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Australian gaming update
20 December 1999 , InterGaming

Ainsworth cleared of allegations spanning 19 years

The New South Wales judiciary system has finally settled a defamation suit against Mr Len Ainsworth, the founder of Aristocrat..
In a Supreme Court action held in Sydney mid-November, Mr Ainsworth counter-sued Detective Inspector Bob Clark of the NSW Police Force on the basis of truth relating to his involvement in the gaming industry.
Mr Ainsworth, who voluntarily devolved all interests in Aristocrat a few years prior to its sharemarket listing in 1997, has established a new gaming machine company to capitalise on the growth of his visionary Aussie-style video gaming machines.
Asked of his response to the settlement, he told InterGaming that "After 19 years of allegations, I'm pleased to say that it's one less thing to worry about."
Always one to back his own judgment, Mr Ainsworth has just moved into a large factory at Chiswick in the Sydney metropolitan area. Ainsworth Game Technology Pty Ltd. has been granted a New South Wales gaming machine license, which is one of the most rigorous probity-clearing procedures equaling the state of Nevada.
The company is in the process of developing games for release to the local market, with views to a global assault of its new technology on the gaming market.

Aristocrat hits the jackpot

Aristocrat Leisure has posted another leap in first quarter results, driven by strong international growth particularly in the US, followed by Europe, South Africa and New Zealand. This is despite the fact that it still hasn't received a Nevada license, although its application is progressing well and will be decided by the middle of next year.
The company has also struck a deal with the Tab Limited, which allows the TAB to "hyperlink" machines throughout the state of NSW and link them to a central jackpot pool. The initial contract is for 2400 machines, which is Aristocrat's largest ever single order.


Pokie king sues for stealing deigns

A battle involving Aristocrat and Pacific Gaming has landed in the courts following claims that designs had been copied.
Aristocrat believes that four of its gaming machines were reproduced by Pacific Gaming without permission. Issues involve the machine specifications, and the "feel" of the games including the frequency of payout and screen characters for second-screen bonuses.
"The applicant contends that all of the games compromise cinematographic films," said Mr Anthony Frankin, counsel acting for Aristocrat.
Pacific Gaming's parent company is Universal of Japan, who have a presence in their native country and Nevada.


Qantas installs new video system
The Australian airline Qantas Airways is expected to commit up to A$450 million to install a new video system for passenger use to capitalize on the convenience of personal entertainment while travelling.
The recommendation, prepared by the Qantas in-house team, will be proposed this month.
Only two years ago the carrier suggested the introduction of seat-back videos for all passengers, but cancelled the idea after plans to introduce gambling were heavily criticized.
It is not known whether the recommendation includes interactive gaming, but if the proposal proceeds, it will effectively be able to compete with the video systems offered by Singapore Airlines and Malaysia Airlines for their international flights.

Mimosa Casino seeks investors
The three major creditor banks of Mondragon International Philippines Inc. are hoping that foreign casino operators will invest in the Mimosa hotel and casino so that it can re-open.
The Mimosa Regency Casino and Holiday Inn hotel at Clarkfield, Pampanga was closed by Clark development Corp. for refusing to pay over P400 million in taxes and rentals. Pagcor has refused to allow the casino to re-open due to its non-payment of some P120 million in commissions and fees.


Crown Chief quits
Mr Lloyd Williams, the Chairman of Australia's largest casino known for his hands-on approach to every aspect of the business, has resigned. Mr James Packer from Publishing and Broadcasting Limited has taken his place.
Meanwhile, Crown continues to lobby for a more lucrative tax structure to effectively compete with its overseas competitors. The casino currently pays a 9 per cent tax on revenues for its high roller business, which climbs by 1 per cent for each A$20 million over $160 million, indexed to 1994. A high roller's buy-in thresh hold is $10,000.

Hotels no longer rated
A top 100 list of hotels according to poker machine profits has been scrapped by the Gaming and Racing department due to an increase in armed robberies. Hoteliers had expressed concern about security, following numerous cases where the top hotels were publicised in the press and subsequently suffered break-ins.
The last list covering the March quarter has just been published, showing that the top 200 hotels averaged A$530,833 in profits from gaming over the quarter.

Clubs Hotels
Gaming turnover A$26 billion $11 billion
Gross profit Gaming $2.6 billion $1.1 billion


Sydney's top clubs
By poker machine profit

Club Machines
1. Panthers, Penrith 1262
2. Canterbury-Bankstown Leagues, Belmore 643
3. Mt Pritchard & District, Mt Pritchard 542
4. Parramatta Leagues, Parramatta 457
5. South Sydney Juniors, Kingsford 579
6. Rooty Hill RSL, Rooty Hill 544
7. Bankstown Sports, Bankstown 476
8. North Sydney Leagues, Cammeray 533
9. St George Leagues, Kogarah 398
10. Club Marconi, Bossley Park 353


NSW bans internet casino promotions
The Department of Gaming and Racing has advised clubs and hotels not to become involved with overseas-based internet casinos.
A circular has been sent following an approach made to gaming-related businesses in NSW, offering them a share of gambling revenue from players that are referred to the internet casino site. The scheme invites companies to attach a banner or link to the casino.
The Department has warned clubs and hotels that participating is likely to contravene the Lotteries and Art Unions Act 1901.


Internet news

New site upsets Christchurch casino

A West Indies casino is capitalizing on the international gaming reputation of New Zealand through its domain name, which is registered through the casino.co.nz internet address.
Christchurch Casino chief executive was less than impressed when he heard the news, as the Internal Affairs Department cite internet gaming as illegal. As a result, the casino's internet site only offers play money for its featured casino games.
Caribbean Cyber Casino International allows gamblers to bet on a range of casino games via credit card, wire transfer or cheque facilities. Effectively, the company has simply registered the domain name in New Zealand, but the servers are licensed in the West Indies, where the operations are based.

GoCorp tantalizing prospective players
Australian-based GoCorp Ltd is inviting gaming players to register on its web site at www.gocorp.com.au., following its conditional interactive gambling license in Queensland. The company is still to finalise licensing approval through the Queensland Office of Gaming Regulation (QOGR) with regard to its financial and A$10 million software system, and hopes that the 50% tax rate will be reduced to compete effectively against other jurisdictions.
Queensland residents will be excluded from playing the traditional casino games due to exclusivity arrangements with the exisiting land-based casinos, although they can play for fun with points at no monetary cost.
Other players can deposit money to their account via credit card, cheque or electronic transfer. Winnings are credited via cheque or electronic transfer through a major Australian bank, and the entire operations will be monitored and audited by the QOGR.
Gocorp is expected to float on the Australian Stock Exchange in the near future and ex-Aristocrat Chairman Mr Gary Garton has taken up the Chairman's position.


Tatts banking on an online winner
One of Australia's largest privately owned organisatisations has launched a new web site to capitalize on the growth of online gaming.
Tattersall's, the Estate of the late George Adams and operator of gaming machines in Victorial and lotteries in more than 8 jurisidictions worldwide, launched their new website in late September at tatts.com.
Apparently hits to date have reached 12,000 a week, particularly for loyal customers checking their lotto numbers.
Tattersall's revenues exceed A$11 billion and analysts predict that Tatts.com Pty Ltd will list on the stock exchange in the next six months.