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Kozlowski: G2E 2008 Day Three

During third and final day of G2E, the stock market continued its downward spiral. Not that it has any correlation with the end of G2E, but ouch.

Day three began with an update on I-gaming session. Unfortunately I was still diligently packing my bags and checking out of the Paris during this time. Anyhow, any noteworthy updates are likely to already have  been covered extensively by my astute colleagues at IGamingNews, including the buzz surrounding California's possible I-gaming poker legislation.

Yikes.

Speaking of I-gaming, I had several conversations with folks in that sector during the past two days. Today I chatted with Kim Northrop of CyberArts, yesterday with Vahe Baloulian, CEO of Red Planet Gaming. Both software companies had booths at G2E -- Red Planet for the second year in a row and CyberArts for the first time since 2006. Ms. Northrop even mentioned that many Europeans stopped by her booth inquiring about an I-gaming section at G2E. Obviously there was not one. Audio interviews with both are forthcoming.

Glamor prepares for liftoff.

While waiting patiently for the expo hall to open, Holly and I took in a practice session of Blue Suede Crew -- an Elvis and Johnny Cash tribute band that performed later on the massive entertainment stage set up in the middle of the concourse. Then I had a sit-down with Bally Technologies' VP of marketing Dan Savage, who was kind enough to explain server-based gaming to me in layman's terms. Also, I spoke with Kirsten Clark of Shuffle Master, who said foot traffic was much slower compared to last year. I'll post those audio interviews in the coming weeks as well.

G2E's magical power resurrects Elvis.

The King in full costume.

Shuffle Master's pretty women.

Tribes and banks talk financing.

One of the G2E 2008's final sessions, “Changing Times: Tribal Financing in Today's Market” looked into relationships between Native American gaming groups and potential lenders. Moderator Sam Cohen, a tribal attorney with Santa Ynez Band of Chumash Indians, began by saying, “We are all in agreement that the economy is uncertain, but that doesn't mean that we shouldn't stop thinking of tribal financing.”

Panelists:

• Jeff Hartmann, executive vice president and COO, Mohegan Sun
• David Howard, Banc of America Securities LLC
• Mike Lettig, executive vice president, Key Bank

The sparsely attended session rehashed the importance of developing and maintaining healthy relationships with banks, especially during this icky financial time.

Here are the main takeaways:

• “People really want to do business with people they know,” Mr. Howard said. “Lenders want to feel very comfortable with the management and the property.”
• “Financial institutions aren't like gas stations: They aren't changing their prices everyday -- but they're pretty damn close,” Mr. Lettig said. “When you go to a gas station, do you barter with the guy for the cost of gasoline? No, you grumble and put that in your tank.”
• “What to expect going forward: What is going on in the economy is very deep, very broad, and we're not feeling that there is going to be much of a recovery ... not really until late next year and it may go into 2010,” Mr. Howard projected. “The financial sectors are under stress and liquidity will continue to be under pressure.”

God bless branded slots.

Spirits remain high in the show's final hours.

And that's a wrap. I'm off to go explore Vegas for another three days, which hopefully doesn't end in fear-and-loathing fashion. If someone can convince me, maybe I'll share the remainder of my trip with you when I return to good ol' St. Charles.

Kozlowski: G2E 2008 Day Two

Even though the exhibition hall didn't open until 10 a.m., the lobby (or concourse, rather) and sessions were buzzing an hour before. Compared to yesterday, day two -- the expo's longest and generally biggest day -- proved to be a much calmer experience on the exhibition floor.

This absence of mass hysteria was duly noted by a random passerby. He shouted to another attendee: “Seems like there's a lot less people here than last year!” Although I have no previous shows with which to equate it, G2E appears to be not so much of a ghost town compared to the rest of Vegas. That's a plus, right?

Gaming CFOs keepin' it real.

And that brings us to one of the first sessions of the day, “State of the Economy: Gaming CFO Roundtable,” which continued our current recession obsession by dedicating an hour to the economy and its current state of “fiscal uncertainty.”

Moderator Bill Newby, a board member of American Gaming Association, pointed out that expected panelist Johnathan S. Halkyard, CFO and treasurer of Harrah's Entertainment Inc., would not be joining us this morning.

“Harrah's has gone into a quiet period,” said Mr. Newby. Apparently a very quiet period indeed. I wonder why that could be...

Panelists still willing to vocalize included:

• Simon Dewhurst, executive VP and CFO, Melco Crown Entertainment
• Bill Clifford, CFO, Penn National Gaming Inc.
• Daniel D'Arrigo, CFO, MGM Mirage
• Jeff Hartman, Mohegan Sun

“It's been nothing but brutal,” Mr. D'Arrigo said about the liquidity situation. “There are less banks out there today than there was last year; there are less banks willing to lend.”

More glamor, more appealing headdresses.

Not only did the roundtable broach liquidity concerns, but equity, deleveraging, and everything else  that made me wish I'd taken a few more business classes in school and a few less write-about-your-thoughts-and-feelings classes. Overall, it was a very dry but honest discussion with a few intermittent laughs -- it was extremely evident these men didn't think the current economic climate was anything to be droll about.

Near the end, Mr. Newby brought up growth and asked how the metrics have changed.

“Things have dramatically changed,” Mr. D'Arrigo responded. “There's going to be a lot less pure development growth, especially in this market place. We suspended two projects -- one in Atlantic City, another in Vegas. A lot of others are doing the same … gone are the days that we can put up a nice story board … now you are going to want to scrutinize (development plans) more so than ever.”

He continued by calling the downturn “a game changer” and said he doesn't see new developments coming to the Las Vegas market for another five to seven years.

When Mr. Dewhurst was asked the same question, he said there's a lot more at play in Macau than the downturn. The difficulty, he said, is due to  fuzzy regulation translations -- going from Portuguese to Chinese and so on.“It's just bloody painful."

Lounge singing: a must-have for any gaming expo.

Once the exhibition hall did open, I met with folks from Konami, Matsui America, Spectrum Gaming Group, EMM and a bunch of others whom I'm forgetting at this hour. Many meetings included a short audio interview, which I will be posting in the coming weeks.

Today's winner of "Best Dressed Brit."

BMM took the simple yet elegant booth approach.

Afternoon sessions were of the online variety and included “Web Marketing: Channels and Online Approaches.” John Taylor, president and CEO of GameLogic Inc. and Brian Best, corporate director of e-commerce for Boyd Gaming Corporation, discussed all the important acronyms: SEO, CPC, CPL, CPA. Although, they forget to mention what most of them stand for. I guess that's why man invented the Google.

“Funding is scarce for a lot of these things,” said Mr. Best. “The low hanging fruit is definitely the search engine optimization.” (That's SEO for those of you still Googling.)

GameLogic and Boyd Gaming talk web marketing. 

And as for answering the are-we-required-to-have-a-Web-site question:

“It doesn't matter if you are small or big: You need to have a web presence,” Mr. Taylor explained. “Your customers expect it. Supply exceeds demand for the first time ... the old paradigms aren't going to work anymore.”

One of the most powerful pictures Mr. Taylor painted was of the out-of-touch vice president making the mistake of ignoring the web. He told the group of about 40 a true story of how one VP expressed concerns because he didn't want customers “loitering” on his Web site. Uh, because they were creating such a ruckus with all that unique clicking? I do have a deep sympathy for those dealing with upper level execs who don't quite get the Interwebs.

Don't be anti-social networking around these guys.

The day's final session, “Social Networking: Implications for Casinos,” turned into three mini-sessions starring Joe Wall of JJWall Associates, Richard Becker, president of Copywrite, Ink. and Michael Corfman, president and CEO of Casino City.

Basically, social networking the most powerful marketing tool out there, and it's OK if you're over the age of 30 to engage in it. Really, it is. The only way to truly understand how it works is to become a part of it. (And while you're at it, join our IGamingNews Facebook group!)

That's it for now. Until tomorrow.

Kozlowski: G2E 2008 Day One

Within minutes of my arrival to the West's gaming Mecca, I realized that my job here at G2E is to generally stomp on that whole what-happens-in-Vegas-stays-in-Vegas mantra. As cliché as that saying might be,  on the surface Sin City is precisely that -- a series of stereotypical snapshots infused with sunglasses-required neon light, armloads of comped drinks and the incessant echos of cha-ching-a-ching-a-ching-a-ching.

Seeing Vegas for the first time through adult eyes (the last time I set foot in this town, security scolded my mom for bringing me on the gaming floor at Circus Circus), I've become rather fond of its strange surface glamor. With that said, I'd love to give you a minute-by-minute account of my time here. Unfortunately, the combination of a killer meeting-and-session schedule and the fact that I need to use GPS to navigate from booth to booth has really put a damper on my diary keeping skills.

However, this won't stop me from mentioning why I hold CryptoLogic's dynamic duo, Steve and Justin, fully responsible for my absence at this morning's press conference with Frank Fahrenkopf, American Gaming Association president. Our “completely off the record” night of exploring Mandalay Bay's  Red Square, Rum Jungle and Godspeed consisted of stomach-churning vodka flights, some feisty Latin dance music and a whole lot of ridiculous Borat impressions.

As for this morning, luckily some other folks were there to take care of that whole reporting thing. I arrived just in time to witness industry bigwigs cut the ribbon, officially commencing G2E 2008 madness.

Who gets to keep them big scissors?

Ribbon-cutting clean-up crew.

Green is for glamor.

Although this is my first G2E experience, it's pretty obvious there's a dark cloud dangling over the event. From CEOs to cab drivers, everyone is talking about the economic downturn. It's as if we are all in some bizarre group therapy where if we can just come together and hold hands, everything will be OK. Too bad that's not reality. Even attendance for G2E itself is said to be down 10 percent or so, though the exhibition hall was a madhouse by 1:30. It seemed like I couldn't take three steps without running into someone else (literally) or with someone trying to walk on top of me.

Bally, True Blue, IGT and WMS panel up.

After meetings with Ainsworth Games Technology, Alfastreet, Octavian and Gaming Labs International, I was able to catch the final session of the day, “Content is King: Developing the Games.” Moderated by Frank Legato, editor of Global Gaming Business, the panel included:

• John Vallejo, Bally Technologies
• Kent Young, True Blue Gaming
• Brenda Boudreaux, International Game Technology
• Phil Gelber, WMS Gaming Inc.

The group discussed the current economic state (of course), server-based gaming, branded games, multi-player gaming, reel games, the disappearance of quarter slots and what they're doing to appeal to younger generations.

“The worse thing that can happen is that people will get turned off from casinos period,” said Mr. Gelber as the group discussed the need to keep content fresh. And as far as foreseeing a casino floor completely on a server-based system, he added, “I can't envision a casino five or ten years from now with generic dual screen boxes everywhere -- it's just going to be boring ... I don't want to be here if that's what the world comes to.”

When Mr. Legato brought up the table-seeking younger generation, a general desire to be more like Xbox 360 and Wii seemed apparent but for most a regulatory nightmare.

“I have game designers who would would love to do that type of stuff,” said Mr. Gelber. “We can design the game, but can we get it approved?”

He added that this will be something we see eventually, but like everything else, it will take time to develop something to both please regulators and be fun simultaneously.

Slots for tots?

Later in the evening, my feet eventually gave out at the International Masters of Gaming Law's cocktail reception, which had a very good turnout. At one point, I'm also rather certain I fell asleep while standing with my eyes wide open -- a talent I did not know I possessed. Tomorrow will be longer but better since tonight I plan to only ingest a Simply Sleep or two rather than the typical Sin City cocktail. Farewell for now.

Kozlowski: Five Lessons Learned at EiG

This past June, I found a peculiar job listing on quite possibly the bleakest Web site in English (Craigslist) that stood out from the rest of that work-from-home-and-make-trillions bologna. After a few e-mail exchanges, it turned out not only was the job legit, it just so happened to be hands down the sweetest one a budding journalist in middle America could encounter -- to join London-headquartered Clarion Gaming as a staff writer for IGamingNews and Gaming Industry Media. 

Fast forward one month and 25 days, and I'm on the other side of the Atlantic flying from interview to panel debate to interview to break-out session (over and over) at the European i-Gaming Congress and Expo, known simply to industry veterans as EiG . In some magical chain of events, the stars aligned: I got the job and was subsequently shipped to Barcelona for a week of nonstop networking -- doling out business cards like fliers for an EiG kegger and doing plenty of the expected grin-and-nods, which to onlookers probably appeared more like a deer-in-headlights stand-up routine.

Since it was my first I-gaming conference and my first time abroad (because, from an American's perspective, visiting Canada doesn't really count in the scheme of things), I've decided to share five lessons I gleaned from a sleepless journey at the industry event of the year.

1. Accept the inevitable newcomer cluelessness. During a one-on-one lunch Thursday afternoon with Santiago Asensi, a partner at Asensi Abogados and EiG speaker, he explained to me that this industry is pretty similar to high school, and I was the awkward new kid. (Well, he didn't exactly call me "awkward" thankfully). Soon enough, he explained, I would be part of the in-crowd -- able to stroll through every room and chat up anyone at the convention. After coming to terms with my novice ways, I was able to open up a bit and get to know people better.

2. The best networking takes place outside the event. You won't discover that chief executive and co-founder of Sports Direct Inc., Paul Lavers, is the next-door neighbor of "Trailer Park Boys" star Patrick Roach by sitting in day-long sessions. (For reference, Roach plays gut-donning Randy on the Canadian backwoods dramady adored by Clarion Gaming's ad exec Holly Rauch.) What I found was that most of the connection-making fireworks were going off until the wee hours in the lobby of the Hilton Diagnoal Mar Barcelona. Granted some might not like to talk shop under the influence, but it certainly is the best time to get an insider's view of how industry members conduct themselves off the clock. Or, rather, how well can industry members handle one too many San Miguels off the clock.

3. EiG is a classy affair. From the pristine event space to the flashy, high-end suits some wore, a stroll through the expo halls could certainly be compared to a brief red carpet sashay. Something has to make you stand out from the other 1543 attendees, right? Mostly everyone dresses to impress, especially at the off site events. When there's such a highly concentrated mix of industry members in one city, you're on the job 24/7 -- even in the Hilton's stuffy elevator (which I also learned can smell very much like wet gym socks). In my next go, there will definitely be a (matching) suit or two involved and shoes polished so well that it can double as a mirror.

4. Don't get too excited. Before my sit-down interview with Mark Hichar, a partner at Edwards Angell Palmer & Dodge LLP, I pulled out all the goods from my bag -- my notebook, my shiny sliver of a tape recorder. As he walked through the lobby, I rushed to greet him. By the time we made it upstairs to find a quiet place for an audio interview, I realized the tape recorder in my hands just moments ago had vanished. After a few pangs of pure terror and an embarrassing confession to Mr. Hichar that I, indeed, misplaced something rather important, I rushed down to the registration desk. After hearing stories of lifted passports, euros and more, I could only think that the recently purchased (with company money) Olympus digital voice recorder has suffered a similar fate. If only I had worried less about catching my interview subject in mid-stride ...

5. Journalist is truly a word that transcends industries. No matter what field in which you work, people seem to get a little jittery when a "journalist" is nearby. Whether folks want to sell you on the latest-leading-revolutionary product or berate you for writing something about their company outside of its mission statement, there's certainly something to be said about the love-hate relationship companies throughout the world have with reporters. Even when said journalist has taken the form of of an innocent-looking 24-year-old girl, there's still a yellow-level threat for those speaking to a girl with a tape recorder and half a brain. (And, yes, I did uncover the missing device and completed my interview with Mr. Hichar, which will be available on this very blog in a few days. Unfortunately, the other half of my brain has yet to turn up; it went missing somewhere between Las Ramblas and U.S. Customs. Please leave a comment on this post if you happen to come across it.)