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Gaming for Africa Issue 127
Magazines | Business Products & Services / Magazines / Leisure industry / Hospitality & Entertainment 2016-08-22 08:53:44
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    All Roads lead to Gambling Indaba Emperors Palace 9 -11 October 2016 Tsogo Expands Casinos in Anticipation of SA Rebound ATOMIC Launches the Atomic Foundation Boardwalk Launches Court Action on Electronic Bingo Terminals GrandWest Casino Sets the Trend for Reducing Energy Consumption

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    EDITOR Roy Bannister CONSULTING EDITOR Tom Learmont ACCOUNTS & Administration Fax: 086 648 1634 Email: afrogame@mweb.co.za PUBLISHER & Advertising Headstart Productions P.O.Box 607 Langebaan 7357 Fax: 086 648 1634 Cell: 082-468-8622 e-mail: afrogame@mweb.co.za LAYOUT AND DESIGN Nicole Cook Email:nicole@graphicd.co.za PRINTED BY Headstart Productions GAMING FOR AFRICA is a bi-monthly magazine focused on casino operators and the manufacturing sector of the African gaming industry. We publish informed comment, and cover developments in legislation, new products, marketing and sales, promotions and general casino resort tourism trends in Africa Information published in GAMING FOR AFRICA or views or opinions expressed by writers are their own and not necessarily endorsed by the owner, publisher or editor of GAMING FOR AFRICA. While reasonable care is taken to report on events and occurrences in an accurate manner, we cannot accept any responsibility for inconveniences arising from misinformation. We welcome unsolicited articles and photographs but cannot accept responsibility for loss or damage. Press releases are published in good faith and the publishers assume that information provided is correct. Gaming for Africa is a trade publication aimed at the b2b casino and gaming industry in South Africa and across the African continent where legalized gambling is permitted. As such all advertising and editorial in this publication is aimed at professionals within the gambling industry, and not the general gambling public. Gaming for Africa endorses and promotes responsible gambling and proudly subscribes to the aims and initiatives of the legalized gambling industry thorugh the National Responsible Gambling Programme. National Responsible Gambling Counselling Line – 0800 006 008 GAMBLING INDABA - YOU’RE INVITED! As the date approaches for Gambling Indaba, the excitement begins to mount. Following a very successful inaugural Pan- African Gambling Trade Show & Conference last year, due to industry request, the Indaba has moved to Johannesburg - the hub of all things gaming. Indaba will be held this year at Emperors Palace on 10 & 11 October- with entry being free-to-trade. So, if you’re in any way involved in gambling and hospitality - from slots, tables, surveillance, audit, compliance, HR to cash-handling, IT and technical - make sure you head over to the Expo to see the latest and greatest in terms of new slots from manufacturers like Novomatic, IGT, Scientific Games, Aristocrat & Atlas and Aruze to name a few, as well as ancillary products. A Gala Dinner will be held at Carnival City on Sunday 9 October, for full conference delegates. The Conference line-up includes top speakers from regulatory to compliance issues and responsible gambling and casino marketing, as well as compliance training from world-leading specialists GLI. So make sure you get your ticket at www.gamblingindaba.com Roy Bannister Contents 2 Boardwalk Launches Court Action on Electronic Bingo Terminals 4 Tsogo Sun’s Montecasino Prive gets a facelift in partnership with TCS JOHNHUXLEY 4 GrandWest Casino Sets the Trend for Reducing Energy Consumption 6 Bingo Association of South Africa Response to Sun International Court Action Media Reports 6 Peermont Tubatse Community Trust Awards Bursaries 8 SA Volunteers Deliver 3.3-Million Meals for Hungry Children 10 ATOMIC Launches the Atomic Foundation 10 All Roads lead to Gambling Indaba at Emperors Palace in October 12 IGT’s Brand new AXXIS 23/23 Headed to South Africa 12 Interblock Brings Elegance and Sophistication to the Table for the African Market 14 Sun International Wins Five Casino Marketing Awards at Prestigious International Conference in Las Vegas 18 New Aristocrat Helix Cabinets Installed at Emperors 18 International Mandela Day 2016: Stop Hunger Now Worldwide “Follow The Sun” Meal Packaging Event 20 Tsogo Sun Boosts Entrepreneurs in Cape Town 22 Emperors’ Thabo Ngoepe Receives Standard Bank Rising Star Award 22 IGT’s The Ellen DeGeneres Show™ Video Slots Now Live at Montecasino South Africa 24 PopCap® Video Slot Versions Create many Firsts for Atomic Gaming and IGT® 25 Tsogo Expands Casinos in Anticipation of SA Rebound 26 Women Shattering The Hospitality Industry Glass Ceiling 28 ATOMIC and ACES supports Yenzani on National Tekkie Tax Day 28 Local Charities Win Big with Gold Reef City’s Slots Factor 30 Minor Hotels Appoints Jackie Williams as Regional Director of Sales and Marketing 31 South African & African Gambling Regulators 31 Licensed Manufacturers & Suppliers 32 Who’s Who in the African Gambling Industry PIC: INGRID BANNISTER August /September 2016 I Gaming For Africa I 01

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    Boardwalk Launches Court Action on Electronic Bingo Terminals Emfuleni Resorts, the owner of the Boardwalk Casino, said that it would be launching a high court action today aimed to set aside the decision by the Eastern Cape Gambling and Betting Board (ECGBB) to authorise bingo licences within the Boardwalk’s casino catchment area. In 2010, Emfuleni Resorts received an extension of the Boardwalk’s casino licence to 2025 based on its commitment to invest R1-billion in the complex. The significant commitment was made based on the fact that the casino licence gave the Boardwalk gambling exclusivity in its catchment area In Port Elizabeth and surrounds. IN 2014, ECGBB-sanctioned electronic bingo terminals (EBTs) commenced operations and have had a material impact on Boardwalk’s casino revenues. Bongi Siwisa, Chairman of Emfuleni Resorts, said that the two EBT businesses currently operating in Boardwalk’s catchment area were effectively mini-casinos in that their slot machines were indistinguishable from those found in mainstream land-based casinos. “Thus, the exclusivity that was awarded to us based on our significant investment in the Boardwalk has to all intents and purposes been materially compromised.” Emfuleni Resorts said it would also be seeking compensation for the extent of the revenue losses incurred to date as a result of the operation of these EBTs in its catchment area. “We have exhausted all other options, having engaged extensively with both the Provincial Government in the Eastern Cape and the Eastern Cape Gambling and Betting Board.” This news follows the announcement in June that the Emfuleni Resorts proposal to invest R1.3-billion in mixed use development on currently under-utilised land in the Boardwalk Precinct in Port Elizabeth would not go ahead. This followed the decision of the ECGBB to not extend the term of the casino licence of The Boardwalk further, on which the development was fully conditional. At the time, the ECGBB said it did not have the authority to extend the licence, a view disputed by Emfuleni Resorts. “Emfuleni Resorts’ losses at the Boardwalk following the introduction of EBTs have been significant. The considerable investment made by Emfuleni Resorts in the Boardwalk, of R1.5-billion in total, is now being seriously affected. ”Based on what we have experienced to date, we can reasonably expect that revenues will continue to drop. “We have engaged extensively with senior legal counsel and we are confident the court will apply its mind in regard to our application for the setting aside of the ECGBB’s decision.” In June this year, Emfuleni said its proposal to develop a R1.3-billion mixed use development on currently under-utilised land in the Boardwalk Precinct in Port Elizabeth would not go ahead. This followed the decision of the Eastern Cape Gambling and Betting Board to not extend the casino licence of The Boardwalk, on which the development was fully conditional. The R1.3-billion development would have been the largest ever single investment in the tourism and hospitality industry in Port Elizabeth, creating thousands of jobs. The decision to go ahead with the development – on a 13.3 hectare site within The Boardwalk precinct – was entirely conditional on the ECGBB amending the current 15 year term of the casino licence by extending it from 2 October 2025 for a period of not less than a further 20 years. This was essential to grant the Boardwalk Consortium, and Emfuleni, the assurance that they would be guaranteed more than the currently remaining 9 years of its casino licence to generate a return on their significant investment, and to refinance Emfuleni’s empowerment shareholders’ loans over a longer period thereby enabling better dividend payments to BEE shareholder Zonwabise Resort Holdings. The Boardwalk Mall was set to include a retail mall, a multi-purpose events venue, entertainment offerings and corporate offices. Emfuleni, together with partners Parktown Capital, believed that the current site offered exceptional opportunities for all. Emfuleni in October 2015 made application to the Eastern Cape Gambling and Betting Board to amend its casino licence for an additional 20 years beyond its current expiry date of October 2025 in return for this investment. In 2000, Sun International and Emfuleni originally invested over R500-million to build the Boardwalk and a further R1-billion was recently invested in the hotel and conferencing facilities in order to extend its licence to 2025. The investment proposal was designed to deliver on the Eastern Cape Provincial Government’s objectives in terms of job creation and black economic empowerment. As many as 8 500 new jobs were envisaged to be created during a two year construction period and 1 500 jobs during operations. Without the amendment of its casino licence and the commercial viability and security of tenure that would bring, the project could not go ahead. Taken together with the licensing of Electronic Bingo Terminals (EBTs) in its catchment area and their impact on revenue, the business was already under too much commercial pressure.

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    Tsogo Sun’s Montecasino Prive gets a facelift in partnership with TCS JOHNHUXLEY Tsogo Sun’s Montecasino Prive recently underwent a complete refurbishment that TCSJOHNHUXLEY were proud to be a part of. 20 EXCLUSIVE Burlesque gaming tables complete with elegant leather bases and sophisticated Corian finishes were supplied and installed within a pressurised 24-hour time frame. TCSJOHNHUXLEY’s refined 29” Elite 2 Winning Number Displays complimented, arguably, the most valuable gaming area in South Africa. “We are all very pleased with the way the Montecasino refurbishment has gone as smoothly as it has and are very proud of the results. The new Prive tables look fantastic and the commitment to delivering and installing the tables on a tight schedule has become the norm from TCSJOHNHUXLEY. The team worked long and hard and delivered a high quality product with the required specifications on time,” says Adam McIntyre, Tables Manager - Montecasino. GrandWest Casino Reduces Energy Consumption by 7% WITH THE country in the throes of an energy shortage, Sun International’s GrandWest has been steadily working towards optimising energy efficiency across its operations. Through various behavioural tactics and by implementing energy saving technologies, GrandWest has reduced electricity consumption by 7% in the last three years. Its target is to reduce electricity consumption by 3% annually. “GrandWest takes to heart its obligation to reduce the impact of its operations on the environment and to use scarce resources and electricity efficiently. We are very proud of the achievements we have made in this regard in recent years. “Not only does it make sense from a financial point of view, but by using less power, we can help ease the load on the electricity network and make a contribution to a healthier environment. “The electricity savings we have achieved are primarily due to the implementation of energy saving lighting and heat pump water heaters. We are working hard to instill an energy-consciousness amongst our staff in their everyday work and will consider implementing other technologies in the future,” says Johan Gelderblom, Engineering Manager at GrandWest. Two years ago, GrandWest implemented an ambitious lighting retrofit which saw some 5 000 energyintensive lamps replaced with high-efficiency LED lights. The lighting retrofit resulted in an immediate 2% reduction in total kWh consumption. In 2012, energy saving efforts focused on reducing consumption by water heaters, which accounted for about 5% of energy costs. Heat pump technology was installed at the complex to provide for hot water requirements. GrandWest now consumes 30% of the energy it previously used for water heating. With Heating, Ventilation and Air Conditioning (HVAC) accounting for most of the complex’s consumption, maintenance of these systems is a priority to ensure they continue to operate optimally. “HVAC systems contribute significantly to Grand- West’s demand for power. As these systems can become inefficient and more costly to run when they are not properly maintained, we put great emphasis on performing maintenance on a regular and scheduled basis. We have also installed variable frequency drives on the air handling units to limit the load,” explains Gelderblom. Recognising that casinos and the like may come under scrutiny for having lights on throughout the day and night, Gelderblom says that concerted efforts are being made to limit the use of artificial lighting – especially during the day. “On the inside of the building various factors have to be taken into account before simply switching lights off. Certain light levels have to be maintained and outside lighting is kept on at night for safety and security purposes. “Where possible, however, lights are on daylight switches and turn off during the day to save energy. Lighting is also turned off after hours in areas that are not used.” All slot machines on GrandWest’s casino floor utilize the latest power supplies available in the industry namely Switch Mode Power Supply and not the old transformer-type power supply of the past. These slot machines feature LCD displays and are illuminated by LEDs which are highly energy efficient. Employees play an important role in GrandWest’s energy saving efforts. They are encouraged to reduce consumption and provided tips and advice on how to do so in regular training sessions, newsletters and emails as part of GrandWest’s Sunglow campaign. “We are continuously striving for further efficiencies to bring down our energy consumption levels. All manner of companies have an obligation to take steps to reduce their demand for power while solutions are sought to address the power crisis,” concluded Gelderblom. Like GrandWest on Facebook GrandWestCasino- AndEntertainmentWorld and follow us on Twitter @ GrandWestSA 04 I Gaming For Africa I August /September 2016

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    A UNIQUE & INNOVATIVE WIDE AREA PROGRESSIVE THAT WILL DRIVE YOUR CASINO REVENUE With more than 2,000 installs worldwide, and 250 of those installs in Europe alone, Shuffle Master’s Nexus Game Manager 2 network software is the latest revolutionary progressive solution that allows you to link multiple tables and casinos, creating a connected Local/Wide Area Table Progressive Network. Don’t miss this opportunity! Huge jackpots with high-hit frequency, and an extensive library of available table games will bring new entertainment value to your players, while helping generate incremental profits for your casino To learn more, contact your Account Executive today! ©2016 Scientific Games Corporation. All rights reserved.

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    Bingo Association of South Africa Response to Sun International Court Action Media Reports The Bingo Association of South Africa (BASA) has noted with surprise the media reports regarding Sun International’s Port Elizabeth subsidiary Emfuleni Resorts (Boardwalk Casino) application to the High Court on Thursday 11 August to have two bingo operators closed down in the Nelson Mandela Bay metropole. A SUN International spokesperson has alleged that “traditional paper-based bingo operators had started offering the game via electronic terminals” and that the high court application was an “application for the setting aside of the decision of the Eastern Cape Gambling and Betting Board (ECGBB)”, reads the BASA release. “Licensed bingo operations commenced in the Nelson Mandela Bay metropole in early 2014. Both Galaxy Bingo at Moffet on Main and Bingo Royale at Cleary Park have offered bingo by wholly electronic means (“EBTs”) to their customers since the commencement of operations but surprisingly Sun has elected to commence this action some two and half years later, at the same time as its application to extend its casino license was rejected by the ECGBB. The adjudication and issue of Bingo licenses is regulated and includes a public participation process. At no time during this application process or subsequent public hearings, at which Sun International representatives were present, did Sun International object to the approval or operation of EBTs by the licenced applicants. Both Bingo operators made it clear, in their presentations during the hearings, that bingo was going to be offered in wholly electronic format on an EBT and it is disingenuous for Sun International to claim that they were surprised by the operation of EBTs. At the time of the public hearings EBT’s were also operational in other provinces where Sun International operate and they knew or ought to have known what this format of bingo entails. Sun’s untenable position is exacerbated by their own application, during 2014, where they applied for a bingo licence in response to the 2nd RFP (request for proposals) for bingo licences. This application by Sun International (including the operation of EBTs) was in Uitenhage, in the very same “catchment area” in which Sun now claims it has “gambling exclusivity”. However, Sun International’s application was found to be non-compliant with the RFP and therefore its application was not considered by the ECGBB and accordingly it did not make it through to the public hearing process. Had they been successful with this bingo application it is doubtful that they would have brought the current action. It is unfortunate, and indicative of Sun’s malice, that the media was made aware of the court application before the respondents had even been served papers. It seems that the court action may be a strategy by Sun International to pressurise the ECGBB, using the media rather than established process, including those in place at the time bingo licenses were considered, into re-considering its recent application that included extending its casino licence in Port Elizabeth to 2050. Sun International’s countrywide retrenchment programme, including the Boardwalk Casino in Port Elizabeth, was initiated well before bingo operations opened in Port Elizabeth and the reality is that Sun International are attempting to place the blame for their purported difficulties with their business model on other participants in the gaming industry rather than addressing their own fundamental problems. These difficulties include customer pay-out’s that may be lower than those of the bingo industry. If the bingo industry has taken market share from the Boardwalk Casino it is not because of unfair competition but because we offer better value to consumers of our products. It is sad to see a once proud and highly respected company attempt to undermine the very significant contribution that bingo has made to black economic empowerment in the gaming industry. Both the bingo licensees that have been attacked by Sun International in Port Elizabeth have black shareholdings in excess of 51% the vast majority of which are local black shareholders. This compares most favourably with the significantly lower black shareholding in the Boardwalk Casino licence. Bingo operators have created employment opportunities amounting to more than 1,500 jobs and their CSI and gaming tax contributions, as a percentage of revenue, are higher than that of the Boardwalk Casino. The Galaxy Bingo and Bingo Royale gaming sites in Port Elizabeth are outstanding leisure facilities in secure venues that offer a gaming and entertainment experience supported by quality service focused on the customer. As a final note, there are hundreds of LPMs (limited payout slot machines) in operation in the Port Elizabeth area, mainly in bars and restaurants. As in other provinces within South Africa,it is absolutely right that adults in Port Elizabeth enjoy the option of visiting the casino, a bingo hall or an LPM site. Protection for the casino from other forms of gambling in the form of a “gambling exclusivity” would be anti-competitive and, as recognised by the constitution and the ECGBB, such a monopoly would not be in the best interests of the public.” Bingo Association of South Africa Lawrence Smith Chairperson (Press release placed verbatim) Peermont Tubatse Community Trust Awards Bursaries WITH THE on-going plight by students from all over the country for tuition fees, 7 lucky candidates from the Sekhukhune District have been awarded bursaries from the Peermont Tubatse Community Trust (PTCT). The candidates are students from various institutions and have been registered to study a variety of courses including Mechanical Engineering, BCom Accounting, B.Ed and Diagnostic Radiography. “We are very proud of our students and honored to make a long lasting contribution to their individual future. This investment in our locals will go a long way in assisting to alleviate poverty and give the students an opportunity to become active participants in the growth of the Sekhukhune District economic. As the late former President Nelson Mandela said, “Education is the most powerful weapon which you can use to change the world.” says Thaba Moshate General Manager, Clifford Neo Ngakane. Bursary recipient, Sarah Thulare who is studying towards her Bachelor in Education at the University of Limpopo said, ‘I am grateful to the Peermont Tubatse Pictured are the bursary recipients with Dr Bennie Choeu (Trustee) and Mr Clifford Neo Ngakane, Thaba Moshate GM and Trustee of the Peermont Tubatse Community Trust. Community Trust for this opportunity to change not only my life, but my family’s life and my community by giving me an opportunity to get an education.’ The Peermont Tubatse Community Trust continues to offer further opportunities to the local community initiatives and business owners. 06 I Gaming For Africa I August /September 2016

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    NOVOSTAR ® V.I.P. II COMFORT IN PANORAMA STYLE. NOVOMaTIC is proud to present the NOVOSTaR ® V.I.P. II – the hugely successful NOVOSTaR ® SL slant top cabinet, designed into the V.I.P. configuration to bring the biggest slot gaming attraction onto your gaming floor. • Giant 50’’ full HD LED screen with FLIPSCREEN ® Feature • Highly comfortable Crown V.I.P. chair including: - integrated satellite speakers in the head rest - Start/Take Win and bet setting buttons plus sound volume control in the arm rest • Ergonomic design • 27“ full HD LED touchscreen on the cabinet • Extra start button built into foot rest • TITO ready • Multi-Denomination • Multi-language options • Various button panel layouts available NOVOMATIC – WINNI N G T ECHN OLOGY Deon Valkenborgh +27 82 800 3243 Elana Weitz +27 72 480 9089 sales@novomaticafrica.co.za www.novomaticafrica.co.za

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    SA Volunteers Deliver 3.3-Million Meals for Hungry Children Stop Hunger Now exceeds the Mandela month 2-million target in South Africa and meets the 10-million international target. Iris Cupido, head of the SABC Foundation joins Stop Hunger Now Chief Patron Ms Graça Machel and Ambassasor and television chef Siba Mtongana in a production line at GrandWest to pack food for Stop Hunger Now! Mike van Vuuren - Managing Executive at Sun City, Saira Khan - CEO of Stop Hunger Now and Graeme Stephens - CEO of Sun International at the Stop Hunger Now event at Sun City. Global total including South Africa: Target was 10 000 000 meals Achieved 10 000 026 meals South Africa: Target was 2 000 000 meals Achieved 3 309 116 meals International: Target was 8 000 000 meals Achieved 6 690 910 meals Countries involved: Malaysia, the Philippines, India, Italy, the USA and Peru SA percentage of global initiative: South Africans packed one third or just over 33% of the global total The Follow the Sun partnership accounts for just under 28% of all South African meals packed and 9% of the global total Thousands of people across South Africa have risen to the challenge of donating 67 minutes of their time to pack a record number of 3.3-million meals that will feed children who would otherwise go hungry. Stop Hunger Now and Sun International joined forces to honour Mandela’s caring legacy, by packing dried food meals at venues across South Africa. The seven day meal packing campaign, entitled Follow the Sun, kicked off on 13 July at GrandWest Casino in Cape Town where Ms Graça Machel, Chief Patron of Stop Hunger Now Southern Africa, was first in line to begin her 67 minutes challenge. While she was standing in her production line Ms Machel told fellow packers “I want us to remember what Madiba said once. It was at a concert, he was already feeling it was time to prepare all of us that, as a human being, he would leave one day. He said to us - it is in your hands, it is in your hands to make this world a better place’’. To keep this legacy of Mandela’s going, packing initiatives also took place at four other Sun International properties - The Boardwalk in Port Elizabeth, Carnival City in Johannesburg and Sibaya in KwaZulu Natal, ending with the final packing challenge at Sun City yesterday. Michael Farr, Group General Manager for Sun International Brand and Communications said, “We would like to thank our staff, suppliers, concessionaires, celebrities and other corporate companies for all rolling up their sleeves to help us meet this phenomenal target. “For us the reality that over 3-million South African children go hungry every day is unacceptable, so we are delighted to note that the Follow the Sun packing challenge across our Sun International properties amounted to around 900 000 meals, almost 28% of the 3.3-million meals packed nationally, and 9% of the global total” Stop Hunger Now Southern Africa CEO Saira Khan thanked South Africans for opening their hearts to the campaign: “South Africa has packed over 3.3 million meals, which is more than 33% of the global total we reached in our Follow The Sun Mandela week campaign across five of our partner Sun International’s South African venues, which gave the campaign a national presence. At each unit we saw how this initiative has really brought South Africans together and shown them how important it is to work together. This global total is going to help us feed so many more hungry children around the world.” Stop Hunger Now Southern Africa is an affiliate of the international organisation formed in the USA in 1998. The volunteer-based food packing programme seeks to address the nutritional needs of children, especially in early childhood development centres. Continued to page 14 08 I Gaming For Africa I August /September 2016

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