By Staff   Fri, Feb 05, 2010

The inability to play a role in gaming development in Macau has long been a hole in the portfolio of Harrah's Entertainment. And because American competitors like Las Vegas Sands, MGM Mirage and Wynn Resorts have done so well in the Chinese enclave, Harrah's lack of presence in that market has been especially irking for company chairman, Gary Loveman.

It appears, however, that a strategy is emerging that will fix that problem. Reports last week out of Macau suggest that Harrah's and Crown Entertainment are in discussions to buy Crown's interest in two casinos in Macau and the potential for more.

Crown, controlled by Australian gaming magnate James Packer, entered the market via a sub-concession partnership with Lawrence Ho and Melco Entertainment. Ho's role was part of the concession owned by his father, Stanley Ho, the major shareholder in SJM Holdings, who had a monopoly on gaming in Macau until the Chinese government opened up the industry following the handover from Portugal in 1999.

Crown has struggled financially in the past several years, due to messy investments in American gaming companies, particularly Station Casinos, the Fontainebleau in Las Vegas, and an adjacent property that would have been a Crown casino on the Strip. The company's interest in Macau has been one bright spot in its financials, with the Altira and City of Dreams performing nicely.

David Bain, a analyst with Sterne Agee, reported last week that Harrah's was ''acutely interested'' in buying Crown's 32 percent stake in Melco Crown Entertainment. Bain reported that attorneys in Macau were exploring the legal landscape that would come with such a transfer of equity, something that has not occurred in Macau since the opening of the gaming industry.

Since the only other option for entry into Macau is an expansion of the concession system-something that former Macau Chief Executive Edmund Ho said was off the table for at least 10 years-Harrah's has been forced to consider the equity purchase of Crown.

In addition to the $600 million that Crown paid Melco for the sub-concession, the joint venture has invested S3 billion in the City of Dreams casino resort, which targets the mass market, and S1 billion in Altira Macau, a property aimed directly at the city's VIP market.

Harrah's sole role in Macau at this point is ownership of the city's only golf course, which could become a casino site at some point should Harrah's receive a concession.

Packer has a close relationship with Harrah's executives and Crown actually owns a 2.5 percent stake in the company, which was written down to nothing recently by Crown.

In a conference call with investors early last week, Ho denied Bains' report.

"From our perspective it's total nonsense," Ho said. "Both James and myself and the management have really come this far, and we see a lot of potential growth, and the business is ramping up very, very nicely. It's really nonsense, all the rumors that we've heard."

Loveman believes that a Caesars Palace brand in Macau could become of the world's most successful casinos. A Harrah's spokeswoman refused to comment on the report.

Harrah's isn't the only major gaming company shut out of Macau. Malaysia's Genting Bhd, operators of Genting Highlands near Kuala Lumpur, and the recently opened Resorts World Sentosa in Singapore, has also eyed the SAR. Last year, Genting bought a piece of MGM Mirage in the hopes that the company might exit Macau in order to retain its gaming license in New Jersey, where regulators are questioning MGM's partnership with Pansy Ho. But with an IPO or MGM Mirage Asian operations underway, Genting is likely out of luck unless Macau would agree to issue more casino concessions.

"I think the possibility of more concessions is very low," Manuel Joaquim das Neves, director of Macau's Gaming Inspection and Coordination Bureau, told Reuters last week.

Sat, Feb 06, 2010

Philip Martin, the head of the Choctaw nation who performed what had become known as the "Mississippi Miracle, died last week after suffering a massive stroke. Martin, chief (or miko) of the tribe for 32 years until being unseated in 2007, was a pioneer in economic growth in Indian Country, arranging financing to build manufacturing plants for auto parts and defense items on the tribe's central Mississippi reservation long before gaming became a valued tool.

But when gaming did become available, Martin took full advantage of it. When riverboats were legalized in Mississippi in 1992, Martin immediately built a land-based casino, equal of anything found in Las Vegas. Today, the casinos are a big revenue generator for the tribe. The tribe today employs more than 6,000 people, making it one of the largest employers in Mississippi.

Martin was eulogized from many quarters.

NIGA Chairman Ernie Stevens, Jr., called Martin "one of most important mentors in my life. He was an American legend."

"Chief Martin earned respect for the Mississippi Band of Choctaw as one of our original American democracies and he was a champion of Indian sovereignty," Stevens said. "He always worked to create Indian opportunity and to ensure respect for Indian sovereignty. He improved the lives of Indian people throughout the nation." 

Miko Beasley Denson, current Choctaw chief related, "I, along with every member of our tribe, am saddened by the passing of Phillip Martin. He was a great man and a visionary leader. I had the privilege of working with chief for many decades when I was on tribal council and leading various tribal enterprises. He transformed the economy of our tribe and with it the fate of our people. He modernized our government." 

Principal Chief Michell Hicks, of the Eastern Band of Cherokee Indians, said, "Chief Phillip Martin was an exceptional leader who was dedicated to the Choctaw people and to the betterment of Native people throughout the country. His leadership and vision brought his tribe to a position of prominence and prestige from very humble circumstances. Chief Martin has always been a friend to the Cherokee and a personal friend to many of our leaders and we join the Choctaw people in honoring his passing. To his family we offer our prayers and condolences."

U.S. Senator Roger Wicker (R- Mississippi) was saddened by Martin's passing.

"Chief Martin was a leader who inspired his people and strengthened his community and state," said Wicker. "During his years of public service, he helped bring his community out of poverty and troubled times and created hope and opportunity for Mississippi Choctaws. Chief Martin will be missed by many, but his legacy of self-determination will continue to flourish in future generations of Choctaws."

U.S. Senator Thad Cochran (R-Mississippi) said, "I am saddened by the loss of Phillip Martin, whose service to and leadership of the Choctaw tribe resulted in the accomplishment of many good things. It was my privilege to work with Chief Martin as he brought forth new ideas to improve life for the Choctaw people and to expand their cultural, economic and educational opportunities. In the end, he helped not only the Mississippi Band of Choctaw Indians, but all of Mississippi."

Martin is survived by his wife Bonnie, daughters Deborah Lewis and Patricia Gibson, five grandchildren and four great-grandchildren.

Fri, Feb 05, 2010

Kim Sinatra is one of the most dynamic attorneys in gaming law. Her representation of Merv Griffin and Resorts International in the 1980s led to a job with Caesars Entertainment, where she worked under several CEOs and chairmen, not only as a legal counsel but a key member of the development team. Now, at Wynn Resorts, Sinatra has expanded her legal set to include international development. She is a key member of the team that considers expansion plans around the world for Wynn and her responsibility expands far beyond the simple compliance issues that are the focus of most corporate legal counsels. Sinatra spoke with Global Gaming Business Publisher Roger Gros at the corporate offices for Wynn Resorts in Las Vegas in December.

Sun, Feb 07, 2010

Company says plans do not fit strategy

In a move that surprised no one, Pinnacle Entertainment last week officially announced that it would not build a $2 billion casino resort on the Atlantic City Boardwalk. The company has already suspended planning and development because of a lack of financing but once chairman Dan Lee was dethroned last November, insiders knew the project was dead. All that was needed was the official notification, which came during an earnings call last week.

Acting Chairman John Giovenco, the former head of Hilton Hotels, gave investors the news.

"We hope to sell as soon as a reasonable bid comes in," he said.  "I can't tell you when. Hopefully, sooner than later."

Giovenco admitted there has been little interest in the property. But a Pinnacle spokeswoman said that it may work for a company with a different approach.

"Atlantic City is no longer a good strategic fit for us, given the current economic outlook, the state of the financing markets and the major capital commitment that would be required," said Pauline Yoshihashi. "It's an attractive and well-located site, and may be a better strategic fit for another company."

Pinnacle bought the site of the former Traymore hotel from Harrah's Entertainment in 2005 and then purchased the Sands Casino Hotel, which operated adjacent to that land in 2006. The Sands was later closed and the building imploded with great fanfare in October 2007. But the economic crisis followed shortly on the heels of that implosion and financing evaporated, causing Pinnacle to shelve the project.

City officials are concerned that the vast empty lot in the center of town will reflect badly upon the city and are considering plans to convert it to a parking lot or possibly some kind of entertainment attraction. Mayor Lorenzo Langford has proposed swapping the Boardwalk land for a site in the city's Bader Field section, a former airport slated for redevelopment, but Pinnacle seems intent on exiting the city entirely.

Fri, Feb 05, 2010

Slovenian casino-resort operator Hit Group is suing its former management and supervisory boards.

At the company's annual meeting at the end of January, shareholders decided in favor of the action after becoming familiar with details from a special audit conducted on the period 2006-2009, according to Slovenian business news source finance.si. During the period in question, Hit was led by Niko Trost.

Current management will be seeking punitive damages from the bodies involved.

Fri, Feb 05, 2010

George E. Gasser, former CEO and youngest of the three founding brothers of Gasser Chair Company, died last week at age 80 in his home town of Youngstown, Ohio.  

Gasser built the furniture company he founded in the mid-1940s with his two brothers into one of the most successful gaming industry vendors, providing seating to casinos around the world.

The three Gasser brothers (George, Louis and Roger) founded the company in a family-owned horse barn in Youngstown, using their machinist skills to work with what was a relatively new material at the time, aluminum. Early jobs included assembling storm window and screens, aluminum beer kegs and custom aluminum parts. The company became Gasser Chair in 1946, after they launched a line of aluminum-frame dinette sets, and took off after those products impressed attendees at the 1948 National Restaurant Show.

When casinos began to require slot stools, Gasser Chair became one of only a few vendors to establish itself as a prime supplier to the new market.

Gasser Chair Company remains a family-owned business, with the second and third generations of the family, teamed with some of the finest skilled and dedicated people in all aspects of the business, following the founders' original principles.

George Gasser is survived by his wife, Janet, eight children, 18 grandchildren, eight great-grandchildren and several nieces and nephews.

Sat, Feb 06, 2010

Seneca Gaming Corporation announced that Jim Wise has joined the company as senior vice president of marketing.

A 20-year casino industry veteran, Wise has held senior marketing and public relations positions at several casinos, including the Sands Hotel & Casino in Atlantic City, Argosy Gaming and Hollywood Casino Corporation. Most recently, he was vice president of marketing for Mohegan Sun at Pocono Downs in Pennsylvania.

Wise will lead the overall marketing strategy and initiatives, including marketing, advertising, promotion and player development, for each of Seneca Gaming Corporation's three western New York casino properties-Seneca Niagara Casino & Hotel, Seneca Allegany Casino & Hotel and Seneca Buffalo Creek Casino.

"Jim brings a dynamic perspective to our team," said Cathy Walker, chief operating officer of Seneca Gaming Corporation. "His work with gaming companies across multiple jurisdictions will be an asset to our ongoing efforts to expand our geographic reach and to provide our patrons with the best possible experience during each visit to our properties."

"Seneca Gaming Corporation presented a unique opportunity to join a growing company with multiple properties and to build upon a strong foundation," Wise said. "I believe we are well-positioned from both a business and geographic standpoint to grow and expand our market share and introduce new customers to world-class offerings available at our casino properties."

Sat, Feb 06, 2010

Hard Rock International recently selected Michael Shindler to be the company's executive vice president of hotels and casinos. He will take over the position in mid-February.

Shindler has a wealth of hospitality experience, having served as chair of the board of directors of Hyatt Gaming Management; vice president of development and asset management for Las Vegas Sands; vice president of development in the Americas for Mandarin Oriental Hotel Group; and as president and CEO of Four Corners Advisors, Inc.

"We look forward to drawing on Michael's extensive network and experience in the hotel and gaming industry to promote continued growth of our brand," said Hard Rock International President and CEO Hamish Dodds.

In his new position, Shindler will oversee the global development of hotels and casinos for the company, as well as daily management of the brand's existing assets.

Sat, Feb 06, 2010

Technology solutions company NYX Interactive has picked former Microgaming executive David Flynn to become COO of the company. Flynn will be working with CEO Staffan Lindgren to manage the company's daily operations and oversee its expansion.

"David joining us is part of our expansion plans to become the dominant player in the platform and services sector," Lindgren says. "His service ethic coupled with experience across all gaming verticals makes him an excellent fit for our future growth."

Prior to joining Microgaming, Flynn served as vice president and director of Ongame Network, which has since been renamed Bwin Games AB. He also worked as European operations manager for Vision IQ.

"I am extremely happy to have joined the NYX Interactive team," Flynn says. "NYX's solutions, products and staff are beyond doubt one of the most flexible in the industry, empowering its customers with real time marketing and brand solutions increasing player lifetime values across its spectrum of products."

Sat, Feb 06, 2010

TransAct Technologies recently promoted Andrew Hanley to the position of vice president of international sales. The promotion took effect immediately.

"There's never been a better time to be at TransAct," Hanley says. "The broad range of products and growing international markets are an opportunity for us to increase our presence and grow our share around the world. I am excited and optimistic about our prospects in my expanded role."

As vice president, Hanley will oversee sales of the company's casino and gaming products and services within the Asia Pacific market, which includes Macau, Singapore, Australia, Taiwan and the Philippines. He will also oversee the company's South American sales.

"We congratulate Andrew on his promotion, as he has had a history of success with TransAct," says Tracey Chernay, senior vice president of sales and marketing for TransAct. "During the past three years, Andrew's main focus has been to build market share and awareness of TransAct's casino and gaming printers within the Asian market. His clearly demonstrated success in developing this market for us will serve him well as he expands his efforts to include growing responsibilities in additional developing markets."

Sat, Feb 06, 2010

Richard J. Schilling Jr., known as "the father of Mississippi gaming," died on January 27 at his home in Boca Raton, Florida. He was 62.

Schilling started in the restaurant business as a dishwasher at age 13. He went on to own some of the most successful entertainment venues in the country, including the legendary Beverly Hills Supper Club near Cincinnati, and Splash, the first casino in Tunica, Mississippi.

The Beverly Hills Supper Club was one of the first Midwestern clubs to host stars like Frank Sinatra and Ella Fitzgerald. It opened in 1971 and was recognized for years as the "Showplace of the Nation," with a nightclub that seated 5,500 patrons.

Schilling also opened the first riverboat restaurant, the Islands, in Newport, Kentucky, which became the highest-grossing restaurant in the United States.

In 1986 the Islands and its nightclub, Splash, were relocated to Louisville, Kentucky, and moved again in 1992 to Tunica, Mississippi, 29 miles south of Memphis.  

Though Schilling was diagnosed with colon cancer in 2002, he continued to work. He designed, built and ran a $75 million casino resort called Harlow's in Greenville, Mississippi. He sold his controlling interest in the facility in early 2009.

Sat, Feb 06, 2010

Isle of Capri Casinos recently announced that it has expanded its board of directors and selected Gregory Kozicz for the new slot on the board.

"I am pleased to welcome Greg to the board of directors," says Chairman and CEO James Perry. "Greg is committed to enhancing shareholder value and brings high professional and personal ethics consistent with the longstanding values of the company. We believe that his background and experiences will increase the overall effectiveness of the board of directors."

Kozicz is president and CEO of the St. Louis-based Alberici Corporation. His election to the Isle of Capri board must be approved by gaming regulators before being finalized.

Sat, Feb 06, 2010

Playing card supplier Gemaco Inc. announced the addition of Clay Dubois, formerly of Wynn Macau and WMS Gaming, to its U.S. sales team as senior manager, Western Region. Dubois will be based in Las Vegas.

"We're really excited to have Clay on board with us," said Jason Fitzhugh, president of Gemaco's casino division. "Obviously, anyone who has spent time at Wynn or WMS has an excellent understanding of customer service, and we believe this experience makes Clay uniquely qualified to understand our clients' needs."

Sat, Feb 06, 2010

David Fendrick, chief operating officer for the Agua Caliente Band of Cahuilla Indians' California casinos, left the company at the end of January.

The tribe refused to comment on Fendrick's departure, saying only that it was a personnel matter.

"There's nothing negative about it," Fendrick told the Desert Sun. "It wouldn't be appropriate to comment. It's their decision. I'm just moving on-going to look for other opportunities.

Fendrick worked for the tribe for five year and was responsible for overseeing the construction of the tribe's Agua Caliente casino and The Show.

Prior to joining the company, Fendrick worked for Pala Casino Resort and Spa, Empress Casino and other riverboat properties.

Sat, Feb 06, 2010

Astra Games Limited has taken a majority stake in online content provider Greentube.

Greentube is an Austrian-based provider of skill games, casino games, bingo and related products for a variety of digital media platforms. Browser-based technology enables Greentube to service more than 30 partner websites and a global player base in excess of 10 million within their partner network.

Zane Mersich, managing director of Astra Games, said in a press release, "The acquisition of Astra's majority shareholding in Greentube represents a highly significant step in the further expansion of a recently created business area for Astra Games and our parent company, the Novomatic Group. We aim to become a major player in the online sector and this deal is a very tangible sign of the progress that we are making."

Astra, based in the U.K., is an 18-year veteran producer of gaming machines for various non-casino markets at home and internationally. The company became a subsidiary of Novomatic in 2004.

Greentube will immediately be tasked with taking on the full commercial and R&D responsibility for the Novomatic/Astra developed Novo Remote Gaming System, which provides regulated online gaming markets with successful and proven "best of breed" land-based gaming content. For more information go to www.nrgsplay.com.

Sat, Feb 06, 2010

Slot and system manufacturer Bally Technologies announced that it has signed a seven-year contract to extend its current term with the New York Lottery to continue providing video gaming terminals to the state's eight racetrack casinos. The contract extension will commence immediately and run through December 31, 2017.

The company is one of three video gaming providers in the state. Bally currently has a 51 percent market share, providing more than 6,400 VLTs to Batavia Downs Casino, Empire City Casino at Yonkers Raceway, Fairgrounds Gaming & Raceway, Finger Lakes Gaming & Racetrack, Monticello Casino & Raceway, Saratoga Gaming & Raceway,  Tioga Downs Casino and Vernon Downs Casino & Hotel.

A ninth casino at Aqueduct Racetrack could come on line as early as 2011.

"We are pleased to extend our partnership with Bally Technologies, and make a long-term commitment to continue working together as we continue to grow our video lottery program," said New York Lottery Director Gordon Medenica. "Bally's video game content has proven to be very popular with our customers, and is helping us deliver increases in net win across our casino network, and in turn, give back to our state's vital funding for education."

"We are humbled and extremely proud that the New York Lottery has chosen to continue its partnership with Bally Technologies beyond the terms of our initial contract," said Bally CEO Richard M. Haddrill. "The first five-plus years of our relationship have been positive for both parties, and we are proud to have helped the lottery return more than $930 million from Bally units in support of aid to education in New York during that time."

Sat, Feb 06, 2010

Playtech, a developer and licensor of software for the international online, mobile and land-based gaming industry, announced that it has signed a partnership agreement with U.K.. gaming operator Virgin Games.

Under the agreement, Playtech's soft gaming solutions developer, Gaming Technology Solutions Limited, is licensing its software platform "EdGE" to Virgin Games, and will also deliver a new selection of game products for addition to Virgin's library.

The EdGE platform is a cost-effective and easily integrated games engine that will allow Virgin to manage and operate its games with ease. Its ICE Back Office toolset delivers many functional and performance enhancements to Virgin including support for games marketing campaigns, report customization, customer support and more in a user-friendly interface.

"We are looking forward to working with GTS, and through the delivery of their platform, we have access to a variety of leading games content from world class developers," said Warren Eloff, casino product manager for Virgin Games. "ICE is a comprehensive management suite, and we are confident that the added level of control we will have over our games content will have a very positive effect on our growth.

Mor Weizer, CEO of Playtech, added, "We are delighted that Virgin Games, a well-established and leading operator, has chosen Playtech's GTS as their games integration partner and EdGE as their software solution. Virgin is setting new benchmarks in terms of their player promotion and marketing activities, and we look forward to a successful partnership in 2010 and beyond."

Sat, Feb 06, 2010

Leading slot manufacturer International Game Technology announced the first European sales of its server-based gaming solution sbX. The 300-machine Casino d'Evian in France represents IGT's first European sale of sbX, which links slots to a central server for remote downloads and two-way communication.

The manufacturer subsequently announced the first sale of sbX in Italy, to Casino de la Vallée in St. Vincent.

"We are delighted to be the first casino in Europe to opt for sbX server-based gaming and all that it has to offer," said Eric Perrin, managing director of Casino d'Evian. "It will allow us to be at the forefront of gaming technology and to continually ensure that we offer the right games to our guests in the right place and at the right time. We are very pleased to be making the transition to both server-based and coinless gaming together with LUDI and IGT."

The system provides open access to more than 100 international titles from IGT's game library. The sbX Floor Manager system works within the existing French regulatory requirements for game conversions and is scheduled for a field trial with the French gaming authorities.

"The powerful combination of sbX Floor Manager and sbX Analytics offers casino managers in-depth insight into their game performance and player preferences, as well as the ability to continually optimize their slot floor," said Ali Civile, sales director of IGT Europe.

Casino de la Vallée operates close to 500 slot machines, with close to 80 percent IGT games. The casino added 100 AVP video slots to link to the sbX server.

"We are looking forward to becoming one of the leading operators of server-based gaming technology in Europe and the operational benefits and enhanced guest experience that sbX will bring," said Luca Frigerio, sole administrator of Casino de la Vallée.

Casino de la Vallée's decision to install sbX comes soon after the largest implementation of sbX to date at Aria Resort & Casino at CityCenter in Las Vegas, which launched in December.

Sat, Feb 06, 2010

FutureLogic, a leading manufacturer of thermal ticket printers for ticket-in/ticket-out applications, announced that it has signed a global technology agreement with slot manufacturer WMS Gaming. Under the agreement, FutureLogic's GEN2 Universal printer will be the preferred printer in WMS gaming platforms.

The two companies also have agreed to work together on strategic marketing initiatives and new printer applications for next-generation games.

"FutureLogic's reputation for innovation, as well as their leadership in the evolution of network-enabled peripherals and their work in supporting our customers' initiatives, is precisely what we seek in our technology partners," said Bruce Frey, vice president of global sourcing and planning for WMS Gaming.

"We are proud to have entered into this strategic agreement with WMS Gaming, their affiliates, distributors and sales channel partners," said Nick Micalizzi, FutureLogic's VP of domestic sales and marketing. "We look forward to supporting their expansion and development programs via the continuous development of world-class printing and networked gaming solutions."