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CR62-p44&45-SBG:SJC-Casino Review 25/11/07 01:56 Page 2
Analysts at Deutsche Bank new products to existing “Pretty much every market has potential for server-
Securities have given licensees, acquisitions,
based gaming offered by Ace. There were two aspects
Thumbs up Playtech Ltd a ‘buy’ rating. expansion into Asian P2P Oneile, CEO to getting involved in server based gaming. The
The target price is set to games and an entry into
strategic driver was the need to move into the R&D
500p. Apparently, the server-based gaming
Playtech’s growth markets.
side of server-based, whilst there was also a
commercial opportunity in the VLT market. Both distinct
prospects include the
businesses can have a global focus. The VLT division is
signing up of additional
just European at the moment but could have a much
licenses, cross selling of wider focus whilst server-based is applicable all over.”
either “extremely signifi-
cant” (38 per cent) or Server-based
Server-based gaming
“somewhat significant”
future trends predicted
(25 per cent).
Percentages relate to responses
to dominate
from industry CEOs surveyed
Some respondents (37
per cent) also worry that
53 per cent
the implementation of
Server-based or downloadable slots will
have the most impact on gaming
new technology, such as
operators over the next five years
ticket-in/ticket-out tech-
nology, could negatively
A number of industry
87 per cent
impact employee-cus- luminaries are backing
Technology will lead to major changes in
the types of games casinos can offer
tomer interaction and
server-based gaming to
make it more challenging
76 per cent for casino resorts to build
be the next big thing in
In five years, 20-60 per cent of the gaming
customer loyalty. Looking casinos around the world.
floor will consist of served-based or
ahead five years, the exec-
downloadable gaming machines
utives surveyed think the hearditonthegrapevine
94 per cent
most important goal for G2E
The way casino operators use technology casino resort technology
will be “critical” to their success is to improve the cus- IGT spokesman Ed Rogich has
tomer experience (53 per revealed that the slot machine
cent rank it their first pri- manufacturer is concentrating
ority); however, they are most of its efforts on developing
think advances in casino downloadable gaming tors, with only seven per will consist of served- divided about whether or server-based slot machines, which
resort technology have machines will lead to the cent ranking it number based or downloadable not this will happen, with industry analysts believe will be the
been either “extremely” or most significant change. one. Findings also suggest gaming machines. 63 per cent of respon- next wave in retooling casino slot
“somewhat” successful in Just as with customers, further improvements in While the future role of dents agreeing that inno- floors. Server-based gaming
enhancing the guest expe- industry leaders see database management are technology in the indus- vations over the next five potentially would allow slot
rience (81 per cent), gen- server-based or download- going to be important for try received largely posi- to 10 years will do more machine players to pick and
erating revenue (76 per able slots as the techno- operators in coming years tive reviews, survey to improve back-of-the- choose which games to play from a
cent) and lowering logical innovation having (40 per cent rank it first). respondents raised con- house operations than to menu. Casinos would also be able
expenses (77 per cent). the most impact on Eighty-seven per cent cerns about introducing appreciably change the to customise their slot floor.
When asked to rank five gaming operators over the of those surveyed say tech- new technology to cus- customer experience. Rogich said IGT might unveil
different types of technol- next five years (53 per cent nology will lead to major tomers. Firstly, when After improving the cus- some mobile technology during
ogy based on how they will give it their number one changes in the types of asked to what extent new tomer experience, a sub- G2E. “We’ve showed some of the
impact customer experi- ranking). Interestingly games casinos can offer. technologies, such as RFID stantial percentage of the technology privately,” Rogich said.
ence in the years to come, a though, despite its higher Seventy-six per cent of and biometrics, might industry insiders (40 per “We see the mobile gaming appli-
substantial plurality (44 per rating for impacting the respondents estimate that engender privacy con- cent) say leveraging tech- cations fitting into the whole suite
cent) of the industry insid- customer experience, in five years, somewhere cerns among customers nology to generate higher of products that will be part of our
ers surveyed say the arrival RFID is viewed as having between 20 and 60 per and/or employees, 63 per revenues is their top server-based gaming initiative.
of server-based and/or less of an impact on opera- cent of the gaming floor cent say privacy issues are objective. Right now, we don’t see a huge
demand for mobile gaming.”
Stifel Nicolaus Capital Markets
gaming analyst Steven Wieczyn-
Pro Active
nation of their customer-base and ski also believes that server-
continually create the lifeblood of based gaming will dominate G2E
casinos - excitement.” and beyond.
In ten years time, Koch can see a “Many investors are still trying to
situation where every territory get their hands around this tech-
with a developed casino industry nology and we believe the focus for
Originally Essnet Interactive, ACE Interactive was bought out by
will be hooked up to servers. He most manufacturers will be where
Aristocrat in May 2006 and given its current title. It has been waiting
continued: “Brazil has around one they are in terms of deployment
million grey terminals and they and pricing,” Wieczynski said.
for server-based gaming ever since. simply cannot go on with that. For Mark Clayton, the control board
ACE, Europe and Australia, home to member overseeing the implemen-
intersomethinggood case took three years for the EFTA our parent company Aristocrat, as tation of mobile gaming, agreed
THE ROAD TO SBG court to resolve - in March of this well as developed parts of Asia and mobile gaming is a server-based
year the project came back on America are key territories in gaming system. He said the
asino Review spoke to stream. During that downtime, we which we’re aiming to develop our behind-the-scenes technology for
the ACE’s CEO Michael worked furiously on our Server SBG concept.” the devices needed initial approval
Koch to get the story on Based Gaming proposition which The benefits are that real-time from the laboratory before the
an organisation bidding we’re set to show at G2E.” feedback will tell operators when, devices could be tested. He said
for Server Based ACE Interactive have a 55- where, how much and how often concepts have been presented
Gaming’s middle ground. machine operation in Slovakia. This machines are played, the cost of where mobile gaming devices
“It’s difficult to say we had the smaller site is already turning up an content delivery will be dramati- could also be used for casino pro-
vision for Server Based Gaming in improved understanding of how cally reduced, there will be a motions or to advertise restau-
2002, but, in retrospect, that’s where operators and players interface massive increase in choice while rants. “There has been some
it began,” noted Koch. “The Norwe- with the new technology. Koch new economic models will bloom. concerns about the speed of bring-
gian Lottery, Norsk Tipping, invited noted: “What we have found is that “Aristocrat’s economic strength ing the gaming product to market,
a number of IT companies to write ACE Interactive’s SBG product gives allows ACE Interactive the flexibil- but the newness of the technology
high integrity software for their casinos and video lottery operators ity to work with operators on a fee has driven the process,” Clayton
next generation video lottery a newfound flexibility, particularly per play, one-off purchase or com- said. “Right now, we are just
system and to provide interactive in the marketing sector. Every player bination, the financial permuta- looking at the gaming aspect.”
video terminals to carry this kind of can access every machine, yes, but tions are, like the product, endless.” Amaitis hasn’t been too con-
new games - the Norwegians it’s not only that. Casinos now have ACE Interactive and Aristocrat cerned with the time element. In
wanted a ‘sexy’ VLT solution. the opportunity to theme areas or are a potent combination which the past year the company signed
“They asked a lot of big boys to even the whole environment by Koch believes primes both com- a deal with Las Vegas Sands to
bid, but really only Essnet Interac- ensuring only a particular game is panies for success. He concluded: place the mobile gaming devices
tive could meet their needs. We got active. With themed evenings cele- “I honestly believe that the ACE at The Venetian and the soon-to-
into a joint development with brating the Wild West, Ancient Interactive technical and creative open Palazzo. Also, the company
Norsk Tipping and by 2003 we China or Down Under, because mix, allied to Aristocrat’s commer- signed gaming content deals with
were active. Existing operators in ACE Interactive’s machines can all cial acumen, makes our SBG propo- several slot machine makers and
the Norwegian route market be set to the same game, casino- sition the most attractive in a gaming equipment providers.
claimed the rollout amounted to a wide, SBG backs up a promotional market only just taking its first “Because this is brand-new,
monopoly - they had to try some- drive with total visual coherence. steps. In ten years time, server- the regulators need to get com-
thing as they were operating SBG gives casinos a first-night feel, based gaming will be up, running fortable with the idea,” Amaitis
20,000 ‘grey’ machines. That legal ACE Interactive’s Michael Koch the chance to re-ignite the imagi- and sprinting onwards.” concluded.
December 2007 serverbasedgaming 45
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