GPWA Times Magazine - Issue 25 - June 2013

product or multiple game products, we at GameAccount have the technical ability to launch mobile apps, which al- low people – in principle, if they’re us- ing the wireless network – to play for real money. And you will see many, many people wandering the halls, sit- ting in cafés and sitting in the Keno room who are perfect candidates to en- gage with a mobile, real-money product inside the casino – obviously, in accord with all the other governing regulations and practices. But that’s a very, very interesting op- portunity, which is speculative, because it’s never been done, but potentially very lucrative for the Mashantucket Pequot Tribal Nation. Q: Does this mean I’m getting a tablet when I come in the property? COLEBUT: No. You’re actually going to do it on your own device. WALKER: Expanding on the concept of our B2C offering, one of the big advantag- es that we see – or at least that I see in the B2C – is it gives us a test bed for the KYC, for all of the different security measures that we know the state’s going to require when it comes to regulation. We have the ability, then, to test it with the free-play site. So we can test it and see how easy it is to provide this level to security, know who’s playing, know that they’re not underage, know where they’re located and that we can restrict access based on where they’re located. The free-play site gives us the ability to prove that we have technology that is live, active and ready to go that will provide those levels of security. And that way, we have a better bet for being able to show the regulators – both our internal regulators for the tribal gaming commission as well as the state regulators – that we can pro- vide a safe system. Q: While we have a regulator in the room, what are you looking for from a proof of concept or demonstration? What do you want to see from the play- for-fun site? BALDOZ: I don’t think the fears really lie with the regulators, because we’ve been do- ing our homework, just as these business ventures have been out there doing their homework. Sowe knowwhat doeswork and A heavyweight enters the ring Until Foxwoods announced its deal with GameAccount to bring online gaming to the United States, commercial casinos had been drawing most of the media’s attention for their plans to offer iGaming. To a certain degree, that makes sense. Commercial casinos generated $35.65 billion in revenue in the U.S. alone in 2012, according to theAmerican Gaming Association. And two of the largest commercial casino operations, Caesars and MGM, are also among the most recognizable brands in American gaming. But the arrival of Foxwoods on the online gam- ing scene changes the equation – especially given the scope of the agreement. Unlike the deals signed by Caesars and MGM, Foxwoods’ deal includes both B2B and B2C components. The deal also makes Foxwoods the instant leader among Indian casinos venturing into the online space in the U.S. In 2011, Indian casinos generated about $27.4 billion of revenue, according to Casino City’s Indian Gaming Industry Report. Mohegan Sun, also in Connecticut, is the only other Indian casino of note to ink a deal with a major European supplier. But their deal is for poker only and has no B2B component. And California’s lucrative Indian casinos are pursuing poker-only legislation. Foxwoods, North America’s largest resort casino, is very much a leader among Indian casinos, particularly on the East Coast. It succeeds in a highly competitive marketplace that includes commercial casinos in New Jersey and New York City, commercial casinos in Pennsylvania and Indian casinos in upstate New York. And it has a tremendous history associated with the brand. Foxwoods opened up in 1986 as a bingo hall. In 1992, Foxwoods added table games. And in 1993, slots were added to the mix. Foxwoods houses the largest poker room outside of California. And it has around 6,300 slot machines on its casino floor. If Foxwoods can successfully use itself as a “test” case for GameAccount’s software – particularly the integration of the online and land-based casino management systems, Foxwoods and the MPTN will be well positioned to sell their system to other casinos. Because if it can work at North America’s largest resort casino, it can work anywhere. 29 The anatomy of a deal