PAUL DOOCEY

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Colossal Reels—WMS GAMING T Colossal Reels game has a stanThe dard 5x4 reel set side-by-side the d 5x12 Colossal Reels set, offering 100 5 lines of action. The series also offers transferring WILDs, where a WILD reel appearing on the smaller reels starts a symbol transfer that turns the entire corresponding reel on the Colossal Reels set WILD. This is a free spin bonus, which can be worth up to 20 spins, is also enhanced with a little something extra. The Li’l Red and Spartacus Gladiator of Rome themes offer a nudging WILD feature—during the Free Spin Bonus if one or more WILD symbols appear on the smaller reel set, the rest of the stack will nudge into place, filling the reel with WILDs and transferring over to the corresponding reel on the Colossal Reels set. The Van Helsing and Forbidden Dragons themes offer a 5X multiplier on all line pays on the Colossal Reels during the free spin bonus round.

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Visit www.wms.com for more info.

Blazing 7s Hot Shot Tournament— BALLY TECHNOLOGIES B Blazing 7s Hot Shot Tournament is tthe first title released on Bally TTechnologies’ all-new ALPHA 2 Pro Series V22/32 cabinet. The Pro V22/32 offers a dramatic 32-inch vertical display above a 22-inch touch display as well as all the other Pro Series features such as the iDeck, LED cabinet lighting, HD surround-sound and more. This five-reel, 40-line, 300 credits max bet game is available in 1-, 2-, 3-, and 5-cent denominations. Blazing 7s Hot Shot

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on average—and free spins feature enriched paytables. Top award is 12,500 credits at minimum bet. Dandy Dan the Ice Cream Man is the newest addition to the Innovation Collection comprised of casino games built on a foundation of feature-rich innovation, straight from the IT development lab.

Visit www.itcasinogames.com for more info.

Tournament combines a proven Bally theme, the popular game-in-game play mechanic and tournament features, and a new platform for a powerful play experience. Blazing 7s Hot Shot Tournament features five of Bally’s most popular reel-spinning titles embedded in the reels of this new game. Each reel features a miniature version of a classic Bally slot—Blazing 7s Sevens Times Pay; Triple Jackpot Triple Blazing 7s; Double Jackpot Triple Blazing 7s; Diamond Line; and Blazing 7s. Adding to the excitement is the mini-slot tournament mystery feature. Eligible players are awarded six spins, and the anticipation builds as they see just how many points they can accumulate and just how big their win might be.

Kitty Cash—SPIELO INTERNATIONAL

Visit www.ballytech.com for more info.

Operation Jackpot— CADILLAC JACK

Dandy Dan the Ice Cream Man— INCREDIBLE TECHNOLOGIES D Dandy Dan the Ice Cream Man puts a unique twist on a throwback theme u with five colorful reels and 25 lines w of video slot action. Mounds of ice cream themed symbols are piled with seven unique random award events—including various wild reveals, award multipliers, instant winners, re-spin opportunities and loads of free spins. This multitude of events—as whimsical as they are worthy—keep the game as fresh as the flavors it portrays. Dandy Dan the Ice Cream Man features forced bet options of 40, 80, 120, 160 and 200, dedicating credits towards bonus events to maximize the experience for players and drive coin-in for operators. Random m award events trigger often—1 in 37 spins

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Kitty Cash is the latest addition to Spielo International´s Atronic multi-level progressive links on the state-of-the-art Oxygen cabinet. On top of the two supporting game titles, this multilevel progressive features two bonus rounds: the Mystery Cat Bonus and the Kitty Cash Bonus. Kitty Cash has been designed for regular players who have a good sense for paybacks and can feel the chance of hitting a jackpot on a more frequent basis. Players get a reasonable chance to hit the highest jackpot each time they get into the Kitty Cash Bonus.

Visit www.spielo.com for more info.

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Operation Jackpot is a spy game that heightens player excitement with its unique game mechanics while continuing to make Cadillac Cash a serious revenue generator on the casino floor. This spy-thriller features a multi-level bonus with interactive picks, multipliers and free spins. Visit www.cadillacjack.com for more info. SM

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cover story

Ready, Aim,

CHARLES ANDERER • [email protected]

FIRE!

Skill games showed lots of promise at G2E and manufacturers are reloading the pipeline

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t has been an article of faith among slot floor skeptics that if the industry didn’t do anything to capitalize on the growth of mass-market casual gaming it could go the way of race track wagering. It looks like the first part of that prophecy of doom is being addressed. Slot games that incorporate skill into bonus rounds, or at least perceived skill, were among the most talked about products at last October’s Global Gaming Expo. And what’s clear, as conversations with top game designers at a number of the leading manufacturers reveal, there’s plenty more where that came from, especially if the initial round of games delivers in the coming year.

RULES OF THE ROAD There are a number of powerful winds at the back of skill games, and regulatory clarity is probably a good place to start. The industry had a substantive go at the category about five years ago, when Bally Technologies introduced Pong, which incorporated a pure skill component 10

SLOTMANAGER JAN | FEB 2012

of the old Atari game into its bonus round. Pong never caught on as a game, but it did lay a regulatory foundation for future games, acknowledges Mark Lipparelli, chairman, Nevada Gaming Control Board, who was with Bally at the time. “Pong was the first true skill game beyond video poker that was allowed in Nevada,” said Lipparelli. “The Gaming Commission agreed that as long as skill was in the bonus portion of the game, not the base game, and there was sufficient disclosure that the skill of the player could affect the outcome of the bonus payout, it was allowed. There have been a couple of other attempts that had dexterity skill elements in the base game itself, but that doesn’t comport with our statute which says any player has to have an equal chance of winning.” Beyond clearing the way for skill to be incorporated into bonus rounds, Pong compelled regulators to address the question of how determinative player skill could or should be relative to reward. “It was one of those slippery slope things with the lab; the more the

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cover story

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SLOTMANAGER JAN | FEB 2012

The current boundaries are not impeding the creativity of game developers, many of whom have already done a lot of heavy lifting in the area of skill games and are looking at 2012 as an important year in this category. Manufacturers are confident that the games will attract younger players, or at the very least deliver compelling and necessary new form of entertainment to the core market. They also see themselves leveraging new game technologies and current development efforts to add more skill games and to get deeper into the area of skill. A summary of their respective outlooks follows:

BALLY TECHNOLOGIES Bill Wadleigh, senior game producer, wasn’t around for Pong, but he knows why it failed. “The level of reward was so narrow between doing nothing and perfect play, it kind of played flat,” he said “You didn’t win a whole

mographic walk by, stop and mouth the word, ‘SkeeBall,’ and immediately start to play it and having a positive experience.” SkeeBall’s bonus round is 100 percent skill-based. You bowl nine balls, those balls give you tickets, which are dispensed from the left of the main playing field. The higher your score, the more tickets you get (from one to fi ve tickets). Those tickets are then used in the pick-a-prize shelf, each shelf corresponding to a ticket

If you go by the rule that the prime “ demographic is 40 and up, slightly more female than male, SkeeBall hits that directly.

”

— Bill Wadleigh, senior game producer, Bally Technologies

lot or lose a whole lot. If we were to try to do a game in the style of Pong today, I’m sure that we could widen that range a bit and through our mathematical bag of tricks come through with some better outcomes for the player.” Bally’s two big skill game titles at G2E were SkeeBall and Total Blast, which are projected to be ready for distribution in May and July respectively. “I was absolutely floored by the reaction to SkeeBall,” said Wadleigh. “Our team had been playing it for months, trying to up our scores, but we weren’t prepared for how well it was received. I’d stand and watch the prime player de-

quantity. The underlying math conveys a strong feeling of difference between the different levels. On the one-level shelf, four numbers would be at the lower range, one is significantly higher. In the fi ve-level shelf, all the numbers are higher and there’s less of a differentiation between the highest high and the lowest lows. The first Bally games to use the “you-do things” mechanic were Money Vault and Golden Pharaoh, which incorporate U-Spin. SkeeBall is another evolution of touch-and-slide interactivity. Rather than just having a little cursor where the players interact, SkeeBall lets players move the ball along the side, bounce it where they want to, try different levels of ▲

skill impacted payout, the less comfortable they were,” said Lipparelli. “If it was marginally different for someone that had the skill, that was more acceptable than dramatic differences. I don’t know if that was ever quantified, but the discussion was if skill made a marginal difference, but not enough to make a huge difference, that was acceptable.” Among other discussion points was that the entertainment option shouldn’t materially affect payback-to-player. The game itself had to do some self-diagnostics about the skill element, be it a joystick, a button or a spin ball. And there had to be a tilt mechanism so that the player couldn’t somehow manipulate the device. It was also decided that the help screen needed to indicate that you could affect the amount you are getting paid back by not being good in the bonus round. “You could have someone playing next to you who has better manual dexterity but, again, if the difference was very marginal, the feeling was, hey, it’s a form of entertainment, we have to think about these things in the bonus round,” said Lipparelli. “Any individual who walks up to these games and plays it should have the same individual chance as the guy sitting next to him.” Lipparelli said the door isn’t permanently closed on skill for base games, mentioning pachi-slots in Japan, which has served as a creative inspiration for a number of domestic game developers. “It’s a topic of conversation that developers and regulators could have,” he said. “Maybe there’s a way to get to a model where we’re OK with skill-based games, but rules would have to be written, criteria would have to be established. The last thing you want is a reputation that games become deceptive. If someone becomes skillful at stopping reels or stopping events o......2 Florida Gaming Summit ............................... 203-938-2782 ................www.floridagamingsummit.com ......................... 25 Incredible Technologies ............................... 800-262-0323 ...................... www.itcasinogames.com ............................... 15 International Game Technology (IGT) ........ 800-688-7890 ....................www.igt.com/coreperforms .............. 5, 11 & 27 Multimedia Games........................................ 512-334-7500 ...................www.multimediagames.com ...... Cover Flap & 7 Native Nations Events ................................. 201-857-5333.................. www.nativenationsevents.org ........................... 17 StylGame ....................................................... 702-750-0660 .......................... www.royalstool.com ................................... 13 WMS Gaming, Inc. ....................................... 847-785-3000 .............................. www.wms.com ....................................... 28

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SLOTMANAGER JAN | FEB 2012

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THE FLORIDA STATEHOUSE CONSIDERS LEGISLATIVE INITIATIVES RELATED TO GAMING EXPANSION IN 2012 The Florida Gaming Summit delivers a comprehensive examination of the forces reshaping the gaming landscape in Florida–a situation made more compelling by the possible addition of destination gaming resorts. Join gaming operators from throughout Florida, prospective gaming resort developers, public officials, analysts, vendors for serious discussions on public policy and economic issues that can impact the state’s gaming industry in 2012 and beyond.

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forum

Do you expect gaming machine revenues to improve in 2012? Larry Close, general manager, The Mill Casino Hotel & RV Park, North Bend, Ore.:

W

LARRY CLOSE

KIRK DEVITTE

e think it’s going to fairly similar to 2011 with some slight improvement. There’s a lot of uncertainty with the economy and the election coming up. People are still holding back on those discretionary dollars. We have added some new things to our slot mix; free play options and a new slot club will both be launched in January, and we have an iPad gaming room that will officially kick off this month as well. You just can’t sit back and do nothing. We’ll hopefully start off strong and see where it goes, but we’re probably looking at a ½ percent to 1 percent improvement in 2012.

Kirk Devitte, vice president of slot operations, Fifth Street Gaming, Las Vegas, Nev.:

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SINA HENTUNEN

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ere in North Las Vegas we do expect to see some small growth in the 3 percent to 5 percent range for 2012. However this is not so much due to an improving economy. We cater to locals in this area and many were in the construction trade and worked in the service industry which greatly affected by the falling economy. We expect our increase to come from the installation of a new slot system slated for February at the Silver Nugget/Opera House. We will be installing Acres Advantage on a central server that will house those properties, the Lucky Club (which currently runs Advantage) and the future Downtown Grand (Lady Luck property) when its renovation is completed. By combining our marketing efforts and spend-

SLOTMANAGER JAN | FEB 2012

ing more targeted dollars as a group rather than individually we feel we will be better able to market our customers. We will then be able to offer system-issued Free Play at the Silver Nugget and Opera House to retain existing customers, attract new customers and increase their average spend.

Sina Hentunen, gaming manager, Casino Helsinki, Helsinki, Finland:

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actually expect a slight improvement for gaming revenue results in 2012, about 2 percent growth compared with this year. Why? Studies show that people in Finland have more free time and I also believe, regardless of the global economy, Finland’s economy will be quite strong next year and there won’t more unemployed people in this country. I also believe that the casino in itself will be more favorably seen as a place to spend some time and money than before, because we have concentrated our services and our games to become more mainstream than before.

David Brents, general manager, Morongo Casino Resort & Spa, Cabazon, Calif.:

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e’re taking a very aggressive approach to 2012 and we’re pretty optimistic; we actually added 500 Class III products in the fourth quarter of this year, taking the number of machines on our floor up to 2,650. We experienced solid growth all through 2011 with growth accelerating in the fourth quarter. We responded to the initial downturn in the economy the wrong way; we were waiting in the

bunker for the recession to be over so we cut back in our investments in the property and in the gaming product. In the last year or so, we’ve been renewing the property and shifting denominations to more penny product; we’ve gone from 200 penny machines in 2009 to about 1,100 today. We’ve probably been a little more thoughtful about how we’ve priced the games. Customers have been responding really well and we seem to be reclaiming part of the market.

Michael Burnett, director of slot operations, Riverwalk Casino Hotel, Vicksburg, Miss.:

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don’t see gaming revenues increasing more than 1 percent to 2 percent in our market. And that is only if the economy picks up a bit. The more realistic scenario is revenues will be flat for 2012 because of the severe lack of consumer confidence over the real estate markets and high unemployment. I believe there needs to be fundamental changes in the way the government is handling the economy before we will see significant increases in revenues. SM