gaming business summer

Canada's Premier Gaming Industry MagazinePM

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Summer 2012Vol. 7 No. 2

June 11 - 13, 2012 Award Winners &Summit SponsorsSee pages 31-38

OLG's Modernization Game Plan

Inside:Canadian Gaming Industry Awards

Driving Change Through Gamification

The Newest Spins in Slot Machines

The Blueprint for Lottery and Gaming in Ontario

June 11 - 13, 2012 Award Winners &Summit SponsorsSee pages 31-38

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Canadian Gaming Business | 3

4 EDITOR’SNOTE

6 MESSAGEFROMTHECGA

8 COVERSTORY:OLG'sModernizationGamePlan:TheblueprintformodernizinglotteryandgaminginOntario

12 OLGSUPPLEMENT: OLG’sRFIOpportunity

14 GAMINGTRENDS: TheNewestSpinsonSlotMachines

18 LEGAL: BlurringLinesinSocialMediaGaming

21 EXECUTIVEQ&A: LorneWeil:CEOofScientificGames

22 SPECIALSUPPLEMENT: BuildingYourCasinoBrand

27 CORPORATEPROFILE: ChuckBridges:Vice-President,CorporateAffairs–AtlanticLottery

28 FINANCE: ThePowerofPlay

31 INDUSTRYAWARDPROFILES: CanadianGamingIndustryAwardWinners

SPECIALINSERT: CanadianGamingLawyerJuneEdition

Official Publication of the Canadian Gaming Summit

Publisher Richard Swayze [email protected] 416.512.8186 ext. 246

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Proudly owned and published by:

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Canadian Gaming Business is published four times a year as a joint venture between MediaEdge Communications and The Canadian Gaming Association

To advertise contact: Richard Swayze 416-512-8186 ext. [email protected]

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Guest editorials or columns do not necessarily reflect the opinion of Canadian Gaming Business magazine's advisory board or staff. No part of this issue may be reproduced by any mechanical, photographic or electronic process without written permission by the publisher. Subscription rates: Canada $47.25 per year, $84.00 two years. All rates are payable in Canadian Funds only. Postmaster send address changes to: Canadian Gaming Business Magazine 5255 Yonge StreetSuite 1000, Toronto, Ontario M2N 6P4

Summer 2012 Volume 7 Number 2

contents8 18 14

The Summit thunders into Niagara Falls

Here we Go aGain! That noise you're likely hearing is the roar of the 16th Annual Canadian Gaming Summit in full swing in Niagara Falls. But if you're reading this after the Summit, then that noise is likely the sound of attendees still buzzing about the innovations, technologies, and ideas showcased during this exciting industry exhibition and conference.

Once again, Canadian Gaming Business is proud to be on the ground f loor of this exciting event. And, much like the Summit itself, we've dedicated this issue to examining biggest issues inf luencing the gaming stakeholders across the Great White North, beginning with our cover story, “OLG's Modernization Game Plan”. Then, in our industry roundtable feature, “Building Your Casino Brand”, marketing f irm Marshall Fenn Communications leads casino marketers in a talk about building brand identities in an ever-shifting landscape. Our look in to the future of gaming continues in our Gaming Trends feature, “The Newest Spins on Slot Machines”.

Within these pages, you will also f ind the latest edition of Canadian Gaming Lawyer. Editor Michael Lipton and his colleagues have assembled another informative and incisive look at the laws and regulations affecting our industry. This is a “must read” for anyone with a stake in Canadian gaming.

Please also read with interest our prof iles on Chuck Bridges, Atlantic Lottery's Vice-President of Corporate Affairs; and our Executive Q&A with Lorne Weil, CEO of Scientific Games. As is tradition in every Summit issue, we've dedicated a section to the recipients of the 2012 Canadian Gaming Industry Awards and the First Nation Canadian Gaming Awards. I'm sure you'll agree this year's honourees are absolutely deserving of the recognition.

I’d also like to introduce and welcome aboard CGB's new publisher, Richard Swayze. Richard is also part of the Gaming Summit’s sales efforts and he brings years of trade show and publishing experience to our team. We both look forward to seeing everyone soon at the 2012 Summit. Enjoy the issue, and please take a moment to say hello!

Matthew Bradford, Editor, [email protected]

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6 | Summer 2012

By now, moSt everyone is well aware of Ontario Lottery and Gaming’s (OLG) plan to modernize its lottery and gaming operations, including an enhanced role for the private sector in the ownership and operation of gaming assets and business channels. Unlike many crown agencies, OLG did not undertake this planning in a vacuum. Rather, they engaged in thorough consultation with their stakeholders (including the Canadian Gaming Association) and looked far beyond the boundaries of the province for industry best practices. The process produced three key messages:

• The business should become more customer focused.• Private sector capital and operating expertise should

be leveraged.• OLG should clarify and re-define its role.

In over view, the modernization init iat ive includes divestiture of existing gaming assets, departure from day-to-day operations, closing or re-locating underperforming facilities, allowing for new facilities in locations closer to customers and with tourism potential, expanding slot facilities beyond racetracks, improving the mix of games available, and allowing for private sector operation and development of new technologies and games for its lottery network and to-be-implemented online offerings (see our cover story for greater detail).

OL G i s not a lone in Ont a r io w ith reg a rds to modernization. The Alcohol and Gaming Commission of Ontario (AGCO) has begun a process to introduce meaningful regulatory reform that will usher in more

compliance and risk-based approaches across the various industry segments that it regulates. AGCO is on an announced path to ensure that its regulatory priorities and objectives are properly aligned to present-day risks and expectations, which includes an environment of multi-party private sector ownership and operation.

The combined modernization plans of AGCO and OLG will fundamentally change the Ontario gaming landscape and may well auger change elsewhere in Canada. The Ontario approach significantly minimizes investment and operational risk for the public sector and shifts it to the private sector together with commensurate opportunity for reward. This type of regulatory, ownership, and operating environment is familiar to most companies operating in the gaming industry internationally and will result in greater choice, improved product, and an enhanced experience for gaming customers, whatever their preference.

W hat is v itally important at this stage is for the private sector to offer well-thought-out and meaningful feedback to both OLG and AGCO as they proceed down the modernization path. This is a unique opportunity to share best practices and assist in the improvement of both the regulatory and operational environments of a major market. It’s time for all of us to come together with OLG and AGCO to help chart the way forward.

There are still plenty of questions to be answered and hurdles to overcome as the winds of change blow and the process unfolds. We look forward to working together with AGCO, OLG, and the industry-at-large to make this initiative the unqualified success it deserves to be.

Winds of Change

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Winds of Change

c o v e r s t o r y

The blueprint for modernizing lottery and gaming in Ontario

OLG's Modernization Game PlanOLG's Modernization Game Plan


c o v e r s t o r y

In what’s billed as the most significant transformation of a Crown Agency in Ontario’s history, OLG is taking steps to build a 21st century model for lottery and gaming in the province. This modernization initiative will bring a sharper focus to bear on the customer, expand the involvement of the regulated private sector and renew the agency’s role in oversight. It will create new jobs, spur new investment and increase the agency’s contribution to the province. It will change the way the agency does business. It will change the entire industry in the province.


SinCe it waS C r e at e d i n 1 9 7 5 , t h e O n t a r i o L ot t er y a nd G a m i n g Cor porat ion ( O L G ) – owned by the people of the p r o v i n c e – has returned

in excess of $34 billion in prof its t o t he prov i nc i a l g over n ment . This money has gone to support health care, education, community infrastructure, charit ies, and the training of amateur athletes.

Beyond that contribution, OLG has been an important partner in m a ny prov i nc i a l com mu n it ie s , providing good jobs, contributing investment, and generating some $3.7 billion in economic activity in f iscal 2011 alone. There are also a number of groups that benef it directly from gaming proceeds, including Ontario First Nations and the municipalities that host facilities.

Some 8 million people play the lot ter y ever y year and about 2 .7 million Ontarians visit a casino or slot facility at least once annually.

C u s t o m e r c o n n e c t i o n s w e r e f o r g e d i n t h e e a r l y d a y s o f

Ontar io’s prov incia l lot ter y. In the 1970s, OLG’s f lagship product was Wintario, a weekly lottery that offered a grand prize of $100,000. In it s t ime, Wintar io was more than a lottery – it was a cultural phenomenon with a half-hour of prime-time television programming devoted to its draw.

In those days, it must have seemed like OLG would always be about Wintario; but things change. Times and tastes change.

L i k e l o t t e r y a n d g a m i n g jurisdictions across the country, OLG has evolved since those early days. As it has grown and changed, OLG has continued to make an important contribution to the revenues of the Ontario government – just under $2


billion a year for the past seven years. Today, OLG is still the Ontario government’s largest non-tax revenue source.

In order to maintain and protect that contribution in an increasingly competitive marketplace, OLG must look at ways to stay at the forefront of the industry and bring continued improvement to its product offering.

There is opportunity for growth. On average, Canada’s lottery and gaming corporations generate an average of $595 in revenue per adult in the province. In Ontario, however, that number is $459 per capita. There is potential to be more innovative, more efficient and more effective.

In order to achieve growth in this sector, in this province, OLG and the industry need to address some key challenges including:1. Competition from new gaming options The advent of the Internet and new digital gaming options has been a boon for unregulated off-shore operators. In Ontario alone, it is estimated some $400 million is spent annually with off-shore gaming sites. There are now over 2,000 such sites where Ontarians play every week.

The Internet is rapidly changing the marketplace by changing personal behaviour.

2. Competition from traditional gaming optionsCasinos along the Canada-US border have been challenged by the higher Canadian dollar, issues related to crossing the border and a number of new gaming facilities in the United States. This has led to a sharp decline in the number of Americans entering Ontario.

The combined impact is difficult to overstate. A decade ago, OLG’s border casinos were returning a net profit of $800 million a year. Now, that profit is less than $100 million and falling.

3. Changing tastes in gaming preferences In 2000, one in three adults in Ontario under the age of 45 regularly played the lottery. By 2015, it is estimated that number will be one in 14. It is a popular form of entertainment, but the customer base is shifting. One of the key challenges is that Ontario has a paper-based lottery system in an e-based world.

And that’s not all. Today, almost 90% of OLG’s casino and slot facility revenue is from slot machines. But slots have limited appeal to people under 45.

tHe new oLGOLG and it s shareholder, the Ontar io Government, have recognized the challenge and are moving forward. Working under the direction of a highly engaged Board of Directors, a streamlined management team has developed a plan for a “new OLG”. The particulars of the plan, approved by government, were announced publicly on March 12 at a news conference at Queens Park.

OLG will become more customer-focused. In any business, it’s the customer who tells you what he or she wants. OLG needs to be where customers want it to be, providing games they want to play. Sites need to be where customers are, and need to consider the current preferences and realities of the market.

OLG is also expanding the regulated private sector delivery of lottery and gaming. The lottery network has 10,000 points of sale. There are 23,000 slot machines and over 500 games tables in the 24 facilities in the province. In varying stages, all of these things will require updating. In an era where hospitals are built with public-

c o v e r s t o r y

10 | Summer 2012

“There is potential to be more innovative, more efficient, and more effective.”

private-partnerships, it makes sense to move capital investment away from government.

Currently, regulated private sector operators employ a majority (60%) of the people delivering gaming in Ontario. These employees work at places like Fallsview Casino Resort and Casino Niagara, Casino Rama and Caesars Windsor. In the future, their ranks will swell to include the 6,000 employees that, today, work directly for government through the OLG.

Overall, the benefits of OLG modernization will be substantial: an additional $1.3 billion annually to the province, new private capital investment of some $3 billion, and over 6,000 new private sector jobs, either in gaming or in related spin-off industries (like hotels, restaurants and entertainment among others).

GaminG ZoneSAs a f irst step in the process, OLG recently released Requests for Information, or RFIs—a standard way of collecting information about the capabilities and interest of potential private-sector suppliers. It will help OLG understand the level of ability that exists out there as it relates to lottery and gaming operations.

OLG has proposed 29 potential Gaming Zones across the province. 24 of them have existing OLG gaming facilities, so the proposal includes the potential for five new facilities.

Gaming Zones are geographic areas where regulated private-sector providers will be allowed to operate a single gaming facility, subject to approvals. The zones are based on a business model that is designed to maximize revenue for the province. Factors such as prox imity of a gaming location to other gaming facilities and residential areas were measured to determine the zones.

The five new zones, where no current facility exists, are in Bellville, Collingwood, Kenora, North Bay, and the Greater Toronto Area. New facilities could be groundbreaking in their approach to design and customer interface.

Inside gaming zones, each operator will be allowed to establish a new facility (for new zones), operate the current facility, or relocate existing facilities within the boundaries of the zone, subject to relevant approvals.

The RFI will be followed in due course by a Requests for Proposal (RFP). OLG will look for the best private sector partners, outline the specific terms of what their role would be and invite them to bid on a specif ic product or service. It is through this transparent and competitive process that the future of gaming and lotteries in Ontario will begin taking shape.

oPeratinG mind and reGULation In the future, OLG will continue to conduct and manage all gaming and lotteries in the province,

meeting and exceeding its statutory obligations under the Criminal Code. A leaner, more focused OLG will be responsible for market management, oversight, and important priorities like Responsible Gambling.

OLG will continue to lead the continent in its Responsible Gambling standards and programming, expanding its support for prevent ion, t reatment and research and treatment. Ontario dedicates more than $50 million annually to the prevention, treatment, and research into problem gambling. That’s the highest funding level in North America.

OLG will continue to work posit ively and actively with its regulator, the Alcohol a nd G a m i n g C om m is s ion of O nt a r io (AGCO). The role of the AGCO is central to the modernization of lottery and gaming. Effective regulation is a key to upholding public conf idence in gaming activities. The AGCO is also going through a transformation of its own, evolving from a traditional “one size f its all” approach to regulation to a risk-based model that targets outcomes against legislated standards.

The vision is clear: Regulated private sector enterprises provide services for existing and new gaming sites and certain aspects of the lottery business. OLG will continue to oversee and, in legal terms, conduct, and manage all gaming and lotteries in this province. It will bring greater attention to customer and market management. It will work in concert with a regulator, the AGCO, that’s guided by the principles of honesty, integrity, and social responsibility.

OLG needs to be where people want to go. OLG needs to provide the games they want to play. The opportunities for a renewed and well-regulated industry are substantial. OLG is tak ing steps to seize upon those opportunities for the good of the agency, the industry and, above all, the people of the Province of Ontario.


12 | Summer 2012

c o v e r s t o r y

It was almost 12 months ago that the results of the OLG’s Strategic Business Review were presented to the Board of Directors.

The Ontario lottery, casino and online gaming market was presented to the board as an eco-system. The case was made that if OLG continued to work within this current system, if the economy remained relatively stable, if the board made tough decisions, and if OLG was able to invest in modest expansion, given the requirement for government capital investment; it was likely that OLG’s profit or contribution to the province could increase by $150 million annually after 5 years.

In most scenarios, a $150 million – or approximately 3% bottom line increase – compared to a historical 10-year decline of 2% would be welcome. However, it was clear that the largely private sector, value maximization, and transactionally oriented Board of Directors, led by Paul Godfrey, expected more. The context for the board’s consideration of the strategic plan: Do you know what is better than a $150 million annual increase in 5 years? A $1.3 billion annual increase in those same 5 years.

However, this growth could not be achieved with incremental action; it required a transformation of not only OLG, but of the industry in Ontario; a transformation that would require fundamentally changing the eco-system and the incumbent models in the Ontario gaming market

Over the next year, the board, along with a new president and CEO, educated and convinced the Government of Ontario of this transformation imperative. The March 12 announcement and subsequent release of Requests for Information (RFI) is a clear indication that the Government and OLG are committed to transforming the gaming industry in Ontario.

The success of the strategy required two distinct groups to be convinced of the scope of the transformation opportunity, and be prepared and committed to act. The OLG management team and board should be commended for their effective effort to convince the “shareholder” or government of the imperative for major transformation. And now, it is time for the second group – the private sector – to step up so this unprecedented transformation opportunity can be realized.

PRIVATE SECTOR OPPORTUNITYAll transactions require a willing buyer and seller to realize value on both sides. Although the OLG process is not a typical acquisition transaction given the requirements for the Crown to effectively “Conduct & Manage” gaming in Canada, the multi-billion dollar opportunity will not be realized until the private sector engages. Operators, developers, and investors need to fully embrace the concept that this is not just an opportunity to improve on the way OLG

provides gaming today, but it is about building the foundation for an entirely new gaming marketplace for the next 10 to 20 years.

OLG has articulated the required changes and opportunities that they are inviting private/market operators to deliver. These opportunities are about new, younger adult customers who want to game where and when they want, and are not interested in the traditional games of chance that rely on random number generation for excitement.

It is about expanding gaming with the goal of more people gambling less. It is about expanding community building and the social dynamics of gaming is the objective, with gambling as an exciting component within an integrated entertainment experience. Creating environments and games that attract new and different customers is the goal, seeking customers who have clearly indicated that slot-intensive facilities and paper-based games at convenience stores do not appeal to them.

These points are crucial for the success of the OLG Modernization Plan, and therefore critical to the private sector interests that are considering how to take advantage of this unprecedented transfer of public sector revenue generation.

The rationale is simple: Those who will be successful in winning the opportunity to provide regulated gaming in Ontario will do so as a result of maximizing the return to the Province of Ontario. Furthermore, OLG’s valuat ion of the opportunit ies are leveraged against this transformation imperative, and cannot be achieved by those that approach this as merely an opportunity to improve on the current state. Put succinctly, what OLG operates today is just a starting point; success will be achieved by the delivery of transformed gaming experiences and products by the private sector with oversight by OLG.

TRANSPARENT PROCESS Another critical challenge for OLG in unlocking value was to ensure an open, fair, transparent bidding process that is beyond reproach, yet still achieves maximum results from a full market

OLG's RFI Opportunity The Crown is convinced of the transformation imperative; now it is the private sector's turn to step up

By Rob Moore

Incremental Changesis doing something better without challenging underlying beliefs and assumptions; it is limited in scope and is often reversible

Transformational Changesis challenging the underlying assumptions and structure; the scope is much broader, and as a result fundamentally change the way a system of organization operates

VS.


c o v e r s t o r y

evaluation of the potential opportunities. In other transaction or auction environments, the parameters and processes are largely defined and understood.

For example, when a corporate entity has determined that a transformation or alternative ownership structure should be considered to maximize value for shareholders, there is usually a starting valuation point, such as a multiple of earnings. Transaction or strategic advisors are then retained and begin a process of outreach to seek a valuation that is in excess of the starting point, and eventually an auction will occur to ensure that the maximum value for the assets is obtained.

This is not a process available to OLG. First of all, because the assets are not ultimately for sale; although the opportunity to operate is valuable, it is not the same as acquiring assets in the traditional sense. Secondly, the crucial role of “shopping a deal” is not appropriate or achievable within government procurement processes.

OLG needed an iterative valuation mechanism that would engage the private sector and ultimately let the market determine that most valuable configuration of opportunities that could be maximized (a concept depicted in the graphic to the right). This was actualized in the spring of this year, when OLG released Requests For Information. This is the opportunity for interested parties to engage the “sell side”, to inform and influence the Requests For Proposal process later this year.

OLG has clearly signalled its intent to transform gaming in Ontario. This is not the simple offering of an option to assume operations that were previously government-run. Instead, it’s an opportunity to re-think how lottery and gaming are offered in one of North America’s largest integrated gaming markets.

On the land based gaming process - to define it in the simplest terms - maximum value will not be achieved through one bidder acquiring 29 zones, nor through 29 bidders getting one zone each. The RFI is the opportunity for bidders to define the cluster of zones that would support the transformation of gaming as defined in the Modernization Plan. Current locations, partners, gaming mixes, affiliated offerings – for the most part these have not been elements that the market has considered, as they were pre-determined and OLG operated within historic boundaries. Bidders that do not: a) substantially move beyond incremental improvement on the status-quo; and/or, b) demonstrate in the RFI how the formation of the opportunities would achieve transformation risk missing out on the most exciting public to private transition process in gaming to date.

This same approach applies to the OLG lottery operations. In many ways, the transformation opportunities in lottery exceed the potential on the land based gaming side. A limited view of incremental improvement on the 10,000+ blue terminal locations and operating platform will miss the significant value to be realized both in driving efficiencies in the current logistics and systems of the lottery network, but more importantly in developing new channels and games.

Throughout this process, many assumed that OLG and the government would not think big or be courageous enough to make the numerous and profound changes that are necessary to not just make Ontario a better gaming market, but to truly create the conditions for massive change. That assumption has been proven wrong. The Modernization Plan is bold and will transform the marketplace. Now it is up to the other crucial player in this dynamic to step up and match the creativity and innovation of the Crown – that is the private sector.

Rob was the Senior Vice President of Marketing, Communications, Stakeholder Relations & Strategy at the Ontario Lottery & Gaming Corporation from 2008 to 2011. He led OLG’s Strategic Business Review, the recommendations from the Review culminated in OLG’s Modernization Plan. Rob is currently the Interim CEO of Canadian Business for Social Responsibility and is consulting jurisdictions outside Canada on lottery and gaming privatizations and building private sector consortiums to bid on opportunities in Ontario.

1

objectives

2 3

Define and prioritize objectives

RFP process1.

3.

4.

2.

Private Operator

AgreementDetermine eligibility

Ask the market what it can provide / how to drive value

Requests for Information

OLG Ontario Lottery and Gaming CorporationPR244158 and PR244909

OLG has issued Requests for Information for Modernizing Land Based Gaming in Ontario and Modernizing Lottery in Ontario.

OLG is using the MERX™ electronic tendering system to issue this RFI. MERX™ is a national service designed to facilitate the procurement process within the public and private business communities. You may obtain more information by referring to their web site at www.merx.com/olg, or by telephoning 1-800-964-MERX(6379) or by faxing 1-888-235-5800 and quoting reference numbers PR244158 and PR244909.

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teCHLinK entertainment With the ever-changing world of technology comes an opportunity for manufacturers to enhance the traditional slot machine. This evolution provides an improved entertainment experience as well as options and features that can be customized for an individual player, market, or jurisdiction. Successful manufacturers recognize the need to not only focus on the playability of a machine but also on the adaptability of the back-end technology. Techlink Entertainment’s new electronic gaming machine (EGM) The Blast™ does just that by combining technology and player insight to create an enhanced entertainment experience. The Blast’s™ curvaceous design is not only inviting to players, but provides a high performing convergence ready platform to house the latest in gaming technology.

With two high definition widescreen monitors and unique LED lighting, playing The Blast™ is an engaging sensory experience. It also offers Techlink’s hybrid functionality, allowing online games to be played directly on the EGM screen. This gives operators the flexibility to deliver a wide range of multimedia and online gaming content to players. Not to mention, Techlink’s vast library of customizable, innovative options from game themes to player driven features, loyalty programs to responsible gaming systems.

14 | Summer 2012

A look at what's next for slot machine gaming

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ainSwortH Game teCHnoLoGy In the year 2012-2013, slot machines will be focused on jackpot marketing. Ainsworth has already incorporated this into their new marketing World of Jackpots™ link progressive campaign.

Ainsworth’s World of Jackpots™ is the first ever jackpot super-store, mix and match your progressive games. Showcased on the stunning new Super A560™ cabinet, this innovative new technology combines extraordinary player entertainment with ultimate operator f lexibility, mak ing World of Jackpots™ the future of l inked progressives.

W o r l d o f Jackpots is the first of its kind in the industry, not only offering different game titles, but – more excitingly – offering players many dif ferent overa l l jackpot themes to choose from, br ing ing jackpot marketing t o a n ent i re l y new level. This w o n d e r f u l l y dynamic jackpot environment comes to life through the all-new Super A560™ cabinet. Three large LCD screens support game play, progressive levels, and a host of themed graphics. The third screen acts as a jackpot screen display, removing the need for dedicated signage for a particular brand. The additional third screen is not only distinctive looking to the player with its programmable LED lighting and unique shape, but it provides dynamic signage allowing operators a simple, inexpensive and quick way to constantly refresh entire jackpot themes.

ariStoCrat teCHnoLoGieSOver the next couple of years, slot machines will continue their trend towards products that are more interesting, immersive, and connected. Aristocrat is building upon the success of the portrait-orientation and superior graphic capabilities of our award-winning VERVE hd™ cabinet and Gen7™ platform. We are keenly focused on product packaging and immersive experiences, and we will connect games and players to one another, inside and outside of casinos, giving players a total experience.

One of our newest g a mes , Ta r z a n™ & J a n e F o r b i d d e n Temple™, is the perfect delivery of all things interesting, immersive, and connected. This extension of A r i s tocrat ’s t remendously successful Tarzan brand will be launched in the VERVE hd™ 31.5” cabinet. Players will be entranced by the graphics and almost feel the sounds of the jungle as they work through the game’s many bonus features while sitting in Aristocrat’s new iChair. Tarzan™ & Jane Forbidden Temple™, is yet another example of the many ways that Aristocrat is leveraging technology and connectivity to create the world’s greatest gaming experience, every day.



cem3.375x9.563_ad_ol.indd 1 5/29/12 9:15 AM

iGtFor I nt er n at ion a l G a me Technology, major trends in slot designs focus on delivering new levels of player entertainment that can be seen on pop culture titles and through outstanding gameplay on the Company’s MegaJackpots and Core themes.

Some of IGT’s top performing games are based on pop culture properties and continue to be sought after games on casino f loors; from classic player favourites like Wheel of Fortune, to new titles like Elvis The King®. MegaJackpots deliver truly memorable experiences for players through movie clips, energetic music, and innovative bonuses.

Entertaining game play and interactivity continue to define IGT Core products. An example is the award-winning Hot Roll game which features traditional slot play with an interactive Hot Roll feature. During the bonus the player rolls the dice by touching them on the MLD® touch screen monitor and throwing them across the screen. Interactive bonuses like this will continue to allow players to interact with slot games like never before.

At the Canadian Gaming Summit, attendees will see firsthand how interactivity and pop culture creates an unforgettable player experience on the new Elvis The King™ video slots. Its jukebox inspired design, chart-topping hits, Elvis-inspired game content and bonuses combine to drive performance on the slot floor.

wmS GaminGA t W M S , w e v i e w technology as an enabler t h a t s o l ve s a bu s i n e s s problem. Even with today’s budget constraints, casino operators want to improve pro duc t i v i t y, aut om at e mundane tasks, and improve bu s i ne s s a g i l i t y, wh i le delighting customers and building loyalty with a great slot game experience. To that end, we’ve introduced a new WMS technology platform that creates an entirely new gaming category.

Taking players as close to a thrill ride as possible on a slot machine, the Aladdin & the Magic Quest game introduces Sensory Immersion 2.0 with the WMS motion chair. In this fully immersive experience, which includes 3D graphics, players enjoy cinema-like sound and motion effects programmed to perfectly align with in-game events. The Aladdin & The Magic Quest theme is a virtual-reality thrill ride in the form of a slot machine, powered by the WMS CPU-NXT3® processor, featuring emotive lighting and motion effects programmed to align with in-game events. This game is the first in a series that brings a new dimension of entertainment to the casino floor.

16 | Summer 2012


Konami Gaming, Inc. is thrilled to sponsor the 2012 Canadian Gaming Summit. It’s going to be fun, eh?

Born from fun.®

For more information about Konami Gaming, Inc., please visit gaming.konami.com.

Untitled-3 1 12-05-24 3:16 PMCanadian Gaming Business | 17

interBLoCK USaInterblock products are becoming more popular each and every day. What gives our product an edge and boosts the live table market at the same time is the fact that customers do not have to be slowed by waiting for the dealers to be

ready for each and every play. In return, the casino operator does not have to pay the labour costs for staff to man the lower limit games. This will keep this type of player happy and allow them to still get to play the game they came to enjoy in the casino.

Interblock feels that the trend of providing games that closely simulate live games but offer improved game play with much less hassle for the players will experience rapid growth in the North American markets. With additional jurisdictions opening up in the US, many operators are now interested in electronic table games, and they like the way it feels. This complete line-up of electronic table games will provide the industry with a new platform and product line unlike any other available. As more games types are released in 2012, the market will realize their great benefits. As the economy begins to recover, operators will be exploring ways to drive new revenue to casino floors while maintaining the previous cost cutting measures put in place over the past few years. For these reasons, the industry will see a continually increase in electronic table game play in 2012.

Konami GaminG, inCPat ron s a re a lway s looking for new and in novat ive ways to play, and that's what they'll discover as they play Fortune Chaser™, Konami Gaming, Inc.’s newest progressive game. Fortune Chaser™ is an eight-level linked, community-style exploration progressive showcasing KP3® Twin Play® video titles. The Twin Play® feature doubles the patron’s chances of triggering the progressive feature. The initial Twin Play® video titles available for Fortune Chaser™ are China Shores™, Jumpin’ Jalapenos™, Treasure Voyage™, Full Mood Diamond™, Fairy Blossom™ and Queen’s Shores™. In the base game, select symbols have colored frames. When 3 or more colored frames are displayed in a single spin, Pirate Tokens are awarded. When five Pirate Tokens are collected, a die is rolled to determine how far the patron’s ship will advance. The progressive feature is triggered when a patron’s ship lands on one of four islands. During the progressive game, a player is prompted to select one space on a grid. If a Gold or Silver Jackpot is revealed, the corresponding progressive is awarded. If a jackpot is not awarded, bonus credits will be given. Chances to reveal a Gold or Silver Jackpot increase during each consecutive bonus until one is revealed.


18 | Summer 2012

SoCiaL media iS Here to stay and as online multiplayer games become more and more prevalent and integrated with social media platforms like Facebook, game developers must take serious consideration of the legal issues that surround their games.

Today, companies like Zynga are showing revenues in the millions by offering users the ability to play casino genre games, most commonly various forms of poker, without even having to offer cash out options – and users are paying for the privilege. Of course, the lack of cash-out options has not prevented a myriad of “black market” websites from cropping up, where users of the game can sell their virtual winnings for real cash to other players. This process has already

been well-established in other online gaming environments, where entire industries of “gold farmers” thrive on accumulating a game’s virtual currency and selling that currency to other users of the game. Lawsuits can only serve to stem the tide1.

Even without tak ing advantage of these black market industries, thousands of players around the world are more than willing to pay their own real cash to the virtual casino operator (i.e. the game developer) for virtual “chips” to gamble with. Players engage in this type of trade, despite knowing that there is no proper way to redeem those chips for real currency no matter how successful their play.

Thus far, it appears that such games are permitted to operate in Ontario by virtue of the fact that the “casino” does not occupy a geographic

location2, and more importantly, the fact that “winnings” cannot be officially cashed out3. Though this may satisfy current legislation in jurisdictions such as Ontario, game developers need to be aware of their liabilities in any jurisdiction where a resident may play the game. It is clear that the virtual chips have value, both for the game developer

selling them as well as the gamers selling on the black market.

Considering the substantially fewer restrictions and liabilities regarding age of

users, limits on spending, and the fairness of the games themselves in the social media gaming industry, it may only be a matter of time before legislators closes the gap on what kinds of game activities should and should not receive regulatory scrutiny.

Though such casino-genre social media games may have found sufficient breathing room to operate outside of gaming regulations in their current form, that has not stopped game developers from treading into formal online gaming as an alternative business model, including Zynga4. Given this trend, it would not be surprising to see many more social media game developers seep into the online gaming world.

Online gaming is clearly here to stay, and social media continues to grow online. The combination of the two is a unique development that is blurring the lines of what gaming is, and legislators and industry professionals will need to pay particular attention to the market and the regulations surrounding this growing industry.

Javad Heydary is Managing Director of Heydary Hamilton PC. He regularly advises clients on online gaming issues.

l e g a l

By Javad heydaRy

Blurring Lines in Social Media Gaming

1.http://www.gamasutra.com/view/news/28097/Zynga_Suing_Site_For_Unauthorized_Virtual_Currency_Sales.php2.Where“casino”isdefinedas“aplacethatiskeptforthepurposeofplayingaprescribedlotteryscheme”.Itisnotclearwhetheravirtualgameplatformconstitutesa“casino”undertheseregulations.3.Unders.1oftheOntarioGamingActRegulations,a“chip”isasymbolofvalueissuedbythecasinoandredeemableforcashatthecasino.Thoughsocialmediapokergamessatisfythefirsthalf,theymay

escapetheseprovisionsunderthesecondhalfofthedefinition.4.http://allthingsd.com/20120120/zynga-confirms-it-is-seeking-partners-for-online-gambling-initiatives/

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Lorne weiL is CEO of Scientif ic Games. He was born in Ontario, at tended Universit y of Toronto, and has made waves in the gaming industry since. In CGB's latest Q&A, he offers his perspective on Canadian lotteries, growth opportunities, and gaming innovation.

Q: How can the lotteries in Canada remain competitive and sustain growth over the next several years with the introduction of new channels and the many gaming and entertainment options available to consumers?Scientif ic Games looks at lottery not as a collection of products, but as a collection of players. Lottery in Canada is a $9.4 billion industry. The lotteries here have a well-established brand and an enormous addressable consumer base because they have spent years building trust and credibility with players. Few consumer products have such a large number of users. The Canadian lotteries are doing a great job optimizing their consumer base and making players the focus. Adding players’ clubs and rewards programs could create an internet community for the lottery player, extend the play experience, and grow playership. Our interactive games, electronic instant tickets, and licensed entertainment brands – like Monopoly and Scrabble – can help build an entertainment platform. Around the world, lotteries are seeing results with mobilization of their consumer base through promotions that drive players back and forth between the internet and traditional retail. We must be very attentive to the lottery consumer and the game portfolio: the quality of the

games, the play experience, and access to the games at retail. The ultimate arbiter of where the growth will be in the coming years is the consumer.

Q: How is Scientific Games currently supporting customers in Canada, and what direction do you see the customer-vendor relationship headed?Scient i f ic Games has about 30 0 employees in Canada. In 2011, we printed over $4 billion in instant tickets from our Montreal facility that were exported throughout the world. We provide systems technology for Atlantic Lottery Corporation (ALC) and the Western Canada Lottery Corporation ( WCLC), as well as terminals for Ontario Lottery and Gaming Corporation (OLG). Our instants contracts with ALC, Loto-Quebec, and OLG continue to drive returns to beneficiaries. We are also the 2012 supplier of Canada’s national instant games, and the games are selling well. As the first step in their purchasing decisions, many lotteries are now tak ing a ver y for ward-planning approach by embarking upon a strategic review of their current technology, operations and business processes. Lotteries are looking at opportunities to bundle services with vendors such as Scientif ic Games to gain access to an integrated partnership model, centers of innovation and a powerful purchasing structure tied to the economics of the business.

Q: where is Scientific Games focusing innovation efforts in the coming years?Globally, lotteries are focused on g row th and are returning to an investment in innovation. This allows

Scientif ic Games to look at long-term investment through innovation and the return on investment. Where lotteries have invested in their retail network, payouts of games, advertising and technology, there has been growth. We are a global leader in the instant product category. We actually first began printing instant tickets in Canada in the 1970s. The extended play category we launched for the very first time here with ALC in the 1980s makes up a good portion of Canada’s $2 billion a year in instant game sales today. The current lottery business can be optimized if you have player knowledge, leading game content, and payout/prize structure analytics to drive innovation. We’ve seen growth in Italy, China, and the U.S. with the adoption of best practices through our Cooperative Services Programs – and Canada can have that same success. Distribution is a key driver of success, working with the traditional retail network to optimize distribution, launch new games, and grow retail sales. We are doing all of this in parallel to investing in and growing the internet channel and our interactive products. Scientific Games will continue to focus innovation on the marriage of instant products and interactive – relationship based marketing, colorful instant games, having elements of the game reveal interactively, and driving the relationship at retail.


e x e c u t i v e Q & A

CEO of Scientific Games

Lorne Weil

if yoU aSK CaSino executives about their brand, most will be able

to say what their brand stands for. Many will also be able to tell you how

they got their brand to this point; but for some, knowing what their brand will look like in the future is less certain. Why is that?

In part, it’s because few believe they have the ability to predict future events. It also tells us that too few facility marketers and owners are planning for the future of their brand. Most are dealing with today, and there isn’t the time or the money to invest in what their brand will look like five or ten years down the road.

How about your casino? Do you have a “brand plan” for the future, or are you managing your brand day-to-day? Race car drivers call that “driving off the edge of the hood”. It means seeing and reacting to what’s right in front of you, and not preparing and planning for what’s further ahead. In this article, we've collected insightful comments from a few casino marketing execs in Canada who know the landscape is going to change. They recognize that greater competition, evolving demographics, and changes to the regulatory environment are coming, and they are ready to adapt and evolve their brands to meet those challenges head on.

Ask yourself the question posed in the following industry roundtable: “Do you

think your casino brand will look the same in five years as it does today?” If your answer is no, then you’re probably not going to do much today about scrutinizing you r bra nd i m a g e a nd per son a l i t y. However, if you think it ’s going to be different, you should be planning today for those changes in the future.

We all know you can’t create a brand overnight; it takes years of effort and signif icant investment to do it properly. Every customer touch point contributes to a successful brand, including staf f training, decor, customer service, food and beverage, marketing, advertising, and Players Club investment, just to name just a few. That said, it takes just as long to evolve and change a brand as it does to build it, so if your brand is going to look different in f ive years, you should really need to think about working on those changes and making those investments now because you can’t do it overnight.

Author Lewis Carroll once said: “If you don’t know where you’re going, any road will take you there.” Knowing your brand now, understanding what it will look like in the next 60 months, and identifying what your brand needs to do to meet that change is critical.

So let the branding conversation begin!

s p e c i a l s u p p l e m e n t

22 | Summer 2012

An industry roundtable

By Jim KaBRaJee

Building Your Casino Brand:



How conf ident are you that your casino brand is dif ferent iated in the market?

R S : O n a n i n d i v idu a l brand basis , we st and out

very well in the market. Under the corporate branding, we're in the process of trying to make it a more visible brand within the market, and we have a strategy for doing that. Part of it is incorporating the corporate brand into our casinos so that they have visibility, and so people will have the opportunity to understand that the various casinos do belong to an overarching corporate identity.

JC: I think we have a really, really strong brand position a big part of which is owed to the fact that we've committed to it consistently since 1996. Through different leadership e r a s a n d d i f f e r e n t m a r k e t i n g heads, the one thing that has not changed is our brand personality. We see research results that show a tremendous connection between our desired brand personality and what our market perceives it to be. For us, brand and brand personality has

really been a constant, and it helps in the market for the consumer to really get comfortable and know what to expect.

DZ: We're quite conf ident simply because we a re the only ca sino p r o p e r t i e s i n W i n n i p e g . T h e closest competing casino we have is 45 minutes away, which is a First Nations casino called South Beach Casino & Resort. Further to that, our casinos [McPhillips Station Casino and Club Regent Casino] are highly themed, and that really creates a unique and memorable experience for our g uest s . The McPhi l l ips property is themed as an early 1900s railway station with the grand hotel at t ached. Then, Club Regent is themed as a tropical destination with palm trees throughout and a walk-through salt water aquarium.

HB: We don't really have a brand like Coca-Cola would; we have different properties that have a target market and are key to the area in which they inhabit. For instance, in regards to River Rock, if you were to mention a casino in British Columbia, you're going to mention River Rock. That

property was extremely well branded and positioned through the “wow” factors that we created.

When you talk about the corporation as a whole, originally River Rock was going to be called Great Canadian Place, but the British Columbia Lottery Corporation wanted each facility to be branded on its own merits. So this question is an interesting one because, really, Great Canadian Gaming on its own is not branded unless you are a shareholder or someone who knows us as a public company. Each site is based on its own merits, and there's always work to do when it comes to branding.

What do you perce ive as your brand personality?

RS: The various Gateway p r o p e r t i e s a l l h a v e

somewhat of a different identity, and that is the challenge with the

overarching brand; how to get it so they have somewhat of a symbiosis. What we're doing with the overarching G a t e w a y b r a n d i s t o m a k i n g i t s o m e t h i n g t h a t ' s “ y o u r p l a c e ”; something that 's customer centric, offers a vibrant gaming product with quality food and entertainment, and is

Randy SearsVice President of Marketing at Gateway Casinos and Entertainment Limited

Jeff Craik Vice President of Marketing, Casino Rama

Dave Zubricki Director, Marketing Campaigns and Loyalty Programs at Manitoba Lottteries Corp.

Howard Blank Vice President, Great Canadian Gaming Corporation

central to the communities in which they are located.

JC: I think our brand personality is that of the casino that delivers fun and excitement, but in a relaxed, comfortable, and casual way. It 's not a formal or upscale experience, but something very relaxed, very comfortable, and one that delivers on fun and excitement . I th ink we further achieve that messaging through the broader entertainment product.

DZ: Our brand personality is a really fun and entertaining experience. As I mentioned earlier, we're highly themed, which makes them unique, memorable, and fun for customers.

HB: Our philosophy is if you come for one thing, hopefully we'll “wow” you on four other things. So if you come to the Boulevard Casino to see a show, perhaps you'll also be wowed by the fact we had a microbrewery sponsoring something, or enter the casino and be wowed by the clean and friendly atmosphere, or head into the lounge and dance the night away to a live band you weren't expecting. We're constantly trying to think of how we can make that experience into even greater and more exciting opportunities, and I think that's the key across Canada. We are in the entertainment business. Yes, it is gambling, and yes a vast amount of money is generated for the provinces and charities from our guests, but the most important thing is they are spending their money with us as a form of entertainment.

So that “wow” factor is one of two things that bode well for us. I think another is our commitment

to customer a nd g uest ser v ice. We've done a great job in ensuring that people who work with us get the 110% commitment whether it's external or internal. In terms of the public persona, we believe that a guest may come to a casino and they may not win, but if they had value for their money spent, that value is the key – and it comes in place with customer service.

What have you done in the past , and what are you doing now, to make your brand stick?

R S : We ' r e j u s t g e t t i n g ready to launch our f irst major

gaming initiative in that respect. We have a promotion called “Swipe It Rich”, which is an enterprise-wide promotion, meaning no matter which one of our casinos you go to, it will be the same promotion throughout. All of the advertisements, collateral, and media begins with Gateway and joins them all together. Our message i s a long the l ines of , “Gateway Casinos invites you to Swipe It Rich. Take part in any one of our greater Vancouver regionally district casinos: Cascades, Grand Villa, or Starlight.” That's the way it reads, and that's the way it's being brought across so the public will know that all those properties belong to same entity.

We're a l so work in g w it h ou r agency Marshall Fenn on ways to integrate the Gateway brand into each one of the proper t ies . A n example of how we might do that is by adding a central beverage bar to every one of our facilities. Even though the properties would all have different names, inside they could have things like “The Gateway Bar”,

“The Gateway Grill”, or “The Gateway Lounge”. We're working through that right now to try and determine the best way to integrate the brand without really damaging the individual casino brands.

JC: We've had the good fortune of having the large scale entertainment centre dat ing back to 2001. We've been able to put a lot of big name acts through the venue, which the public at large associates with the casino and helps to deliver on the brand messaging. The other thing we've had a reputation for since 1996 is really having the best customer service in the entire industry. At the end of the day, the brand personality is essentially a promise to the consumer, and our service levels really allow Casino Rama to deliver on that promise.

In terms of gauging our customers' response, we regularly go into the market and do brand research. The last couple years, we've also been able to capitalize on some of the OLG's brand research. They've been sharing in for mat ion w ith us in ter ms of brand identity, brand recall, and other important characteristics. They put together some really good research, and we've been fortunate that they share this with us as well.

DZ: W hat we're rea l ly doing now more than anything for our brand is continually making sure our customers are engaged with our products. We're ref resh ing our g a ming mi x ver y frequently, because we want to be one of the first – if not the first – with new products in the market. We continue to refresh our amenity environments like our restaurants, entertainment, and player’s club program just to reinforce that level of engagement with us.


24 | Summer 2012

W hat we've a lso done recently i s int roduce a n on l ine rewa rds cat a log ue for our pl ayer s club, where they can now go online and spend their points on goods and ser v ices , ret a i l elec t ronics , and things of that nature. Previously, you could only spend your points i nt er n a l l y w it h ou r g o o ds a nd s er v ice s , but we br a nche d out because they wanted more things to spend their points on.

We also do a lot of promotions throughout the year at di f ferent times. Our birthday promotions are probably the cornerstone of what we do. Those are essentially a yearly celebration of when we opened the casinos. They come up every June, and they a re by fa r our biggest events every year.

HB: River Rock is a good example. We shot f ilms on the property when it f irst opened. We had wrap parties for dif ferent stars and even had the Grey Cup make an appearance because the players l iked R iver Rock . It just star ted a stor y and a cache that cont inued when we opened up the hotel. The theatres have also helped position us as the entertainment powerhouse, as well as the amazing food and beverage options. It's a number of things.

A not her ex a mple i s wh at we planned for Hastings Racecourse du r i n g t he Tr ip l e Cr o w n . We went craz y in terms of turn ing Hastings into the biggest party the facility has ever seen with bands, l ive music, DJs , c igar bars , and everything. We know that the key to horse racing is bringing in that younger demographic, so one of the things we've been working on is understanding what younger people

want. They want instant satisfaction and instant gratif ication, but they a lso want the cool hipness – the well dressed guys and gals. We're thinking outside the box because the older folks are really a dying breed that built thoroughbred and harness racing in this country.

We're a lso look ing at our new Boulevard Casino, and opening up a new hotel there in Coquitlam. It g ives us a great opportunity to rebrand because the public knows the Red Robinson Show Theatre because he's the Dick Cla rk of Canada, but the name Boulevard does not resonate when people think of going to the casino. So we're cer tainly look ing at things there as well.

Do you th ink tha t your brand will look the same five years from now as it does today?

RS: It 's hard to project the landscape of casino gaming

b e c au s e i t ' s a c t u a l l y ch a n g i n g so much s ince there 's so ma ny jurisdictions opening up. We see ourselves as being a solid Canadian g a ming cor porat ion . There a re things that we need to operate inside of our jur isdict ion, but we want Gateway to be k nown as a place where customers get a consistent gaming experience, and for it to be a quality gaming experience. We're here for the long run.

JC: It undergoes a gradual, subtle, and almost invisible evolution as time goes on, but for the most part I think we've got a really strong posit ion. The one thing that we know is going to happen in Ontario

with the new OLG modernization model is we're going to see more competition in the future, so staying consistent and loyal to the messaging and our reputation with the public is going to become even more critical as we move into a more competitive era.

DZ: I definitely see it evolving. I don't think our brand today will be what it is in f ive years. Like any other casino property, we're making an effort to have our product appeal to a younger demo. They're looking for different of fer ings than what the prev ious generat ion was, so we are look ing at adjusting our brand through the environments and product mix to try to appeal to those younger demos.

I think one of things we are looking at longer term is, as we look to evolve our brand, we'll start to move away more from the highly themed aspect. I don't think that 's going to be the mot ivator for the new generat ion coming up, so we're really looking at more contemporary design as we move forward. I think it's been said before, but this isn't your mother's casino and it's not going to be. I think we have to evolve.

HB: Our brand and our properties are living, breathing entities. You cannot stay stagnant, and you cannot follow the old adage, “Build it and they will come”. You must wow your guests on a number of different levels, both perceived and un-perceived.

Jim Kabrajee i s a par tner and C.E.O. at Marshall Fenn Communications, a Toronto based marke t ing agency with e x t en s iv e e x p e r i en c e in Ca s ino and Lottery marketing.


26 | Summer 2012


c o r p o r a t e p r o f i l e

Vice-President, Corporate Affairs – Atlantic Lottery

Chuck BridgeswHen CHUCK BridGeS joined the Atlantic Lottery team in February of 2009, it was the next logical step for a man who has always blossomed in ca reer s where bet t er ing the community is a focus.

As the Vice-President of Corporate Affairs at Atlantic Lottery, Bridges takes great pride in leading the charge when it comes to spreading Atlantic Lottery’s story of making Atlantic Canada a better place. After all, it was this story that motivated him to tackle this new career challenge head-on back in 2009.

“I had always been intrigued by the vibrant and exciting culture at Atlantic Lottery, but what really drew me in was the community aspect of what the lottery does,” said Bridges. “I’ve always thought it important to give back to your community and that’s why I love my job at Atlantic Lottery. We do great work, I’m proud of it, and I want to be sure that every Atlantic Canadian knows that every penny of our profit is going back to help make their community the best it can be.”

Bridges joined Atlantic Lottery after more than 20 years at Saint Mary’s University, where he held the position of Vice-President of External Affairs. While at the helm of the Ex ternal A ffairs div ision, he oversaw the university’s public a f fa irs , fundraising, and a lumni services teams and was instrumental in revamping its communications a nd bra nd i n g ef for t s to bet t er meet the needs of the universit y community.

Chuck holds an MBA from Saint Mary's University, and is a former

lecturer at the university’s Sobey School of Business. In 20 02 , he was named Saint Mary’s Business Professor of the Year (part-time). He’s also been recognized nationally w ith the Dist ing uished Ser v ice Award from the Canadian Council for the Advancement of Education. A proud member of the Hali fa x community, Bridges served as Vice-Chair of the Canada Games Host Society when the 2011 Winter Games were celebrated in his hometown.

Before his career in academia, Bridges was a journalist and later a managing director in broadcast journalism – a role that provided him great perspective when leading Atlantic Lottery’s Corporate Affairs team, which includes cor porate c o m mu n i c a t i o n s , g o v e r n m e nt relations, and corporate reputation portfolios.

His infectious energy, combined with his past career experiences, make him a natural at communicating the crux of what Atlantic Lottery does and why it’s important – a message that he’s spread across every corner of the four Atlantic provinces in which Atlantic Lottery operates.

He’s a believer that communication is the largest driver of success and he’s taken that mantra with him to the executive table at Atlantic Lottery. He’s been instrumental in leading the executive team as they place a renewed focus on taking a “one team” approach and building honest, meaningful relationships w i t h A t l a nt i c L o t t e r y ’s b o a r d of d irec tors , shareholders ( the four Atlantic provinces), and key stakeholders in the community.

Br idges “one team, one v ision” outlook couldn’t come at a bet ter time, as the regulated lottery industry continues to evolve, becoming barely recognizable from its origins only a few decades ago.

“The agenda for change is here, so it’s imperative that we work together with our shareholders to deliver the changes that our players want and demand,” explains Bridges. “It ’s a d i f ferent ba l lg a me f rom the one that was played 36 years ago when Atlantic Lottery began. Factors like g loba l compet it ion and chang ing technologies mean we need to change the way we do business.”

But that’s not all that ’s changed. Adds Bridges: “Fundamentally, we’ve changed the way we work with our shareholders and we’re seeing some incredibly positive shifts in how we operate. We’re the lottery experts, but t hey ’re t he ex per t s on wh at Atlantic Canadians want, so to work together as we are now, we have a deep-rooted sense of conf idence that we’ll be providing Atlantic Canadians with the safe and regulated gambling offerings that they deserve for years to come.”

But how does the lot ter y and gaming sector embrace these social rea l i t ie s a nd sh ape pat ron a nd employee behaviours? Gamification.

A f t e r you r o r g a n i z a t ion h a s e s t a b l i s h e d a r e s p o n s i b l e a n d respectful socia l media presence that includes a listening program, g o v e r n a n c e f r a m e w o r k , a n d engagement guidelines for employees and your communit y, invest ing in gamif ication is a powerful next step that will support your business in changing patron behaviour and driving loyalty.

what is gamification?G a m i f i c a t i o n i s t h e p r o c e s s o f adding game design, thinking, and mechanics to platforms that wouldn’t normally incorporate such techniques. Gamif icat ion is t y pica l ly used to encourage or drive specific behaviour, resulting in a more fun and engaging experience for the patron.

Bra nds w i l l o f t en add g a m i n g elements to an existing digital property a s a m e a n s t o c o l l e c t e x t ende d patron information. In exchange for their participation, patrons are then rewarded with perks ranging from the virtual – such as exclusive content,

f i n a n c e

28 | Summer 2012

Driving change in your organization through gamification

The Power of Play: By lOuie velOCCi and lesley luK

Social media has changed the way we communicate. Whether it’s B2B or B2C, it has revolutionized the way we deliver services in the gaming world. Roulette and blackjack are no longer limited to just “in real life” (IRL) experiences. Now, gamers post, share, tweet, pin, and +1 their excitement and frustrations through social media. The lottery and gaming experience is surrounded by a new layer of banter, fandom, and competitive spirit.

badges, or even bragging rights – to the physical – like access to special events, merchandise discounts, and free product.

Gamification also comes in many forms. It can exist within owned digital properties (i.e. Facebook and Twitter) or as a stand-alone tool such as Badgeville, Gigya, Bunchball, and PlayGen. Some brands even use gaming elements within their websites, mobile apps, or internal social platforms like Jive and Microsoft SharePoint.

why does it matter?The lottery and gaming world are the original “gamers”, but more and more, gaming techniques are used in spaces like Facebook, Foursquare, and GetGlue. Therefore, it’s important for your business not to lose at its own game.

Aside from gamification boosting sales and driving loyalty as reasons to invest, your patrons expect it. Millennials (those born between 1978 and 1994) conduct business differently and expect social experiences in everything they do. They embrace shopping and sharing in social spaces more than any other patron segment, and desire deeper engagement with the brands they trust.

opportunity defined So, what next? Gamification has created a whole new roster of competitors that offer gaming in non-traditional settings, and patron expectations have shifted in a way that gaming is an everyday activity.

This is an opportunity for the lottery and gaming world. Historically, your service offering has been driven by IRL

activities at casinos, entertainment venues, and through retailers. It’s time to look beyond an afternoon at the casino and commit to extending the patron experience through gamification. By rewarding patrons in their everyday, you will remain top-of-mind, drive deeper brand engagement, and encourage their return.

Looking forwardAccording to Gartner Research, by 2015, more than 50% of organizations that manage innovation processes will gamify those processes. By 2014, more than 70% of Global 2000 organizations will have at least one gamified application. Gamification is clearly here to stay and should be on the minds of key decision makers.

But before jumping in, take a step back and determine what kind of change you’re looking to make, who your target audience is, and whether it is internal or external. A great place to start is with your own employees, as improved internal engagement through rewards-based programs will ultimately improve productivity and efficiency.

Remember, due to the intricacies of the lottery and gaming sector, there are important security measures to consider before adding elements of play to your processes. That is mind, assessing risk will be critical to your success.

Look to subject matter experts in the gamification arena for risk assessment support and to identify the technical capabilities and infrastructure needed to execute on gamification plans. Most importantly, make sure gamification principles are at the heart of your efforts. Collaboration, competition, and constant feedback will be critical in driving the change you want to see in your organization.

With a sound strategy, strategic and risk assessment counsel, and the right technology, you’ll be ready to add elements of play to your process and choose the ones that will bring the most benefits.

Lesley Luk is a Senior Manager in KPMG’s Gaming practice. She has over 9 years of experience and has been involved in the audits and IFRS conversion projects of gaming organizations and casinos for several years. Contact: [email protected], or 416-228-7215.

Louie Velocci (CA-CISA, CISSP, CAA, GCFA, CGEIT) is a Partner with KPMG’s IT Advisory Practice in Atlantic Canada. Contact: [email protected], or (902) 492-6012.

“Aside from gamification boosting sales and driving loyalty as reasons to invest, your patrons expect it.”


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Harry Oshanski The Industry Leadership a n d O u t s t a n d i n g C ont r ibut ion Aw a rd showcases individuals who have given greatly of their t ime, ta lents, and passion to both their individual workplaces and the Canadian gaming industry in whole. By that definition, Casino Rama President and CEO Harry Oshanski certainly fits the bill.

“I'm a little humbled by it, quite frankly,” says Harry. “When Chief Sharon Stinson Henry from Rama First Nation called to tell me that she was going to nominate me, it was totally out of the blue. I knew we always had a very strong relationship, and we have mutual goals for the business and the community, but I was quite humbled.”

Fo r H a r r y, ho s p i t a l i t y i s i n his DNA. Before joining Casino Rama's team, Harry spent his career launching properties for major hotel chains across the country, including Hilton's Niagara Falls development, w h ich w a s t he l a s t pro je c t he completed before a ssuming h is inaugural role at Casino Rama as V P of Hotel Operations in 2000. Six months later, then Casino Rama

president Art Frank transferred him into the freshly minted role of VP of Resort Operation; a title which saw Harry overseeing both Casino Rama's hotel opening and the 1400 plus non-gaming employees under the facility's employ.

“I came on board not expecting to be here much longer than the hotel opening, and, fell in love with the industry.” he recalls.

On advice from Art Frank, Harry took his involvement with Casino Rama one step further by becoming actively involved within the table games department in 2004. “I believe I brought them organizational skills, strategic direction skills, and communication skills; and they taught me table games. It was a really good marriage.”

By t he t i me A r t Fra n k m ade his transition to Niagara Casinos in 20 06 , Harr y was pr imed and prepared to step into Casino Rama's lead role. In the si x years since, Harry's knack for leadership and passion for relat ionship building have imbued Casino Rama with a clear st rateg ic direct ion and a c u s t om er- or ient e d ph i lo s o phy that is shared by all levels of the o r g a n i z a t i o n a n d i t s e x t e r n a l partners.

Every year, the Canadian Gaming Industry highlights the work and contributions of industry leaders in the gaming community. The deserving winners are announced at the annual Canadian Gaming Summit’s Award’s Gala & Charity Dinner. This year, three individuals were selected to receive the Industry Leadership and Outstanding Contribution Award: Harry Oshanski, President & CEO at Casino Rama; Larry Flynn, Senior Vice President of Gaming at Ontario Lottery and Gaming Corporation (OLG); and Darryl Schiewe, Vice President of Casino System Implementation at British Columbia Lottery Corporation (BCLC).

“Mr. Oshanski has not only been able to retain top talent at all levels of employment at Casino Rama, but also directly created a working atmosphere wherein each employee is recognized and valued from the top,” says Chief Sharon Stinson Henry, “Mr. Oshanski is a beacon of integrity and leadership who eschews the spotlight for himself in favour of Casino Rama's overall success.”

I n a d d i t i o n t o s t r e n g t h e n i n g Casino Rama's relationships through consistent communication strategies a nd employee- cent r ic prog ra ms , Harry has contributed to the industry's growth through his involvement with the Canadian Gaming Association, his partnership with local colleges, and his role in launching the First Nation Gaming Awards. Speaking to one of his many past successes, Harry notes: “I 'm very proud of my relationship with Rama First Nation. What I did is approached it with fresh eyes and renewed vigour. I said 'the past is the past', and what we want to do now is work collectively with the stakeholders in the same direction for the good of the business. That's how I approached it, and it's worked really well.”

The Canadian Gaming Industry AwardsA look at 2012's award recipients


a w a r d p r o f i l e s

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Larry FlynnDriven by a passion for people, customer service, and operational excellence, Larry Flynn is a respected name in the Canadian gaming industry and a continual source of inspiration and growth for his team at Ontario Lottery and Gaming Corporation (OLG). As OLG's Senior

Vice President of Gaming, he works tirelessly to enhance the workplace experience for the thousands of staff that populate the many gaming sites, facilities, leadership teams, resorts and aboriginal casino properties under his watch.

“I've known Larry and the Flynn family for many years now”, says OLG Board Chair Paul Godfrey. “But it was only after I arrived at OLG that I really and truly came to realize Larry's great strength as an executive and leader. When you see him interact with his employees, you come to understand how he inspires and brings out the best in them”.

Larry started his career with OLG a decade ago, joining the organization as Senior Vice President of Marketing after spending over 27 years in progressive senior leadership roles with the Liquor Control Board of Ontario. In 2004, his skill for creating and implementing marketing strategies for OLG earned him the title he enjoys today. Over the following years, he has dedicated his efforts to increasing employee engagement through numerous employee training, education, and development programs.

“There is nothing that makes me prouder than our employees’ dedication to our customer service culture,” explains Larry, noting, “I am also extremely proud of my Gaming Executives' focus and dedication towards the training and development of their teams. As a result, from general managers to part-time employees, we have amazing employees who know what it takes to 'wow' customers.”

Larry's focus on people extends to OLG's customers and stakeholders. He has always strived to enhance the guest experience through projects like the recent slot pricing strategy. This resulted in more time-on-device and entertainment for patrons. Larry is also co-chair of the Gaming Cross Jurisdictional Committee, a forum that unites North American gaming jurisdictions for the purpose of sharing best practices. Through this, and his many other leadership roles, Larry has been key in maintaining strong relationships between OLG's stakeholders, vendors, First Nations partners, and community leaders.

“Larry is passionate about people. This passion has been the catalyst for much of the growth in this division,” says Adriana Spatzner, Vice President of Gaming Marketing. “He builds

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34 | Summer 2012

relationships with each and every stakeholder to ensure the continued success of the business.”

Larr y 's st rong feel ings for his employees are obviously returned in kind. It was Spatzner and the other members of OLG's Senior Gaming Executive Team that nominated him for this award.

For his next challenge, Larry is set to apply his decades of successful leadership experience to his job as Executive Sponsor of the Gaming Management System (GMS) project, a k ey del i ver able i n O nt a r io ' s modernization efforts.

“This is currently the most rewarding part of my job,” he reflects, explaining, “The transformation of a public sector agency to private sector will enable us to drive OLG’s customer focused culture and provide a higher level to the benefit of our customers.”

No doubt, the near future looks busy for Larry. For now, he's taking a moment to appreciate this latest honour. “I'm thrilled and humbled that my Gaming Executive Team nominated me. If I am

deserving in their eyes, then I truly feel accomplished as their leader.”

Darryl SchieweFrom blackjack dealer to industry leader, Darryl Schiewe's rise through the Canadian gaming ranks has outfitted him w ith the k nowledge,

wisdom, and expertise to excel at any challenge that crosses his path. It's this hard-earned experience that makes him an asset to the British Columbia L ot ter y Cor porat ion (BCLC) as it s Vice-President of Casino System Implementat ion, as well as an ideal candidate for t h e I n d u s t r y L e a d e r s h i p a n d Outstanding Contribution Award.

“I've had the privilege of working with Darryl for just over four years, and it 's quite amazing how much he's taught me about the industry,” says Michael Graydon, President and CEO of BCLC. “Working with him and watching just how much he understands and knows about the

business is just amazing.” Darryl began his ascent through

the industry as a blackjack dealer in Edmonton's Silver Slipper Casino in the early 1970s. He soon turned his part-time job into a full-time career, moving through the ranks to become to become a part owner of a casino. In the 1990s, he moved to Brit ish Columbia to pursue the equity side of the industry through part ownership of bingo halls through the province. In 1998, after selling his properties, he came on board with the BCLC as a Gaming Control Manager, where he once again climbed the ranks to assume the role of VP of Casinos and Community Gaming.

Ref lecting on his comprehensive career, Darryl says he's proud to see his former properties f lourishing, and to have formed as many relationships as he has, saying, “It's been very satisfying to continue to be a part of the industry and see all the changes. You get to meet a lot of very intelligent people and it has allowed me to be a small part of incredible teams that helped me grow.”

Darr yl's career is far from over. Recent ly, he a ssumed the role of V ice President of Casino System I m pl e m e nt a t i o n t o o v e r s e e t h e implementat ion of a new gaming management system across all of its proper t ies; a $10 0 mil l ion capitol ex penditure desig ned to enhance player interactiv it y and enjoyment throughout BCLC's faci l it ies and p r o v i d e t h e o r g a n i z a t i o n w i t h comprehensive player statistics.

“ D a r r y l ' s g o t s u c h a s t r o n g understanding of the business, but he also has a very strong technology acumen. K nowing this, we moved him out of running the casino and community gaming division and put him in charge of the implementation of this major project,” explains Michael Graydon.

Looking forward, Darryl is eager to sink h is teeth into one of h is greatest challenges yet. Looking to the moment, he's also proud to have been selected for this most recent accolade.

“Humbling is one of the adjectives I'd put to it for sure,” he says. “I really appreciate the recog nit ion of the industry.”


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Lifetime Achievement Award

Gary Edgar, Mississaugas of Scugog Island First NationChair, Baagwating Community Association GaryEdgarhasbeenarespected leaderwiththeMississaugasofScugogIslandFirstNationfordecades.From1993to1997,heservedasChiefoftheOntario-basedaboriginalcommunity,duringwhichtimehelaidthefoundationforFirstNationgamingamong theScugogFirstNationpeople. In1997,Gary'stirelessworkandadvocacypaidoffwhenhesuccessfullybrokeredapartnershipbetweentheScugogFirstNation,theSteinerfamilyandSonocoGamingtocreatetheGreatBlueHeronCharityCasino.Intheyearsfollowingthecasino'sribboncutting,EdgarcontinuedtocontributetotheevolutionofFirstNationsgamingthroughhisworkaspublicrelationsmanagerwiththeGreatBlueHeronCharityCasino,hiscollaborativeeffortswithneighbouringFirstNationcasinoowners,andhisongoingworkasChairoftheBaagwatingCommunityAssociation–apositionhe'sheldfornearlytwodecades.Thankstohiswisdom,passion,andbusinesssavvy,theGreatBlueHeronCharityCasinoremainsakeysourceofcharitablefundingandeconomicgrowthfortheMississaugasofScugogIslandFirstNation;whileEdgarhimselfremainsashiningexampleofFirstNationsleadership.

36 | Summer 2012

f i r s t n a t i o n s

First Nations gaming in Canada remains a significant contributor to the growth and development of First Nation communities by providing much needed revenue and employment opportunities to First Nations people across the nation.

The First Nation Canadian Gaming Awards were founded to shine a well-deserved spotlight on some of the many First Nations individuals who have contributed positively to the gaming industry; and to publicly acknowledge the hard work of the best and brightest members of the First Nations gaming community.

Congratulations to the following recipients, and a special thanks to the 2012 award sponsors:


Community Service

Angeline JoeChampagne and Aishihik First NationAccountant, Grey Eagle CasinoEmbodyingtheveryspiritofgivingandinspiration,AngelineJoehasplayedaninstrumental role in connecting GreyEagleCasinotothecommunityitservesandemploys.Hiredasanaccountantin2007,AngelinequicklygettinginvolvedwithGreyEagleCasinobyorganizingthecasino'sfirstcelebrationofNationalAboriginalDayin2008.Intheyearssince,shehaslenthertimeanddedicationtoanumberofGreyEagleCasinocharityevents,andthisyearsheplayedakeyroleintheHockeyMarathonforKids,a fundra is ing even t which he lpedraiseover$500,000fortheAlberta'sChildrenHospital. In addit ion to hermanyvolunteerpursuits,AngelinehasbecomeanactivementortoAboriginalYouththroughherpresentationsattheSouthernAlbertaInstituteofTechnology,and cont inues to promote cul tural,health,andeducationinitiativesinsidethecasino.InApril2012,Angelinewaspickedtogracethecoverof“NewTribe”magazine,thankstohersuccessasanAboriginalrolemodel.

f i r s t n a t i o n s


Employee of the Year

Derek Suzack Batchewana First Nation Manager of Health and Safety, Casino RamaSince 2006, Derek Suzack has beenkeepingthestaffandclienteleofCasinoRama safe. As Manager o f Heal thand Safety, his professionalism andknowledge of the Ontario Health andSafetyActhastransformedCasinoRamasafestworkplaces,andhis leadershipandattitudehavemadehimarespectedcasinoambassador.InadditiontodevelopingsafetyinitiativesthroughoutCasinoRama'sdepartments,DerekpromoteshealthasChairoftheJointHealthandSafetyCommittee,asprojectleaderontheTourism&HospitalityAdvisoryCommittee,andasMasterTraineroftheYoungWorkerAwarenessProgram(YWAP).“Derekexudesteamspirit,”DebraPratt,ChiefPeopleOfficeratCasinoRama.“HeisahighlyrecognizedHealthandSafetyprofessionalandittrulyisanhonourhavinghimasapartofourC.R.E.W.”

Underhiswatchfuleye,CasinoRamarecordeda24%reduction inaccidents,earning the facility a significant NewExperimentalExperienceRating (NEER)refundfromWSIBthispastyearand–moreimportantly–maintainingCasinoRama'sstandingasoneofthesafestworkplacesintheOntariogamingindustry.

Leadership Award

Patrick ArmstrongOjibwe - Dokis First NationExecutive Sous Chef, Casino RamaAcrucialmemberofCasinoRama'sstaffsince the facility firstopened in1996,PatrickArmstrong's passion and skillfortheculinaryartshasbeenaboonforbothpatronsandcoworkersalike.Since2006,hehasservedasCasinoRama'sExecutiveSous-Chefofitsculinary,foodandbeveragedepartment.During thistime,Patrickhasdemonstratedhisinnateleadershipskillsbyoverseeingmultiplerestaurant renovations,designinganddeployingnumerousdepartmentinitiatives,organizingcasino-widecharityevents,and leadingco-workersthroughdaytodayoperations.PatrickisalsothedrivingforcebehindpartnershipswithschoolslikeLiaisonCollegeandGeorgeCollege,whichhavefosteredanongoingsupplyoftalenttoCasinoRama'skitchens.HistalentsandleadershipcontinuetoaddauniqueflavourtoCasinoRama'swinningrecipe.

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