CHANNING O’HALLORAN T O P I C T A L K 2018 GAMING SUMMIT

Current Gaming landscape Manufacturers performance and outlook What is the market appetite for recurring revenue models? More cabinets, more platforms more often – what do venues want? - Game supply for new cabinets

Legislative and Economic influences What external economic forces do you monitor that can affect venue performance? What are the legislative items that can be changed? Max bet, max prize – fresh discussion in NSW around $1 maxbet Operating hours Promotions Loyalty programs Game guidelines

Player engagement and RTP What impacts carded play and where is it trending – 50% benchmark Links – proprietary and in house trends Flexibility - Market (player) specific

Player engagement and RTP RTP trend lines Link and SAP not much change in last 5 years S/alone returning less: old games/less interest/less churn

Trends and technology End of Life, cost of systems, accelerated technology Gaming is not going to get cheaper Moore’s Law Cat 5 – 6 – 7 – Fibre TITO – Cashless – Near field LEDs – Screen on Screen - LCDs Transactional technology, back of house efficiencies Time on Device - paytable reversed Where is the personal touch? Skill based gaming

Loyalty and Gaming promotions What works, where does it go? Promos – strategic Vs surprise and delight Related to customers wants – not “easy for club” Rising cost of loyalty Old strategy - Use tiered loyalty card as a discounting tool– big hit on bottom line New strategy - ghost tiers/surprise and delight Linear vs non Linear approach

Loyalty and Gaming promotions Focus on the true value of each tier Follow the $$$money when designing promotions

Loyalty and Gaming promotions Recent studies are showing people focus more on: symbols of belonging experience is worth more than points Studies on loyalty programs show that people hold around 10 loyalty cards and no more Must offer customers a unique value proposition - most clubs offer exactly the same rewards Points accrual rates and point spend rates are two different buckets

Loyalty and Gaming promotions Loyalty ROI Measure RETENTION Measure LIFT Measure SHIFT Pros and Cons

Analysis of performance What is important? Do the old analysis methods stack up? TO becoming important again – new games designed for TOD What numbers are important? TO, Net, median, mean, cabinet age, product types, floor areas, top tiers (visitation, spend), anything to do with customer habits (M/F, customer age, time of day)

Analysis of performance How are numbers related What numbers point to external forces? Why is ‘time of day’ performance important? - market segmentation

Gaming strategy and execution Who are the venues to look at? What other markets are relevant? Why adopt a ‘Gaming Team’ approach? What does a 12-month plan look like? What triggers a change and update?