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Lightening the Load
Published:  21 April, 2009

Machine operators used to be likened to "furniture removers" - particularly in the UK - where cabinets were traditionally moved from prime sites after a few weeks of use, waterfalling down into secondary and tertiary sites as time went on.

Around ten years ago, the first of the large UK-based operators started to experiment with server-based gaming (SBG). The concept was simple. Instead of moving the cabinets from place to place, operators would simply send the games to the cabinets. When players got tired of playing one game and income started to drop, a new game could be downloaded onto the same cabinet in a matter of minutes and income could be refreshed.

Gamestec was one of the pioneers of SBG following the introduction of its Gamesnet SWP terminal. The company currently has over 5,000 SWP terminals connected and this number is growing continuously. In June 2008, Gamestec's SBG estate grew significantly following the acquisition Inspired Gaming Group's pub division. Part of that acquisition provided Gamestec with the exclusive license to utilise the SBG platform in the pub retail sector.

Inspired, meanwhile , has been focusing on SBG since 2002. "However, in 2006 we integrated the traditional operating business with the SBG technology business, to create a fully integrated SBG-focused gaming machine operator. Last year we sold our pubs operating division so that the company could focus entirely on its SBG and Leisure Division," says Luke Alvarez, Co-CEO Inspired Gaming Group.

Another market leader is the Global Draw, which was founded in 1997 and was first to introduce server-based gaming to the British betting shop market. Today, it has more than 15,000 gaming machines installed and operating in the UK, mainland Europe, Latin America, the Caribbean and emerging gaming markets in South East Asia.

One of the greatest differences between SBG and traditional gaming machines, is that the content can come from any number of suppliers. Gamestec sources its SWP and video Category C games from within group, by Bell-Fruit Games, which is a sister company of Gamestec and part of Danoptra Limited, and also from third party developers such as Games Media, Men In Back, Alternative Universe and Revolution.

"Gamestec operates a policy of sourcing only the best of breed products and games for its customers, which it does by scouring the market and reviewing all available games. Only through rigorous performance testing do we then select the best and most appropriate games for our players," says Peter Davies, Business Development Director.

Inspired calls its SBG platform "open" in order to highlight that it has no tie-ins with any particular content developer. "Inspired's Open SBG platform means that not only do we offer real-time content downloads and remote terminal monitoring and maintenance, but the ‘open' nature of it allows us to work with a range of the best content developers in the industry," says Alvarez.

"Open platforms are the only way for the industry to thrive as they allow operators to choose content from different manufacturers and offer the latest games to maximise revenue and encourage repeat play. Implementing Open SBG will transform operators' returns by delivering more compelling content to consumers. Manufacturers who restrict themselves to proprietary systems that only accommodate their own games are not taking the needs of the operator and consumer into account," he adds.

Ales Gornjec, Business Development Manager for Gaming at Hermes Softlab (an SBG service provider) is certain that SBG will ultimately change the face of gaming altogether. "We believe that in the future gaming providers will specialize either as game terminal providers or gaming software platform providers and content specialists," he says. "This will enable operators to freely choose game content without being locked to either their platform or gaming terminal provider."

SBG also allows operators greater freedom to enter new markets. "It has allowed us to increase the reach of our business model rather than specifically change it," says The Global Draw's Phil Horne. "We introduced server-based gaming to the British betting market in the late 1990s and we are still very much the market leader today. The considerable experience gained by our business in this sector has paved the way for expansion into new domestic and international markets using the same server-based platform."

"Gamestec is working toward expanding the range of products and content that will become available through SBG," says Davies. "In terms of game content, the platform provides us with the capability to introduce exciting and different ways for end users to play. Once concept we are looking to utilise is ‘peer to peer' tournaments. These would be real time tournaments, played between players who could be in different sites, competing against each other at the same time. In terms of products, we are currently introducing a new digital advertising solution that has been specifically developed for the pub sector."

Inspired also offers a wide portfolio of products on its Open SBG platform: Wide Area Gaming, VLT, Slots, Linked Casino Table Games, Bingo, Virtual Sports and B2/B3. "There is no doubt that SBG products found in the LBOs have proved very successful and have grown in popularity over the past few years," says Alvarez. "Our market-leading Rainmaker terminal continues to be a favourite with bookmakers. New content such as B3 jackpot slots have shown good growth since their introduction along with new B2 table game variants such as Blackjack and Texas Hold'em Poker. SBG functionality in effect changes the question from what is the latest ‘hot' machine to what is the latest ‘hot' content."

But it is not just the leading operators who have found success in developing SBG platforms. Some of the game designers are themselves offering their own terminals with game updates. The concept of video gaming terminals, with regular updates is not a new one. Companies such as Novomatic, have been supplying multigame terminals with great success for a number of years. The difference with SBG, is that instead of having to physically visit the machine to update the game - this can now be done remotely. All that remains is the necessity to empty the cashbox.

Barcrest is one company that is experiencing success with its SBG platform. The company recently signed a landmark deal with the UK's leading snooker club operator Rileys for the supply of Category B4 video gaming content for its estate of over 150 clubs. The Triple 7 cabinet, in bespoke ‘Vegas Nights' livery, will deliver the games using the ICONIC sb server-based gaming system.

ICONIC sb, Barcrest Group's comprehensive, fully integrated server-based gaming solution will provide Rileys with centralised management of gaming terminals, enabling it to maximise machine income. ICONIC sb will deliver content at the touch of a button as new Category B4 games are developed and enable ticket-in ticket-out operation.

Peter Hooker, Operations and Commercial Director at Rileys says, "We are excited to be revitalising our gaming offer in such a revolutionary way, using the best of modern technology, and delighted to be working with Barcrest Group as our partners. ICONIC sb, the stunning Triple 7 Cabinet and leading game content will create a unique, all-round gaming experience at Rileys Clubs."

To support this venture, Barcrest Group has appointed the UK's Independent Operators' Association (IOA) to strengthen ties between the two organisations, with members of the IOA Group appointed to operate and service the Triple 7 machines. John Powell, Chairman of the IOA Group, commented: "We are delighted to be taking this journey with Barcrest Group. It's a completely different way to do business but it brings benefits and new opportunities."

SBG is undoubtedly a completely different way to do business and one that changes the operators' role in many ways. Because the machine communicates directly with whoever is controlling the platform, all sorts of valuable data can be collected, analysed and used to improve the service. And in addition to this, machine downtime can be minimised by the machine reporting any faults directly to the server.

A certain amount of problems can then even be fixed from afar. Peter Davies explains, "We have remote fix capability. It provides us with the ability to remotely fix faults which improves machine up time - the time the machine is in optimum working order and available for play." Inspired has a 24/7 global support facility in Bangor (pictured), that also allows the majority of faults to be fixed remotely before they are even detected by the operator.

Without having to worry about moving the machines or visiting sites to fix them - the operating focus is firmly on delivering the right games at the right times, in order to maximise player attendance. But how often should games be updated?

"Gamestec downloads new content to the full estate on average every six to eight weeks. We have over 200 test sites, which we continuously download new content to. We then choose the games we download to the full estate based on the popularity and performance of the games on test," says Peter Davies.

Gamestec uses large file format content downloads. "It provides us with the ability to download content faster to the estate, meaning we can provide customers with a continuous stream of the latest games. This provides players with an exciting and current portfolio of games, keeping them engaged and playing longer, increasing the Cash In Box takings and dwell time for the retailer," adds Davies.

Inspired finds that the frequency of new content supply to existing units depends on the sector that they are deploying content into.

"We release a menu of games on average every six weeks in the UK pub SWP sector and we release at least a couple of games a month into the UK LBO sector," says Luke Alvarez. "What is more powerful when considering the power of SBG is the ability to constantly update the menu / portfolio of games available. We regularly change menus based on sophisticated yield management analysis designed to optimise content by a wide range of variables including time of day, region or utilisation," he adds.

With less than ten per cent of pub goers playing coin-op machines - the burning question is whether SBG increases player participation. The suppliers are positive. "New players have increased significantly following the introduction of games like Crystal Maze, says Gamestec's Peter Davies. "Branded games such as Deal or No Deal and games which are based on current trends, such as Texas Hold ‘Em poker, have also proved popular with both new and existing players. We regularly run tournaments, using league structures, which allow players from all over the UK to compete for prizes worth up to £500. This has raised the stakes and attracted new players."

Gamestec uses real-time event monitoring to check who is playing and when . "It provides us with the ability to collect intelligence on game performance. For example, which games players respond to more favourably to, or whether popular games follow wider trends e.g. when pub poker nights increase in popularity do poker based games follow suit?" says Davies.

Attracting new players has to be a joint effort between The Global Draw and its customers. The company recently ran a five-week incentive programme for our independent betting shops designed to help increase revenues and attract new players.

More than 300 managers of independent bookmakers were invited to compete with other local Global Draw betting shop businesses in the ‘Hit the Jackpot' scheme for a chance to win a £500 cash reward.

"We found over 90% of programme participants requested our competition kits to enable them to run a machine promotion, while the number of machine demonstrations registered over the five week period rose by 91% to more than 6,000 across 338 shops," says Phil Horne.

Sever-based gaming seems set to be the impetus that the UK market has needed to push it towards video AWPs. For years, the industry has claimed that the UK core player would reject video and that reels remain essential. Could this finally be set to change?

The Global Draw's Phil Horne believes so. "Players are more familiar with digital technology than ever before. Whether it's iPods, computers and the internet, digital television and radio or video games consoles, such technology is part and parcel of our everyday lives.

"We find that even those players who are at first reluctant to try video gaming products quickly come round to the idea once they have had a go. That is why it's important for venues to spend time running demonstrations and interacting with their customers, ensuring such products are being fully utilised."

Inspired's Luke Alvarez agrees, "Whilst the video AWP sector is still in its infancy and it is undergoing a big technological leap, players have become aware of the benefits. Inspired offers everything in one package, from hardware and software production, to fully enabled customer support services."

Nobody can deny the myriad benefits of SBG and the influence it has already had on the industry. It would be fair to point out that the jukebox and touchscreen sectors were possibly the true pioneers of downloading technology, but its possibilities for the casino sector are only just beginning to be realised.

As Ales Gornjec at Hermes Softlab points out, "SBG allows faster content deployment cycles and implementation of additional game types like multiplayer games. SBG has also opened the path of binding to live casino games such as roulette, punto banco and blackjack. In some cases easier additional functionalities like CRM integration can be provided by using open protocols like S2S or G2S."

All that can hold SBG back now are the limitations placed upon it by different legislative landscapes. This is a problem encountered by Inspired Gaming Group. "Regulation can slow things down in some territories," says Luke Alvarez. "For example, current legislation in the US limits the number of times machines can be modified, which inhibits SBG technology.

"Network availability can also sometimes be a problem in emerging markets. To address this challenge, we have developed a Pay As you Go Open SBGTM terminal, which uses a built-in pre-paid revenue share licence model and is designed to work in most street gaming environments worldwide. If the licence is not topped up after the agreed pre-paid revenue is achieved, the terminal suspends itself thus benefiting from built-in control."

Governments are becoming more aware of SBG and are regulating accordingly. In Italy at the moment the AAMS is examining a new law for Comma 6B machines and this is expected to be introduced by next year. Comma 6B machines will supply Server Based Gaming services and will therefore reduce many of the currently existing limitations with regards to issues such as central monitoring, proper taxation, money laundering and underage gaming.

It would be fair to say that the future of coin-op will be server-based, wherever possible. Of course, there are those machines that rely upon their electro-mechanical parts in order to convey player pleasure - but even they will likely be hooked up to a server in future via their coin mech or hopper in order to provide valuable data.

There can be no going back - the technology is out there and the benefits are too valuable to ignore. But going forward - where will we be in ten or twenty years time? My prediction is that there will be a more common platform that is open for everyone to contribute to. As Alec Gornjec at Hermes Softlab says, "SBG will work at its best when game content developers' access to platforms will become rather more common than the exception like today. For this a clear interfacing between content and platform is needed. Standardization process has not yet (or not really) started in this area (only GSA G2S central class so far)."







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