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The Commonwealth of Kentucky filed a motion for a case management order of 141 domain names in November 2010. The Commonwealth attempted to break down the domain names as they would be easier to manage in small groups. The gaming industry is aware that it would be much easier to persuade the domain owners if they are completed in small groups. iMEGA has stepped in again to assist the domain name holders.

iMEGA filed an intervention motion on December 6^th for the domain name owners by creating a 13 page plea that sculpted a case from three points:

• Illegal acts
• Lack of subject matter jurisdiction
• Representing member interest

The first point outlined the case management order results in a procedure not permitted by law and against the Kentucky Supreme Court. This point indicates the entire request should be dismissed. iMEGA further points out the motion is a forfeiture of a hearing by a different name.

The second point reviews the lack of subject matter jurisdiction. The actions by the Commonwealth do not have a basis anywhere in Kentucky law so the Court does not have enough subject matter jurisdictions to continue with the case. The third point discusses that iMEGA is simply representing the interests of its members for any claims filed against them.

iMEGA attorneys clarified they have fulfilled all conditions set by the Kentucky Supreme Court to represent the domain holders. The Supreme Court asked iMEGA to prove one domain name owner is an actual member. As a result, Yatahay Limited provided proof of ownership for the domain name, truepoker.com. Therefore, the issue of iMEGA should not cause any issues in court.

Based on these results, Judge Thomas Wingate granted permission to iMEGA to intervene. The follow-up hearing is set for December 13^th, 2010. When iMEGA initially challenged the order Judge Wingate ruled against iMEGA stating they had no business representing domain names. This matter was elevated to the Supreme Court but then passed back down to Judge Wingate.

iMEGA is simply supporting its customers through representation. These actions are no longer common in business. iMEGA is engaging in an excellent deed for their members and will hopefully come out on top of the case. Since many of the domain name holders do not know the procedure, iMEGA is going out of their way to represent them in a strong and rightful manner.

Although the gaming industry is struggling, some of the equipment suppliers to the casinos are not. One company that recently reported higher revenues for the past quarter is Shuffle Master Inc. These increased numbers are attributed to higher sales in Pennsylvania, Delaware, Australia, the Philippines and Singapore.

Las Vegas-based Shuffle Master Inc. reported a profit of $5.8 million for their third quarter ending July 31^st, up from $5.6 million from one year previous. The company sells and leases card shuffling machines commonly found in Blackjack and Texas Hold’em. They also sell table games and other gaming products to casinos. Revenue increased 14 percent to $51.5 million.

Shuffle Master executives believe the primary reason for the increase in profit is the diversified products that their customers want and need. Also, the sales of their gaming equipment to other areas of the world have created a more balanced and stable method of securing revenue. Additionally, they have seen a considerable amount of leases at United States casinos which adds to the predictability of the marketplace.

Shuffle Master sells many products to their customers. Some of the most popular include:

• i-Shoe Auto
• The Deck Mate
• Easy Chipper C

The i-Shoe Auto is an alternative to a regular dealing shoe. This product brings the cards to the front of the shoe automatically which reduces repetition and simplifies the dealing process. As each card passes through the shoe, it reads the rank and suit which greatly reduces collusion. Also, when a misdeal occurs, there is a hold card feature. Furthermore, the results of each game dealt can be communicated to a remote location via the casino’s network.

The Deck Mate is a randomized shuffling machine that shuffles cards quickly and accurately. The product can be mounted to the felt of any table. The operation of the machine is quiet and quick and makes for a great addition to games that need to shuffle multiple decks. Finally, the Easy Chipper C sorts numerous chips at once. The product is significantly quicker than its competitors by reading up to ten chip colors. Additionally, the Easy Chipper C rarely has downtime due to the lack of belts within the machine.

Due to their large portfolio of products compared to the competitor it’s no wonder their revenue greatly increased. As their products continue to improve and be more advanced, they will see a significant jump in profit, especially once the gaming industry pulls out of their slump.

A returning trend in this tough economic climate is the selling of jobs by managers that are willing to break the law for extra cash. This was a common practice during the days when the mobsters ran the casinos. The best-paying low-level casino job is dealing high-limit games resulting in big tips from the wealthy. Once again individuals are paying managers for these positions.

Employment Policies

Former casino executives turned consultants said baccarat and other large cash games can cost the purchaser tens of thousands of dollars. On the other hand, this job pulled in over $100,000 at one time, most of it untaxed. Today, there are employment policies set forth by the casino to ensure the most qualified individual is hired. These are implemented through sophisticated human resource procedures like online application forms and numerous interviews with different people.

Asian Culture

Despite these corporate policies, job selling continues due to the broken economy. This is known as “job peddling” and is considered to be one of 10 forms of employee theft and fraud within the industry. As the economy worsens, managers will try to make quick cash on the side. This is popular among Asian immigrants because this practice is accepted in Asian countries.

In some Asian areas, bribery is the best method of getting ahead in your career. The mindset is, “if you want something, you have to pay for it.” Hard-work and initiative unfortunately do not go far in these countries.

Before the Recession

This occurred prior to the recession when new casinos were hiring. Fraudulent employees were easily disguised among the thousands being hired at once. For Asian games, managers could easily hire Asians due to their knowledge of the game and their fluency in a particular language. When a dealer can speak a high-roller’s native language, they feel much more comfortable about playing at that table.

Simple Math

This practice is simple math, there are thousands of people that need or want the job. The person that is awarded the job has something the manager wants: money. In addition to the bribery aspect of the hiring process is the networking. Usually an applicant knows someone that knows the manager and recommended them with a little kickback.

The selling of jobs is unethical and wrong. It is greedy people in high-level positions that are looking to take advantage of the recession and people’s need for a job. Unfortunately this type of corruption is not only found in the gaming industry, but all aspects of life.

As the gaming industry continues to expand across the United States due to the openings of tribal and non-tribal casinos, the number of slot machines in Nevada is significantly decreasing. Luckily this decline relates to an improvement in the technology of gaming equipment, not a lack of demand.

As of 2010, there are 833,000 active slot machines in the United States. This is an increase of 233,000 machines from 2005, according to the American Gaming Association. Gamblers are currently spending only slightly more on slots when inflation is adjusted. This survey was conducted in well-established gaming states such as Nevada, New Jersey, Iowa and Illinois.

In 1992 Las Vegas, slot players wagered an average of $70 per session. In 2008, slot players bet an average of $80 per session after being adjusted for inflation. Players during this recession are wagering millions of dollars less than during the large growth years.

On June 30^th, 2010, it was announced that there were 168,504 active slots in Nevada. This equals the number found in Nevada in 1997. This apparent decline contradicts the overall growth of the gaming industry.

This trend stems from a consolidation of games into one machine. In 1997, different slots had single wagering games in their system. In 2010, there are multiple games in one machine to add convenience and differentiation for the player. Multiple game machines include games such as:

• Several varieties of poker
• Keno
• Slots

Each machine contains a user-menu to select which game you want to play. This new equipment helps all casinos cut costs drastically by not needing to have as many machines on the gaming floor. This cuts taxes and maintenance costs on unused machines. Large casinos like The Rio, MGM Grand and Circus Circus have eliminated 1,200 slots since 2001.

This is a major advancement for the gaming industry. As gaming technology improves, the selection of games will increase with the number of gaming machines decreasing. The areas where slot games once were could host newer, more profitable games or equipment. Therefore, these machines are not only great for cost savings, also for the generation of profit.

As more casinos across the country add these cost-saving, profit-generating machines to their gaming floor, the decline in gaming may turn-around and begin to see great improvement. All this due to an advancement in gaming equipment technology.

The gaming industry has been declining since 2008 due to the recession. The industry may have finally reached its lowest point. Moody’s Investors Service recently upgraded its forecast for the United States gaming industry from negative to stable. This is a huge victory for casinos everywhere which have continually shown a negative outlook since 2008.

Why the Upgrade?

Moody’s believes the settled outlook is due to the credit environment of the United States gaming industry, which will not improve or decline over the next year to year and a half. Gaming revenue tends to greatly fluctuate; however, the industry saw consistency from March 2010 to May 2010. This is a great improvement over the past two years.

When Will This Occur?

Although some casinos will continue to see profits decline, collectively this trend will begin to flatten toward the second half of 2010. This outlook is attributed to the continued stability and comparisons from year-to-year resulting from significant cost-cutting by all casinos.

What Does the Future Hold?

Many casinos across the country are facing numerous challenges, most as a result of the economy. Moody’s is predicting that consumer spending on this luxury will continue to be strained. In turn, this will make it difficult for the United States gaming market to improve from their currently weak levels. Also, many casinos will continue to face high levels of debt which will be difficult to pay off.

Standard and Poor’s also has upgraded their outlook on United States casinos from negative to positive. To further help the cause, Paulson and Company, a large Wall Street firm, has recently invested $1 billion by purchasing stakes in MGM Resorts International, Harrah’s Entertainment Inc., and Boyd’s Gaming Corporation. When major Wall Street players are backing these properties, it significantly helps the gaming industry.

Casinos across the nation have had two poor years of declining profit. Due to the economy, consumers cannot afford to take trips to Las Vegas and spend money on gambling and other luxuries. Luckily, the downward spiral trend may have finally plateaued. With large investments from major firms, this helps to balance the industry and potentially start to turn-around revenues.

Moody’s is still predicting a long and difficult road ahead. Casinos may stay at a stable level for awhile, but at least the decline has stopped. Through continuous cost-cutting techniques and strong financial backing, United States casinos will eventually pull out of this slump and move in to a new era in gaming.