Monthly Archives: March 2015

Rascal Flatts Kicks Off Residency in Las Vegas

“Some rednecks are coming to town and taking over,” joked Rascal Flatts’ Jay DeMarcus midway through the opening-night show of the trio’s nine-concert residency, dubbed Rascal Flatts Vegas Riot!, at the Hard Rock Hotel in Las Vegas. It’s the first extended stint by a country act at the casino’s 4,000-seat theater, The Joint, which has hosted past residencies by acts like Def Leppard and Mtley Cre.

TVA employee wins $2M in Powerball lottery

Patel usually spends part of his lunchtime making wraps at his market, but on Monday, he spent a great deal of time talking to people about Saturday’s Powerball drawing. “We open late on Sunday, like around 9 a.m., so the first customer came in and said, ‘Where’s my winning ticket?'” Patel told News 2. “I say what winning ticket? What are you talking about?” On Friday, Patel sold the winning Powerball ticket to Pendergrass, who picked 5 of the six numbers, plus the Powerball, to win $2 million.

iGaming Asia Congress 2015 to be held at City of Dreams Macau

iGaming Asia Congress 2015 is just two weeks away.

The 3-day conference and expo for interactive gaming and sports betting in Asia will take place from March 17-19 at the Grand Hyatt City of Dreams Macau.

Melco Crown Entertainment City of Dreams Macau, located at the heart of Cotai between Coloane and Taipa, offers an array of dazzling entertainment, luxurious accommodation, and international dining.

Over 250+ of Asia’s leading sports betting, online casino, lottery, social and mobile gaming executives are expected to attend. iGA 2015 is a great place whether you’re looking to form new partnerships, learn about the Asia’s latest innovations, opportunities, strategies, and developments for interactive gaming and to network to discover new opportunities.

iGA 2015 gives you more networking opportunities by bringing back the “iGA Official Speed Networking” in addition to iGA 2015 After Party, Cocktail functions, Breakfast Briefings, and more.

This year, confirmed speakers include Akamon Entertainment CPO Alex Cohen, Alderney Gambling Control Commission Exec. Director Andre Wilsenach, Paddy Power Asia President Harish Narayanan, SBTech CEO Itai Zak, 500.com VP Jim Yu, and many more.

iGA 2015 will also be co-located with Mobile Gaming & Social Casino Asia—a conference that discusses the latest innovations and developments in Asia’s growing mobile and social gaming sector in depth, which will happen on March 17 at Grand Hyatt Macau.

888, The Gaming Industry’s #1 Defensive Stock

Depending on your timeframe, 888 is either a great investment or a stagnant waste. Taking the long term view, the company at IPO was valued at £590Mm or $1.04B at the time. Today it’s only £567M, or $871M. So if you bought the IPO, you’re down 4% in GBP, or an even worse 16% in USD. Of course if you got in during 2011 you’re way up.

But in case you bought the IPO, don’t let a petty capital loss fool you (or in the case of USD, not so petty). 888 is in ship financial shape. In fact, I will go out on a limb and say that it is the most financially responsible publicly traded gambling company in the world. That doesn’t mean you’ll necessarily make more money trading it or holding it than any other company, or that it won’t go down in times of market stress. What it does mean is that it is the defensive gaming stock par excellence, as safe as a gambling stock can possibly be, what with being subject to the whims of politicians that can certainly wreak havoc on the entire industry on a dime after suffering from a fit of in-your-face double-standard morality preaching.

So if you’re in your 20’s or 30’s and you’re looking for a place to park some money for decades and take it out when you’re 65 if the world still exists (it probably will) and politicians don’t completely gut the gaming industry for lack of “public funds” (more possible), then 888 is your pick. Why?

Simply this: As I mention repeatedly time and again, the world is in a serious debt problem that only gets worse by the day. Interest rates are headed up, and when they do, companies in significant debt will be in serious trouble and may have to be liquidated. Usually when analyzing a company’s finances, a debt to equity ratio of below 50% I consider low, but even at that level, a significant and fast rise in interest rates will do serious damage to a company’s bottom line.

With 888 however, the situation is literally turned on its head. 888 not only has no debt whatsoever. It is actually a net creditor. Not on a grand investment bank level for sure, but still it puts excess funds into interest bearing accounts in Britain. Basically, it means that while other companies – those with high and low debt together – will be at least struggling if not bankrupted by rising rates, 888 will actually benefit by a rise in interest rates. This is something you have to read to believe: (page 86)

The Group’s exposure to interest rate risk is limited to the interest bearing deposits in which the Group invests surplus funds. The Group’s policy is to invest surplus funds in low risk money market funds and in interest bearing bank accounts. The Group arranges for excess funds to be placed in these interest bearing accounts with its principal bankers in order to maximise availability of funds for investments. Downside interest rate risk is minimal as the Group has no floating rates borrowings. Given current low interest rates a 0.5% downward movement in bank interest rates would not have a significant impact on finance income for the year. However, a 0.5% increase in interest rates would, based on the year end deposits, increase annual profits by US$0.4 million.

How did this happen? Well, at the risk of stereotyping, (but it’s OK in my case because I’m a Jew), the founders and majority owners are all Israeli Jews. Apparently, people say Jews are good with money. Sometimes I guess. In this case it’s certainly true.

Monday By the Numbers: Shear stats for upcoming St. Baldrick's Day

Holly Madison shaves the head of John Katsilometes of The Kats Report in support of St. Baldrick’s Foundation’s fundraiser for childhood cancer research Saturday, March 1, 2014, at New York-New York’s Brooklyn Bridge. Today’s Monday By the Numbers column is top-heavy with a little off the top as we push for support of the annual St. Baldrick’s Day events set for Saturday across the valley.

Florida legislator seeks gambling overhaul in the state

Florida Representative and House Majority Leader Dana Young filed a 332-page legislative, calling for an overhaul of the state’s gambling laws.

Young, considered as the leader of the House Republican caucus, filed the package a day before the state Legislature begins its annual session, proposing two destination resort casinos in the state, slot machines at two pari-mutuels outside South Florida, the introduction of new kinds of games, and the creation of a statewide gambling commission.

Young explained her decision to file all these bills, saying that the time is right to have this kind of conversation because “at some point, our members are going to possibly be required to make a decision on renewal or expiration of the Seminole gaming compact.”

However, at no point in Young’s legislation did she mention of the tribe, which is nearing the end of its own five-year deal with the state that gives it exclusive rights to offer card games like blackjack at its nine casinos throughout the state. If the tribe and Governor Rick Scott can’t come to an agreement on the issue, the state will lose out on its revenue-sharing deal with the Indian tribe as required by the compact.

When asked why she didn’t include them in this bill, Young said that since the tribe hasn’t come to an agreement with the state on their issues, there was no point include them, although she did say that the state is “certainly open to continuing dialogue with the Tribe as to how they fit in the larger picture.”

According to Young, the absence of this revenue sharing with the Seminole tribe is a big reason why it’s time for the state to reignite talks of allowing destination casinos in Florida. As part of her proposal, the state would open bidding for two destination resorts in the state, which would require a $2 billion investment per resort, excluding the cost of buying land, as well as approval from any host county where these resorts will rise. In return, these proposed resorts would have to pay state coffers a guaranteed amount of $175 million for each resort while also making them liable to pay state and local taxes from all operations of the resort.

Another item in Young’s proposal involves cutting slots tax for pari-mutuels from 35% to 25% should the government green light the opening of destination resorts anywhere in the state.

Ezugi Signs Live Casino Distribution Deal with Iforium

March 3rd 2015 –Ezugi, the innovative live dealer gaming system provider, today announced that Iforium shall be integrating Ezugi’s Live Casino solution to its Gameflex multi-vendor casino engine.

The distribution deal shall see Ezugi providing their entire portfolio of games including Black Jack, Hybrid Blackjack, Roulette, Baccarat, Keno and Live Lottery. All of Ezugi’s live dealer games will be available in a mobile HTML5 version as well as the Android native application to Iforium’s operators.

Kfir Kugler, CEO at Ezugi, added: “We had an extremely busy time at the recent ICE Totally Gaming Show of which several leading platform providers and operators are actively seeking to partner with Ezugi, as we are the market leaders in the provision of Live Casino solutions when it comes to product innovation and development. We look forward to our industry partnership with Iforium who are one of the leading eGaming software providers with a global client base in order to provide revenue enhancing live gaming products for their customers.”

Phil Parry, CEO at Iforium, commented “I am delighted to announce Iforium’s partnership with Ezugi. The addition of Ezugi’s innovative live casino solution further enhances the premium content available in our Gameflex multi-vendor casino engine. This distribution agreement will clearly bring exciting opportunities for both Iforium and Ezugi.”

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March Madness 2015: Predicting the four number one seeds

Selection Sunday isn’t happening until March 15, 2015, giving everybody a little under two weeks to jam just about as much information in their heads to help determine what their March Madness brackets are going to look like. That whole process is madness in itself. That’s probably a big reason why everybody loves the whole spectacle of filling up those brackets.

If you want to get an early head start on your “bracketology” education, there are a number of ways to do so, including sifting through the title odds of each team to see the chances oddsmakers have put on their odds to win the national championship. Remember, these odds are likely to change over the next two weeks so consider these as more of a primer than flat-out gospel.

Looking at what its’ being offered, it appears that three college teams appear to be locked in as number one seeds. Unless something catastrophic happens, the Kentucky Wildcats and the Duke Blue Devils are shoo-ins for two of the four number one seeds. These two teams have the shortest odds with Kentucky the overwhelming favorite at even odds with Duke sitting at 8/1.

The Virginia Cavaliers are also expected to be a number one seed, thanks in large part to its number 2 ranking in both the AP Top 25 and the USA Today Coaches Poll. Looking at it from an odds point of view, the Cavaliers are also at 8/1 odds, exactly the same as that of the Blue Devils.

These three teams appear to be locks, but that final number four seed isn’t. That’s where the fun starts. In my head, there are four teams that have a legitimate claim to that final number one seed: the Arizona Wildcats, Wisconsin Badgers, Gonzaga Bulldogs, and Villanova Wildcats.

Of these four teams, Arizona and Wisconsin are considered the likeliest choices. Don’t even be surprised if both teams make it as the number one seed, bumping off the unheralded Cavaliers in that spot. Based on oddsmakers’ odds, the Arizona Wildcats and the Badgers are both sitting at 12/1 odds, followed by the Bulldogs at 14/1 and the Villanova ‘Cats at 16/1 odds.

Whatever happens, it’s unlikely that any of these teams fall below the number 2 seed come Selection Sunday. But if we’re really trying to nail it down to the four number one teams, I’d put Kentucky and Duke as shoo-ins, largely because both teams have proven to be the class of college basketball season.

James Hilton on cost of acquisition for customer re-targeting

Rebecca Liggero talks to Global CEO of M&C Saatchi Mobile James Hilton. He provided expert insight on player re-engagement and re-targeting. 

 

James Hilton, Global CEO of M&C Saatchi Mobile provided expert insight on player re-engagement and re-targeting.  Hilton explained why the industry moved from player acquisition to player re-targeting and why this shift had been seen recently.

“Basically the cost of acquisition has gone up tremendously over the years. The wholesale media cost has gone up,” Hilton said.

Hilton described re-targeting as “what it’s really all about” because it’s more expensive to acquire players these days and operators must achieve a higher lifetime value to justify the cost.

Before triggering messages, Hilton advised operators to segment their audience: find out who they are, then retarget and hit them with a relevant message.  Within that message, deep-link them back to where they were, for example back to the bingo game or the casino game they were playing rather than to the homepage.  “Contextual deep linking”, he called it.

Hilton also emphasized the importance of collecting metadata at a granular level and emphasized “you have to tag everything”.  “It’s turning into a data game- who has the best data and more importantly, who can use this data”, he said.

Wynn Resorts removes Elaine Wynn from the board

Casino operator Wynn Resorts Ltd. announced in a proxy filing with the Securities and Exchange Commission on Friday that the company is reducing its Class I board members from three to two, removing Elaine Wynn as director.

The board decided not to re-nominate Elaine Wynn—the former wife of company Chairman and CEO Steve Wynn, major shareholder, and director of Wynn Resorts for more than 12 years—after her term expires at the company’s next annual meeting on April 24.

The Nominating and Corporate Governance Committee cited several reasons including a 2012 lawsuit she filed against her ex-husband to change a longstanding stockholders agreement, “actual or potential conflicts,” and her “lack of independence under Nasdaq listing standards and resulting inability to serve on key board committees.”

“This news is extraordinarily disappointing, not just because I, as the co-founder of Wynn Resorts, have devoted my life to making this company a success, but because the decision excludes the last woman director from the board,” Elaine Wynn said in statement emailed from Southern California attorney and political strategist Mark Fabiani on Monday. “I am reviewing all of my options.”

Elaine Wynn also told the company, in a letter dated Feb. 13, that if the board failed to nominate her to serve another three years as a director, she would nominate herself and deliver a proxy statement to stockholders.

Wynn Resorts Spokesman Michael Weaver said on Sunday that the company wouldn’t comment about the details of the proxy statement. “Steve Wynn supported the candidacy of Elaine Wynn; but the board, as a whole, accepted the recommendation of the nominating and corporate governance committee in electing to reduce the number of inside directors and not re-nominate her.”

Aside from reducing the number of its Class I Board members, Wynn also announced during its filing that Wynn Palace’s estimated figure has changed from $4b to $4.1b, a 2.5% increase and the opening of the casino would be delayed in the first half of 2016, instead of the initial plan to open before the 2016 Chinese New Year, which will fall on Feb 8.

Caesars loses $1b in Q4 as Caesars Palace suffers “nearly unprecedented poor hold”

Casino operator Caesars Entertainment managed to lose another billion dollars in Q4, despite modest revenue gains.

Revenue in the three months ending Dec. 31 topped $2.1b, up 6% from the same period the previous year. Gaming revenue nudged up 1.6% to $1.37b, room revenue rose 7% and those hard-partying 20-somethings pushed food and beverage up 9% to $378m.

Net losses for the quarter came to $1b; better than the $1.75b loss a year ago, but unless you’re Sheldon Adelson, a billion is still a billion.

For the year as a whole, revenue was up 3.6% to $8.5b and losses were slightly less nausea inducing, improving 6% to a mere $2.77b. Caesars shares rose 4% on the day only to fall nearly 8% in after-hours trading.

Caesars’ digital operations were credited with giving revenues a $156m shot in the arm this quarter while brick and mortar operations were hit and miss, Outgoing Caesars CEO Gary Loveman claimed that a “nearly unprecedented poor hold” at Caesars Palace in Las Vegas took a $60m bite out of earnings. To which CFO Eric Hession added: “Sadly, not too many people had to use casino credit.”

Results were aided by the August opening of Horseshoe Casino Baltimore, which has yet to unseat Maryland Live! as market leader but has posted decent numbers. The year also saw the launches in Las Vegas of the Cromwell and the High Roller observation wheel, the latter seeing daily visitation rise 10% sequentially to around 5k. Caesars’ rejigging of its Atlantic City properties left the surviving operations “marginally profitable” in Q4.

Loveman, who is exiting the CEO position on June 30 in favor of former Hertz Global Holdings CEO Mark Frissora, said he had no way of proving the emerging theory that the recent plunge in gas prices had given a boost to the regional casino industry. Loveman acknowledged that gas prices might play a role but was more intrigued by the idea that the industry was witnessing “the stabilization of the supply dynamics.”

N.J. Assembly panel OKs bill subjecting NJ lottery to stronger rules on advertising

After falling $24 million short of its forecast in its first year of privatization, the New Jersey Lottery could be subject to stronger rules on advertising and marketing of its games, a measure one North Jersey Assemblyman said would save the lottery managers money. The Assembly Tourism, Gaming and Arts Committee on Monday approved a bill, sponsored by Maywood Democrat Tim Eustace, to require the Division of the State Lottery to work with other states with multi-state lottery games to share their advertising and marketing expenses.