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Global Gaming Business Magazine GGB june 2023 Vol. 22 •No. 6 $10 REGULATION VS. POLITICS POWER OF ANALYTICS FIGhT ILLEGAL SLOTS PAVILION’S ChRISTOPhER jUSTICE A Diverse Industry Women and minorities make strides in the gaming workforce Betting on Kambi TableTalk New and revamped games spice up the pit Payment Leader Everi’s plan for cashless gaming Association of Gaming Equipment ManufacturersVol. 22 • No. 6 COLUMNS CONTENTS 10 High Tides 12 Value in Hard Times 4 The Agenda 6 By the Numbers 8 5 Questions 13 AGEM 34 Emerging Leaders 36 New Game Review 43 Cutting Edge 44 Frankly Speaking 50 Goods & Services 53 People 54 Casino Communications DEPARTMENTS Global Gaming Business Magazine COVER STORY ju ne FEATURES 14 Table Game Evolution While success in the development of new table games is tough, suppliers have found success in side bets and in new versions of tried-and-true games. 24 Complete Cashless As a longtime supplier of fintech and payment solutions, Everi Holdings is front-and-center in the industry’s move toward cashless payments in the casino. 28 The Diversity Challenge The gaming industry has made great strides toward achieving a diverse work- force, but work remains to be done at the executive level. 32 Regulating the U.K. An experienced regulator evaluates the U.K. Gambling White Paper, and how it reflects the relationship between regulation and politics. 40 Marshaling Analytics Analytics software is giving executives in gaming and hospitality the tools to know and serve their customers. 46 The Skill-Game Conundrum Regulators and operators discuss the ongoing battle against unregulated so-called “skill games” in several states. 48 Successful Foundation The Foundation system from Acres, which facilitates quick cashless transitions and real-time marketing, keeps adding new ways to reward players while they're still in the casino. JUNE 2023 www.ggbmagazine.com 3 Kambi’s Moment The explosive growth of sports betting in the United States has provided a perfect storm for Kambi Group, which remains at the epicenter of the betting boom, providing essential technology for new sports wagering jurisdictions in the U.S. and other emerging jurisdictions. On the Cover:Kambi Group CEO Kristian Nylen4 Vol. 22 • No. 6 • JUNE 2023 Roger Gros, Publisher | rgros@ggbmagazine.com twitter: @GlobalGamingBiz Frank Legato, Editor |flegato@ggbmagazine.com twitter: @FranklySpeakn Jess Marquez, Managing Editor jmarquez@ggbmagazine.com Monica Cooley, Art Director mcooley@ggbmagazine.com Terri Brady, Sales & Marketing Director tbrady@ggbmagazine.com Becky Kingman-Gros, Chief Operating Officer bkingros@ggbmagazine.com Lisa Johnson, Communications Advisor lisa@lisajohnsoncommunications.com twitter: @LisaJohnsonPR Columnists Frank Fantini |Dave Forman Contributing Editors Dave Bontempo twitter: @bontempomedia Alan Campbell |John Brennan |Marjorie Preston Richard Schuetz |Bill Sokolic twitter: @downbeachfilm Michael Soll _______________ • • • • • • • • • • • • • Official Publication T he 2004 Pennsylvania Race Horse Development and Gaming Act officially legalized slot machines. The law set out spe- cific requirements for licensing of both manufactur- ers and operators of slot machines—strict require- ments that prospective licensees demonstrate the background and integrity of their executives and companies. Those rules also govern the slot machines them- selves, which are only approved for sale and opera- tion in the state after they are vetted in a lab to ensure their fairness. Other rules were established requiring slot machines, and the locations in which they operate, only be accessible by players age 21 or older. In recent years, though, slot-like machines have spread throughout the state that have not gone through any of the requirements set out in the law. Their manufacturers and operators claim they are legal because there is a skill factor that can boost a player’s chance of winning. Tens of thousands of these games have popped up, not only in taverns, VFWs and fraternal organi- zations that otherwise offer charitable gaming, but in a variety of locations where the law never intend- ed gambling to take place. Last month, there was a rally at the Pennsylvania Capitol in favor of a bill proposed by state Senator Gene Yaw that would legalize and tax the so-called skill games. “Pennsylvania’s skill game terminals are manu- factured right here in Lycoming County and the finished products exist in fraternal clubs, veterans’ organizations and taverns, as well as other local busi- nesses throughout the commonwealth,” Yaw wrote on his website. “Skill games are a piece of the small business economy in our state, and it’s time we rec- ognize the benefits of this emerging industry and offer regulatory support, so that we can ensure it flourishes—safely and responsibly.” First of all, the skill game terminals, branded “Pennsylvania Skill,” may be assembled in Pennsylvania, but they are manufactured, leased and sold by a company called Pace-O-Matic, which is based in Georgia and sells the games in several states. But one other thing that jumps out when read- ing Yaw’s statement is that the games operate in fra- ternal clubs, etc., “as well as other local businesses throughout the commonwealth.” Those ‘other local businesses’ include mom-and-pop conven- ience stores, pizza shops, laundromats and other small businesses that have no entry restrictions based on age. Jeff Morris, the vice president of public affairs and governmental relations for Penn Entertainment, unveiled a startling slide show at the recent East Coast Gaming Congress showing children, propped up to reach the buttons, playing what just about any- one would recognize as a slot machine. (See page 46.) These games are being played by kids. Skill-game supporters repeatedly point to a decision by a district court judge that because there is some skill involved in play, the games are not within the jurisdiction of the Pennsylvania Gaming Control Board. However, the PGCB is appealing that ruling, on the basis of Act 42, a 2017 amend- ment to the gaming law that defines a slot machine as any device “which, upon insertion of a coin, bill, ticket, token or similar object therein or upon pay- ment of any consideration whatsoever... is available to play or operate, the play or operation of which, whether by reason of skill or application of the ele- ment of chance or both, may deliver or entitle the persons playing... to receive cash,” or anything else of value. The amendment specifically defines skill games as slot machines, identifying a “hybrid slot machine” as “a slot machine in which a combination of the skill of the player and elements of chance affect the outcome of the game,” and a “skill slot machine” as “a slot machine in which the skill of the player, rather than the element of chance, is the predomi- nant factor in affecting the outcome of the game.” Short version: These games, by law, are slot machines, subject to the gaming law and PGCB regulation. Operators of regulated slot machines will be watching the Pennsylvania General Assembly close- ly, and hopefully, new court decisions will rid the state of these illegal slot machines. As for the VFWs, veterans groups and fraternal organizations saying they rely on the revenues the games gener- ate, they can generate just as much revenue, proba- bly more, with regulated slot machines. If it’s the skill they like, try video poker. That’s the regulated skill game. The Skill Game Battle BY FRANK LEGATO, EDITOR Global Gaming Business JUNE 2023 GGB THEAGENDA IT’S YOUR BRAND. GO BIG. Our agency brings unparalleled gaming experience to the table, with a passion for creating breakthrough brands that get real results . GOODGIANT.COM 6 Global Gaming Business JUNE 2023 Surging Esports C asinos and sportsbooks looking at esports as a potential new rev- enue stream should look at recent data from SportsLens.com. Ac- cording to the news site, global esports viewership is expected to reach 665 million by 2025, with the entire market reaching an 8.5 user pen- etration rate. According to a Statista survey, more than 210 million people worldwide started watching esports in the last five years, with the total number rising from 369 million in 2018 to over 580 million in 2023. Statista expects the global esports viewership to jump by another 85 million by 2025, with the total number of viewers reaching 664.5 million worldwide. Nearly one-third of global esports viewership comes from China. The country had more than 189 million esports fans in 2023, expected to grow BYTHENUMBERS T he latest data from the American Gaming Association (AGA) indicates the gaming industry’s strong start to 2023 is continuing. According to the AGA’s Commercial Gaming Revenue Tracker, nationwide gaming in- dustry win from traditional casino games, sports betting and iGaming reached $5.12 billion in February 2023. This represents the highest Febru- ary revenue number in history and a 14.5 percent year-over-year increase. It also marks 24 consecutive months of growth and the sixth month in a row with gaming revenue of more than $5 billion. Gaming revenue grew year-over-year across all verticals in February, though at a slower pace than in January. Land-based casino revenue from slot machines and table games totaled $3.97 billion, sports bet- ting produced $678.7 million, and iGaming produced monthly rev- enue of $465 million. Driven largely by the seasonal decline in sports betting revenue, in-person gaming revenue made up a larger share of overall revenue in February (78.5 percent) than it has since last August, prior to the start of football season. At the state level, 29 of 33 commercial gaming jurisdictions that were operational one year ago and had reported at the time of writ- ing posted year-over-year revenue growth in February. Several of the states that saw revenue declines in February were smaller, idiosyn- cratic sports betting markets, including Montana (-20.6 percent) and Delaware (-1.7 percent). However, South Dakota (-3 percent) and Louisiana (-3.5 percent) also saw year-over-year revenue fall from last year. to 210 million in the next two years. Ac- cording to Statista, the U.S. esports viewership will reach 36.2 million peo- ple in 2025, up from 30.5 million this year. The U.K. market follows with a 16 percent viewership growth in two years and 15.5 million esports fans by 2025. February 2023 Commercial Gaming Revenue United States: Monthly GGR by Vertical 2021-2023 U.S. Monthly Commercial Gaming Revenue 2021-2023 2018 2023 2025 Worldwide Esports Viewership 369 million 580 million 664 million predictedPlayAGS.com ©2023 PlayAGS, Inc. All Rights Reserved. All ® notices signify marks registered in the United States. All ™ and ℠ notices signify unregistered trademarks. 2017 - 2023 AGS just won Best and Brightest Company to Work For in the Nation and Atlanta for the seventh consecutive year!8 Global Gaming Business JUNE 2023 CALENDAR Andrew Burke S ince Andrew Burke took the reins as CEO of slot manufacturer Bluberi in January 2020, the supplier has grown from what had been a Canada-based Class II supplier into a significant player in the Class III slot sector, winning two awards in this year’s Eilers & Krejcik Slot Awards. Burke has augmented a strong team based in Drummondville, Quebec, Canada with many veterans of the Class III market, including IGT vet- eran Michael Brennan, now Bluberi’s chief product officer. Burke spoke with GGB Editor Frank Legato from Bluberi’s Las Vegas offices in April. To see and hear a full version of this podcast, visit GGBMagazine.com. GGB: Tell us what went into forging a new team at Bluberi that has so quickly expanded into the Class III market. Burke :Bluberi’s sort of an overnight success story that was about 30 years in the making, going back to the founding of the company on a rich legacy of high-quality graphics, entertainment-based games, and a really sound technology. We had this amazing core group of folks in Drummondville, Quebec, who have been working on this business for a really long time with a tremendous amount of talent. When we paired that with some of our newer key additions, Bluberi’s become a superpower for us. So, it does feel quick, but it’s been a long time in the making. What are you doing differently than past operations? I think there are quite a few things that we’ve been doing differently, but our culture lies in having the Canadian team and the U.S. team really finding a tremendous amount of common ground and working together. It’s blended together to create one culture... Everyone is really working together and is in sync. How have investments in research and development, and other areas, helped? We’re making a ton of investments in R&D, but I think for a company our size, you’d be shocked by the investments we’ve made in product management, gaming, operations, analytics—tools to tie all of our data together and to make better decisions. We really pride ourselves for being a small company in over-index- ing in all of those areas of the business, which are extremely important to take a little company and make it big, and to get where you want to go faster. To that point, you are now poised to grow. What is the plan for expansion in North America, and what’s next for Bluberi? We want to keep expanding. I think we will have access to roughly a third of total jurisdictions in the U.S. By the end of 2026, we’d like to be in every market in North America. We actually just started the process here in Nevada, so that’s about a 15-month timeline. So, our goal is to really keep pushing. We actually doubled the business year-over-year last year, and we’re on track to more than double the business this year. It’s surprised some people maybe, but we don’t view ourselves as underdogs anymore. We view ourselves as coming out of that emerging tier of suppliers and moving our way up into the next tier. And that’s really our goal—to build this into a long-lasting, really big business that competes in all segments of the market. With your higher profile, your products are getting more notice. Is there any concern you’re becoming more of a target for copy by other suppliers? We know it’s happening. We saw our first iteration of Devil’s Lock (award-winner for Top-Performing Game from an Emerging Supplier at the EKG Awards) at the Indian Gaming trade show, and people are taking no- tice of what we’re doing, and want to swim in that same lane that we we’re carving out and creating. We’re not going to lose too much sleep about it; we know it’s going to happen. We’re trying to be diverse in our ap- proach, and we welcome folks to make (other) versions, as everybody in this industry does, and we’re excited about all the next things we’ve got. “TheyIt” 5QUESTIONS 1 2 3 4 5 June 13-15: Canadian Gaming Summit , Metro Toronto Convention Centre, Toronto, Ontario, Canada. Produced by the Canadian Gaming Association and SBC. For more information, visit Canadiangamingsummit.com. June 17-18: Bet Expo , Transamérica Expo Center, São Paulo, Brazil. Produced by Bet Expo. For more information, visit betexpo.com. June 20-23: International Gaming Summit , Culloden Estate and Spa, Belfast, Northern Ireland. Produced by the International Association of Gaming Advisors. For more information, visit TheIAGA.org. June 26-28: World Gaming Executive Summit , W Hotel, Barcelona, Spain. Produced by Terrapinn. For more information, visit terrapinn.com. July 11-14: iGB Live! 2023 , Amsterdam RAI, Amsterdam, Netherlands. Produced by iGB Live! For more information, visit igblive.com. July 18-19: Casino Marketing & Technology Conference 2023, Grand Sierra Resort and Casino, Reno, Nevada. Produced by Casino Marketing and Technology Conference. For more information, visit casinomarketingtech.com. July 19-22: SiGMA Asia, SMX Convention Center, Manila, Philippines. Produced by SiGMA Group. For more information, visit sigma.world. August 8-10: OIGA Conference & Tradeshow, Cox Business Convention Center, Tulsa, Oklahoma. Produced by the Oklahoma Indian Gaming Associa- tion. For more information, visit oiga.org/tradeshow. September 19-21: SBC Summit Barcelona , Fira Barcelona Montjuïc, Barcelona, Spain. Produced by SBC. For more information, visit SBCEvents.com.Next >