NEWS & NOTES

Small Nuggets of News

The U.K. Gambling Commission says outgoing CEO Jenny Williams will remain in the role until September, due to “the protracted timescale related to making government-related public announcements.” UKGC has identified a possible new CEO, but no announcement will be made until after the UK general election May 7.  ?  Scientific Games Corporation has confirmed that Santa Casa da Misericórdia de Lisboa, the operator of the Portuguese State Lottery, reported record instant game sales in 2014, a year-over-year increase of 18 percent. The trend has continued in 2015 with instant game sales exhibiting an unprecedented year-over-year increase of more than 35 percent thus far. Scientific Games signed a two-year contract in February 2014 to provide instant games and related services to SCML.  •  A 1993 piece of legislation in Texas designed to protect carnival style games from gambling laws known affectionately as the “fuzzy animals” bill created the opportunity for these underground casinos to proliferate, according to the Texas State Lottery. “[The bill] was intended to ensure that amusement games, such as those played by children at Chuck E. Cheese’s or a carnival that awarded stuffed animals, would not be considered unlawful gambling devices, reported the New York Times. The bill, signed into law by Gov. Ann W. Richards, legalized any device made for “bona fide amusement purposes” that awarded non-cash prizes. The state lottery commission believes that up to 150,000 illegal slot machines in the state reward winners with thousands of dollars behind the shield of the 1993 law.  •  Japanese Konami Corp., parent of slot-maker Konami Gaming, notified the New York Stock Exchange (NYSE) that it will apply for voluntary delisting of its American Depositary Shares (ADSs). The delisting will become effective on April 24, the company said in its latest filing. The firm will also file a form on April 13 with the U.S. Securities and Exchange Commission for deregistration, which should become effective in July. The plan to delist its ADSs had been announced in November, with Konami saying that the listing on the NYSE was “not economically justified” and the trading volume of its share on the NYSE accounted “for only a small fraction of the total trading volume of its shares.”  •  The Horseshoe Baltimore casino, opened last August, has not met revenue projections, but according to a revenue report released last week by the Maryland Lottery and Gaming Control Agency, the new venue has hurt all four of the other Maryland casinos. Year-over-year, statewide casino revenue increased 16.9 percent, but it was all attributable to the Horseshoe. The four other state casinos saw revenue decline by 14.8 percent.  •  Online payment service provider SafeCharge plans to make an acquisition costing US$100 million or more in 2015 to expand its client base, and if necessary will raise money to do so, Chief Executive David Avgi said in an interview. The London-listed company, which is majority-owned by Israeli billionaire Teddy Sagi, has $125 million in cash and a pipeline of opportunities in Europe and Asia, Avgi said. “I believe we will look for companies similar to SafeCharge’s core business,” he told Reuters, adding he was seeking new clients in diverse geographical markets and industries. “I’m looking to buy a book of clients and migrate them to SafeCharge’s platform.”  •  Isle of Capri Casinos has set the pricing of an additional $150 million of 5.875 percent senior notes due 2021, of which $350 million were originally issued on March 5, 2013. The additional notes will be issued at an offering price of 102 percent plus accrued and unpaid interest up to but excluding April 14, 2015. Isle said it intends to use the proceeds, together with additional borrowings under its senior secured credit facility and cash on hand, to buy back the company’s 7.75% senior notes due 2019.  •  The Ontario Lottery and Gaming Corporation plans to privatize Point Edward Casino in the southwest of the province and machine gaming operations at five racetracks in the region. The OLG says the move will spur investment and the relieve taxpayers of the costs of maintaining or expanding the facilities. A spokesman said the corporation is in the final phases of drafting a request for proposals for release later this year. Point Edward houses 450 slots and 21 table games and employs 340. Gaming revenue totaled C$11.2 million in the quarter ended December 2014. The five racinos generated a combined $44.1 million over the same period.  •  The City-County Health Board of Great Falls, Montana, is preparing non-smoking guidelines for casinos in the city in the aftermath of a February ruling by the state Supreme Court that the closed design of smoking rooms installed at least two of the properties does not comply with Montana’s Clean Indoor Air Act.  •  The Kansas Senate has voted 19-18 to reject former Mission Mayor Laura McConwell’s bid for a full term on the state’s Racing and Gaming Commission. McConwell, appointed by Governor Sam Brownback last summer to fill an unfinished term, raised the ire of conservative lawmakers with her support of a controversial 2010 transportation tax that is in litigation in the state courts.  •  Mark Jocks has been named chairman of the Kahnawake Gaming Commission, succeeding Dean Montour, whose term ended March 31. Jocks has been involved in information technology since 1988 and has worked in the online gaming industry since 2005, in both regulatory support and information technology, including several years at the Kahnawake Gaming Commission.  •  More than 60 percent of voters in the Chicago suburb of Palatine have said no in a non-binding referendum to allowing bars and restaurants in the municipality to operate video gambling machines. With nearly all 48 precincts counted, 2,518 voters registered their opposition while 1,603, or 38.9 percent, voted in favor. Under Illinois law, counties and towns that allow video gambling receive 5 percent of each machine’s revenue above what’s paid out. The state receives 25 percent, with the rest to be evenly split between establishment owners and the terminal operators. Because the referendum is non-binding, the Palatine Council could still take up the issue.   •  Maryland-based bet-processing company AmTote is suing Kentucky Downs and an affiliated company in federal court, alleging breach of contract and intellectual-property theft in connection with the track’s operation of historical-racing betting machines. Kentucky Downs earlier this year replaced AmTote as its bet-processor in favor of Encore Gaming, the other defendant in the suit. Encore is part-owned by Ray Reid, a partner in Kentucky Downs. AmTote, which is owned by The Stronach Group, claim the track passed on knowledge of its internal operations and source code to Encore, which used the information to build a competing system.  Encore has denied the charges.  •  Iowa’s Senate has passed and
sent to the House of Representatives a bill to update the state’s social and charitable gambling regulations. Changes included in Senate File 482 include increases in prize thresholds from $100 to $250 for bingo games offered by religious, fraternal or charitable groups as well as permission for up to 15 bingo events per month. A provision was stripped out that would have allowed organizations offering charitable gambling to accept credit cards as a form of payment.  • The city council of Sacramento, California, has voted to delay making a decision on changing the city’s card room ordinance. The city and its card rooms had negotiated changes two years ago, but the composition of the council has changed since then and at least one member has indicated opposition to the changes due to a lack of familiarity with card rooms.  •  The Paso Robles Cardroom Casino in Paso Robles, California has decided to stay put at its current location. The casino had wanted to move to the south part of the town near Highway 101 and expand, but has instead sold the property to a local brewery after the brewery and other businesses opposed the casino moving next door to it.  •  The Rhode Island Senate is considering a bill that would ban smoking in both the Twin River and Newport Grand slots parlors. Senator V. Susan Sosnowski, who introduced the ban, says she did so after an employee of one of the casinos expressed concern about working around smoke. So far the Senate Committee on Special Legislation and Veterans Affairs has held hearings on the bill. The legislature looked at a similar bill six years ago. At that time market experts projected that the state could lose $36.5 million in revenue if the measure were to be adopted.  •  Wynn Las Vegas will no longer allow for cash to play at poker tables. The move has been made to better track all transactions for wagering.  •  The New York Police Department is still on the hunt for Jaquan Roberts, the man suspected of firing a gun in the parking lot of Resorts World Casino. That same night, a fight broke out in front of the casino’s Fat Tuesday daiquiri bar. Three people were arrested or ticketed for disorderly conduct as they threw chairs and rope-line stanchions.  •  The Venetian Las Vegas conducted their annual process of selecting gondoliers for their Grand Canal Gondola experience. 100 applied, only 12 advanced to the Jump Test, which saw the applicants jump into the canal waters, then swim back to the gondola and regain control of the boat in a specified time.  •  The Railroad Pass casino was sold by MGM Resorts International to Joe DeSimone Jr. for an undisclosed price. The property, which opened in 1931, is known for being the oldest active casino in Nevada. Marcus Gaming LLC will run the property until DeSimone is licensed by state gaming regulators.    Las Vegas hotel chiefs are hoping to get the 2016presidential debateat the Thomas & Mack Center at UNLV. Charles Bowling, president and COO, Mandalay Bay; George Markantonis, president and COO, Venetian, Palazzo and Sands Expo & Convention Center; Keith Smith, president and CEO, Boyd Gaming; Maurice Wooden, president, Wynn and Encore are among the many helping to line up the city for the debate.  •  Hooters will open its largest location to date in the Palms Casino. The upcoming restaurant will encompass 15,200 square-feet, and is considerably larger than its 10,000-square-foot Dallas location.   Seneca Gaming will partner with MGM Capital Investments Inc. to offer fantasy drafting of athletes in an online fantasy sports venture. Players will be able to play for prizes and Seneca Gaming perks. All participation will be done online, while no Draft Day outlets will be inside any of Seneca Gaming’s casinos or ventures.   University of Nevada, Las Vegas Foundation has reached a deal with Wells Fargo for $50 million on a 42-acre site to be used for a football stadium. The property is located on the corner of Koval Lane and Tropicana Avenue, and is a mere 10-minute walk to the Thomas and Mack Center. An 11-member UNLV stadium panel decided the stadium could feature 45,000 seats, and cost $523 million.  •  Sands China Ltd. has been given a temporary reprieve from the Nevada Supreme Court on a $250,000 fine imposed on March 6. The fine was initially imposed for the company withholding documents in the wrongful termination suit brought by Steve Jacobs.  •  A list oflowest revenue per employee has been released for the gaming industry, and topping the list is Nevada Gold & Casinos, with an RPE of $52,000. The list also contains Gaming Partners International, Century Casinos, Monarch Casino and Resort, and rounding out the list is Isle of Capri, with an RPE of $140,000.

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