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Infinity Gaming Magazine September Edition for the online and land based gambling industry

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Page 1: September Infinity Gaming Magazine

p u b l i c a t i o n

Page 2: September Infinity Gaming Magazine

702.584.7700 | BallyTech.com |

Visit us at G2E booth #1127 and iCE stand #s3-310.

© 2012 Bally Technologies. NASCAR® is a registered trademark of the National Association for Stock Car Auto Racing, Inc. ©2012 Motorsports Licensing Company, LLC. All trademarks shown are used with the permission of their respective owners. HISTORY, the H logo, and Pawn Stars are trademarks of A&E Television Networks, LLC. Gold & Silver Pawn is a trademark of Gold & Silver Coin Shop, Inc. © 2012 A&E Television

Networks, LLC. All rights reserved. © 2012 The Beach Boys is a trademark of Brother Records, Inc, and is under license by Bally Gaming, Inc.

Bringing the sights, sounds, and thrill of NASCAR to casino floors, the NASCAR video slot and Virtual Racing App has players getting in the game to get in the race.

A versatile suite of specialized on-device applications enabling you to communicate with

your players and deliver dynamic floor-wide bonusing at the point of play.

Augment your land-based casino gaming with mobile, social, and online play-for-free and wager-based games. Open architecture enables your choice of best-of-breed content and delivers a single view of your players when

combined with traditional casino systems.

Sumo Kitty™ wrestles up thrills with 1,024 ways to win and the new Super Hot Zone™ play mechanic.

Surf’s up with America’s band in the

rockin’ new wheel game featuring five

progressive jackpots, five smash hit Beach

Boys songs, the interactive U-Spin™

wheel, and a custom surround-

sound chair.

Rick, Corey, the Old Man, and Chumlee take players inside the colorful world of the Gold & Silver Pawn Shop in this thrilling wheel bonus game.

Page 3: September Infinity Gaming Magazine

702.584.7700 | BallyTech.com |

Visit us at G2E booth #1127 and iCE stand #s3-310.

© 2012 Bally Technologies. NASCAR® is a registered trademark of the National Association for Stock Car Auto Racing, Inc. ©2012 Motorsports Licensing Company, LLC. All trademarks shown are used with the permission of their respective owners. HISTORY, the H logo, and Pawn Stars are trademarks of A&E Television Networks, LLC. Gold & Silver Pawn is a trademark of Gold & Silver Coin Shop, Inc. © 2012 A&E Television

Networks, LLC. All rights reserved. © 2012 The Beach Boys is a trademark of Brother Records, Inc, and is under license by Bally Gaming, Inc.

Bringing the sights, sounds, and thrill of NASCAR to casino floors, the NASCAR video slot and Virtual Racing App has players getting in the game to get in the race.

A versatile suite of specialized on-device applications enabling you to communicate with

your players and deliver dynamic floor-wide bonusing at the point of play.

Augment your land-based casino gaming with mobile, social, and online play-for-free and wager-based games. Open architecture enables your choice of best-of-breed content and delivers a single view of your players when

combined with traditional casino systems.

Sumo Kitty™ wrestles up thrills with 1,024 ways to win and the new Super Hot Zone™ play mechanic.

Surf’s up with America’s band in the

rockin’ new wheel game featuring five

progressive jackpots, five smash hit Beach

Boys songs, the interactive U-Spin™

wheel, and a custom surround-

sound chair.

Rick, Corey, the Old Man, and Chumlee take players inside the colorful world of the Gold & Silver Pawn Shop in this thrilling wheel bonus game.

Page 4: September Infinity Gaming Magazine

Hard TALK - World exclusive Infinity Gaming Magazine Interview with Franci LUI Deputy Chairman of the Galaxy Entertainment Group In one of the most open interviews ever with a Macau gaming op-erator, Colin Thompson Co-Founder of the International Gaming Awards (IGA) sits down with one of the highest profile operators and Deputy Chairman of Galaxy Entertainment Group, Francis Lui for the Infinity Gaming Magazine World Exclusive Interview.

Q: Mr Lui thank you again for speaking to the Infinity Gaming Maga-zine, we know you are a very busy man. Can we start the interview by asking how business is doing for Galaxy Entertainment?

FL: Hi Colin and thank you for your kind invitation to be interviewed by Infinity Gaming. Recently there has been a lot said about the business trends in Macau. Most of which was written by Share Broking Analysts whose objective is to maintain a high profile with Fund Managers.

But the facts are that business in Macau is solid. In the immediate future you may not see explosive growth in the VIP segment as we have seen in the past, but it is still growing. In fact I suspect that the VIP segment is currently experiencing a “pause” and that over the medium and longer term we will continue to see solid growth. For example for the week ending August 19 the market average daily win rate was close to USD $130 million.

Within the Mass Market segment the market has an year on year growth rate of 30%.

At Galaxy Macau we have just released our Q2 and Half Year Finan-cial Results, where we announced all-time record Revenue and EBIT-DA for GEG, Galaxy Macau and StarWorld. We believe that with the numerous major infrastructures under construction in and around Macau that over the next few years accessibility to Macau will be greatly enhanced and Macau will experience continuing growth in the tourism and leisure sector.

In April 2012 we announced the fast-tracking of the development of Galaxy Macau Phase 2, and we are on schedule to complete this development in Mid-2015.

Overall we are very happy with the progress of Galaxy and of Macau.

Page 5: September Infinity Gaming Magazine

Q: Galaxy Macau is the most recent of developments, it launched with great publicity, has the business suffered at all due to the slow-down in growth in China?

FL: Often when there is Economic and Political uncertainty human nature is to “pause”, I think that with the Economic challenges facing Europe and the uncertain outcome of the US election many people pause and consider their spending and investment patterns. Macau is not immune from this mind set. However China still has a target GDP growth rate of 7.5% for 2012 and we believe in the medium to longer term that Macau will still experience solid growth. We do ac-knowledge though that in the shorter time frame we may continue to see moderating growth.

Q: At the 5th International Gaming Awards, Galaxy Entertainment scooped the main awards with, Best Integrated Resort of the Year and Operator of the Year. What makes Galaxy Entertainment stand out from your competitors?

FL: Firstly thank you to all the people who voted for Galaxy last year. We sincerely appreciate your support and confidence in Galaxy. There are a number of factors that set Galaxy apart, a few of these are: We are an Asian company with a predominately Asian target client base. We specifically chose not to replicate a resort from Las Vegas instead we wanted to incorporate the very best of Asia into the development of Galaxy Macau. Further Asians are very

demanding in “service standards” and so to exceed their service ex-pectations was our goal. We developed a service philosophy called “World-Class Asian Heart, which is a passion to exceed a customer’s expectation. We believe that if you have an outstanding product combined with great service then you have a winning formula of delivering a superior customer experience.

Q: Business in Macau is still strong, however much has been written that actual tourism is not what was hoped for with gambling mak-ing the revenue streams. How has Galaxy Entertainment tackled this with their developments?

FL: Macau and Galaxy have been growing our non-gaming compo-nent very successfully. However as gaming has grown at a faster rate it can give the impression that non-gaming is not succeeding. However last year retails sales experienced growth of 42% and that is on the back of 27% growth the year before.

Often on the weekends and holiday period Macau hotels experi-ence 100% occupancy. Our own “roof top sky wave pool typically hosts 6,000 guest on a weekend. Our 3-D Cineplex enjoys one of the highest occupancy within UA Cinema’s portfolio. I believe with the completion of Galaxy Macau Phase 2 that we will be about to attract and host even more of the tourism and leisure market and further expand Macau’s appeal to a broader customer base.

Page 6: September Infinity Gaming Magazine

Hard TALK - World exclusive (part 2) Infinity Gaming Magazine Interview Franci LUI Deputy Chairman of the Galaxy Entertainment Group

Q: Over recent months there have been reports of violence and murders in the once Portuguese enclave, starting rumours that the troubled times of the 90’s is back in Macau with gang involvement. How does one of the biggest operators there see this, is it over reac-tion from reporters or is there something happening that authori-ties need to tackle before it increases?

FL: Macau is a very safe and secure city, it has one of the lowest crime rates of a major city, considering that we received over 32 mil-lion visitors per year. There have recently been a very small number of incidents which has captured the media’s attention. But we be-lieve it is just individual isolated cases. We have absolute confidence in the Macau Government’s ability to ensure the ongoing safety and security of Macau.

Q: Some of your competitors in Macau have now looked to open resorts in Manila and Singapore, what is Galaxy Entertainments thoughts of expanding outside of Macau in Asia?

FL: We have been approached to explore opportunities in a range of Asian countries. And we will definitely look at these case by case. Given the right size and location and as long as it could bring greater value to shareholders we will of course be happy to consider. We are still exploring a range of jurisdiction. However with that said we firmly believe that Macau still has the greatest growth opportunity and this combined with our 1 million square metres of approved de-velopable GFA gives Galaxy significant further growth opportunity. We always believe that the development of Hengqin Island which is adjacent to Macau would be ideal for leisure and entertainment development to complement our Macau offering.

Q: Also some reports over 2012 were that the company was consid-ering entering the US gambling market, are those reports correct in any way?

FL: We are always open minded to the right business opportunities, in fact within the Lui Family we own a number of businesses within the United States. At this point in time we are not exploring any gaming investments with the United States. We firmly believe that Macau has the greatest growth opportunity.

Q: Back to Macau and how do you and the company see the future for gambling and tourism in the coming years?

FL: I think that Macau and Galaxy in particular has a great opportu-nity going forward. I believe that as the middle-class in China devel-ops that there will be a significant growth in tourism and leisure, this combined with the infrastructure and transports links being com-pleted in and around Macau will allow easier access to Macau and facilitate growth in tourism. Further, with the development of the nearby Hengqin Island which is also supported by the Central Gov-ernment to build up tourism through the development of leisure and entertainment amenities, that would be a great complement to Macau and encourage increase visitations.

Page 7: September Infinity Gaming Magazine

Hard TALK - World exclusive (part 2) Infinity Gaming Magazine Interview Franci LUI Deputy Chairman of the Galaxy Entertainment Group

Q: Business in Macau cannot always continue to grow indefinitely, how long do you think it will be until growth flattens out?

FL: This is a very interesting question and I think it is difficult to pro-vide specific numbers. However I believe that as the wealth of China increases and the size to the middle-class expands the demand for leisure, tourism and travel will continue to enjoy significant growth. In just the first six months of this year, nearly 39 million Mainland Chinese made trips overseas and the cities they visited included: London, Paris, New York, Singapore and Bangkok for example.

In contrast in 2011 there were only 11 million visits to Macau by Mainland Chinese. I believe that as infrastructure improves allow-ing greater and more convenient access to Macau from China that we will enjoy significant further growth in the tourism market.

I truly believe that as long as we develop the right product, which is innovative and unique to satisfy customers’ fast changing taste, we will continue to attract more visitations and grow the market. Tour-ists do not want to see a replica product everywhere.

That is why we always have the vision and belief to develop our own Galaxy brand and own unique offerings in Macau like the skytop wave pool and the only modern 3D Cineplex etc. And it has proved

to be successful just look at our latest Q2 results. China has a popu-lation of 1.3 billion people and with the increase in wealth we see significant long term growth opportunities.

Q: Finally and thank you again for your time in talking to us, what can we expect next from Galaxy Entertainment, a new development in Macau maybe?

FL: We have almost completed the piling of Galaxy Macau Phase 2 and early next year the project will be out of the ground and is on schedule to complete in Mid – 2015.

Additionally we have approval to develop a further 1 million square metres of Integrated Resort and we are actively working on some very exciting concept plans for Galaxy Macau Phase 3. Phase 3 will be a truly captivating and revolutionary development.

Further we are actively exploring opportunities on Hengquin Island which is located adjacent to Macau. Hengquin Island will not have any gaming component but will be more low-rise, low density resort and facilities that will complement our Macau and Cotai properties.

Page 9: September Infinity Gaming Magazine

In my last column, I told you how outstanding customer service leads to a great gaming experience and explained that a combination of these two fac-tors can create more play at a casino.

That was followed by a description of three of seven keys to improving casino guest service, including the importance of customer service training. Now I will explore the remaining keys. Let’s get started!

Key # 4: The Fun Factor

In Key No. 3, I mentioned that you are in the entertainment business. It’s important to realize that your guest service training needs to be entertaining, too. Most people think training is a form of torture. It doesn’t have to be that way. If people are not having fun, it’s very difficult to get them to listen and pay attention.Think for a moment about children and their ability to watch cartoons for hours. They smile and laugh. They’re riveted to the TV. If you asked them to tell you about the cartoons, they would remember them in vivid detail. The reason these children remember is because of the fun factor.Many years ago, I had the wonderful opportunity to work with a gentleman who had invested a good part of his life helping the people who produce the Sesame Street children’s show. He showed them how to develop lessons and taught them about the child’s learning process. He focused on accelerated learning, a technique that makes training so interesting and fun that people can’t help but learn.Learning IS fun and if you start customer service training with that premise, you will increase both retention and application.

Key #5: It’s An Investment

I know training can cost a significant amount of money. It can be the equiva-lent of several salaries. But you need to view training as an investment. With training, you’re investing in your people and in the opportunity to generate more revenue for your property. If you invest in your people, it helps both them and you.Studies show that most employees want to be recognized and appreciated and that they rank these two items much higher than pay. By investing in your employees with training, you’re recognizing them and showing appreciation. You’re telling them and showing them that they are important to your success and that you want to enhance their value. If done correctly, you’re also giving them tools they can use to make more money the next time they start their shift.There’s another investment to consider, the fact that improved service and a better gaming experience can increase your property’s play and, ultimately, its profits because those factors encourage guests to come back. It can be eight to 10 times more expensive to get a guest to visit once than it is to get them to return. Many properties use frequent player cards because they know they’re building a habit for some of their customers. The sooner that happens, the sooner they can save a little on marketing and increase profits.I hate to say this, but all the wonderful marketing in the world will not and cannot make up for poor guest service. People have too many entertainment choices. They don’t need to come to your property. Even if you’re the only game in town, people now have the choice of online gaming. They don’t even have to leave the comforts of home.If you could improve your guest service and get 10 percent of your visitors to play one hour longer, how much would that contribute to your bottom line? If you could invest $100 and generate $200, would you do it?Improving your people and improving your guest experience is a simple invest-ment. You add hotel rooms or restaurants so guests will stay and play longer. That is the same as a wise investment in great training.

Key #6: You Need to Start With An Accurate Perspective

I’m disappointed by the number of gaming venues that really don’t know what their guests want. Management will tell you they understand their guests, but all their information is second-hand or biased by their experiences. For ex-ample, some people in management think employees always smile. Of course they smile when a boss walks by. Or they see only the negative because that’s what they hear from guests. They get feedback from guests who are upset and hear nothing from those who have a great time.Creating a guest service culture at your casino involves change and in order to start that very challenging process of change, you need to have an accurate, unbiased view of where you are today. You need to know what your guests really see and think. An insider’s point of view is not nearly enough. Do a 360-degree evaluation so you see things from the guest’s perspective, from management’s viewpoint and from the employees’ standpoint. When you do this, you have a clear view of what is really happening.If you don’t start with this perspective, you are doing training or trying to im-prove service based on fiction. If I were going to invest a significant portion of my budget on improving service, I would want to base my investment on honest, unbiased observations.

Key # 7: People Are Not Born With the Guest Service Gene

Wouldn’t it be great if you could do a simple test to find out if the person you’re about to hire has a great guest service gene? It could save all of us some big hassles. Unfortunately, there is no such gene. Good customer service is not born, it’s built over time with great training. The few people who do it naturally simply see how great service works, and they like the way it makes them feel when they help a guest. But most people are not so blessed. Most people don’t see how service affects them. They don’t see that they can keep their job and make more money if they provide better service. I’m surprised at the number of gaming staff members who don’t understand that they are commission-based employees. They live for tips and the higher the level of service they provide, the better the chances they have of getting great tips.So if they’re not born with the gene, you need to provide training that’s fun and interactive. You need to offer training that shows them that they and your company will be rewarded if they adopt these new, better behaviors. I’m talking about learned skills that are an investment in your employees’ future.Now you have the seven keys to improving customer service. Guest service is an unending battle that your property faces every day. There will always be a newer, bigger gaming venue, so how will you compete? Will you try to fight the never-ending battle of outspending your competition or will you outser-vice them and win customers that way?

Martin R. Baird is chief executive officer of Robin-son & Associates, Inc., a Boise, Idaho-based con-sulting firm to the global gaming industry that is dedicated to helping casinos improve their guest service so they can compete and generate future growth and profitability. Robinson & Associates is the world leader in casino guest experience mea-surement, management and improvement. For more information, visit the company’s Web sites at www.casinocustomerservice.com and www.advo-catedevelopmentsystem.com or contact the com-pany at 208-991-2037. Robinson & Associates is a member of the Casino Management Association and an associate member of the National Indian Gaming Association.

Seven Keys to Improving Casino Customer Service, Part 2By Martin R. Baird

Page 11: September Infinity Gaming Magazine

iGaming News

US DOJ getS tOUgh On fOrmer ftP DirectOrSThe US Department of Justice has launched another civil claim against former Full Tilt Poker (FTP) Directors & owners, seeking forfeiture of some $137 million in assets which it claims were acquired through the use of funds from an illegal business (Full Tilt Poker)

Former CEO Ray Bitar (now back in the US awaiting trial), along with How-ard Lederer, Chris Ferguson & Rafe Furst are named in the latest litigation, each are alleged to be the beneficiaries of tens of millions of dollars paid out in distributions by FTP.

The feds are using various statutes including the Illegal Gambling Act, the Wire Act & even the Travel Act to argue that the distributions constituted money flowing from an illegal enterprise & should therefore be seized.

Offences alleged include illegal online gambling, money laundering, bank fraud, travel, wire fraud & racketeering.

The addition of the Travel Act is especially interesting & is justified on grounds that the Act prohibits the use of interstate & foreign travel & trans-portation in aid of racketeering enterprises.

The Act also forbids the distribution of the proceeds of unlawful activity, as well as any act to promote, manage, establish, carry on or facilitate any aspect of the unlawful activity.

Court documents show that the authorities have carried out detailed re-search in attempting to establish where the money went over the four-and-a-half years prior to Black Friday, when the Department of Justice shut

down Full Tilt.

Lederer is alleged to have used the Full Tilt money to fund his own personal accounts, along with buying some very expesive top-of-the-range luxury motors. Lederer also had the presence of mind to invest in his old age with some pension funds, buy upmarket properties & pay off various mortgages.

Bitar appears to have also been interested in property, with court docu-ments listing two luxury homes & other investments.

The DoJ action also requests that their legal costs be carried by the defen-dants.

The DOJ have even divided up the total that each defendant should be forfeited:

Ray Bitar – $40.8 million

Rafe Furst – $11.7 million

Chris Ferguson – $42 million

Betfair announced today it has lodged a formal complaint with the Euro-pean Commission (EC) with regards to the newly passed Cypriot gambling legislation which the company says may lead to betting exchanges being unable to operate legally in Cyprus .

The new law adopted by the Cypriot Parliament in July this year additionally prohibits cash betting transactions by betting operators.

Betfair’s statement on the complaint to the EC says that any attempted ban on betting exchanges is a discriminatory & disproportionate breach of EU law as it may apply only to exchange providers, with all other sports betting products remaining unaffected.

Cypriot authorities are justifying the restriction as minimising the risk of

money laundering & match fixing.

Betfair recently signed a MoU for the exchange of information with the Cyprus Football Association & has undertaken sponsorships of numerous Cypriot football teams.

Martin Cruddace , chief legal & regulatory officer at Betfair said:

“Having played a constructive role in the preparatory phase of a draft Cypri-ot law, we were disappointed with the inclusion of elements within it which could unfairly discriminate Betfair & in any event are clearly incompatible with EU law. We have therefore asked the Commission to review the mat-ter & engage with the Cypriot authorities, with the aim of addressing the concerns raised in our complaint.”

“Betfair is a transparent & responsible operator, with a track record of work-ing cooperatively alongside governments in any jurisdiction in which it op-erates. Current Cypriot law goes against European free market principles & we look forward to working with the Commission & the Cypriot government so we can continue to provide our Cypriot customers with Betfair�EUR™s best-in-class Exchange product & odds value.”

The company intends continuing its operations in Cyprus while the com-plaint is heard by the European Commission.

Betfair lodges complaint to EC over Cyprus

Page 12: September Infinity Gaming Magazine

Book your tickets at gaming-awards.com

INTERNATIONAL GAMING AWARDS CEREMONY4 FEBURAURY 2013

THE BREWERY LONDON

Page 13: September Infinity Gaming Magazine

iGaming USA News

Nevada’s senators remained in turmoil and now in open attacks on each other Tuesday over online gaming, as time runs out for Congress to consider a bill sought by the casino industry and millions of card players to legalize online poker. The chance of a federal law passing allowing online poker now seems highly unlikely.

Republican Sen. Dean Heller insisted that industry players and Democratic Sen. Harry Reid had agreed on a strategy that would have the U.S. House act first on a gaming bill, until Reid “decided to change gears midstream.”

Reid said Heller’s statement was fiction, and accused him of “failure of leader-ship.”

Reid said he has never strayed from pushing the legislation through the Sen-ate first, where as majority leader he has control over the voting process and schedule. Behind the scenes, Reid aides continued to charge Heller was mask-ing an inability to attract Republicans after being asked to produce at least 15 GOP votes for the bill.

Finger-pointing between the two Nevada leaders surfaced as crunch time nears on a bill that seeks to legalize and regulate online poker on the federal level while toughening restrictions against other forms of Internet gambling. A legalized market for Internet poker in which most states would be expected to participate would mean millions of dollars in business for casinos that are positioning themselves for the next big thing.

But the bill faces opposition from states that were given the green light by the Justice Department in a reinterpretation of the 1961 Wire Act last December to pursue their own legalized gambling. More than 15 are moving to do so. In addition to states rights advocates, some Indian tribes and lottery interests re-main skeptical of a gaming initiative they perceive as tilted in favor of Nevada.

In addition, strained relations between Democrats and Republicans in advance of the November presidential election has closed the floor to all but the most noncontroversial measures.

Nevada senators are feeling the pressure to deliver to the casino industry that represents their biggest financial backers, some lobbyists speculated. There are only days remaining before Congress recesses for the elections. Lawmak-ers will reconvene in November for a lame duck session that will represent a last-ditch opportunity to pass a bill this year.

Reid on Tuesday lamented that six months of work on a Senate gaming bill was lost after Heller sent him a letter Monday that said, “as discussed, it would be

beneficial for the House of Representatives to first ad-dress this issue.”

“It’s really unfair to Nevada and I’m just terribly disap-pointed,” Reid said. “It’s too bad, because we have all been ready to move on this for a long time.

“But it’s really failure of leadership of my friend,” Reid said of Heller.

Heller said the poker bill has not been finalized or in-troduced, and until then it is unrealistic to expect sena-tors to commit to a vote. He bristled that Reid’s office called on Friday and gave him a Monday deadline to round up 15 votes.

“This was never going to happen before the lame duck session, so why all of a sudden all the noise today doesn’t make sense to me,” he said. He maintained it made little sense to pass a Senate poker bill that could

be ignored by the House.

Under Heller’s scenario, the Republican House would pass a bill to undo the Wire Act ruling and toughen laws against gambling on the Internet. Under that reasoning, when that bill reaches the Senate, an exemption for poker could be added.

Heller told reporters that Rep. Lamar Smith, R-Texas, the chairman of the House Judiciary Committee, was preparing a Wire Act bill. An aide called re-porters later to walk back Heller’s remark, saying there have been discussions with Smith but no commitment for such a bill.

Some lobbyists and gaming executives were scratching their heads about the “House first” strategy. House Republican leaders have shown little appetite for gaming, and casino magnate Sheldon Adelson, an online gaming opponent, reportedly has the ear of House Majority Leader Eric Cantor, R-Va.

“The House doesn’t want anything to do with this,” said a lobbyist involved in the issue.

A Las Vegas casino executive close to the issue said the House strategy had come up only peripherally in talks on the bill, and so it was a surprise to see it suddenly put front and center.

As recently as two weeks ago, strategists for both senators appeared focused on identifying potential Senate votes and procedural challenges of getting a bill through the Senate, said the executive who asked not to be named so as not to come between Reid and Heller.

“I was surprised that things fell apart, and surprised that there was an expec-tation that somehow this was going to start in the House,” the executive said.

But a Republican lobbyist said the House strategy was the only alternative to a Senate that has been badly polarized, particularly on a bill that would be submitted at the last minute, had not been vetted by a committee and was being forced to a vote.

“I have no idea what number of votes you would get on the Democratic side, but on the Republican side it wouldn’t matter if this was a bill to cure cancer… The instinctual reaction was going to be, ‘No, thank you,’” the lobbyist said.

Where online poker and its millions of fans go now is back to hoping for state by state legislation, as their leaders in Washington cannot seem to ever agree on anything.

US Senators fight over online poker as time grows short

Page 14: September Infinity Gaming Magazine

Speaking with Mr GreenMikael Pawlo

Co-founder and former CEO of Mr Green

Q: Firstly thank you for taking the time to speak to Infinity Gaming Maga-zine, can we start by looking at the beginning of Mr Green. The company launched 2008 in Sweden, is that correct?

MP: Yes that is correct. It all dates back to a lunch with my childhood friends Henrik Bergquist and Fredrik Sidfalk in 2007. They were part of the found-ing team of the Swedish operator Betsson (founded in 2001) and had several years of experience from the egaming industry. Fredrik and myself had done business together as teenagers, working on a music video production start-up. Henrik and Fredrik had left Betsson since about a year and had spent some time thinking about what to do next. During this lunch we discussed the lack of morality element in the egaming industry and when leaving the restaurant the first green seed was planted.

Q: What was the idea behind the business, what is the name “Mr Green” all about?

MP: Everyone told us that it was too late for a launch of yet another online operator. In 2007 the egaming arena was already crowded with well-estab-lished companies and people in the industry were laughing at us even con-sidering we would stand a chance in the tough competition. But we felt there was more to do and a void to fill. No operator was really focusing on the re-sponsible gaming. We came up with the idea of Green Gaming (responsible gaming) and incorporated it into the brand and into our offer. For example, we have set the coin denomination lower than the average by default and we put the option of setting weekly deposit limits already in the registration pro-cess. It is an important part of what we offer and what the brand is all about.

Q: Is there actually a Mr Green and was the character you use on the website anything like him? MP: Many people have asked us what the name Mr Green comes from. Does it have anything to do with the environment or are we pushing an organic lifestyle? Well Mr Green can stand for many things in the casino world. Green is the colour of the cloth in many table games. Green is American slang for money. Green is the bank in the French Roulette. However, none of this is the real reason for choosing Mr Green as our name. When we were looking for a name to our casino playground we wanted to build an entire experience around the brand. All the competitors had boring, non-distinguished names. The working name was actually Lucky Luke, like the French-Belgian comic series. However, we did not feel like building a Western style saloon. Also there would be too many licensing issues getting the intellectual property rights to the name. Plus costs of course. So we tried

up to 40 different names, using traditional naming techniques, like pulling names out of dictionaries and encyclopaedias. Then Fredrik Sidfalk came up with the perfect name: Mr Green. He had found the name googling. Mr Moe Green started the first casino in Las Vegas and basically founded the city. We thought the name had great stickiness. It was also a great story.

We bought he domain name www.mrgreen.com for a substantial amount of money. We developed a concept together with one of the leading Euro-pean advertising agencies finding the concept of a casino playground with style and mood elements from The Persuaders, The Avengers (the original,

mind you, not the remake with Sir Sean Connery), A Clockwork Orange and James Bond, Casino Royale 2006 style paired with James Bond Dr No 1962 style. Mr Green was a gentleman, but not a snob.

He came from simple upbringing, like Mr James Bond in Casino Royale or Mr Danny Wilde in the Persuaders, but would today find his way with both women and nobility. He would preferably drink dry martinis without ver-mouth, but also a beer on occasions. He would love a good cigar, but avoid the Cubans for political reasons. He would love his customers and treat them right, with gentleman rules and tips on gaming and strategies, very Rick of Casablanca-style.

However, when we were about to launch Mr Green I did some googling myself. I could not find any reference to a Mr Green founding Las Vegas. I talked to Mr Sidfalk, but he was certain of his find.

Finally I found something. Mr Moe Greene ran the first casino for the Cor-leone family in the famous book by Mr Mario Puzo. It was later made into a legendary movie classic by Mr Francis Ford Coppola. Mr Greene’s character was based on the mobster Bugsy Siegel who did indeed build the first luxury casino in Las Vegas, Nevada. Siegel built the Flamingo together with his partner Meyer Lansky (Hyman Roth’s character in the Godfather part II). Both Lansky and Siegel had a desire to go legit, not much unlike the fictional characters. The Godfather (Mr Michael Corleone) was not happy with how Mr Greene was slapping around his brother Fredo. There was also suspicions that Mr Greene was skimming the Corleone casino. As a part of his sweeping revenge spree during his nephew’s baptism, Mr Michael Corleone orders the murder of Mr Greene. He is shot in the eye during a massage.

Mr Green, without the e in the end, is a true gentleman and has nothing to do with Mr Greene.

We also want to distance our casino from the Las Vegas type. We are not about neon lights, Elvis and bling-bling. We are about style and ele-gance and a European air; England meeting the Mediterranean. Ask-ing Fredrik Sidfalk about the Moe Greene and Mr Sidfalk’s googling skills, he said: “Yeah, well, perhaps I was a bit too fast on that one.” We had a great laugh about it. But the name stuck. Green is not a colour.

Q: Are the founders still very much part still today?

MP: Fredrik Sidfalk is on the board of Mr Green and the three of us are still part of the strategic planning for the company.

Page 15: September Infinity Gaming Magazine

Q: How big is the company at present?

MP: Mr Green is based in Malta with the head office in the middle of the shopping district of Sliema. Including consultants working full time on a

Mr Green assignment we count around 100 people. We operate in Sweden, Norway, Finland, Austria and UK and we have grown fast since our start in 2008. The revenue for 2011 was 22,4 MEUR, an increase with 409% in two years. Sweden, where we first launched in 2008, is still our biggest market. That is also where we for four consecutive years, has been rated the best Online Casino on the list for Sweden’s 100 best websites. During 2011 Mr Green was also rated number 32 on the EGR Power50 list, as one of the most influential and important gaming companies in the world.

Q: Currently Mr Green operates in Sweden, Norway, Finland, Austria and England are there any plans to expand to other jurisdictions? MP: We are always interested in somewhat mature markets, markets where people already understand and enjoy online casinos. We do not want to ed-ucate a market of playing online casino; we want to enter markets where people already play on mayor outfits where our better product may stand out.

Q: Does Mr Green use its own proprietary software?

MP: Apart from the backoffice system we have done everything in-house, including most of the integrations towards the game suppliers. When Mr Green started we were the first online casino operator ever offering games from several game providers.

This had never been done before. Today it’s more or less business standard. We have more than 200 games on offer through a seamless integration from the top tier suppliers and we constantly add new games to our portfolio.

Q: How important is socially responsible gambling to the company? You

seem to make quite a big point on your website about setting player limits?

MP: Responsible gaming is part of our brand and of course, an important part of our offer. We want our customers to fully enjoy their visits to our casino and we want for them to want to come back. We offer entertain-

ment. It doesn’t get entertaining if you don’t feel comfortable playing in our casino. There are still more things we can do to prevent gambling ad-diction, it’s not perfect but it’s something and we really want our customers to activate the Green Gaming, this is why it’s clearly displayed for our customers on the web site, not hidden away like it is on some of our competitors’ sites.

Q: What is the future for Mr Green, is it expand-ing into new countries, more games, what plans do the company have that you can tell us about?

MP: We are looking into entering new mar-kets and we will continue to invest in product development without compromising on our high level of quality entertainment. Last year we did a major re-vamp of the site, a project that was complex and time consuming. We came up with but also rejected many different versions before we finally launched the new site. It wasn’t only just the look and feel of the site, we also devel-oped a system that collects and analyses data from the site, which now gives us the possibility to find out what our players like. This means that

we can personalize our offers and recommend games based on the players’ previous preferences. This system can also be used for bonus programs and awarding of our customers. One could think that we would allow ourselves some time to focus on other, non-site related projects after launching the new web site last year. However we will continue doing further improve-ments because as we use to say at Mr Green (and you might have heard us saying this before) we compare a web site to a shark. It moves and devel-ops or the shark dies. Unlike other fish, sharks cannot pump water through their gills by opening and closing their mouths, they have to keep moving to make the water flow. At least that is what we thought but recently some-one told us that is a myth. Myth or not, that is how we do it at Mr Green.

Interview continued

Mikael Pawlo co-founder and former CEO of Mr Green

(left to right: Fredrik Sidfalk, Mikael Pawlo and Henrik Berquist)

Page 16: September Infinity Gaming Magazine

Is skill at poker just one great big bluff?

Where is the line dividing luck and skill? How much does chance deter-mine success? It turns out that, from sport to the stock market, we are con-stantly deluded by an illusion of order, when in fact we are assailed by ran-domness. And a study released this month claims that, in one area where we ultimately expect skill to triumph – namely poker – we may be far more at the mercy of fortune than we believe.

Anyone who has ever played Texas hold’em thinks they know how much tal-ent is involved. But, according to Professor Gerhard Meyer and his team at the University of Bremen’s Institute of Psychology and Cognition Research, they are wrong. He says that we are, as in so many parts of our life, fooled by randomness into believing that we are masters of our destiny.

Poker, he insists, is largely a game of chance. Some games are clearly luck – roulette, for instance – while others, like chess, are matters of pure skill. But, as Meyer explains, “most games are heterogeneous, because they in-volve both chance and skill, and poker falls into this category”. The question is, how much skill is involved? Meyer’s study found that the workings of randomness far outweigh the importance of talent or hard work.

This result does not surprise Michael Mauboussin, who is an investment strategist and the author of The Success Equation, which examines the boundaries between luck and skill. He says that it is very difficult for hu-mans to tell luck and skill apart. We are simply not designed to notice ran-domness.

This disconnect is perhaps most visible, he says, in sport. “Imagine a con-tinuum, with all-luck-no-skill on the left and all-skill-no-luck on the right,” he says. “In all-luck-no-skill, games might as well be the toss of a coin; in all-skill-no-luck, Team 1 always beats Team 2, Team 2 always beats Team 3, and so on.” Using a computer algorithm, Mauboussin has compared these scenarios to real life. Most team sports, he says, are about halfway along the spectrum.

Over the course of a long season, the best teams tend to win, and the worst to lose. But that is the product of a large sample: in the short run, random-ness reigns. Several bad results in a row will be ascribed to poor form – but it could simply be the equivalent of a series of tails coming up in a coin-toss.Indeed, the evidence that such a thing as form exists is, at best, equivocal. “There are some sports where it may be a factor,” says Mauboussin. “Bowl-ing and archery are two of them. But for the most part it doesn’t exist. Yet as a player, or as a fan watching the game, you sense it; it’s a strange mirage.”In Prof Meyer’s study, 300 poker players took part, playing 60 hands each on tables of six.

They were divided into “expert” and “average” players, and their ability to make money from good, bad and average hands was assessed. It turned out that – as you might expect – “expert” players lost less money on bad hands; but surprisingly, they did no better than average players on mediocre hands and even made slightly less on good ones. The conclusion, says Meyer, is that “poker players overestimate the skill factor in their play”.

It is not just sport where this applies, but the stock market, too. Some years ago, Professor Daniel Kahneman, a Nobel Prize-winning psychologist and the author of Thinking, Fast and Slow, analysed the work of financial trad-ers. He found that while the traders themselves had a subjective experience of making sensible predictions of complex scenarios with great skill, they were in fact playing a game based almost entirely on luck.

“The test of skill is whether you get the same individuals consistently doing well,” he explains. “With stock-picking, different people do well every year; someone who did well one year had no advantage the next.”

This tendency to imagine order where there is only randomness has been observed for decades. Kahneman tells a story about London during the Sec-ond World War. Towards the end of the conflict, the city was bombarded with V2 missiles. Newspapers noticed that the strikes were clustered in vari-ous areas. It was suggested that the reason was that they were targeted at working-class districts, or that German spies were living in the unaffected regions.

“The question is, why are humans so keen to see patterns where there are none?”

A statistician called William Feller eventually explained the real reason: the pattern of clusters and empty spaces was exactly what you’d expect if the distribution was indeed purely random. But to the human brain, hungry for meaning, it looked like the product of deliberate targeting.

Page 17: September Infinity Gaming Magazine

The question is, why are humans so keen to see patterns where there are none? Part of the reason is a phenomenon called hindsight bias. “If I say that what’ll happen in the future will be a mixture of luck and skill, you’ll nod and agree,” says Mauboussin. “But once it’s happened, we forget that, and attribute it to skill.”

This is dictated in part by our need to explain our experiences in terms of a causal story. “There’s a part of our brain that’s called the interpreter,” he says. “It’s designed to make sense of what we’ve seen, to give it a narrative.

And we always see causes; so if Person A succeeds where Person B fails, we assume that Person A had some skill that Person B didn’t.

“Even when we know it’s random, we can’t help but see the workings of skill.”

This hyperactive pattern-detector is likely to be an evolutionary adaptation, says Kahneman: a false positive will generally be less harmful than a false negative, an imagined lion less of a problem than an unnoticed one. “There will be evolutionary advantages to being hypersensitive to clues in the envi-ronment, to patterns,” he says.

Teasing out the role of chance is controversial. For his part, Maubous-sin thinks that poker may involve a little more skill than Meyer believes: “There’s a simple test for whether something is a game of skill: can you lose on purpose? In roulette, no; in poker, yes.”

Professor Meyer agrees that the difference between good and bad players may be visible in the long run, but for most casual players of internet poker,

he says, the randomness plays the decisive role.

Either way, poker can certainly reveal to us the biases in our thinking, says Todd Simkin, a financial trader who now uses it to teach strategy to other traders. Humans are obsessed with outcomes, he says. “You have to distin-guish the outcome from the decision process.” So we tend to credit a player with doing well if a long shot comes off – or a trader if his high-risk stock pick comes good.

But, he says, that’s not how we should work. “Say you bet, and the next card [which you need] is the six of clubs,” he says. “That’s irrelevant. What mat-ters is that there were only three sixes in the pile, and 40 other cards. You got lucky.” He uses the game to teach the risks of hindsight bias to traders.

Almost all areas of life are plagued by randomness, but our story-loving brains find it almost impossible to see. “It takes a lot of discipline to think abstractly,” says Mauboussin. “It’s amazing, in sport for instance, how few people – even coaches, or reporters – notice it… we’re fooled by random-ness all the time. The important thing is what we do about it.”

“the difference between good and bad players may be visible in the long run, but for most casual players of in-ternet poker, he says, the randomness plays the decisive role.”

A new study confirms that humanity is designed to underestimate the luck of the draw

Page 19: September Infinity Gaming Magazine

Gaming News

Wynn up to $40 million against francis

Steve Wynn doubled his win against Joe Francis with a $20 million award in punitive damages for defamation in September, making his total judgment in a lawsuit accusing “Girls Gone Wild” creator Joe Francis of slandering him by falsely claiming that Wynn had threatened his life over a gambling debt to a total of $40 million.

A Los Angeles County Superior Court jury deliberated for about two hours before reaching its decision in the second phase of a defamation trial that capped a protracted, high-stakes legal feud between the two men.

On Monday, following a week-long trial that included testimony from legendary music producer Quincy Jones, the same jury awarded Wynn $20 million in damages for infliction of emotional distress and injury to his reputation.

The jurors also found that Francis had acted with malice, opening the door to additional damages intended as punishment. The $20 million punitive sum was decided after a subsequent round of testimony and arguments presented on Tuesday.

“There have been bigger defamation awards (but) I don’t know that there have been many,” Mitchell Langberg, one of Wynn’s lawyers, said of the $40 million total.

Although both men took the witness stand last week, neither was present in court for this week’s verdicts.

In reaction to Tuesday’s judgment, Francis posted a message on his website saying he was “incredibly disappointed the jury grossly misinterpreted the facts.”

“I still maintain my life was endangered and I plan on appealing this verdict,” he said.

Wynn’s victory comes on top of a $7.5 million judgment the 70-year-old Las Vegas mogul won against Francis, 39, in a separate defamation case earlier this year. Wynn’s company, Wynn Resorts, was awarded more than $2 million in a 2008 lawsuit brought to collect money he claimed that Francis owed his casino.

It has been a costly year for Francis in his battle against Wynn and time will tell if the ”Girls Gone Wild” creator has the stomache to keep fighting a one sided battle it seems.

Atlantic City’s Golden Nugget seems intent on compounding its losses.

First, it unwittingly used an unshuffled pack of cards at a mini-baccarat game, creating a pattern of hands that allowed a group of players to win $1.5 million while befuddled executives looked on, unable to figure out how the players could make 41 winning bets in a row.

Then, the casino filed an ill-advised lawsuit calling its game illegal and unfair, while acknowledging the players did nothing wrong. A judge tossed it out of court Aug. 31 and ordered the casino to pay up.

Golden Nugget owner Tilman Fertitta, overruling his lawyers’ vow to appeal, announced a few hours afterward that the casino would let the gamblers cash in about $1 million in chips they still held and drop its demand that they return about $500,000 the casino already paid out.

But the Nugget couldn’t leave well enough alone. Despite Fertitta’s statement, casino lawyers this week asked to delay the judge’s order pending a formal appeal. The case could drag on for a long time.

A casino statement released Wednesday accuses the players of unlaw-fully exceeding betting limits by passing chips under the table so others could raise their bets. The statement says players’ lawyers are demand-ing triple the gamblers’ “unlawful winnngs” plus attorney fees and damages. The “absurdity” of players not cashing in their chips forces the casino to continue the lawsuit, the statement says.

The Nugget also is suing Gemaco Inc., which supplied the eight-deck pack of supposedly preshuffled cards. A Gemaco spokeswoman declined comment.

Lawyer Benjamin Dash, who represents some of the gamblers, says Fer-titta’s offer, which he sarcastically terms “gracious,” involved doing only what the judge ordered and depended on the gamblers dropping claims against the casino. He says the gamblers’ countersuit, based on claims of false imprisonment and discrimination, will be amended to include slander for being publicly called cheaters and $10 bettors.

Dash clarifies that the cards from the unshuffled pack did not come out in numerical order, as reported Aug. 25 in Player’s Advantage, but in a pattern that repeated itself every 11th hand.

No matter how this turns out, the Nugget, which has long enjoyed a reputation as a classy operation, stands to lose much more than $1.5 million worth of good will.

Golden Nugget un-shuffled cards case continues

Page 20: September Infinity Gaming Magazine

Q: Dear Ross thank you for your time in speaking to the Infinity Gaming Magazine, firstly can you tell our readers about the Gam-ing Technologies Association, what you do and whom you repre-sent?

RF: Thanks and congratulations on the success of Infinity Gaming Magazine. We call the Gaming Technologies Association “GTA”, our members supply all new gaming machines in Australia and also supply New Zealand and the Asia-Pacific region. The Australian gaming industry involves casinos, clubs and hotels who collectively operate almost 200,000 gaming machines. Lately an unusual set of political alignments has meant that one of our primary activities is participating with our industry colleagues in the political debate. We also think it’s important that we’re consulted by legislators and regulators in relation to possible future developments and we’re wholly supportive and responsive of those processes whenever the opportunity is available.

Q: What is the mission of the GTA?

RF: Our mission is to promote Australian manufacturing resources in relation to gaming machines. We achieve this in many ways, not least of which is owning and operating the annual Australasian Gaming Expo which just concluded at Darling Harbour in Sydney.

Q: How long has the Gaming Technologies Association be in exis-tence?

RF: GTA was formed in 1990 as the Australian Gaming Machine Manufacturers Association. Much has changed since then of course, with our focus becoming much broader than Australian gaming machines. It’s interesting to speculate what the gaming environment will be like in 22 years’ time. In my opinion, there will have been considerable convergence in gambling activities and the media by which they’re delivered.

Q: What companies are members of the GTA?

RF: Our primary members are all publicly listed companies (or part of one) and they include Ainsworth Game Technology, Aristocrat Technologies, Aruze Gaming, Bally Gaming, IGT (Australia), Konami Gaming, Shuffle Master Australasia and WMS Gaming. We also have associate member and affiliate member categories, so we encourage a wide range of dialogue.

With ross ferrar - ceO gaming technologies Association

Page 21: September Infinity Gaming Magazine

Q: In the global recession how has Australian gambling fared and is there any growth in the industry?

RF: It’s fair to say that land-based gaming is mature and stable. It’s equally fair to say that online gambling is growing fast in Australia. Online casino gambling is currently prevented by Commonwealth law, but that’s the subject of a review at the moment.

Q: For any manufacturing company looking to enter the Aus-tralian market what advice can you offer?

RF: It’s complicated. Gaming in Australia operates under State legislation and regulation – and these have decidedly different requirements to each other. Some of our members say that operating in Australia is like operating in 8 different countries!

Q: The GTA hosts and operates the Australasian Gaming Expo, how long has the event been going now and what can be gained by attending and exhibiting?

RF: The first Australasian Gaming Expo was in 1990 and it’s op-erated annually since then. One of the reasons for its success is its momentum over that time – it really is the must-attend event for gaming executives in this region, who will certainly see the world’s best and latest gaming and related equipment and technology. Of course, like all trade shows it’s extremely convenient for visitors to be able to compare competitive products side-by-side and make effective purchase decisions.

Q: The Australasian Gaming Expo has just taken place 21st – 23rd how did the event go?

RF: The Expo involves a trade exhibition of some 15,000 square metres (about 160,000 square feet), which this year was sold out with 185 exhibitors and attracted 8,000 attend-ees. There were so many highlights to this year’s Expo, from an Elvis impersonator losing his voice to Task Retail Technol-ogy (a point-of-sale equipment provider) winning the Best Stand award. We were very happy with this year’s event, all the exhibitors put on a great show.

Q: You are a judge this year for the 6th International Gaming Awards (IGA) held in London, indeed ALH Group from Austra-lia won socially responsible operator of the year last year from Australia. Is there any ceremony in Australia that recognises the gambling industry in this way?

RF: There’s a number of Awards for Excellence, particularly in the hotels and club sectors. These are state-based and play an important role in the local hospitality industry, but do not consider the broad global perspectives of the International Gaming Awards.

Q: Is there anything Europe can learn from Australia in socially responsible gambling?

RF: I think we need to learn from each other and collectively explore new ways of providing socially responsible gambling. I

think that the proliferation of smartphones, tablets and other Internet-capable devices including smart televisions, present us with new challenges in this space.

Q: Ross you have been in the industry for some thirty years now and have a wealth of experience, in your opinion where do you see the gambling industry both in Australia and inter-nationally growing in the future?

RF: I see more global initiatives, of which the International Gaming Awards might just be a pioneer! The point here is that geography is becoming less of an issue; one of our mem-bers has a CEO who lives in Las Vegas and it’s easy for him to engage where necessary in relation to Australian issues – or for that matter, any issues anywhere in the world. It requires discipline to keep up-to-date with the mass of international is-sues, but that is a specific skill which sets top executives apart from the rest.

Q: Will we be seeing you and GTA in London for the Interna-tional Gaming Awards in February?

RF: Most certainly, I love London and wouldn’t miss it for quids!

“I think that the proliferation of smartphones, tablets and other Internet-capable devices including smart televisions, present us with new challenges in this space.”

Page 22: September Infinity Gaming Magazine

Meeting Michelle Lau - A real poker lady

Q: Michelle thank you for speaking to us today, firstly can you tell us a little about your poker in-volvement as a player and why you are currently not entering anymore tournaments?

ML: You’re so welcome, Thank you. Well, just about a year ago I had to have back surgery for 2 very bad herniated discs, I was unable to walk or drive and while I was on pain pills, I ended up passing out and splitting my head open which resulted in having to get 6 staples in my head. Thankfully, surgery was successful, and I am able to think and see clearly again. I am on my way back to being 100% healthy and almost ready to play poker competitively again.

Q: Will Michelle Lau be playing poker again anytime soon?

ML: As I mentioned, due to my back surgery, it is still difficult to sit or do anything for an extended period of time, but I’ve been able to play small tournaments in Las Vegas, South Florida, and various charity poker tournaments. In the mean time, I am working towards my MBA degree from George Washington University, starting a few new businesses. I am anticipating to be able to play in many of the WSOP events in 2013.

Q: Currently one of your roles is with The Cosmopolitan of Las Vegas, can you tell us what you do there?

ML: Sure, it’s no secret that I love The Cosmopolitan, the gaming floor, the restaurants, the atmo-sphere and just about everything they have to offer as one of the newest and hottest casino resorts in Las Vegas. I was recently granted a Nevada Gaming license and have formalized a relationship with The Cosmopolitan of Las Vegas, as an Independent Casino Host, which I am very excited about. As an independent host, my role is to ensure that my friends/guests have the best time while visiting and playing at The Cosmopolitan. Many of my poker, athlete and celebrity friends love The Cos-mopolitan, as well, and with my relationship there, I can make sure they receive the personalized service they deserve.

Q: You are very much into charity work along with playing poker, can you explain why and exactly how you feel this is a must for the poker industry?

ML: Helping, sharing and giving to others is so important to me. I have a great life and when I think about the places I’ve been, the things that I have been able to do and the people I have know and have met, I realize that the real meaning of life is what you make of it and those things you can take from it, to try to help make some ones life a little bit better, a little bit happier or just a little bit easier. There are so many organizations in the world doing good and I am more than thrilled to give of myself and do all I can, to help them gain the awareness, support and dona-tions needed to continue with their missions. As a professional poker player, I believe it is important for us, as an industry, to be able to not only help these organi-zations, but to change the public’s perception of poker play-ers, as trash talking, hoody wearing, degenerate gamblers. I feel that the opportunity to participate in charity poker events allows us to introduce and invite others to learn and play a game that we all love, while helping to raise funding for real causes. Q: Nevada is closing in on having legal real money online poker in the state hopefully by the end of 2012, will you be

Page 23: September Infinity Gaming Magazine

Q: Michelle thank you for speaking to us today, firstly can you tell us a little about your poker in-volvement as a player and why you are currently not entering anymore tournaments?

ML: You’re so welcome, Thank you. Well, just about a year ago I had to have back surgery for 2 very bad herniated discs, I was unable to walk or drive and while I was on pain pills, I ended up passing out and splitting my head open which resulted in having to get 6 staples in my head. Thankfully, surgery was successful, and I am able to think and see clearly again. I am on my way back to being 100% healthy and almost ready to play poker competitively again.

Q: Will Michelle Lau be playing poker again anytime soon?

ML: As I mentioned, due to my back surgery, it is still difficult to sit or do anything for an extended period of time, but I’ve been able to play small tournaments in Las Vegas, South Florida, and various charity poker tournaments. In the mean time, I am working towards my MBA degree from George Washington University, starting a few new businesses. I am anticipating to be able to play in many of the WSOP events in 2013.

Q: Currently one of your roles is with The Cosmopolitan of Las Vegas, can you tell us what you do there?

ML: Sure, it’s no secret that I love The Cosmopolitan, the gaming floor, the restaurants, the atmo-sphere and just about everything they have to offer as one of the newest and hottest casino resorts in Las Vegas. I was recently granted a Nevada Gaming license and have formalized a relationship with The Cosmopolitan of Las Vegas, as an Independent Casino Host, which I am very excited about. As an independent host, my role is to ensure that my friends/guests have the best time while visiting and playing at The Cosmopolitan. Many of my poker, athlete and celebrity friends love The Cos-mopolitan, as well, and with my relationship there, I can make sure they receive the personalized service they deserve.

Q: You are very much into charity work along with playing poker, can you explain why and exactly how you feel this is a must for the poker industry?

ML: Helping, sharing and giving to others is so important to me. I have a great life and when I think about the places I’ve been, the things that I have been able to do and the people I have know and have met, I realize that the real meaning of life is what you make of it and those things you can take from it, to try to help make some ones life a little bit better, a little bit happier or just a little bit easier. There are so many organizations in the world doing good and I am more than thrilled to give of myself and do all I can, to help them gain the awareness, support and dona-tions needed to continue with their missions. As a professional poker player, I believe it is important for us, as an industry, to be able to not only help these organi-zations, but to change the public’s perception of poker play-ers, as trash talking, hoody wearing, degenerate gamblers. I feel that the opportunity to participate in charity poker events allows us to introduce and invite others to learn and play a game that we all love, while helping to raise funding for real causes. Q: Nevada is closing in on having legal real money online poker in the state hopefully by the end of 2012, will you be

playing online then?

ML: I can’t wait! I miss playing online poker so much and can’t wait until I can legally play for real money from the US. I really hope that the gaming commissions and the online poker sites take the necessary steps to ensure fairness and preserve the game of poker as a skill based game. I also hope they run online events that encourage and reward players with the experiences that can only hap-pen in Las Vegas, in an actual card rooms.

When Nevada has legalizing online poker, I think one of their goals should definitely be to attract poker players to come, stay and play poker in Fabulous Las Vegas. I actually think it makes sense for our brick and mortar casinos to operate online poker sites that offer satellite tournaments to tournaments at their establishment. I think tournament poker requires much more skill and it would eliminate many of the issues and opposition that they are facing at the moment.

“it is ridiculous that Americans could not play poker online, but I guess it’s been a while and I’ve had time to think about it, so, now even though I feel it is still ridiculous, I understand that in order for the poker players and society to feel comfort-able with online poker, there needs to be some regulations and rules in place, and that there should be some social responsi-bility on the governments part”

A poker player, charity fund raiser and a role model for poker

Page 24: September Infinity Gaming Magazine

Meeting Michelle Lau - A real poker ladycontinuedQ: What is your opinion on the restrictions of Americans on playing online poker?

ML: At first I thought it was ridiculous that Americans could not play poker online, but I guess it’s been a while and I’ve had time to think about it, so, now even though I feel it is still ridiculous, I understand that in order for the poker players and society to feel comfortable with online poker, there needs to be some regulations and rules in place, and that there should be some social responsibility on the governments part.

If you look at legalization of alcohol and prostitution, you will realize that poker is on the same path. Governments deemed these things illegal and abolish them from society, in order to bring them back regulated and taxed. And I believe that in the near future, Americans will be able, to once again, play poker online.

Q: The Full Tilt Poker saga seems to have had a happy ending with the purchase by PokerStars of all assets and to pay back players, what did you think of the whole business?

“The Full Tilt saga was awful. PokerStars is awesome and has done so many great things for the poker industry and the players. The European Poker Tour is the best tournament series in the world”ML: The Full Tilt saga was awful. PokerStars is awesome and has done so many great things for the poker industry and the players. The European Poker Tour is the best tournament series in the world, their site and the games/ tournaments they offer online are great.

Their charitable donations and community involvement have truly made a difference in the world. As PokerStars steps up with the purchase of Full Tilt Poker, I hope that they continue to value and respect the game of poker and continue to convey to the world that poker is a social, skill based game that can be fun, fair and enjoyable for players at any level.

Q: Do you think generally online poker has been hurt with the FTP story?

ML: Like any controversy in the world today, if you read and see the angle stories that the media reports on, without educating yourself or knowing any true facts, it will hurt anything or anyone involved. Most of the world has heard the FTP story and many will categorize and associate it with the seedy world of poker. But, in any industry, you have companies that do wrong, are mismanaged or that are simply so busy making money; they feel their decisions are justified.

I think that humans, in general, are forgiving and forgetful and that hope-fully when online poker becomes legal in the US, most Americans will see that the game of poker has many parallels to life and valuable lessons that can be learned. I also hope that the management /owners of FTP are held accountable for their actions.

Page 25: September Infinity Gaming Magazine

A poker player, charity fund raiser and a role model for poker

Q: Certainly a busy lady, you are study-ing for your MBA at George Washington University, can you tell our readers more about this?

ML: Sure, I’ve always wanted to get my MBA degree and shortly after my back surgery, I heard about The STAR EMBA™ program at George Washington Univer-sity School of Business. It’s a fully-ac-credited specialized Executive MBA pro-gram for individuals with strong personal brands such as professional athletes, ce-lebrities, artists, and musicians. The pro-gram’s small classes and highly-targeted curriculum are designed to teach accom-plished individuals how to leverage their current career success into business and social achievement, with a focus on lead-ership and social responsibility.

Our classes are taught by professors from the best universities in the nation and the program requires us to meet 6 times, over 2 years, for 2 weeks at a time. Class-es are held at George Washington in DC, Columbia University in New York City and UCLA in California. We are currently half way through and will be graduating in the summer of 2013. I can’t say enough about this wonderful opportunity and education I am receiving.

My classmates are an awesome bunch of established individuals that range from Superbowl champions to medal winning Olympians. There are currently 48 of us in this inaugural class with a new incom-ing class starting in February of 2013.

Q: What is the plan once you complete the course and receive your MBA?

ML: My plans are to return to the poker table and continue to host my friends and clients when they visit The Cosmo-politan of Las Vegas. I also plan to use my newly acquired business skills and edu-cation to launch a luxury pupsize™ pet product line, Miso Pup and start a not for profit organization, Play2Care.

Q: What other businesses or activities do you do Michelle, if you have any time that is, and what does the future hold for this busy lady, will it be poker, charity,

business or a combination of all and more?

ML: Well, all I can say is that there are not enough hours in the day and that I don’t sleep much. Besides playing an occasional cash game or tournament and working as an independent casino host, I am also currently working on launching an organic dog bone line for small dogs with my STAR EMBA class-mate, Will Witherspoon, a linebacker for the Tennessee Titans.

Will owns and operates Shire Gate Farm, a grass-fed beef farm in Missouri and because of our love for animals and the 50 billion dollar pet industry, we are planning to launch Spoonfed Pup, a division of Miso Pup, that will provide dogs that are 8 pounds and under with healthy, organic, FDA ap-proved bones that are just the right size for these pupsize™ dogs.

I am also working on starting a 501(c)3 organization called Play2Care, that will allow me to bring celebrities and athletes together with national orga-nizations and sponsors with related missions, by using the power of play to raise funds and bring awareness their causes. I planning on organizing play events, poker, slot, blackjack, golf and bowling tournaments and I hope to also organize concerts, as musicians play music. Basically, I would like to use any activity with a play aspect to send a message to the world that giving can be fun.

So, I’m not exactly sure what the future hold for me, but I do know that I’ve set some goals for myself and that I have the passion, skills, knowledge and momentum to reach them. I also know that I am, once again, ready to move all in on the business world and will continue to check raise the world, at and away from the poker table, for the good of this game we call life.

Page 27: September Infinity Gaming Magazine

iGaming News in brief

Former online betting boss jailed

Dimitrios Drosos a Greek national and director and founder of Gold Victory Limited, who was arrested and extradited to Malta after absconding from prosecution, was jailed this month for misappropriating the winnings made by a number of players through his Malta-based online betting company.

Drosos, was arrested and prosecuted in 2011 after the Lotteries and Gaming Authority received a number of complaints related to unpaid winnings.

The Greek business man and Paok BC football team owner, had jumped bail when he requested to go to Greece for a medical check-up and never returned.

While forfeiting €70,000 which was set as his bail bond, Drosos was ar-rested in Athens earlier this year and extradited to Malta on the strength of a European Arrest Warrant.

BetVictor buys up BotsphereBet Victor, the Gibraltar based gaming group has announced that it has ac-quired Botsphere Limited (‘Botsphere’), a UK based provider of automated trading solutions, for an undisclosed sum.

Botsphere was formed in 2005 by the technology entrepreneurs Stewart Vassie & Julian Leach, who prior to Botsphere created and subse-quently sold Oddschecker, the world’s most successful odds checking site.

Botsphere is based in London, with 14 full time employees, and currently provides trading solutions to a number of gaming businesses including BetVictor, Betfair, BetFred, Boylesports and Offside Gaming.

The acquisition is strategically significant to Bet Victor as it brings market leading technology and expertise in-house and provides the foundation from which the on-line and mobile gaming operator expects to deliver complete automated trading solutions across a number of mainstream sports over the next two years.

Victor Chandler, Chairman of Bet Victor commented:

“We have been using Botsphere within our business for over four years and I have always been impressed by the team and their skill at providing us with exceptional technology solutions, which are now integral to our business. In recognising that to remain a world class, innovative gaming company we needed to be in control of our future technical development, strategically this acquisition was therefore the perfect solution. I am very excited about welcoming the team at Botsphere into our business and am delighted to have such a talented set of individuals creating technology solutions for Bet Vic-tor into the future.”

Stewart Vassie, Managing Director of Botsphere commented:

“Botsphere is delighted to be joining the Bet Victor family. Having worked with their management and technology teams over a number of years we recognised that we shared the same business ethos and technology ambition, which is why we fully supported the sale of the business to Bet Victor. My-self, Julian, and the rest of the team are looking forward to integrating our business into Bet Victor to create genuinely world class leading automated trading solutions.”

32Red report huge 50% increase in half yearly profits

32Red reported record revenues for the first half-year to end-June, up 50% on the prior year period at £16.5m (2011: £11m).

The 32Red brand is set for H2 launch in Italy and with the William Hill’s appeal over trade mark infringement now being dismissed, 32Red look for-ward with more confidence.

Current trading remains strong and in line with management expectations. Active casino players in first 6 months up 81% to 31,722 (H1 2011: 17,548). New Casino players up 93% to 18,724 (H1 2011: 9,704).

Revenues for July and August 2012 are up 22% on the corresponding period in 2011 despite the Olympics taking place at that time.

The Board continues its strategy of investing in UK marketing and will com-mence marketing activity in Italy during the second half of the year.

Ed Ware, CEO commented: ‘We are very pleased to have delivered another strong performance during the first half of 2012, across all key measures. This performance has continued during the first 2 months of the second half of the year, despite the excitement and distraction of the Olympic Games. The sustained revenue growth across the Group has been primarily driven by the 32Red Casino and we continue to work on further enhancing the player experience as well as our marketing effectiveness. ‘As previously stat-ed, we intend to enter the Italian online casino market in early Q4 and we are looking forward to commencing marketing and operational activities. While we continue to focus on our core market of the UK, we look forward to utilising our Italian licence to expand the profile of the brand and to grow the business in another regulated market.’

Page 29: September Infinity Gaming Magazine

golden nugget casino takes it outside

Atlantic City’s casinos have been thinking of how to generate new business and the Golden Nugget Casino is literally taking their business outside in an attempt to attract more gamblers, as it has now become the first casino in New Jersey to offer outdoor gambling.

The state Division of Gaming Enforcement recently granted the casino’s re-quest to move three blackjack tables onto its deck. Tom Pohlman, the casi-no’s executive vice president and general manager, said the outdoor games debuted right before Labor Day weekend and did better than expected.

“It’s the only place in Atlantic City where you can play blackjack, listen to live entertainment, look out at the beautiful Atlantic City skyline, and look out over the water,” he said.

Atlantic City casinos dealing with cutthroat competition from neighboring states have expanded gambling into areas where it never had been per-mitted before. Patrons can now gamble at bars, pools, and shopping areas linked to the casinos.

Atlantic City’s casino revenues fell from a high of $5.2 billion in 2006 to $3.3 billion in 2011. So far this year, casino revenues are running 7% lower than estimates.

This new development for the Golden Nugget brings a new positive atmo-sphere after the bad press received for the company after it decided to pay players involved in a court case over un-shuffled cards in April.

Unbeknownst to the players the game of Punto were played with decks that were sent unshuffled by the manufacturer. Players upped their bets as they detected a pattern in the hands, winning more than $1.5 million.

A judge said that the players did nothing wrong and that even with an un-shuffled deck, there was no guarantee that the pattern would not abruptly end on any given hand. He ordered the casino to honor the remaining out-standing chips and drop efforts to get back the $500,000 or so it had already paid out.

On Friday, the owner of the Golden Nugget said he would pay the gamblers their disputed winnings and turn his legal attention instead to the Kansas City card manufacturer that provided unshuffled decks for the mini-bacca-rat games.

Las Vegas Operator puts 3 casinos up for saleAffinity Gaming of Las Vegas announced that it’s selling three of its four Northern Nevada casinos for $19.2 million.

The properties are the 800-room Sands Regency in Reno and the smaller Gold Ranch in Verdi and the Terrible’s Casino Dayton in Dayton.

The company is not selling its Rail City casino in Sparks, which has been a strong financial performer, said CFO J. Christopher Krabiel.

“It’s a good locals property. It’s not for sale,” he said.

The $19.2 million price is subject to customary adjustments, and the deal will need the approval of gaming regulators.

The buyer, whom is already found is Truckee Gaming, which is led by Affin-ity Chief Operating Officer Ferenc Szony. He’ll be leaving Affinity to run his new company.

Szony was CEO of the Sands Regency from 1997 until it was purchased by Herbst Gaming in 2007, when he became president of Herbst. Herbst ended up in bankruptcy in 2009, and Affinity is its successor company.

Even though Affinity has a deal with Truckee, it’s giving other potential buy-ers an opportunity to bid for the three properties through Sept. 30.

”This transaction represents the substantial completion of our divestiture of noncore assets, which we identified nearly two years ago and which we carved out of our recently completed refinancing,” Affinity CEO David Ross said in a statement. ”With this sale, we are able to focus management’s time on executing our long-term growth and expansion strategy and deliv-ering the greatest value to our shareholders.”

Gaming USA News

Page 31: September Infinity Gaming Magazine

Caesars Entertainment stock continues to fall in September as Fitch Ratings suggested it may have to restructure its debt and spin off assets like the World Series of Poker and its online business. Also with its UK land based casino operation doing badly and no takers for the London Clubs Interna-tional business.

In a report just released by the financial ratings company Fitch ratings, they say that Caesars’ ability to meet its financial obligations the company would need some sort of restructuring of its near $20 billion debt.

The ratings company have now revised its ratings outlook on Caesars from stable to negative.

Caesars stock fell 10.7 % last week and slid another 7 % on Tuesday and opened down another 2% Wednesday at $6.55 following the news.

Caesars lost $241.7 million in the second quarter, main due to intense com-petition in its big Las Vegas and Atlantic City markets.

Fitch estimates that a Caesars’ subsidiary, Caesars Entertainment Operat-

ing, will burn through $450 million to $600 million in both 2013 and 2014. That represents cash flow losses and capital spending that will have to be covered by the parent company or the operating company (OpCo) taking on new debt.

Analysts say Caesars has adequate liquidity in the near term to meet its ob-ligations, and it has sponsors with access to cash to cover continued losses and maintenance spending.

But the analysts are also more frequently asking if Caesars’ biggest inves-tors will be willing to continue pumping cash into a money-losing operation.

Fitch analysts said that instead of sinking more cash into the operating com-pany, Caesars’ deep-pocketed sponsors Apollo Global Management and

TPG Capital may instead opt to restructure the operating company’s debt.

“A spin-off of Caesars’ Interactive unit or other means of monetizing the on-line business could be logical precursors to a restructuring. The parent guar-antees OpCo’s debt and sponsors, if electing to restructure OpCo, would likely want to extract value out of Interactive and not risk the entity being pulled into the restructuring proceedings,” Fitch said in its report.

Caesars’ interactive unit includes the World Series of Poker brand, social gaming company Playtika and Caesars’ online gaming operations in the United Kingdom.

“Fitch believes that most of Caesars’ current equity value is attributable to this unit, which would benefit materially if online gaming is legalized on the federal level in the U.S.,” Fitch said in its report.

“There is an option to enter into Chapter 11 (bankruptcy), however, Caesars may elect to execute debt exchanges, possibly for equity since the company is now public,” Fitch added.

Caesars spokesman Gary Thompson said the company had no comment on the possible scenarios in the Fitch report but pointed out that Fitch affirmed Caesars’ existing ratings, even as it changed the rating outlook to negative.

Gaming USA News

Caesars downgraded, analysts think WSOP could be sold off

Page 32: September Infinity Gaming Magazine

Research Partner

Dan Lynn, CEO, AIRASIA EXPEDIA Robert W. Stocker, Chair, Gaming Practice, DICKINSON WRIGHT Marcus Clinch, Partner, EIGER LAW Martin Williams, Asia Editor, GAMBLING COMPLIANCE Andrew Klebanow, Principal, GAMING MARKET ADVISORS Warwick Bartlett, Chief Executive, GLOBAL BETTING & GAMING CONSULTANTS Shaun McCamley, Senior Associate, IGAMIX MANAGEMENT

Prof Leonardo Dioko, Director, International Tourism Research Centre, INSTITUTE FOR TOURISM STUDIES

Ping Lam, Managing Director, LUXURY ASIA GROUP Luis Mesquita de Melo, Patner, MDME Toru Mihara, Visiting Professor & Director Center for Amusement Industry

Studies, OSAKA UNIVERSITY OF COMMERCE Ben Cavender, Senior Associate, THE CHINA MARKET RESEARCH GROUP Andrew Scott, CEO, WORLD GAMING MAGAZINE

Join us for the 5th Annual Asian Gaming & Hospitality Congress - the region’s most in-depth conference on the economic and investment outlook for gaming in Asia. Join pithy debates on legal and regulatory issues affecting each jurisdiction and casino operators’ competitiveness from a regional perspective. Hear from industry experts about tourism, hospitality and entertainment trends, as well as how to appeal to the next generation of China’s luxury and VIP customers.

Also, find out what’s next for the merging of land-based casinos and suppliers with online and social gaming companies – all at one event!

Hear from these acclaimed experts:Dr Richard Lehrner Senior Advisor to the Board CASINOS AUSTRIA

Duarte Chagas Legal Adviser DICJ (GAMING INSPECTION & COORDINATION BUREAU MACAU)

Anthony Coles Partner JEFFREY GREEN RUSSELL; Immediate Past President IMGL

David Green CEO NEWPAGE CONSULTING

Dr Hoffman Ma Deputy CEO PONTE 16; Deputy Chairman SUCCESS UNIVERSE GROUP

Paul Bromberg CEO SPECTRUM OSO ASIA

Grant Govertsen Managing Partner UNION GAMING RESEARCH MACAU

Jorge Godinho Associate Professor, Faculty of Law UNIVERSITY OF MACAU

Asian Gaming & Hospitality Congress

Beyond the Casino – Preparing for the future of gaming and entertainment in Asia

27-28 November 2012, Galaxy Macau

Official Online Media Organiser

w w w . w g m 8 . c o mGAMINGWORLD

Supporting Organisations

Supporting Media

Cocktail Drinks Sponsor Official PR Partner

Day One (Tuesday 27 November): Macro Economic Predictions, Investment and Financing Outlook, Legal and Regulatory Challenges by Jurisdiction

Day Two (Wednesday 28 November): Travel and Tourism Trends, Understanding the Customer and the Future for Digital Technologies and Interactivity

SAVE USD200Register before 12 October 2012 and

To register your interest in attending AGHC 2012, please email Beacon Events at [email protected] or contact us at +852 2219 0111. Book now and take advantage of our exclusive 10% discount, don’t forget to mention your VIP code AU681IGM10 during registration.

Official Host Publication

Visit www.AsianGamingCongress.com for event details Call Beacon Events at +852 2219 0111, email [email protected], fax +852 2219 0112 for enquiries

AGHC&SGA_InfinityG_Sept.indd 1 13/9/12 3:47 PM

Page 33: September Infinity Gaming Magazine

Research Partner

Dan Lynn, CEO, AIRASIA EXPEDIA Robert W. Stocker, Chair, Gaming Practice, DICKINSON WRIGHT Marcus Clinch, Partner, EIGER LAW Martin Williams, Asia Editor, GAMBLING COMPLIANCE Andrew Klebanow, Principal, GAMING MARKET ADVISORS Warwick Bartlett, Chief Executive, GLOBAL BETTING & GAMING CONSULTANTS Shaun McCamley, Senior Associate, IGAMIX MANAGEMENT

Prof Leonardo Dioko, Director, International Tourism Research Centre, INSTITUTE FOR TOURISM STUDIES

Ping Lam, Managing Director, LUXURY ASIA GROUP Luis Mesquita de Melo, Patner, MDME Toru Mihara, Visiting Professor & Director Center for Amusement Industry

Studies, OSAKA UNIVERSITY OF COMMERCE Ben Cavender, Senior Associate, THE CHINA MARKET RESEARCH GROUP Andrew Scott, CEO, WORLD GAMING MAGAZINE

Join us for the 5th Annual Asian Gaming & Hospitality Congress - the region’s most in-depth conference on the economic and investment outlook for gaming in Asia. Join pithy debates on legal and regulatory issues affecting each jurisdiction and casino operators’ competitiveness from a regional perspective. Hear from industry experts about tourism, hospitality and entertainment trends, as well as how to appeal to the next generation of China’s luxury and VIP customers.

Also, find out what’s next for the merging of land-based casinos and suppliers with online and social gaming companies – all at one event!

Hear from these acclaimed experts:Dr Richard Lehrner Senior Advisor to the Board CASINOS AUSTRIA

Duarte Chagas Legal Adviser DICJ (GAMING INSPECTION & COORDINATION BUREAU MACAU)

Anthony Coles Partner JEFFREY GREEN RUSSELL; Immediate Past President IMGL

David Green CEO NEWPAGE CONSULTING

Dr Hoffman Ma Deputy CEO PONTE 16; Deputy Chairman SUCCESS UNIVERSE GROUP

Paul Bromberg CEO SPECTRUM OSO ASIA

Grant Govertsen Managing Partner UNION GAMING RESEARCH MACAU

Jorge Godinho Associate Professor, Faculty of Law UNIVERSITY OF MACAU

Asian Gaming & Hospitality Congress

Beyond the Casino – Preparing for the future of gaming and entertainment in Asia

27-28 November 2012, Galaxy Macau

Official Online Media Organiser

w w w . w g m 8 . c o mGAMINGWORLD

Supporting Organisations

Supporting Media

Cocktail Drinks Sponsor Official PR Partner

Day One (Tuesday 27 November): Macro Economic Predictions, Investment and Financing Outlook, Legal and Regulatory Challenges by Jurisdiction

Day Two (Wednesday 28 November): Travel and Tourism Trends, Understanding the Customer and the Future for Digital Technologies and Interactivity

SAVE USD200Register before 12 October 2012 and

To register your interest in attending AGHC 2012, please email Beacon Events at [email protected] or contact us at +852 2219 0111. Book now and take advantage of our exclusive 10% discount, don’t forget to mention your VIP code AU681IGM10 during registration.

Official Host Publication

Visit www.AsianGamingCongress.com for event details Call Beacon Events at +852 2219 0111, email [email protected], fax +852 2219 0112 for enquiries

AGHC&SGA_InfinityG_Sept.indd 1 13/9/12 3:47 PM

Shuffle Master profits boost

Shuffle Master reported a higher that expected quarterly profit as casinos worldwide bought and leased more of its card shufflers and slot machines.

For its third quarter the Las Vegas-based company earned $10.4 million, up from $9.1 million, with revenue increasing 9% to $63.4 million.

Shuffle Master said its installed base of leased shufflers grew 7% to 8,245, while shuffler sales and lease revenue grew 8% to $24.4 million. Table game revenue increased 18% to $13 million while electronic gaming machine rev-enue grew 11% to $20 million.

The company said 55% of its revenue came from outside the United States and that overall, it’s hopeful for continued revenue growth with new prod-ucts like its Flintstones slot machines.

With no debt and a reserve of some $186 million credit line, the company continues to look for growth opportunities including potential acquisitions, executives said during a conference call to discuss the results.

Shuffle Master this summer received a Nevada license to provide an online real-money poker system for its casino clients, and it recently received a similar online license in Gibraltar.

The company continues to develop online real-money and social gaming products for this segment, with the Gibraltar license positioning Shuffle Master to compete in the European online gambling market.

“These licenses reinforce our commitment to the online space and to being a B2B partner with our land-based customers,” CEO Gavin Isaacs said. “De-velopment of our own state-of-the-art online content platform continues, whereby we’ll offer our renowned brands both for real-money gambling and free to play.”

Those brands include its proprietary table games such as Three Card Poker, Ultimate Texas Hold’em and Fortune Pai Gow Poker.

Shuffle Master is continuing its online initiative even thou the purchase of Internet pok-er company Ongame Network failed, when the company pulled out of the $26 million deal.

russian illegal casino suspect goes free

Former prosecutor Roman Nishchemenko, charged with accepting bribes in exchange for illegal gambling protection, has been released from prison after only some 15 months in custody, according to newspaper reports in Moscow, Wednesday.

In August investigators completed their probe into Nishchimenkos activi-ties. His charges carried a maximum punishment of 10 years in prison.

The high-profile illegal casino scandal in the Moscow region came to light in the spring of 2011 and caused a major public uproar after the FSB reported an illegal gambling network.

Businessman Ivan Nazarov had allegedly operated illegal casinos in 15 towns across the region. According to law enforcement authorities, several high-ranking officials from the prosecutor’s office and the Interior Ministry were involved in the operation, which generated between $5 million and $10 million in monthly revenue.

Investigators suspected Nishchemenko of accepting more that four million rubles ($124,000) in bribes, it is unclear why he has been released, but is not the first time suspected criminals in illegal gambling have surprisingly been let go without any reason.

Landbased News

Page 35: September Infinity Gaming Magazine

Gaming News

Madrid confirmed to become home of euro Vegas

Las Vegas Sands Corp. has officially chosen Madrid over Barcelona for a multi-billion dollar gambling resort project dubbed “EuroVegas.”

The Spanish capital, the country’s largest city, emerged as the company’s best choice for the development, Las Vegas Sands Chairman and CEO Shel-don Adelson said in a statement released late Friday in Las Vegas.

“The regional government of Madrid has been a strong advocate for this po-tential development, and we are appreciative of the energy they have brought to this process,” Adelson said.

“Barcelona is an outstanding tourism destination, and choosing Madrid over Barcelona was not an easy selection,” he said.

The decision was highly anticipated in Spain, where a high jobless rate and a shrinking economy make the prospect of thousands of construction and service jobs attractive to project supporters. But critics predict that gambling will attract criminals and say positions as hotel maids, waiters and blackjack dealers aren’t a recipe for success for young people badly in need of jobs.

Adelson has said he wants to invest about $22 billion in the project. The company statement made it clear Las Vegas Sands will allocate no more than 35 percent of that amount.

Adelson has also said he wants Spanish laws changed to let gamblers smoke inside the casinos and new zoning regulations allowing him to send build-ings soaring above the skyline.

Company officials called picking a location an important first step toward building a project that is expected to be built in phases over about 10 years. Plans have called for six casinos, 12 hotels featuring 36,000 rooms, a con-vention center, three golf courses, shopping centers, bars and restaurants.

But not everyone is thrilled about the idea of Spain hosting a European Sin City that could attract prostitution and mafia gangs — and add gambling ad-diction to the woes of already desperate Spaniards.

Las Vegas Sands Corp. surpassed Caesars Entertainment Corp. last year as the world’s largest casino corporation, posting profits of $1.27 billion in 2011. It owns the Venetian and Palazzo resort casinos on the Las Vegas Strip and the Marina Bay Sands in Singapore.

Through its majority-owned subsidiary Sands China Ltd., the company also owns the Venetian Macao and Sands Macao casino resorts, the Pla-za Macao hotel, restaurant and shopping complex, and the Sands Cotai Central resort with three hotels and two casinos.

The company’s entry into the casino market in the former Portuguese colony near Hong Kong spawned legal battles in Macau and Las Vegas.

A Hong Kong businessman won a $43.8 million verdict in a civil law-suit filed in Nevada in 2004 claiming he was denied a $5 million “suc-cess fee” and 2 percent of net casino profits for helping the company win its Macau gambling license. The Nevada Supreme Court in 2010 ordered a retrial. That case is pending.

A bruising lawsuit filed in 2010 by Sands Macau’s former top execu-tive, Steven Jacobs, has drawn interest in the company from U.S. Justice Department and Securities and Exchange Commission investigators for possible violation of the Foreign Corrupt Practices Act. The law bars U.S. companies from paying foreign officials to “affect or influence any act or decision” for commercial benefit.

Jacobs accuses the company and Adelson of breach of contract and of pushing him into illegal activity in Macau. Adelson and the company deny wrongdoing and are vigorously defending the case. No charges have been filed.

Adelson also is a prominent philanthropist and political donor to U.S. Jew-ish and Republican causes and candidates. He gave $10 million in support of former presidential hopeful Newt Gingrich during his bid for the GOP nomination and has pledged $100 million to Mitt Romney’s GOP campaign for the White House.

Page 36: September Infinity Gaming Magazine

Gaming UK News

UK gambling sector in limbo as Penrose leaves

John Penrose, who left the department for Culture, Media and Sport (DCMS), after following his boss, the Culture Secretary Jeremy Hunt whom was replaced by Maria Miller, the former work and pensions minister, will not be replaced himself in the department.

Penrose who was responsible for the gambling sector along with his other duties will have his portfolio split between to junior ministers, which one will have their responsibility for gambling is not known.

Hugh Robertson, minister for sport and Ed Vaizey minister for culture are the two which will take over Mr Penroses responsibilities for the gambling sector within the DCMS remit.

The Department for Culture, Media and Sport (DCMS) confirmed this morn-ing that Penrose will not be replaced

A spokeswoman said: “The DCMS had three junior ministers, now there are two. John Penrose’s portfolio will be given to the two.”

Now his role will be divided between DCMS junior ministers Robertson, MP for Faver-sham and Mid-Kent, and Vaizey, MP for Wantage.

Vaizey is the more high-profile, responsible for arts, the media, broadband access and telecommunications. However, sports minis-ter Robertson appears more likely to inherit thegambling sector brief alongside the gov-

ernment’s ‘Olympic legacy’ initiative.

The DCMS said no decision had been made. The spokeswoman said: “The decision is being worked on today.”

Whatever the outcome on whom will take over the portfolio for the gam-bling sector, it seems that Government has no real interest or focus on do-ing anything with the sector. Expect little or no good news for the industry, however with two major UK newspapers attacking land based bookmakers FOBTs, it seems the industry can only expect more of the same until such time as the Government act.

The gambling industry is not a vote winner for the Conservatives and until such time as the industry has a real voice and shows how important the sec-tor is for jobs then nothing positive for the industry will happen.

gB group appoint new ctO

GB Group have announced that Tony Stansfield has been appointed to the role of Chief Technology Officer of GB Group.

Stansfield has over 20 years’ experience in developing software systems and implementing technology strategy for a number of organisations rang-ing from start-up companies to FTSE 100 and 250 members such as Betfair and the Royal Bank of Scotland. Stansfield joins GB Group from JD Williams where he has spent three years leading the Applications Support and Devel-opment team, comprising 110 people and responsible for having adopted significant efficiency improvements and business benefits through im-proved technology. Prior to this Tony was Development Director at Betfair, reporting directly to the Board, with responsibility for software develop-ment for customer products and ser-vices with an annual budget in excess of £32 million.

Through both acquisitions and organic growth, GB Group has made remark-able progress over the last year and has diversified its suite of products and services and extended its geographical coverage. GB Group is now able to verify the identity of over two billion people across 15 countries, and with the European Commission aiming for 20% of the population to buy cross-border, online by 2015, the market presents a number of further opportuni-ties to leverage customers and partners.

With this growth and diversity, the need has arisen for a highly experienced CTO to further define the Group’s technology strategy, to align this with business goals and to articulate the strategy to clients and partners. A key element of Stansfield’s role as CTO will be to guarantee that innovation, quality and excellence continue to be incorporated into the Group’s tech-nologies, in order to maintain GB Group’s leadership in the identity man-agement space.

Richard Law, CEO of GB Group plc commented: “I am delighted Tony will be joining us as Chief Technology Officer. One of our main business objectives is to progress our core and acquired technologies, in addition to develop-ing new products and services that can be incorporated into the existing suite of identity management solutions. The most successful businesses are those which recognise the value of understanding their customers’ identi-ties, and we are committed to providing innovative technologies that en-able them to connect, communicate and transact with consumers safely, responsibly and profitably.”

Page 37: September Infinity Gaming Magazine

Landbased NewsBarcelona to build their own Euro Vegas

Barcelona held a recent press conference to announce they too will devel-op their very own Euro Vegas with different investors to those of Las Vegas Sands after the US compant went for Madrid for their new development.

The project will have an investment of $6 billion (4.74 billion euros) for the construction of six new complexes featuring hotels and casinos in Barce-lona.

Executives of Barcelona World broke the news at a press conference and said the project could create up to 40,000 jobs in all.

They also expect to have 10 million visitors a year and plan to build the big-gest leisure center in Europe, with the completion date set for late 2016.

The regional Catalan government described Barcelona World as an alterna-tive to the Eurovegas complex of U.S. magnate Sheldon Adelson, for which Madrid and Barcelona were competing and which will finally be built in the Spanish capital.

The investor in this alternative project is the Veremonte group, whose chief shareholder is Spanish entrepreneur Enrique Bañuelos, and which will be built on land belonging to the La Caixa bank near the Port Aventura theme park.

The promoters’ idea is to take advantage of Port Aventura’s strong attrac-tion to build around it six themed tourist complexes based on six of the world’s geographical areas: Europe, the United States, China, Brazil, Russia and India.

The project is planned to have six hotels with some 12,000 rooms, along with restaurants and a casino for each complex.

During the press conference, the Catalan government said that the project is basically related to leisure and tourism, and that the casinos are an extra.

The press and various citizens’ groups in Barcelona and Madrid have criti-cized the Eurovegas complex because of its predictable mass of casinos and gambling facilities.

casinoLeaks shuts downThe much lauded launch of Casinoleaks-Macau.com in February, in which the site promised to reveal corruption and organised crime within the Macau gaming industry, has closed down, with no explana-tion given.

On its website is the information: “Casinoleaks-Macau.com is shutting down. Thank you for your interest”.

The site was supposed to be financed and authorized by a major US trade union. The project was led by Jeff Fiedler, a four-term member of the US-China Economic and Security Review Commission (USCC). The website also featured essays and profiles on major VIP room and junket operators, and about VIP gaming in Macau. In a recent interview with a Macau newspaper, Jeff Fiedler said concerning the reaction from gaming operators, triads and Macau gaming authorities, he expected “they initially might be angry.” He also is said to have “started to prove that the Macau gaming industry is hardly watertight.”

Currently there is no response from CasinoLeaks to our emails on the rea-son for closing down the site. Should there be any response the iGaming Post will update you.

mgm name nikodemus as new cOO of casino marketingMGM Resorts have announced that Anton Nikodemus will be the new COO of Casino Marketing for the company, the announcement was by Bill Horn-buckle, MGM Resorts Chief Marketing Officer.

“Anton will be responsible for strategic planning for Casino Marketing in-cluding marketing development, both nationally and internationally,” Horn-buckle said. “The creation of the new position is rooted in the MGM Resorts strategic plan’s focus on growth,” Hornbuckle added.

Nikodemus will provide leadership in the strategic planning process for casi-no marketing, special events, customer development teams and programs, governance, and credit/collection decisions. He will lead strategic planning efforts for future marketing development. He will also coordinate efforts between senior management and be responsible for developing, imple-menting and managing all aspects of National Casino Marketing, National Branch Offices, International Marketing and International Branch Offices.

Nikodemus joined MGM Resorts International in 2005 as Senior Vice Presi-dent of Hotel Operations for MGM Grand Las Vegas. Most recently, Nikode-mus was President and Chief Operating Officer for Monte Carlo Resort and Casino where he repositioned the property’s performance by developing and deploying highly successful strategies in the domestic and international markets.

Prior to joining MGM Resorts, Nikodemus served as Resort Manager for Boca Raton Resort and Club in Boca Raton, Florida where he oversaw nu-merous multimillion dollar renovations and a strong Five-Diamond service culture. He also served as President for the Palm Beach County Conven-tion and Visitors Bureau. He is a graduate of Arizona State University with a Bachelor of Science degree in Business Management and Marketing.

Page 38: September Infinity Gaming Magazine

Apple has introduced the iPhone 5, the latest version of its best-selling smartphone, with a taller screen, faster mobile broadband access and an upgraded camera.

Prepare for round-the-block queues, a new Apple iPhone is coming to town and, as ever, this one is slimmer and faster than before.

Apple announced the iPhone 5 at an event in San Francisco on the 12th September. Showing off the new smartphone, Phil Schiller, Apple’s market-ing chief said: “We’ve updated every aspect of iPhone 5.”

The new handset is 18% thinner and 20% lighter than the iPhone 4S but runs twice as fast, with graphics that are twice as fast, thanks to a new processor, said Schiller.

Apple has also upgraded the camera in the iPhone to include new features such as a low-light mode and a panorama feature.

The iPhone 5 is Apple’s first smartphone capable of 4G, the super-fast mo-bile broadband technology that is due to begin in Britain within weeks. Ear-lier this week, mobile network EE announced plans to launch a 4G service imminently and the iPhone 5 is likely to be one of the handsets available to new customers.

Britain’s other mobile networks cannot begin offering their 4G services until next year, after an auction of extra radio spectrum.

“EE has emerged with an effective exclusive on the 4G version of the iPhone, as it’s the only UK company with a 4G network, giving it a massive lead in the race to attract new customers,” said Jason Jenkins,editor of the gadget website CNet UK.

“Vodafone and O2 must be spitting mad.”

One change that will annoy many long-time customers is the removal of the dock connector that Apple has used in its devices since the 2003 iPod. The new connector is 80 per cent smaller but will not work with existing acces-sories. People who have old docks will need to buy an adaptor if they want to use them with the new iPhone.

Though much of the surprise had been spoiled by extensive leaks in the run up to the launch, but Apple was keen to emphasise how much thought had gone into the iPhone redesign.

“When you think about your iPhone, it’s probably the object that you use most in your life,” said Sir Jonathan Ive, Apple’s design chief. “We take changing it really seriously.”

Such is the impact of a new iPhone that some analysts have suggested it could boost the entire US economy. In a note to clients, JP Morgan’s chief economist Michael Feroli said that iPhone sales could boost America’s growth rate by as much as half a percent.

Apple introduces iPhone 5

Page 39: September Infinity Gaming Magazine

Apple estimated to sell eight million iPhones in the fourth quarter of this year.

“Pre-orders for the iPhone 5 will be accepted from Friday,

14 September.”

Page 40: September Infinity Gaming Magazine

OAP zebra crossing The most complained-about advert in the UK in 2002 depicted two old ladies crossing a road with odds bubbles above their heads. Paddy Power claimed it was betting on who would get across the road first not who would be run over.

Blind FootballThis TV advert showing a cat being kicked into a tree by a blind footballer was the most complained-about UK advert of 2010. Viewers said the bookmakers advert was offensive to blind people and could encourage animal cruelty. Some 1,000 people complained.

Chav tranquilizer This 40-second advert released ahead of this year’s Cheltenham Festival shows a hitman shooting “chavs” with tranquilizer darts at a racecourse. It was banned after just four days on TV.

Last Supper Paddy Power caused a storm with an advertising campaign featuring Jesus and the apostles gambling at the Last Supper. The company was forced to pull the billboard posters following a large volume of complaints.

A look at Paddy Power’s most controversial Ads over the yearsThe guys over at Paddy Power recently announced boosted profits citing the 2012 Euros as one of the reasons. Paddy Power is known for their advertising campaigns most recently when Arsenal striker Nicklas Bendtner revealed his lucky pants depicting the name of the bookmaker at the football tournament. Here, we take an amusing look at the company’s most controversial adverts over the last few years.

Page 41: September Infinity Gaming Magazine

London Olympics Earlier this year, the Irish bookmakers had erected full-sized posters around Lon-don proudly boasting of their sponsorship of an athletics event in a French town called London. Locog demanded the posters be removed but backed down when Paddy Power threatened legal action.

Breast Feeding ManIn 2009 this advert dipicting a breast feeding man with the slogan “Where have all the women gone?” was banned in Ireland, then the London underground

Transvestites Paddy Power was forced to withdraw this TV advert that focused on transvestites and invited Cheltenham racing fans to “spot the stallions from the mares”.

Ryan Giggs affair As Ryan Giggs was revealed in the House of Commons as the footballer who had an affair with Big Brother contestant Imogen Thomas, she was on a photoshoot with Paddy Power. However, newspapers refused to publish adverts featuring Ms Thomas with a whistle and wearing a Manchester United kit.

Euros PantsNicklas Bendtner was fined £80,000 for the mosr recent stunt by the boys from Ireland, however the company did pay the fine and made headlines around the World.

Page 42: September Infinity Gaming Magazine

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