Inside Asian Gaming

December 2008 | INSIDE ASIAN GAMING 47 Briefs Australia and in Asia. One of Aristocrat’s launches at G2E was a new game based on the hit Hollywoodmovie Jaws and its spin off films—a theme that should travel successfully across markets. Aristocrat also launched a high-tech touch-screen ‘stepper’ video poker machine with high quality graphics and sound. This product could be particularly suited to the non-casino market in Asia where players in gaming arcades and halls compete for prizes rather than hard cash. Emerging markets are likely to be particularly important for all the Australian gaming manufacturers as gaming clubs at home seem likely to cut back their machine replacement programme over the next few years. A spokesman for Clubs NSW, a major domestic operator with 72,000 gaming machines, recently cited recession, increased taxes and a smoking ban in venues as reasons for a likely fall in revenue and subsequent revision of its replacement policy. In the first half of 2008, 40% of Aristocrat’s sales revenue came from US casinos. Australia and New Zealand accounted for a 21% share, with Japan gaming arcades providing 20% and emerging markets such as Macau and Europe providing 18%. Cryptologic Partners With GTECH Subsidiary Online gaming software provider CryptoLogic Limited announced last month that it has entered into a strategic Internet poker agreement with Boss Media AB, a subsidiary of GTECH Corporation, one of the world’s leading gaming technology and services companies.CryptoLogicwillmerge itsmajor poker customers with Boss Media’s International Poker Network (IPN) within the first quarter of 2009. The agreement is in line with CryptoLogic’s recently announced growth strategy to focus on its highly popular branded games and its Internet casino business. The migration of CryptoLogic’s poker operations and customers to the Boss Media network, along with other measures, will help CryptoLogic save an estimated US$12-15 million per year. MGM Mirage Appoints New Chief Last month,MGMMirage’s board of directors elected JimMurren, the company’s president and chief operating officer, to the post of chairman and chief executive officer five days after the resignation announcement of outgoing Chairman and CEO Terry Lanni, who left the company after 13 years. Lanni will remain as a company director and join MGM Mirage’s Diversity Committee. The 47-year-old Murren,who took over on December 1st,said the company is well-equipped to face the challenges of the worldwide recession. “We’re in a battle as a consumer-oriented company,”said Murren, who has seen his company’s income decline 58.9% in the first nine months of 2008. “And I do believe we have the best-trained, best- equipped troops to win the battle.” Kirk Kerkorian, the billionaire investor who holds a majority stake in MGM Mirage, praised Murren’s selection to head the company. Murren, who will keep the titles of president and COO, said the challenges facing the companywhen he takes over include delivering the US$9.1 billion CityCenter next year—a project he is credited with envisioning. Murren joined MGM Grand Inc. in 1998 as chief financial officer after spending 14 years on Wall Street as an equity analyst and managing director at Deutsche Bank. Murren said his Wall Street background and his 10 years with MGM Mirage will equip him“well to face the challenges we have.” Lanni, 65, announced his retirement last month, saying the challenges facing the company “are best addressed by a younger person.” Encore Enters Tough Climate The Las Vegas Gaming Wire reported the US$2.3 billion Encore will open on December 22 “in the middle of what many have called the worst economic crisis ever to hit the Strip and the gaming industry.” Casino revenues on the Strip have declined more than 6% in 2008 through September. Encore, with 2,034 hotel rooms, is attached to Wynn Las Vegas. The resort will open with 72,000 sq.ft of casino space,five restaurants, 11 retail outlets, a nightclub and a luxury spa. Brian Gordon, a partner in Las Vegas-based business advisory firm Applied Analysis, said new casino openings have historically boosted visitation. But a resort like Encore has never opened in this type of economic climate. Deutsche Bank gaming analyst Bill Lerner said Encore will probably take some business from Wynn Las Vegas and draw customers from neighbouring Strip resorts. Encore is attached to the 2,700-roomWynn Las Vegas, so the properties will share back- of-the-house operations. ATRONIC Launches New Ticketing Solution ATRONIC´s Systems Division is adding to its successful chip cash™ solution in the cashless gaming arena by launching qpon cash™, a ticketing solution that suits all operations regardless of venue size and budget. In addition to offering the usual benefits of cashless gaming and allowing the use of tickets as an extra promotional tool, qpon cash supports SAS communication protocols and offers maximum control over ticket redemption and issuing. The player experience is also enhanced by qpon cash, which is easy to use, speeds up game play, and allows for ease of movement between machines of varying denomination. ATRONIC, a leading global slot machine manufacturer, also recently signed a deal with Cantor Gaming, granting Cantor exclusive use of a wider range of games for Cantor’s handheld and online gaming formats.The new online and handheld games are based on popular ATRONIC slot games, such as the classic SPHINX™ theme. “ATRONIC is excited to be partnering with Cantor and thus expanding access of our player’s favorite games through Cantor’s mobile devices within casinos and the legal online casino markets”, said Ken Bossingham, ATRONIC Americas Chief Operating Officer.