Canadian Gaming Business October 2007

Canada's Premier Gaming Industry Magazine

October 2007Vol. 2 No. 2

2008 Canadian

GaminG Business

Buyers' GuideGet listed now in Canada's

only gaming directory. Go to www.canadiangaming.ca

April 29 - May 1, 2008 - please visit www.canadiangamingsummit.com for details

Inside:Parlay Entertainment Attacks Atlantic Lottery

The Winning Offer

UIGEA – One Year Later

Busing the Players to the Casino

Canadian Gaming Business | �

5 EDITOR’SNOTE

7 MESSAGEFROMCGA

9 GAMINGNEwSROuNDup NewbossatOLG,parlayEntertainmentattacksAtlanticLotteryCorp.overhandlingofa

contract,Kahnawakepreparesforlivepokerrooms,GreatCanadianGamingaddscapacityatthreevenuesandclosesitsoldestcasino,andLakeCityCasinosaddamenities.

12 THEwINNINGOFFER Directmailoffersfromcasinosshould,attheleast,beexciting.

14 GAMINGpERSONALITY–GAVINBAILEY,ACCOIN&SLOT

16 BuSINGTHEpLAYERSTOTHECASINO

Mostbuspatronsmaybelow-rollingseniorcitizens,buttheyhelptofillthecasinoduringoff-peaktimes.withplayertracking,casinoscanavoidoverspendingtogetthisbusiness.

22 FACILITYFOCuS–FLAMBORODOwNS

24 STATISTICSCANADA’SGAMBLINGREpORT:uSEwITHCAuTION Thegovernment’sdataisinteresting,butthereareproblemswithitscollection

andinterpretation.

26 THEu.S.uNLAwFuLINTERNETGAMBLINGENFORCEMENTACT–ONEYEARLATERTheenactmentoftheuIGEA,oneyearagothismonth,hashadaprofoundandnegativeimpactontheInternetgamblingindustryworldwide.

28 LOTTERYANDGAMINGCORpORATIONHIGHLIGHTS NewsfromBritishColumbia,SaskatchewanandManitoba.

30 CHEFSpOTLIGHT–DANSMYTH, CASINOBYVANSHAwANDMEDICINEHATLODGE

For some Canadian casinos, motorcoaches are an important source of business. Patrons enjoy the subsidized trips.

VOLuME2NO.2

ONTHECOVER

Official Publication of the Canadian Gaming Summit

Publisher Chuck Nervick [email protected] 416-512-8186 ext. 227

Editor Fred Faust [email protected]

Advertising Sales Philip Soltys [email protected]

Senior Designer Annette Carlucci [email protected]

Designer Ian Clarke [email protected]

Circulation Manager Julie Shreve [email protected]

Proudly owned and published by:

President President & CEOKevin Brown Bill Rutsey [email protected] [email protected]

Vice President, Vice President,Strategic Development Public AffairsChuck Nervick Paul [email protected] [email protected]

Canadian Gaming Business is published six times a year as a joint venture between MediaEdge Communications and The Canadian Gaming Association

For advertising information, Contact Chuck Nervick 416-512-8186 ext. [email protected]

For editorial information, Contact Fred Faust 866-216-0860 ext. [email protected]

Copyright 2007Canada Post Canadian Publications MailSales Product Agreement No. 40063056ISSN 1911-2378

Guest editorials or columns do not necessarily reflect the opinion of Canadian Gaming Business magazine's advisory board or staff. No part of this issue may be reproduced by any mechanical, photographic or electronic process without written permission by the publisher. Subscription rates: Canada $44.94 per year, $80.79 two years. All rates are payable in Canadian Funds only. Postmaster send address changes to: Canadian Gaming Business Magazine 5255 Yonge Street, Suite 1000, Toronto, Ontario M2N 6P4

October 2007 Volume 2 Number 2

contents

Canada's Premier Gaming Industry Magazine

October 2007Vol. 2 No. 2

2008 CANADIAN

GAMING BUSINESS

BUYERS' GUIDEGet listed now in Canada's

only gaming directory. Go to www.canadiangaming.ca

April 29 - May 1, 2008 - please visit www.canadiangamingsummit.com for details

Inside:Parlay Entertainment Attacks Atlantic Lottery

The Winning Offer

UIGEA – One Year Later

Busing the Players to the Casino

Canadian Gaming magazineOctober 1 1 10/30/07 4:39:55 PM

The power of a 360º solution on your slot floor. The power of greater customer care. The power of top-earning titles. The power of longer-lasting technology. The power of a

sleek new look. When you partner with Aristocrat, we put the power in your hands.

The power of performance

www.aristocratgaming.com

PLAYERS INCLUDED.™

ATI_047_POP_CanadaBiz.indd 1 10/1/07 1:24:56 PM


Our main stOry in this issue is about casino bus programs (see page 16). Many of us have never taken a bus – or, more properly, a motorcoach – to a casino. We may have seen groups arriving or departing that way, and not given it much thought. But I found this to be a fascinating area of casino marketing, and hope you will as well.

Casino Rama is the king of Canadian casino bus programs, with an average of 60 to 70 busloads of players arriving each day. I’d like to thank Jeff Craik, Rama’s vice-president of marketing, for sharing his insights with us. Not all casino marketers were as helpful.

There are many, probably too many, trade journals devoted to the gaming industry. The CEO of one major Canadian casino told me that the only stories he reads in gaming trade magazines are the ones devoted to marketing. We’re trying to offer more stories on marketing, and I’m pleased to have another piece in this issue from David Bellerive, creative director of the Phoenix Group. This one deals with direct mail offers (see page 12).

Bellerive’s first contribution ran in our August/September issue, when we also carried a story by Joe Witterschein and Paul Girvan of The Innovation Group. In future editions, we’ll have more stories from Bellerive and Witterschein/Girvan. I hope you find them useful.

Our Facility Focus this issue features Flamboro Downs, a harness track and racino in Ontario (page 22). Writer Lisa Kopochinski includes some interesting data that illustrates the crucial role of slot machines at so many North American racetracks. Slot revenue at Flamboro last year was 10 times the revenue from the track. And nearly half the track revenue came from simulcast and off-track wagering. Slot revenue was more than 58 times the revenue from live on-track wagering!

This month marks the one-year anniversary of the UIGEA, the Unlawful Internet Gambling Enforcement Act. This was the culmination of years of efforts by anti-gaming zealots in the U.S. Congress to put the online gaming genie back in the bottle. Along with aggressive moves by U.S. prosecutors, the law has dramatically impacted companies and individuals around the world, including Canadian entrepreneurs such as the founders of Neteller.

Vancouver lawyer Christine Mingie takes a detailed look at the UIGEA and its aftermath. Her story (see page 26) includes a timeline of key dates before and after the act became law.

Fred [email protected] ext. 271

Casino Bus Programs,Direct Mail Offers, andUIGEA – One Year Later

Howard Blank, Vice President Media & Entertainment / Marketing & Promotions, Great Canadian Gaming Corporation

Lynn Cassidy, Executive Director Ontario Charitable Gaming Association

Robin Drummond, Senior Director Spielo, GTECH

Nick Eaves, Vice-President Woodbine Entertainment Group

Art Frank, President Niagara Casinos

Brian Fraser, Marketing Manager IGT Canada

Jordan Gnat, President & Chief Executive OfficerBoardwalk Gaming

Muriel Grimble, Executive Director Gaming Products & Services Alberta Gaming & Liquor Commission

Lyle Hall, Managing Director HLT Advisory Inc.

Zane Hansen, President & Chief Executive Officer Saskatchewan Indian Gaming Authority

Brad Johnson, Vice President Marketing Aristocrat Technologies Inc.

Ron Kelly, Executive Vice President Arrow Games

Michael Lipton, Q.C., President, International Masters of Gaming Law and Partner, Elkind & Lipton LLP

Eric Luke Eric R. Luke and Associates

Alan Lyman, Senior Regional Director Scientific Games

Margaret McGee, Vice-President of Prevention Programming and Public Affairs Nova Scotia Gaming Corporation

Jovica Perovic, Director Casino Product Development & Facilities British Columbia Lottery Corporation

Michael Randall, Vice President Corporate Responsibility & Communications Atlantic Lottery Corporation

George Sweny, Senior Vice President Lotteries OLG

Monique Wilberg, Chief Operating Officer Gateway Casinos

e d i t o r ' s n o t eEditorial Advisory Board

E - m a i l s t o t h e E d i t o r

PolicyCanadian Gaming Business welcomes e-mails to the editor. E-mails should include the name of the sender, business or professional affiliation, and city and province of the sender’s office or home. A phone number should be included for contact purposes; the phone number will not be published. We reserve the right to edit e-mails for purposes of brevity and clarity.


m e s s a g e f r o m C G A

twO years agO when we launched the Canadian Gaming Association, the most common question I got from people was “why.” Most people felt the country’s gaming companies were

strong enough to speak out on issues on their own, and that government was so closely involved in the industry there was no real need.

But the premise of their question was shaky at best. First, Canada’s gaming businesses, while strong in creativity, innovation, and many other aspects, operate very independently and are understandably focused on their own businesses. However, they are also very astute at evaluating opportunities, and realized that they were better speaking together than individually.

Second, while the Canadian gaming industry has been a successful partnership between government and the private sector for almost a quarter of a century, government’s role has evolved. Today, government is evolving from operator to a role of overseer and manager of the industry, primarily acting as regulator, researcher, and policy-maker.

At its root, gaming is a business. That was clearly outlined in the first-ever Economic Impact Study, the most comprehensive study ever conducted on the economic impact of gaming in Canada. The study showed that the gaming industry is responsible for more than $15 billion in direct revenue, more than $2 billion in salaries for employees working in the industry, and $10 billion in current capital investment.

And as we found with our most recent National Gaming Monitor, we are in the entertainment business. When people are asked why they gamble, they indicate that it’s for fun rather than money. In fact, 48 per cent of those who gamble say they do so for its entertainment value. Today, gaming sizably exceeds other segments of the entertainment industry in terms of the direct impact on the economy. In fact, gaming revenues exceed those of spectator sports, movies, books and magazines, and performing arts combined.

It doesn’t take a person long to realize that gaming is a sector with great diversity. If you looked at the list of companies attending our second annual Canadian Gaming Summit, in Toronto in April, beyond the gaming equipment manufacturers you’d find: security experts and analysts, hospitality and entertainment consultants, accountants, interior designers, advertising agencies, academics and researchers. This is in addition to those frontline employees who manage and operate casinos, lotteries, bingo and horse racing.

In fact, more that 1,250 members of Canada’s gaming industry converged on Toronto for the three-day event, consisting of over 40

workshops, with topics ranging from social responsibility to E-lotteries to First Nations gaming to charitable gaming. This year’s summit also featured, for the first time, a charity gala where money was raised for Variety--The Children’s Charity, and awards were handed out to leaders in the industry. Now we are looking forward to our third summit to be held in Montreal next April.

There is no doubt in my mind that this time next year there will be new issues and opportunities in front of us. Our industry is one that is changing rapidly, and is highly impacted by technology and other innovations. You only have to look at the media clippings that come into the CGA’s office on any given day -- stories about the growth of Macau, additional surveys and statistics on problem gambling, a debate about online gaming in Sweden or a casino in Boston, innovations in gaming software and licensing in South Africa, -- and the list goes on and on.

There is a need to stay on top of these issues, the ones emerging around the globe and the ones happening right here at home. There is a need to look to the future and see what gaps and opportunities exist for us as an industry. That’s one reason why we have teamed up with Decima Research to do a monthly analysis of the market and factors that drive attitudes, behaviours and decisions.

Staying in close contact with issues that impact one or two of our members has led us to initiatives that have benefits for our entire industry. A good example of this is our recent work with the Television Bureau of Canada to modernize and enhance their advertising guidelines related to gaming. We are continuing to commission research on the issues affecting our industry to ensure the facts about the Canadian gaming industry are part of the public debate.

Overall, we are staying true to our mission of generating greater understanding of the industry’s economic contribution and demonstrating the industry’s integrity and commitment to social responsibility. We will continue to create a better understanding of the gaming industry through advocacy and education. And we will continue to speak out on important national and regional issues as the voice of Canada’s gaming entertainment industry.

Famed automaker Henry Ford once said: “Coming together is a beginning; keeping together is progress; working together is success.” After two short years of coming together to form the Canadian Gaming Association, I am proud to report that we’ve not only made progress, but we’re also working well together. The end result will be success for our members, for our industry, for our governments, and most important, for our players and the public.

Two Years of Working TogetherBy Bill rutsey, President and CeO Of the Canadian gaming assOCiatiOn



g a m i n g n e w s r o u n d u p

New boss at the OLGOntario Lottery and Gaming announced Sept. 6 that Kelly McDougald would be the new CEO, effective Oct. 15. She takes over from Michelle DiEmanuele, who served as interim CEO since April.

McDougald held several senior positions at Bell Canada and at Nortel Networks. Since 2005, she has been an independent business consultant and a director of the Allstate Canada Group and the Toronto Board of Trade.

OLG said a committee of its board of directors worked with Caldwell Partners, an executive search firm based in Toronto, on “an extensive North American search to fill this key role.” OLG declined to specify how many candidates were considered, and declined to disclose McDougald’s salary. Jim Cronin, director of public affairs, said the CEO’s salary is released at the end of the fiscal year.

DiEmanuele returns to the Ontario Public Service, where she serves as associate secretary of cabinet, secretary to management board, and deputy minister of government services. The previous CEO, Duncan Brown, resigned in March just before the release of a report by the Ontario Ombudsman that was highly critical of the OLG lottery program.

In a statement, OLG Board Chairman Michael Gough thanked DiEmanuele “for doing an extraordinary job during the most difficult and challenging time in OLG’s history.” OLG has more than 20,000 employees and annual revenue of $6 billion.

With McDougald’s appointment, three of Canada’s provincial lottery and gaming corporations now have female CEOs.

Parlay Entertainment attacks Atlantic LotteryParlay Entertainment, a company based in the Toronto suburb of Oakville, is so angry with the Atlantic Lottery Corp. that it has created a website to denounce the ALC for awarding a single-source contract to a foreign supplier without a public tender. Parlay is a software firm that specializes in online bingo. ALC, in starting its first online bingo game – and a related series of online, low-stakes games – contracted with Boss Media, of Växjö, Sweden.

Parlay’s website attacking the ALC, which went live Oct. 2, is called LottoFairness.ca. Press releases on the site complain that the Boss contract was negotiated in secret, was based on secret criteria, and contains secret terms. The site calls for openness and transparency at ALC, and cites other examples of allegedly improper behaviour by ALC.

ALC issued a release Oct. 2, stating that its procurement policy permits single sourcing “for ‘strong business reasons.’ In this case, ALC wanted a supplier that reflected international standards for social responsibility as required by membership in the World Lottery Association.”

The ALC release said the contract was awarded to Boss in February and announced by Boss in May. The Boss games – “iBingo” and “pick n click” (a rotating series of low-stakes games with titles like Diamond Hunt and Lucky Dice) – were launched on ALC’s PlaySphere Internet game platform on May 29.

On Oct. 3, LottoFairness said that the ALC release was posted “just hours after” the LottoFairness site went up, and said it was the first time that ALC disclosed the existence of the “untendered” Boss contract.

Scott White, Parlay’s CEO, told Canadian Gaming Business: “From what we know now, there’s absolutely no reason why any of the Canadian software companies couldn’t have been offered the ability to bid” on the ALC contract. “Chartwell, CryptoLogic, and there are a couple of other companies. We should have been provided an opportunity and we weren’t. Our position is that government agencies have an obligation to go through an open and transparent process.”

Chartwell and CryptoLogic develop software for Internet casinos. Chartwell is based in Calgary. CryptoLogic, originally based in Toronto, is now headquartered in Dublin, Ireland. The company still has a corporate office in Toronto.

White said Parlay became a “registered supplier” of the ALC in the fall of 2006, and went through the lottery’s due diligence process. “What the hell do World Lottery Association criteria have to do with the bidding or openness of a contract related to Atlantic Canada?” he asked.

Mike Randall, ALC’s vice-president of social responsibility and communications, told Canadian Gaming Business that World Lottery Association members have a “commitment to protecting players’ integrity, transparency, openness, world standards on security, world standards now on responsible gaming.” Membership, he said, “was a starting point for us” in looking at suppliers. He said all of ALC’s major gaming suppliers – including GTECH, Spielo, and IGT – are members of the association.

The World Lottery Association is based in Basel, Switzerland, and has an office in Montreal. Its 140 members include the ALC. In fact, Michelle Carinci, CEO of the ALC, is on the association’s executive committee.

Randall said another reason that ALC liked Boss was that the company offered more than just online bingo. “There were 50 already produced, on-the-shelf games that they (Boss) brought to the table. Bingo was just one of them,” he said.

“They didn’t give us an opportunity to tell them what we’ve got,” White countered. “We have a full suite of games, including a full suite of casino games, a full suite of bingo games, a full suite of slots, keno, etc. But we weren’t given an opportunity to present.”

One of the few things that White and Randall seem to agree on is the importance of the other games that accompany online bingo. “In the online bingo business, the carrot is the bingo offering,” White said. “In most of the successful Internet [bingo] sites, the majority of the wagering relates to other soft games.” He defined “soft” as low stakes.

LottoFairness says the five-year contract with Boss could be worth “millions of dollars.” But Randall puts the maximum value at “less than $2 million.”

In its Oct. 2 release, ALC said the majority of its contracts go to local companies. “Last year, ALC spent $45 million with Atlantic Canadian companies and $37 million with companies from outside the region, in accordance with ALC’s procurement policy,” the statement said, referring to the fiscal year that ended March 31.

Randall was unable to say how much of the $37 million spent “outside the region” was spent in Canada and how much was spent outside the country.

10 | October 200�

g a m i n g n e w s r o u n d u p

Randall said he was surprised by Parlay’s campaign to denounce ALC’s handling of the contract. “I just don’t understand what they’re trying to accomplish,” he said. “It’s a company that just wasn’t qualified for what we were looking for.”

Land-based gambling coming to KahnawakeThe Mohawk Territory of Kahnawake, near Montreal, is preparing for live poker games on its reserve. Kahnawake is one of the world’s major hosts of Internet gambling sites, but this is apparently the first time in many years that it will have land-based gambling.

The Kahnawake Gaming Commission announced Oct. 5 that it had approved Regulations Concerning Poker Rooms, which had been in development for about two years. The statement said several operators have applied for licenses, and that the first one is expected to be issued “very shortly.”

The commission said all parties agreed “that a percentage of revenues should go to the community. Details on actual percentages and the mechanisms to collect these revenues will be determined in the short term.”

Changes at Great Canadian facilitiesGreat Canadian Gaming Corp. is making major changes at four of its British Columbia properties, adding gaming capacity at three sites and closing another.

In View Royal, which is near Victoria on Vancouver Island, the company plans to add 24,000 square feet of gaming space to its 32,000-square-foot casino. The addition will include more slots, a poker room and a teletheatre for watching sports and betting on live horse racing. Great Canadian has also agreed to buy a vacant commercial site that will enable it to add more parking space.

The View Royal casino opened in 2001. It has 437 slots and 24 table games. The company said slot machine win per unit per day was $460 for the quarter ending June 30, a figure it called “well in excess of the British Columbia industry average.” According to data in the British Columbia Lottery Corp.’s annual report, the average slot win for “community casinos” for the fiscal year ending March 31 was $358 per unit per day.

Great Canadian is also seeking approval

to serve alcohol throughout the View Royal facility. Its current liquor permit does not allow alcohol on the gaming floor.

Howard Blank, vice-president for corporate communications, said the company plans to have the development permits completed in the next two to three months and the expansion finished in 12 to 18 months.

In Vancouver, Great Canadian is installing 150 slots at Hastings Racecourse, with plans for another 450 machines in a second phase of expansion in a year or so. The Hastings Park Conservancy has sued the city, trying to block the introduction of slots at the Hastings track. It has lost in court, but has another appeal scheduled for January.

Blank said that if the plaintiff wins on appeal, the company will remove the slots. It first received approval for them in 2004. The 150 machines are being installed in existing space at the thoroughbred track. The second phase of expansion will include an estimated $40 million in capital improvements.

BCLC estimates that Vancouver will receive $6.5 million annually in “host municipality” allocations when all 600 slots are installed.

The track is part of a large park that’s owned by the city, which leases the track to Great Canadian. A spokesman for the city told Canadian Gaming Business that the original lease with a previous operator expired years ago, and the current agreement with Great Canadian is on a month-to-month basis. But a new agreement has been

signed by Great Canadian and is now in the hands of the city’s legal department.

The new agreement, the spokesman said, runs for five years, with an option for an additional 15 years.

At Fraser Downs, a harness track in Surrey, Great Canadian is expanding the existing racino. The company expects to spend about $8 million on capital improvements. Ninety slots will be added, and 12 table games. These will be the first table games at the racino, which has 449 slots. Blank said the additional gaming equipment will be installed as soon as construction is completed.

According to the BCLC report, the slots at Fraser Downs had an average win per unit per day of $351 for the year ending March 31, slightly below the provincial average. But Great Canadian said the average win for the quarter ending June 30 was $394.

In mid-November, the company plans to close the small Great Canadian Casino on West Broadway in Vancouver. The 18,000-square-foot casino, which is in a Holiday Inn, has 36 table games and no slots.

“That was our first casino, that we opened in February 1986,” Blank said. “It was an antiquated facility, with no room for expansion.”

The common theme to all of these changes, Blank said, is the company’s desire to “move towards more full-service facilities.”

More amenities for Lake City CasinosElsewhere in British Columbia, Lake City Casinos – four small properties in the Okanagan region that are owned by Gateway Casinos – have been adding quietly amenities. Suzanne Carter, the marketing manager, said the two Texas Hold ’Em tables that were introduced last December at the Penticton Casino have been so popular that a separate poker room is being built, to accommodate two more tables. Lake City also plans to add live poker to the Kelowna Casino.

Three of the four casinos – Penticton, Kelowna and Kamloops – now have liquor licenses. Carter said that because the Vernon Casino is relocating, probably next year, the company didn’t apply for a liquor license there.

12 | October 200�

i am delighted that most companies feel that way because it makes it easier for our work to stand out.

Creative components have a sizable impact on direct-mail success. This year the U.S. Direct Marketing Association’s Research and Intelligence unit published Getting Creative with Direct Mail. This was the first research the group has produced to examine the creative components of direct-mail campaigns, to help marketers make better campaign decisions.

According to the findings, creative accounts for 25.1 per cent of total response, and it generates an average response increase of 13.8 per cent. The report benchmarks overall usage and testing patterns for 11 different creative components, as well as effectiveness ratings from marketers themselves. Creative components include envelopes, postage, brochures, postcards and incentives.

Perhaps this will shed some light and get marketing managers to look at their

direct-mail strategies and learn what is and what is not working.

We always consider a mailbox to be just like any other medium – crowded. And, just like TV, radio and newspapers, people don’t go to the mailbox looking for the latest offer from a casino (well, most people don’t!).

That can be hard for many marketers and business operators to understand. After all, isn’t everyone as passionate about their business as they are? I find it’s especially true for players club mailings. Many believe that an addressed piece of mail automatically means it will be read. The chances are probably better, but we still need to catch the imagination of the reader. Surprise and delight them.

For example, we produced a successful direct-mail piece for a western Canadian casino. It was an invitation to visit the casino once the smoking ban came into effect. The offer contained a chance to win anywhere from $5 to $1000. We created an “open to reveal” type of card where guests would have

to come to the casino, tear open the back and reveal how much they won. Of course, the mailing was more expensive, but the return was exceptional. The creative was an oversized playing card, that you pulled out of a card sleeve. It was bright, fun, and the offer was clear. It was irresistible!

I recall the casino marketing director thought we could have put an ad in the bargain shopper and achieved the same results. An example from another Canadian casino would suggest differently.

We recently met with a casino team who told us about the great success they enjoyed from sending a $20 food and beverage offer to players club members. But the numbers had been tapering a bit, so they upped the ante. If $20 was a good offer, it seemed to make sense that offering $50 would work even better. It didn’t.

The reasons are not entirely clear, but it’s a cautionary tale of not getting the recipient excited about your promotion. In this case, the offer was delivered the same way it always had been, as an addressed letter. That alone might have been the problem.

There’s also the offer itself. Follow-up research on the $50 dinner offer revealed that many people thought it was too good to be true. There had to be a catch. Perhaps a more

By david Bellerive

The Winning Offer

Most of the mail I receive these days is dull and dry. Yes,

even from casinos. The thinking seems to be — it has their

name on it, so they will read it anyway.

Canadian Gaming Business | 1�

The Winning Offer

enticing creative execution would have raised the perceived value of the coupon.

A more creative story as to why the dinner was being offered might also have boosted the promotion’s success. We face a skeptical bunch of consumers. People need to see their reward as earned or warranted, or you might see little effect. In fact if it smacks of cynicism, it might even produce a negative reaction.

So what offers do work? You could do your own research, or you could look at what has worked for you in the past. You could also look at the many examples in this industry — and one of the best models to observe is Harrah’s Entertainment. Its rewards program is based on a 300-gigabyte database of customer transactions.

Gary Loveman, CEO of Harrah’s, studies the data thoroughly. Among his many early discoveries was a gem that should be obvious: gamblers enjoy gambling. In a 2003 Harvard Business Review article, he states, “We found our target customers respond better to an offer of $60 of casino chips than to a free room, two steak meals and $30 worth of chips because

they enjoyed the anticipation and excitement of gambling itself.”

Know your audience and know what motivates them to visit you. We saw a car dealership learn this the hard way. They were looking for a new and unique way to add value to their sales. Someone had the idea to offer $500 of free meat with each new vehicle. You might laugh at this idea; I know I did. And rightly so, as the promotion tanked. Apparently people don’t really want to get their meat from a car dealer.

This illustrates another important point about offers and rewards: If you can make your offer aspirational people will respond better.

Research has shown that salespeople respond more dramatically to performance incentives that promise pleasure (like luxury vacations) than to purely utilitarian incentives (like cash bonuses). In the same way, consumers love to

be given a treat they would not splurge on with their own money.

Direct-mail offers and players club letters are ingenious marketing tools when they are designed and executed well. Make sure yours has stopping power and speaks to your audience’s needs. That requires careful attention to the details of the offer and to the actual design of the piece. Even with all that you might not get them in the door, but at least you’ll have an opportunity to show them how much fun you are.

Let the rest of the world send out dull, boring letters. You are in the business of excitement; make sure it shows.

David Bellerive is creative director of the Phoenix Group, an advertising agency that is based in Regina and works with many Canadian gaming clients.

KNOw yOur AudiENCE ANd KNOw whAt mOtiVAtEs thEm tO Visit yOu.

14 | October 200�

One Can easily see why Account Executive Gavin Bailey was a score for AC Coin & Slot when the company hired him from Ontario Lottery and Gaming’s Thousand Islands Charity Casino in Gananoque: unusually perhaps for a salesman, he’s honest. This quality could have been enhanced by his varied career, which has included slot technician and senior slot technical positions, because when you’re dealing with a machine, it’s either broken or it’s not.

It’s appropriate that an independently minded guy should work for a smaller, family-owned company. AC Coin & Slot is such a business, enjoying significant growth amid the bigger names in slot manufacturing. In Canada, the company has expanded from its initial base in Ontario. Its games are in every province that has casinos, or soon will be. It has beefed up its Canadian workforce, and recently opened a warehouse in Burlington, Ont., near OLG’s own warehouse and office.

Bailey, a dog-owning, sponge hockey player who is proud of his Flin Flon, Manitoba, roots, doesn’t mess with diplomatic niceties. He admits that he “absolutely loved it” when he wound up in the private sector. “This is where I wanted to be for a while,” he said.

At the tender age of 35, Bailey is already a 14-year veteran in the industry that swayed him between Manitoba and Ontario and between positions as a technician and a manager/salesman. His began in 1993 at Club Regent in Winnipeg. He worked in coat check, then moved to slot attendant and, thanks to “Manitoba Lottery-paid training,” became a blackjack dealer at the old Crystal Casino. He returned to being a slot attendant while studying electronics.

Subsequently, he held technical slot positions in both Thunder Bay and Gananoque for the OLG, before being promoted to management.

Bailey has historically been motivated by both geography – needing a change of scene – and opportunity. His current schedule requires him to travel three weeks a month, meeting clients in Manitoba, Saskatchewan and Alberta and attending quarterly sales meetings down in the States (AC Coin is based in Atlantic City).

Chance has played a hand in his career, for it was during a Manitoba Lotteries strike, when – at the urging of a roommate – he applied to college for a program in electronic engineering technology.

That resulted in an electronics degree that led to a position as a slot technician in 1999, the day after graduation. Club Regent was expanding from 300 to 800 games and was really short-staffed at the time. Looking back, Bailey jokingly describes the interview process as: “Gavin, did you graduate? Yes. Good, you’re hired.”

Similarly, a month after relocating to Ontario in 2002 to work as a senior slot technician at Thousand Islands, a manager suddenly quit and Bailey found himself promoted.

“I didn’t expect it that quickly” he remembers, admitting that there were some aspects of the job he liked – having input on his department, staff decisions -- and some he did not. Generally, in moving from the Manitoba Lottery Corp. to the OLG, Bailey found a more restrictive atmosphere. "The political stuff wasn't too much fun," he said. "I always say it’s easier to ask for forgiveness than it is to ask for permission."

Three years later, tired of shift work, he hopped off to what he’d always hoped he would become: a field service technician for a supplier. Initially he worked for AC Coin in Cambridge, Ont., taking care of casinos in the “golden horseshoe” (from Toronto to Niagara Falls) before being appointed account executive and returning to Winnipeg last year.

The hardest aspect of his current job has been competing with the already established mega names like IGT, Bally’s, etc.

“We had to come in and prove ourselves,” Bailey said. “Pretty much all the casinos were willing to give us a shot, so once we got through the regulatory system, they’ve been more than happy with us.”

Then there’s the issue of gaming floor space. AC Coin games are only available for lease. In Bailey’s estimation, leased games occupy about 7-10 per cent of a typical casino floor, so smaller companies like his are fighting for a piece of an already shrunken pie, without the financial clout to cut deals the way the big guys can.

Recent advances in Canadian gaming impress Bailey: “Canada has made a lot of strides; they’re getting games to market quicker. It’s probably in the last five to seven years that they’ve made a big push for that.”

Gaming is an industry, Bailey said, where work and dedication are recognized and – because it is one of the few industries that’s still expanding – “if you’re a young person, and you’re willing to put forth the hard work, it’s fun, flexible and secure, and there’s loads of room for advancement.”

He sees community gaming, which is just beginning in Canada, as the next big thing in the slot business.

“It keeps everybody playing,” Bailey explained. “I’ve seen it already; the few that are out there are really popular.” He added – like a good salesman -- that AC Coin hopes to have six community games out by the end of the year.

Anakana Schofield is a freelance writer based in Vancouver.

By anakana sChOfield

g a m i n g p e r s o n a l i t y

Account executive, AC Coin & Slot

BaileyGavin

Account executive, AC Coin & Slot

Bring the gold rush and some amazing profits to your operationwith Loco Loot by Aristocrat®. The excitement starts withREEL POWER base games that offer players up to 243 ways to win.Then everything goes full steam ahead with a multi-level, multi-siteHyperlink® progressive jackpot that offers players a hugehigh-hitting payday. Even better, all of the action is accompaniedby cutting-edge graphics, animations, sound and eye-catchingLCDs. By bringing together everything that players love, thisgame is definitely on track to become one of your biggest hits.Put Loco Loot on your floor today!

Aristocrat, Aristocrat logo, Choy Sun Doa, Hyperlink, Pompeii, Red Baron, REEL POWERand Whales of Cash are trademarks of Aristocrat Technologies Australia Pty Limited.© 2007 Aristocrat Technologies, Inc.

800.748.4156www.aristocratgaming.com

PLAYERS INCLUDED.™

This MSP Has SomeREEL POWER Behind It!

With REEL POWER Base Games And A Multi-SiteProgressive, Loco Loot™ Is Your TicketTo Big Time Earnings.

Loco Loot Features These PopularREEL POWER Base Games:

™

®

®

ATI_LocoLootMSP_TradeAd_CGB 6/5/07 10:48 AM Page 1

16 | October 200�

the CasinoBusing the Players to


Canadian CasinOs may not live or die on the strength of their bus programs, but for many the charters and tours that deliver 40 or 50 customers to the door in one batch are a dependable and steady source of business. This is especially true during off-peak hours, the late mornings and early afternoons on weekdays. That’s when seniors, the age group that’s generally filling the seats on the buses, want to be out.

The seniors that come by bus are rarely high-rollers, but in a large casino at midday, they create desirable activity. “It’s not a pretty site to visit a casino that’s empty,” said Larry Hundt, co-owner of Great Canadian Holidays and Coaches, which is based in Kitchener, Ont. “The motorcoach industry helps to fill in those quiet times. It’s no different from a restaurant or a night club; you want to go when there’s activity and people there.

“We fulfill an important role for the casinos. We are helping to pay some of their overhead, but we’re not making them the b ig ca sh pro f i t . ” Hundt estimates that his company will deliver 250,000 patrons – nearly 6,000 trips – to Ontario casinos next year. Until January, Great Canadian served Casino Rama exclusively. Now the company also offers day trips to the Niagara casinos, Casino Windsor, and the smaller facilities that the OLG calls charity casinos.

“From an incentive perspective, the Ontario casinos are very motorcoach friendly, more so than some other casinos,” Hundt said, referring to casinos in the States that his company has also visited. Casino Rama and Niagara Fallsview need to be motorcoach friendly, because they have a lot of capacity and each is about 90 minutes away from the huge population of the Greater Toronto Area.

“Rama was the leader in Ontario in the busing programs, and still today has probably the most advanced busing program in Canada,” said Aubrey Zidenberg. He helped develop Rama, and his company, Casino Amusements Canada, has a master agreement for junkets to Fallsview from the U.S.

Jeff Craik, vice-president of marketing at Rama, said the casino averages 60 to 70 bus visits per day. This business doesn’t change much, either from season to season or from year to year, he said. “The demographic skews a bit older, probably age 55 and up, and a little bit female. It’s been consistent for a long time.”

Nearly all of the buses to Rama come from within a two-hour radius, Craik estimated. The casino has exclusive arrangements with seven “preferred providers.” There are hundreds of small operators, he said, and rather than deal with all of them directly, Rama refers them to one of the seven.

When Rama opened in 1996, the casino arranged with CN to run a train from Union

Station in Toronto to a spur that was behind the casino. That only lasted a few weeks, Craik said, because it was inconvenient for most passengers.

“You can’t expect the players to come to the transportation,” as they had to do with the train, Zidenberg said. ”You have to create pickup spots that are convenient for the people, based on the dense areas of residential development, the availability of parking, where they are on a transit route, etc. This way it’s close to their homes, so you can create a 12-month-a-year program. People will find it difficult to stand in a cold spot alone in the middle of winter. But if they can wait in their car, or stand in a plaza or in a doughnut shop, or come up from the subway, and it’s five or 10 minutes from their homes, it’s very convenient.

“You also have security concerns. The stops must be in well-lighted areas that are safe, so you’re not leaving patrons – who people understand are coming up with money – in an unsafe place, either on the way up or on the way back.”

Incentives for the operators; freebies and special attention for the playersYears ago, casinos in Atlantic City devised a formula for luring grey-haired day-trippers from the population centres of New York City and Philadelphia: subsidize the bus companies so that the trips are free or cheap, stake the

Usually, but not always, bus patrons are low-rolling senior citizens. But they help to fill the

casino when business is slow. And with player tracking, casinos can be sure they don’t

overspend on this niche.

By fred faust

At Casino Rama (left), greeters swipe the players

club cards of bus patrons as they leave the bus to

enter the casino. This enables the casino to track

the play of each specific bus group.

18 | October 200�

players a roll of quarters for their slot play, and give them a free buffet. That pattern, with variations, works for Canadian casinos.

“For charter bus programs,” Craik said, “the operators get paid a per-passenger commission to bring people in. The passenger, depending on the time of day or time of year, receives a coupon for a buffet.” Sometimes Rama may give the passengers a coin coupon. If the live entertainment schedule includes a matinee, the bus patrons may be given a show ticket. “But the anchor of the program is the buffet coupon,” he said.

Hundt said most of his customers are given a choice of free slot play or a free buffet,

and most choose the buffet. With subsidies from the casinos, Great Canadian can offer cheap fares. The 130-kilometre trip from Kitchener to Niagara Falls, for example, is $10 for a round trip. From Kitchener to Rama, a distance of 210 kilometres, passengers pay $5 in the off-season and $10 at peak season.

Saskatchewan Gaming Corp. pays operators a commission for the bus customers they bring to Casino Regina and Casino Moose Jaw. Susan Flett, director of marketing for both properties, said a survey found that the bus customers wanted more flexibility in incentives. “So in April, we introduced our flexible bus program,”

she said, “where guests decide on their own level of play, and we’ll match it, and we included a variety of entertainment options, including food and beverage and shows.”

Flett said about 40,000 bus patrons visited the two casinos in the fiscal year ending March 31. “These guests are predominantly seniors,” she said, “and they’re taking tours as a fun way to socialize with friends or meet new people. They’re not hardcore gaming people. They come for the total experience.”

Seventy per cent of them come from within the province, and they get “a lot of personal attention,” Flett said. “Ambassadors greet the bus guests. We’ll have manifests ready with their players club cards and direct them to the promotions. Afterwards, they’re given small parting gifts and walked to the tour bus.”

The bus patrons at Lake City Casinos also “tend to be elderly people who use it as a social outing and a holiday, to visit a different region,” said Suzanne Carter, the marketing director. Lake City Casinos, part of Gateway Casinos, is a group of four small casinos in the Okanagan region of British Columbia. Each of the casinos is within a 45-minute to two-hour drive of the other, and Carter said many of the 108 tour buses that visited last year stopped at multiple Lake City locations.

The Asian market in TorontoAn exception to the rule that bus patrons are low-rolling senior citizens comes from the concentrated Asian market in Toronto. The leader in developing what can be high-end business from that population is DSL Travellers’ Tours, which was founded by Danny Leung, a former vice-president of Asian marketing at Trump Taj Mahal in Atlantic City.

DSL is a full-service travel agency that runs tours to many places. But in Ontario, its casino service is exclusive to Rama. Angela Chiu, DSL’s director of sales, said the company has 10 to 15 trips each day to Rama, with 20 to 30 pickup points in the GTA.

These are no ordinary buses. Chiu said the DSL fleet to Rama consists of brand-new Mercedes highway coaches, equipped with state-of-the-art entertainment equipment. DSL contracts with a distributor of popular Chinese TV programs from Hong Kong, for showing en route. Patrons are served fresh pastries and hot and cold beverages.

“I think we coined the term ‘casino bus host,’ ” Chiu said, referring to the host on each trip who serves the patrons. “We train these bus hosts to market our buses to clientele that would be of benefit to both the casino and obviously then to DSL.”

The DSL trip to Rama is free. DSL is considered a junket operator, which means that the company is compensated by the casino based on the tracked play of the bus patrons.

Another junket operator that caters to the Asian market in Toronto is Tai Pan Tours. Aubrey Zidenberg said Tai Pan does more volume than DSL, but its customers are not quite as free-spending as DSL’s. Rama’s Jeff Craik said Tai Pan is the casino’s largest bus operator. The company advertises around-the-clock service from 11 GTA locations, at $5 for the round trip to Rama.

A third major junket operator that targets Toronto’s Asian population is Safeway Tours, which has an exclusive contract with Niagara Fallsview.

A Tai Pan Tours bus parked in the bus bay at Casino Rama. Tai Pan is the largest supplier of bus patrons to Rama.

Continued on page 20

CIBC World Markets is a leading provider of advisory and financing solutions with expertise across the gaming industry.

Jacques [email protected]

Raise capital, grow,

and invest

Leo Fernandez310.446.3549

[email protected]

cibcwm.com

PariMutuel

First Nations Gaming

GamingEquipment& Software

Gaming Operators

20 | October 200�

In partnership with the British Columbia Lottery Corp., Lake City offers a small commission to the tour operator. Based on a minimum four-hour visit, Carter said, the operator gets $5 per person. Patrons generally receive a $5 coupon, good for either slot or table play, and a welcome gift, such as a deck of cards or a mug. The casinos don’t have live entertainment, and only one of them – at Penticton – has a restaurant, and that’s too small to handle bus groups.

“We didn’t build the casinos with tour buses in mind,” Carter said. But Gateway is considering an expansion and/or relocation of some of its Lake City sites, and Carter said that may mean more space to accommodate bus business.

River Rock Casino Resort in the Vancouver suburb of Richmond, B.C., the flagship of Great Canadian Gaming Corp., is certainly big enough to handle bus tours. Brenda Vachon, marketing coordinator for group tours, said the property gets about 50 buses a month, depending on the season. The tour company receives financial incentives based on the number of people on the bus and the distance they have travelled to the casino. Patrons get coupons to use in the restaurants and on the gaming floor.

River Rock also has a unique “Red Carpet Greeting” program. Prior to the arrival of a bus, a red carpet is rolled out at the casino/hotel entrance. When the bus pulls in, a guest services representative boards and talks about the resort. Then the patrons get off and line up on the carpet, “to make them feel special.” The representative escorts them into the casino. Patrons on buses that have come from at least five hours away – typically from Alberta -- are treated to a welcoming reception in the lounge.

The websites for River Rock and three other of the company’s B.C. casinos have an online form where patrons can sign up for day trips to any of the properties. Vachon said “a small portion” of day-trip patrons use the online sign-up. The site also lists Great Canadian’s “Tour/Charter Company Partners,” with contact information for each and a brief description of the areas served.

Great Canadian’s Casino Nova Scotia in Halifax has a “preferred motorcoach partner” program, with regular tours from each of the Atlantic provinces. Bus patrons receive a free buffet and a $5 match play coupon. An

Continued from page 18

Canadian Gaming Business | 21

“ambassador” greets the patrons and, at the end of the visit, sees them off with prizes. The motorcoach coordinator gets a commission based on the bus patrons’ play.

tracking the play of bus patronsAtlantic City casinos eventually learned that some of the bus players weren’t really players at all – they pocketed their free rolls of quarters, ate the free buffet and enjoyed the subsidized bus trip. Most casinos now take advantage of current technology to track the play of their bus patrons.

They all strongly encourage the bus patrons, indeed all patrons, to use their players club cards, although as Rama’s Craik points out, they can’t really force them to. At Rama, the cards are swiped when the passengers get off the bus. That way, the subsequent play is coded to the particular bus trip.

“We do much less busing business than we did probably five years ago,” Craik said. “That’s when we put some pretty sophisticated tracking mechanisms in place with the swiping units as people come off the buses, and it really caused us to change how we incent operators and the type of rewards we give to customers. You find out that you’re possibly spending a lot more money on customers than you’re getting.”

In British Columbia, such precise tracking by the casino is not possible, because BCLC

controls the players club program and discloses only limited data to the casino. Lake City’s Carter said the data that BCLC does share shows that the spending by bus patrons is “quite modest.”

Great Canadian may not be able to track spending by bus patrons at its B.C. casinos, but at the company’s Nova Scotia properties, play is tracked based on theoretical hold, and the motorcoach operators are told that they earn larger commissions for longer visits.

At Casino Regina and Casino Moose Jaw, Flett said, bus patron play is not tracked. But a new players club reward program will be implemented this fall, and eventually such play will be tracked.

One problem that Atlantic City and even Niagara Falls casinos have is that bus patrons may not stay in the casino that subsidizes their trip. That’s not a problem for Rama, Craik said, because there’s little else to do in Orillia, Ont. “We call it ‘the cornfield effect,’ ” he joked.

Craik advises any casino that’s undertaking a bus program to start with the tracking. “Don’t start with bringing buses, start with instituting and developing your tracking programs,” he said. “Once you’ve got the tracking programs in place, then worry about bringing the business in. Until you can track it, you don’t know your return on your investment.”

Taking Moose Mountain to the casinoAngela Lawrence manages tours at Moose Mountain Tours in Regina. She has 185 casino trips booked for next year. The company serves Club Regent and McPhillips Street Station in Winnipeg, and Casino Moose Jaw, but most of the destinations are smaller First Nation/Indian casinos on the Canadian prairie and in North and South Dakota and northern Minnesota.

“I have about 4,500 patrons in my database,” Lawrence said. Most of them are seniors, and she communicates with them by phone, not email. “Probably five of the seniors have email,” she said. “They like the phone call. Sometimes they just call me to chat.”

Every casino offers different incentives, both to the bus patrons and to the company, Lawrence said. The offer from day-trip destinations usually range from $10 in coin to $25, plus a couple of match plays and a $5 meal discount. Overnight destinations like Sky Dancer in Belcourt, N.D., offer about $60 in cash back, three meals and a very favourable exchange rate. Well before the loonie was at par with the U.S. dollar, Sky Dancer offered to exchange loonies from Moose Mountain patrons at par plus 10 per cent.

“The seniors appreciate the food and the cash back,” Lawrence said, “and if a tour offers that, they’ll usually take it.” Her casino trips include a tour guide on the bus, who organizes games with prizes and distributes candy.

Casinos often contact Lawrence with their offers to bus patrons, but she knows when an offer is inadequate. For example, she said the River Cree Resort near Edmonton wanted her to bring tour groups. But the hotel room rate was too high, she said, and the resort would not discount its meals.

“Their smorg is $25,” Lawrence complained. “No senior on earth is going to pay that!”

Making money and being secure iscritical to a casino’s success. That’swhy MEI has tailored our products andservices to fit your needs.

With MEI CASHFLOW®, we are committed toproviding your casino with:

• Greater security

• Better player experience

• Increased revenue from your games

• Ongoing sales support after the deal is complete

Call 1-800-345-8215 to see how MEI CASHFLOW® can protect your casino and your bottom line.

©2007 MEI. All rights reserved.

www.meigroup.com

Royal FlushGaming Ltd.

A FIRST NATION GAMING SUPPLY HOUSE

10J Q K A

AMississa

uguao

ftheN

ew

Credit First Nation

SYSTEM CERTIFICATION

ISO

9001:2000

MEI is ISO 9001:2000 certified.

MEI CASHFLOW®.THE PERFECT FIT FOR YOURCASINO

SM

...RIGHT AT YOURFINGERTIPS.

22 | October 200�

POssessing the imPressive moniker “Canada’s fastest half-mile track,” Flamboro Downs in Flamborough, near Hamilton, also has one of Ontario’s leading racinos.

“This slogan was adopted by the track many years ago and has stuck,” said Howard Blank, vice president of corporate communications for Great Canadian Gaming Corp., owner of Flamboro Downs.

“Essentially there are track biases from one to the other,” he said. “With Flamboro, it’s always been regarded as a lightning-fast track. It is also located 45 minutes from Toronto, where all the best horses and drivers are.”

The track opened in 1975 and had a $12-million renovation in 2001. It went through several changes in ownership before Great Canadian bought it from Magna Entertainment Corp. in October 2005, for $78 million.

Live and simulcast thrillsVisitors to Flamboro Downs can enjoy year-

round live and simulcast horse racing, try their luck on the racino’s 750 slot machines, dine in one of four restaurants and hold meetings at its state-of-the-art conference facilities.

According to Blank, the demographics of the track’s visitors break down as follows: 57 per cent from the greater Hamilton area, 13 per cent from Kitchener/Waterloo/Cambridge, 9 per cent from Brantford, and the rest from other parts of Ontario. Fifty-six percent are male, and the average age of customers is 58.

More than 1.5 million visitors passed through Flamboro’s gates in 2006.

The racino — which opened in 2000 — is operated by Ontario Lottery and Gaming. A huge revenue generator, OLG’s slots at Flamboro produced $116.9 million in revenue for the fiscal year ending March 31. That ranked fourth among the 17 racinos in the province.

Track operators and the “horse people” (owners, breeders, and racing-related

agricultural interests) each get 10 per cent of the slot revenue, so Great Canadian’s share last year was $11.7 million. That represented about 4 per cent of the company’s total gaming revenue. Great Canadian’s operating agreement with OLG for the Flamboro slots lasts until 2010, and OLG has an option for a five-year renewal.

Set on 90 hectares, Flamboro Downs has grown substantially over the decades. With 225 live races slated for this year, a typical live race card for the track will include at least 10 races and sometimes more. While harness races are usually held five days a week, Flamboro Downs offers both thoroughbred and standardbred (harness) racing simulcasts daily from other North American tracks.

“The live on-track handle has increased [in revenue] — on a per race basis — by just under 20 per cent in May and June versus 2006,” Blank said, “because we’re offering fewer races to maximize quality and field size. And the purse for horsemen was up 20 per cent on June 1.”

Great Canadian’s racetrack revenue, which is distinct from slot revenue, from Flamboro Downs in 2006 was $11.6 million. Of this, Blank said $5 million was from simulcasts and wagering from teletheatres (the track has off-track teletheatres in four cities); about $2 million was derived from live on-track wagering; $3 to $3.5 million was generated from food and beverage sales; and about $1 million was miscellaneous revenue from the gift shop, program sales and meeting-room rentals.

Greater Internet access to live races According to www.standardbred.ca, Great Canadian announced in July that access to online video streams to watch live racing from Flamboro Downs and three other company-

Flamboro

By lisa kOPOChinski

downsEntrance to the racino at Flamboro Downs.


Flamboro

downsowned tracks -- Georgian Downs, Fraser Downs and Hastings Racetrack -- has become much less restricted.

In order to reach a wider audience and take advantage of the Internet's power as a broadcast medium, the website reported that Great Canadian has elected to drop the requirement that viewers had to be registered as a Horseplayer Interactive member.

“The distribution of GCGC horse racing is a key strategy going forward and there is likely no better medium than the Internet right now to do so," explained Chuck Keeling, Great Canadian vice president of racing operations,

in a release. “It made sense to us to maximize our audiences by providing the broadcasts to as many recipients as possible."

Upgrade in the worksGreat Canadian also recently received approval for a $250,000 upgrade to its “sports emporium” at Flamboro Downs, to make the race book more appealing. And the track has embarked on a major effort to market to a younger guest base, “in order to enhance our long-term visibility while maintaining our key horse-playing customers,” Blank said. “We’ve added more on-track entertainment, so on a Friday night, for instance, there’s live music to enhance the atmosphere and experience.”

As well, the dining areas will also be improved, with an expanded menu, more staff and flat-screen televisions. “We are listening to what guests want and are trying to adapt quickly,” Blank said.

Great Canadian has also changed the first daily post time at Flamboro. “We used to run at 4 pm to access as many simulcast networks as possible,” Blank explained. “We’ve moved

that post time to 6 pm. It’s still fairly early, but we are attempting to stay in as many simulcast networks as possible versus competing head-to-head with all the major attractions that start at 7:30 or 8:00.

“This has helped drive our on-track dynamic as well. Our attitude is to attract any new demographic.”

Despites the challenges in the marketplace, Flamboro has held its own and the future looks bright, Blank said. The track has plenty of land, and that offers a lot of entertainment possibilities.

“I don’t think there any home runs with the facility and racing here,” he said. “I think our goal is to hit as many singles as we can. If we can achieve slow but steady growth, whether that’s through slot play, live racing, simulcast, food and beverage or a combination thereof, then we should be satisfied with that. It’s a mature facility. It’s a mature product in a mature marketplace.”

Lisa Kopochinski is a freelance writer who lives in Sacramento, California.

f a c i l i t y f o c u s

Hospitality Leisure Tourism

HLT Advisory Inc.384 Adelaide St. W. Suite 200

Toronto, ON M5V 1R7(416) 924-7737

[email protected]

[email protected]

Lyle Hall and Robert Scarpelli have been providingconsulting and advisory services to the Canadian andInternational hospitality, leisure and tourism industriesfor over 15 years.

Areas of specialization:GamingLodgingAttractions

Travel and TourismPublic Assembly VenuesRecreation and Sports Please contact us:

24 | October 200�

Use with CaUtion

statistiCs Canada, Canada’s national statistical agency, produces a vast body of statistics on the country – population, resources, economy, society and culture. In the “Perspectives on Labour and Income” publication series, the purpose of which is to provide impartial insight into key issues facing the Canadian marketplace, Statistics Canada produces an annual issue on “Gambling.” The most recent one was dated May 2007.

This five-page issue provides a statistical account of the Canadian gaming industry in terms of total net revenue, net revenue by gaming activity, revenue per person, workforce characteristics, total employment and selected socio-economic characteristics of Canadians who partake in gambling activity. While on the surface, the issue seems to provide some insights, the use of these data and statistics should be cautioned on a number of fronts.

First, it should be realized that the gaming industry is defined by Statistics Canada as “total money wagered on non-charity lotteries, casinos and VLTs, minus prizes and winnings” (labelled gaming net revenue). For 2006, Statistics Canada estimated the size of the industry at $13.3 billion. When pari-mutuel wagering is included by Statistics Canada, total net revenue

increases to about $13.7 billion. By contrast, HLT estimates the total industry (including charity and pari-mutuel activity, but excluding non-gaming revenue) at $14.6 billion in 2006 (on an equivalent revenue basis).

Second, industry employment is estimated using Statistics Canada’s Labour Force Survey. This survey is conducted monthly using a sample base of approximately 54,000 households and reports employment numbers based on the North America Industrial Classification System.

This system defines the gaming industry as “establishments primarily engaged in operating gambling facilities such as casinos, bingo halls and video gaming terminals; or providing gambling services such as lotteries and off-track betting”. This is a different definition from the one used earlier. Pari-mutuel betting at horse racetracks is classified under another industry (Spectator Sports).

Employment according to this survey was estimated at 42,000 in 2002, 50,000 in 2003 and 54,000 in 2004. Since 2004, employment first dropped to 45,000 (2005) and now stands at 40,000 (2006), according to Statistics Canada. Hence fewer people are employed in the gaming industry today then in any year since 2002. This

trend seems unbelievable, because gaming is a labour-intensive industry and industry revenue has grown annually (especially in the most labour-intensive activities such as casinos and “racinos”) since 2002 by about 14 per cent.

Third, statistics related to participation and expenditure rates by households and household income levels are presented. These statistics are based on Statistics Canada’s annual Survey of Household Spending; a 21,000-household sample base (that equates to about 0.2 per cent of all private households in Canada based on the 2006 census). It should be noted that a large portion of the expenditure data collected essentially equates to wagering, not net revenue (e.g. lottery tickets sold without subtracting the prizes paid to winners).

This is yet another definition of the industry that Statistics Canada uses in the May 2007 report. Wagering data is more applicable to lotteries, bingo and pari-mutuel sectors as opposed to casinos and VLTs. This can distort expenditures by income brackets as well as by regions, as regional activity can be somewhat different. Also, as acknowledged by Statistics Canada, households consistently under-report the amount of money spent on gaming.

Given these data limitations, the statistics generated by Statistics Canada are probably best characterized as interesting, but disparate insights.

In summary, an old quote from Aaron Levenstein seems appropriate: “Statistics are like a bikini: What they reveal is suggestion, but what they conceal is vital.” While this quote may be out of date with regard to the analogy used, its meaning is still relevant.

We hope that future editions of Statistics Canada’s gaming perspective evolve to adopt a more practical data collection and interpretation methodology.

Robert Scarpelli is a managing director and Katia Muro is senior associate of HLT Advisory Inc., a Toronto consultancy that focuses on the hospitality, leisure and tourism industry.

Statistics Canada’s Gambling Report:

By rOBert sCarPelli & katia murO

Use with CaUtion

P E R F O R M A N C E C A S I N O S E A T I N G

“We stand for superior quality and service.”“Okay. Technically, we’re sitting down. You would too if you

had a Gary Platt X-Tended Play Seat®. Every one of us at Gary

Platt Manufacturing stands for quality construction, exceptional

comfort, durability, functionality and the fi nest personal service.

We deliver performance casino seating that’s a sure bet to

X-Tend Time On Device and therefore, profi ts. Not too shabby

for a fun-loving group in Reno, Nevada.”

800.969.0999 · garyplatt.com

S L O T S · P O K E R · T A B L E G A M E S

Steve JacksonRegional Sales Manager

Bob YabroffPresident

Dana StrebelInside Sales

Gary PlattChairman/Director of Sales

Skip DavisChief Operating Offi cer

Barbara LindeExecutive Assistant

Jennifer LundeenOffi ce Manager

GARY PLATT

X-TENDEDGPXP L A Y S E A T S

TM

id Gary Platt Group ad _Canadian Gaming.indd 1 8/2/07 3:06:51 PM

By Christine J. mingie

The U.S. Unlawful Internet Gambling Enforcement Act – One Year Later the unlawful internet gamBling Enforcement Act of 2006 (the “UIGEA”), signed into law by President Bush a year ago, effectively shut the door on most Internet gambling by residents of the United States, and a huge portion of the US$15 billion global market for Internet gambling disappeared overnight.

But the UIGEA did not in and of itself make Internet gambling illegal in the U.S. Why, then, did it have such a profound and negative impact on the Internet gambling industry worldwide?

The reason is twofold: the enactment of the UIGEA was preceded and followed by the high-profile arrests of several executives connected with offshore Internet gambling operations and the fear of prosecution drove operators away; and the UIGEA struck at the heart of Internet gambling operations by choking off their supply of funds from U.S. bettors.

Indictments and high-profile arrestsBefore the UIGEA was signed into law, U.S. authorities began acting on their previously announced crackdown against Internet gambling in a very strategic and purposeful way. The strategy involved seeking indictments against some of the key offshore Internet gambling companies, their executives and founders, and third-party service providers whose services allowed the gambling operations to flourish.

The indictments typically included charges of racketeering and conspiracy related to the operation of Internet gambling enterprises; failure to file federal excise wagering tax returns; failure to pay wagering taxes; tax evasion for

moving billions of dollars of wagered funds offshore; and fraud for, among other things, claims made to U.S. gamblers that such offshore Internet gambling operations were legal and/or licensed to provide gambling services when in fact none of them were licensed, authorized or regulated by any gaming control authority in the U.S.

The indictments, once secured, were sealed so that U.S. authorities could sit and wait until one or more of the persons named in an indictment landed on U.S. soil or in an extradition-friendly country. As soon as they did, the indictments were unsealed and they were arrested amid worldwide publicity.

Some of the key events surrounding the UIGEA that troubled offshore Internet gambling operators and helped cause their demise in the U.S. are listed in the timeline on the nex page.

The UIGEA takes Internet gambling operators by surpriseIn the midst of these high-profile arrests, the UIGEA was enacted without fanfare. Although the UIGEA and related bills were proposed and debated for years in the U.S. Congress, passage of the UIGEA took the Internet gambling industry overseas by surprise.

Members of the industry have told me that they were told by their advisers that there was no chance the U.S. would ever implement legislation that would affect their access to the U.S. market. By the time they realized that advice was wrong, it was too late and they had lost billions of dollars.

The UIGEA does nothing more than prohibit

anyone engaged in the business of betting or wagering from knowingly accepting payment (such as a credit card, electronic money transfer, cheque or other financial instrument) in connection with the participation of another person in unlawful Internet gambling. The types of payment systems that are intended to be captured by the UIGEA were to be determined by regulations prepared by the U.S. Federal Reserve System and the Department of Treasury.

On Oct. 1, 2007, the draft regulations were released for public comment, 12 weeks late. The regulations exempt cheque collection systems, wire transfer systems and some participants of the automated clearing house (ACH) systems from application of the UIGEA because these systems cannot reasonably identify and block Internet gambling transactions.

Only card systems (including credit, debit and pre-paid or stored-value products) and money-transmitting businesses are caught by the regulations and must prohibit payments for Internet gambling. This does not mean, however, that offshore Internet gambling operators accepting wagers from U.S. residents through one of the exempt payment systems are not caught by the UIGEA.

That is because the exemptions are not available for any participant (in the cheque collection, wire transfer or ACH systems) who has a customer relationship with an Internet gambling business. Also, the exemptions are only temporary – as technology advances, all payment systems will eventually be subject to the compliance regime set out in the regulations.

26 | October 200�

The comment period on the proposed regulations lasts until Dec. 12. Then the Federal Reserve and Department of Treasury will develop final regulations to take effect six months after they are promulgated.

UIGEA under attackDespite the effectiveness of the UIGEA in curbing the operation of offshore Internet gambling sites in the U.S., it has come under attack and if any of those attacks is successful, the UIGEA could be repealed.

In April, Congressman Barney Frank sought to erode the effects of the UIGEA by introducing a bill to regulate Internet gambling in the U.S. The Frank bill does not repeal the UIGEA, but rather proposes a regulatory structure based on existing gambling laws. However, the Frank bill proposes a lax gaming control regulatory regime that is wholly inconsistent with U.S. state gaming control statutes. On this basis alone, it likely won’t get very far as drafted.

In July, Interactive Media Entertainment and Gaming Association, a U.S.-based group, filed an application for a restraining order to prevent enforcement of the UIGEA on the basis that it violates First Amendment rights protected by the U.S. Constitution. A hearing in U.S. District Court was held in September and a decision is expected at the end of October.

The Outlook for Internet gambling in the U.S.U.S. authorities continue to pursue and prosecute offshore Internet gambling companies and persons closely connected to them for their conduct in providing Internet gambling services to U.S. citizens before the UIGEA was implemented. There is speculation that U.S. authorities may have sealed indictments against Ruth Parasol, the American lawyer who co-founded PartyGaming and reportedly lives in northern Spain, and Canadian Calvin Ayre, who reportedly continues to travel to Canada regularly.

Several indicted companies and individuals have made deals with U.S. authorities, including former Neteller executives Stephen Lawrence and John Lefebvre, who pleaded guilty to criminal conspiracy for their role in facilitating payments to offshore Internet gambling operators from U.S. gamblers. Both face prison terms of up to five years and must make sizable restitution payments to the U.S.

Neteller also settled, admitting to operating an unlicensed money-transmitting business in the U.S. and agreeing to pay US$163 million in restitution. Neteller also agreed to assist the U.S. in its ongoing Internet gambling investigations.

More settlements can be expected. PartyGaming, 888 Holdings and Sportingbet have said that they are in talks with U.S. authorities to address their role in providing Internet gambling services to U.S. gamblers before the UIGEA.

In the meantime, the UIGEA is here to stay for at least another two years. But during that time, we can expect to see land-based gaming operators take a more active role in discussions on the eventual regulation of Internet gambling in North America.

Christine J. Mingie is a lawyer with Lang Michener LLP in Vancouver. She advises on gaming regulatory and compliance matters for a large public gaming company.

Timeline – Key Dates Surrounding the UIGEAMay 16, 2006: U.S. indictment unsealed against WorldWide Telesports, Inc., William Scott, Jessica Davis and Soulbury Ltd. for money laundering and Internet gambling.

June 1, 2006: U.S. federal grand jury returns 22-count sealed indictment against BetOnSports, several of its officers, including founder Gary Kaplan, and affiliated corporations.

July 11, 2006: U.S. House of Representatives approves Leach-Goodlatte bill, prohibiting the use of credit cards and other financial instruments for unlawful Internet gambling.

July 16, 2006: BetOnSports’ chief executive, David Carruthers, arrested at Dallas-Fort Worth airport en route from Britain to Costa Rica.

July 21, 2006: Costa Rican Minister of Justice admits that her government was warned in advance by U.S. authorities that they intended to take action against Internet gambling companies based in Costa Rica.

July 24, 2006: Canadian Calvin Ayre, founder of Bodog, an offshore Internet gambling operator then based in Costa Rica, cancels a marketing conference scheduled for Las Vegas and says he won’t travel to the U.S. anytime soon.

Sept. 6, 2006: Sportingbet’s chairman, Peter Dicks, arrested in New York City.

Oct. 2, 2006: U.S. Senate passes the UIGEA, a modified version of the Leach-Goodlatte bill, prohibiting the use of financial instruments for Internet gambling.

Oct. 12, 2006: Sportingbet sells its U.S.-facing sports betting and casino business for $1.

Oct. 13, 2006: President Bush signs the UIGEA into force. An estimated US$7 billion is wiped off the value of public Internet gambling companies. PartyGaming and 888 Holdings cease U.S. gambling operations.

Nov. 9, 2006: BetOnSports agrees to a permanent injunction shutting it out of the U.S. market.

Nov. 15, 2006: 3 companies and 27 persons indicted in $3.3 billion Internet gambling operation.

Jan. 15, 2007: Canadians Stephen Lawrence and John Lefebvre, founders of the payment processor Neteller, are arrested in the U.S. Neteller ceases processing payments for Internet gamblers from the U.S.

Jan. 23, 2007: US authorities serve subpoenas on at least 16 banks including HSBC, Dresdner Kleinwort, Deutsche Bank and Credit Suisse seeking documents related to Internet gambling firms.

March 30, 2007: Fugitive Gary Kaplan, founder of BetOnSports, arrested in the Dominican Republic and extradited to Puerto Rico.

April 26, 2007: Congressman Barney Frank introduces a bill to regulate Internet gambling in the U.S.

May 24, 2007: BetOnSports pleads guilty to racketeering and agrees to assist U.S. authorities in their continued prosecution.

June 5, 2007: PartyGaming and 888 Holdings announce they are in discussions with U.S. authorities for their role in accepting bets from U.S. citizens prior to the enactment of the UIGEA.

June 29, 2007: Neteller’s Lawrence pleads guilty to criminal conspiracy and agrees to accept liability in part for $163 million in restitution that U.S. authorities are seeking. Days later, Lefebvre also pleads guilty to similar charges.

July 9, 2007: Interactive Media Entertainment and Gaming Association files lawsuit in U.S. seeking an injunction to stop the enforcement of the UIGEA.

July 18, 2007: Neteller enters into a two-year deal with the U.S. for restitution payments of $163 million and the deferral of prosecution. Neteller will assist the U.S. in its ongoing Internet gambling investigation.

Oct. 1, 2007: Federal Reserve System releases draft regulations under the UIGEA.

Oct. 2, 2007: The CEO of Sportingbet tells Reuters that the company is in discussions with U.S. authorities to cut a deal to end the threat of prosecution.


28 | October 200�

Lottery and Gaming Corporation Highlights

British Columbia Lottery Corp.B C L C r e p o r t s o n O m b u d s m a n recommendations and Player First program

BCLC has released a status report on its progress in implementing the May 29 recommendations of the BC Ombudsman concerning lotteries, and on its Player First plan that will bring BCLC to the forefront of the lottery industry in player protection.

From adopting a new Lottery Retailer Code of Conduct and fully implementing a new "No Play at Work" policy to putting in practice improved validation procedures, retailers are working to reinforce new customer-service standards.

Player-facing display monitors are now locked down so they cannot be moved, self-serve Check-a Ticket terminals are now available at most lottery retail locations and display the actual prize amount, and a new winning jingle plays louder and longer than the former version.

BCLC has made changes such as improving its customer call and complaint tracking system and ensuring that all retailer prizes of $1,000 or more are claimed at BCLC offices.

BCLC's first Player First Quarterly Report, the status of BCLC's responses to the Ombudsman's recommendations, and a Sept. 12 news release are available at www.bclc.com.

Mahjong tournament a first for B.C.Mahjong players have the opportunity to support the Richmond Community Foundat ion a t the prov ince ’ s f i r s t Mahjong Charity Open on Oct. 21, presented by River Rock Casino Resort and sponsored by BCLC.

The casino will donate $50 per player to support three programs that will preserve a local park, teach students about healthy eating habits and social responsibility, and collect local fruit for families in need.

If the tournament sells out at 256 players, the prize pool will be $25,600. The top 16 players will win money, with the first place finisher taking home $10,000.

Chances entertainment facilities celebrate openingsBCLC and Pomeroy Group announced the grand opening of Chances Fort St. John on Sept. 21.

T h i s n e w 2 0 , 0 0 0 s q u a r e f o o t entertainment facility offers 140 slot machines, two electronic Blackjack games, 120 electronic bingo terminals, 55 paper bingo seats, traditional and interactive lottery products, off-track betting for horse racing, plus an 85-seat show lounge.

Sept. 14, BCLC, Alberni Valley Gaming Association (AVGA), and Coulson Group announced the official opening of the new Chances RimRock in Port Alberni.

This 27,000-square-foot facility offers 74 slot machines, 90 touch-screen bingo terminals, 92 traditional paper bingo seats, one electronic blackjack game, lottery products, interactive-style games, off-track betting for horse racing, a virtual games room, and food and beverage service including a microbrewery.

With its rainforest theme, Chances RimRock's custom-built furniture and wood-beam construction showcases locally manufactured majestic timber.

Saskatchewan Gaming Corp.Casino Highlights• SGC released its annual report July

26. Highlights included net income of $34.9 million, based on revenues of $102 million, including $89.9 million in slot revenues and $9.5 million in table revenues, and expenses of $67.1 million. Average daily attendance at Casino Regina was 7,085 guests, while Casino Moose Jaw welcomed an average of 1,679 guests per day. Highlights of the past year included being named one of Saskatchewan’s Top 10 Employers, and being named finalist for the Tourism Association Industry of Canada’s Business of the Year award.

• Casino Moose Jaw celebrated its fifth anniversary in September, holding a pancake breakfast to thank players, suppliers, and the community for their outstanding support. Casino Moose Jaw has welcomed over 2,774,000 since opening on Sept. 6, 2002, and is on track to welcome its three-millionth guest later this fall. The casino has brought in over $31,110,000 in revenue.

Tournament Highlights• The sixth annual Diamond Poker

Classic was held at Casino Regina in July, attracting over 835 players from Canada and the United States, with a total tournament prize pool of approximately $475,040. Tournament winners were:

July 26: Kevin Dawe of Truro, N.S., won top prize of $30,759

July 27: Doug Clark of Mclean, Sask., won top prize of $40,711

The following summaries of news and activities were submitted by the provincial lottery and

gaming corporations. Look for reports from other provinces in the December issue.


July 28 Canadian Poker Open: Steve Purdy of Calgary won top prize of $48,160

• Casino Regina hosts two other multi-day tournaments per year: the Harvest Poker Classic will be held Nov. 6-11, and the Station Poker Classic will take place in March.

Sponsorship Highlights• SGC rewarded the achievements of 15

Saskatchewan students with $13,000 in post-secondary scholarships, including a $2 ,500 Community Leadership Award. Each year, SGC, which operates Casinos Regina and Moose Jaw, provides scholarships to encourage students to pursue full-time post-secondary education. Students demonstrating commitments to balancing education, family, work, and being active in the community were rewarded for their excellence this year.

• The Rider Pride held by guests of the Casino Regina Show Lounge will pay off for the Regina and District Food Bank, as SGC donated $25,000 raised by hosting Saskatchewan Roughrider away-game parties. The funds were presented during the Labour Day Classic on Sept. 2 at Mosaic Stadium at Taylor Field. For more information on Casino Regina

and Moose Jaw, visit www.casinoregina.com or www.casinomoosejaw.com.

Manitoba Lotteries Corp.Casinos of Winnipeg• Craps will be introduced at McPhillips

Street Station Casino in December. In addition, “no limit” Texas Hold ’Em poker was introduced at Club Regent Casino and is proving very popular.

• MLC hosted four hospitality and culinary students from Strasbourg, France, from May until September, as part of an internship initiative with Bas-Rhin, a territory in northern France. Bistro des Artistes, a 24-seat café planned and operated entirely by the students, opened within the Royal Palms Restaurant in Club Regent Casino for three weeks in August. The menu, featuring cooking from the regions of Strasbourg and Alsace, was developed by the students, who also prepared and served the food.

Corporate• MLC welcomes Carolin Taubensee as

Executive Director, Corporate Marketing and Community Support. Carolin brings considerable years of experience in advertising and marketing in Manitoba.

• MLC is honoured to have received the following awards and distinctions:

o One of Manitoba's top 15 employers for 2008

o The Manitoba Workplace Compensation Board SAFE Work Division Award for Best New Entry

Community Support• MLC partnered with Habita t for

Humanity Winnipeg (HFHW). During the week-long Volunteer Blitz Build in August, approximately 100 MLC employee volunteers, along with Kathy P., the future homeowner, donned hard hats and picked up hammers to help with the construction of a new home in Winnipeg. MLC also supported the build through a financial contribution of $125,000 – the largest single amount ever received by HFHW.

Lottery• Over the next nine months, MLC will

continue to work with the Western Canada Lottery Corp. to enhance lottery retail systems and procedures to improve game integrity. The enhancements include new lottery terminals, Ticket Checkers (CATTs) at all locations, and a 19” flat-screen customer display unit that will display prize amounts to the customer and provide jackpot information. MLC will begin installing the new terminals and monitors this fall at all 840 Lottery Ticket Centre locat ions . The target complet ion date is March 31, 2008. There are approximately 360 remaining LTC locations throughout Manitoba that require installation of the self-service ticket checker. Target completion date is Oct. 31, 2007. These enhancements are a component of Manitoba’s recent “It’s Your Ticket” lottery multi-media advertising campaign.

Quality Casino Seating Designed to Your

Specification

1946-2006

60Years of

Excellence

Accro Furniture IndustriesPhone: (204) 654-1114

Fax: (204) 654-2792Email: [email protected]

305 McKay Avenue, Winnipeg, Manitoba R2G 0N5

ProudlyCanadian

Since 1946

Accro_Gaming_1_3v_Feb07.indd 1 2/28/07 12:20:12 PM

�0 | October 200�

YyOu might say that a river runs through Chef Dan Smyth, executive chef at Medicine Hat Lodge and Casino by Vanshaw. In quieter moments, the Thunder Bay-born Smyth, 36, counts fly fishing as his favourite mode of relaxation from the demanding duties in his high-volume kitchens. Yet, he would find it tough to chose between the two.

“Fly fishing for me is that stress relief that brings the world back to a level place. There’s nothing out there but you and the river,” Smyth said. “But I’ve always loved to cook, and when I got out of high school, I entered a culinary management program.”

Now an 18-year veteran of the industry, Smyth learned the business from the ground up, starting as prep cook and pot washer at a Thunder Bay hotel. Graduating from Confederation College in 1991 armed with the requisite cooking basics, Smyth headed to Chateau Lake Louise for a three-year apprenticeship and further training at the Southern Alberta Institute of Technology, from which he obtained his Interprovincial Standards Red Seal in 1994.

Following stints at Banff Springs Hotel, Fairmont Chateau Lake Louise, Delta Calgary Airport, and Delta Edmonton Centre Suite Hotel, Smyth had the experience for overseeing

kitchen operations at the small but busy Casino by Vanshaw, a position he has held for two years.

With plans to double its 15,000 square feet, the casino is located in “the Hat” (Alberta’s fifth-largest city, with a population of 57,000), about 300 kilometres southeast of Calgary. The facility adjoins the 190-room Medicine Hat Lodge and has been a permanent casino since 1996. Technically, Smyth is employed by Mayfield Hospitality, which owns the lodge and provides food and beverage service for the casino.

Smyth’s occasional fly fishing junket is a welcome respite to the job of managing 30 employees as they prepare up to 1,000 meals daily. Smyth’s main kitchen is 3,500 square feet and serves the all-day buffet restaurant, dining room, room service, lounge, and banquets. There are prep areas, hot line buffet and an a la carte line which is split in half: one half for the menu portion of the restaurant and lounge; the other half for the dining room at night.

Inside the casino, there is a lounge as well as a smaller kitchen with roughly 600 square feet of working area. Not including the banquet business (which accommodates from 10 to 600 clients), Smyth calculates that the food and beverage business adds up to a roughly $4 million a la carte operation.

To satisfy that clientele, Smyth partners with local ranchers and farmers. “For example, I’ve paired up with a company providing white-tailed deer tenderloin exclusively for the casino,” he said. “I’m really trying to promote local.

“This is Alberta and we sell a lot of beef. But we’re trying to broaden the horizons of our clientele. They’ve been receptive to it, though you can’t go too exotic too fast. The casino’s clientele varies from the kid having his 18th birthday to the bus tours that are our elderly

clientele. The volume levels make it busy, and the satellite kitchen operates the majority of my casino business. They do close to a quarter of our total food and beverage.”

Smyth believes a rigorous attention to the details of preparation are key to success. “It goes back to training,” he emphasized. “From day one in my apprenticeship, you were told mise en place, mise en place, mise en place (the preparation of necessary ingredients and equipment in advance of cooking). Have it ready, and be ready for anything.”

In turn, training his kitchen brigade has been “all about the prep work,” he said. That includes cross-training, which Smyth demands of his cooks: “They have to be able to jump in anywhere and help out.”

For his part, Smyth jumps into his 12-hour day at 7:30 a.m. when he arrives to see that breakfast is rolling along smoothly. He then prepares orders, helps with banquet setup, and attends various meetings.

“A lot of the day is spot-checking quality, but I spend time with the line staff giving them any one-on-one training and knowledge that I can share,” Smyth said.

He estimates that 25 per cent of the menu changes each month. The standard dishes remain — tenderloins and strip loins — but he is regularly “testing the water” with new ideas. Those new ideas extend to the way he grooms and teaches his staff, as well. “My goal is simply to make this the best place in town,” he said.

Whenever Smyth gets out his fly rod to test the relaxing waters of another kind, somewhere in the back of his mind ideas for his kitchen are likely simmering. “Out there,” he said, “it is quiet and serene.” Andrew Coppolino, [email protected]., is a freelance writer based in Kitchener, Ont.

By andrew COPPOlinO

Dan Smyth Casino by Vanshaw and Medicine Hat Lodge

h e f p o t l i g h tC S

INFOGENESIS IS NOW AGILYSYSAgilysys is a leading technology provider in the worldwide hospitality market. We offer proven solutions to hotels, casinos, resorts, golf courses, spas, cruise lines, and stadiums – all focused on streamlining operations and enhancing guest satisfaction while maximizing profitability. Our robust hospitality solutions provide unparalleled reliability, functionality, efficiency, and control over every aspect of your hospitality operation – from reservations, check in, point-of-sale and other guest activities, to inventory and procurement management.

Learn more today at www.agilysys.com/hospitality or call us at 800-241-8768.

© 2007 Agilysys, Inc. All rights reserved.

POINT-OF-SALE DINING RESERVATIONS SELF-SERVICE ANALYTICS

VISIT www.ac-coIn.com

Artwork, description, game play, photographs and other product details are subject to change. AC Coin & Slot®, Mega Bonus Slots™ and Bankroll® Diamond Edition are trademarks of AC Coin & Slot. IGT®, the IGT logo and Double Diamond® are trademarks or registered trademarks of IGT in theUnited States and/or other countries.

conTacT Your ac coIn repreSenTaTIVe

aTlanTIc cITY: (800) 284-7568 laS VegaS: (888) 291-0053

new 20 lInepaYTaBleS!

HoT oFF THe preSSeS!

now aVaIlaBle Ina DouBle DIamonD®

5-reel 20 paYlInemaX conFIguraBle

program.

geT Your BanKroll ToDaY!

ACC-311_NAC_FP_8.75x11.25.indd 1 9/7/07 1:47:14 PM

Documents

Canadian Gaming Business October 2007