Chief General Manager Mr Peter Gillooly, who runs one of Australia's largest private companies, advised delegates that young consumers and the advent of interactive gambling will forever change the face of the gaming industry as we currently know it.

Tattersall's, who manages over 13,500 poker machines in Victoria and operates lotteries for some nine jurisdictions in the Australia and Asia-Pacific region, pre-warned delegates that in the first few years of the new millennium, the "great gaming industry" as we know it will be unrecogniseable.

Mr Gillooly related to his company in order to explain how they are facing the change today, transforming themselves from a gambling to business to one that offers entertainment, hopes and peace of mind.

"We drive technology, not the other way around," he said. "Gaming venues are not limited by technology, only by your imagination." Pubs, for instance, will offer global chat rooms, superior wines and beverages, and every imaginable broadcast medium.

"We have produced a mission statement with a difference. We don't
mention profits, we don't mention gaming, venues or lotteries. We don't even mention technologies or systems," he said during the AHA NSW conference.

"Tattersalls are in the dream and entertainment business."

The company has completely reviewed its day-to-day operations and
refocused on the customer. The "new era" will see gaming businesses that are driven by the likes of internet gambling and the new generation of young customers.

As a 50-something, self-confessed old-world guy, Mr Gillooly told Hotel News that he has a very limited knowledge of the workings of a computer, but he has learned to access the internet, and collect emails. This hasn't stopped him from leading one of Australia's most profitable companies, which he joined some 15 years ago as General Manager to head the organisation.

"The point is, publicans don't need to worry if they don't understand the latest techno jargon," he said. "There are plenty of computer-trained people out there, just waiting for an opportunity to join our growing entertainment industry. We need the expertise of the younger generation with the know-how and latest trends, but by the same token, they also need our experience and guidance."

To date, Tattersall's have claim to the highest revenue per employee base in Australia. Employees number 360, while revenues for fiscal year 1998 was in excess of a staggering $10.5 Billion.

Obviously, Mr Gillooly is a switched on entrepeneur. As one of the most sought after chief executives in the country, he also tends to be a selective conference speaker with regard to business success stories. He's controversial, opinionated, and always leaves the delegates with a few humorous quotes and important business tips.

As a keynote speaker at the recent AHA conference, he predicted that the hotel industry will change in terms of size, scope and context over the next few years. There will also be a convergence of suppliers, which will include news, sport, gambling, networking and themeing organisations.

"Never take the customer for granted," he said. "The customer is sevice-driven due to the available competition, no matter where it comes from." For instance, ATMs were trialled only a few years ago - now they're expected in every venue, whether that's a pub, club or bar. More recently, stored value smart cards offer loyalty programmes so that venues can provide personalised service.

"We're going to see a subtle entry into the industry by organisations never before involved in gambling. They see the opportunitiies and realise that it's legitimate but undercapitalised."

According to Mr Gillooly, politicians govern what people want. Be
careful, he warned, pubicans, as "disunity or division equals death".
Translated to hotel operations, Gillooly follows a few basic principles: Ensure that your codes work, only undertake responsible advertising, employ staff with the best training, and never take your licence for granted.

Click on your mouse and lose your house

Ant-gambling politicians such as Xenophon in South Australia continue to try to ban online gambling. Perhaps they have blinkered vision and don't realise that most sites have bet limits, fully encrypted security and self-exclusion options for problem gamblers.

Or, they simply don't understand that internet gambling sites bank on loyal customers, and expect the same checks and measures as land-based venues.

Online gaming sites are growing exponentially and now number over 300, compared to less than a dozen in 1994. Revenues are increasing at the same capacity, with US$10 billion expected to be wagered online by the year 2002.

"Senator Chapman and others like Xenophon obviously shape public opinion, but at the end of the day it's meaningless," said Mr Gillooly.

To this end, Tattersall's expect to launch their online gambling business in the next twelve months, capitalising on a portion of the estimated 120 million internet users around the world.

"We're after new markets, which is the real drawcard for us," he said. "Just as importantly, we don't want someone else coming in and cannibalising our existing market."

Mr Gillooly said that Tattersall's hoped to offer traditional betting games on the site, as well as new games that are currently being developed for its new business.

He told conference delegates that best estimates are that some one to two million users of the world wide web are currently using the net to gamble. The organisation offers a strong brand operating from a regulated environment, offering immediate appeal to potential gamblers outside Australia. Overall, he believes that a successful internet gaming site revolves around content, reputation, branding, and great games.

In the meantime, the Tattersalls play site (www.tattersalls.com.au), has been operating for more than a year, and they now have an impressive hit rate of more than 20,000 users every week.

Echoing analysts of internet technology, Mr Gillooly believes that the most lucrative market to target are young, smart, knowledgeable, mobile customers.
"The difference between service providers on the internet comes down to the company's intimate knowledge of their customers.
Success is based on survival of the smartest, which means knowing your clients."