LUMIERE CONSULTING, LLC
a Colorado Company
LUMIERE CONSULTING, LLC
a Colorado Company
To learn more Contact Us
Research Study
| © Lumiere Consulting 2000 |
A. DEFINITIONS
(1) IGRA or The Act - The Indian Gaming Regulatory Act of 1988. Enacted by Congress to provide a statutory basis for the operation and regulation of Indian gaming and to protect Indian gaming as a means of generating revenue for tribal governments.
(2) Indian Lands - are defined as all lands within the limits of any Indian reservation
(3) Indicia – a distinctive mark or pattern
(4) ITVM – Instant Ticket Vending Machines are units that dispense instant tickets and pull-tab tickets in exchange for money.
(5) LTVM – Lottery Terminal Vending Machines, sometimes referred to as “printers” as some of these machines will print lottery tickets in exchange for money deposited into the machine. In some cases this term is also used to refer to units that dispense instant tickets and pull-tabs in exchange for money.
(6) NICG – The National Indian Gaming Commission, which was established within the Department of the Interior and given the authority and responsibility of administering IGRA on Indian lands.
(7) OTB Parlors- Off-track betting parlors.
(8) Palace Gaming Consulting Ltd. (Palace or the Company) – Palace is looking to fund the design and development of the Copper Rush Fever™ unit.
(9) Reels – or reel games are Class III gaming machines that are casino-style slots, video poker and video Blackjack.
(10) VPN – The Virtual Private Network cloud is a security cloud developed by MCI WorldCom to provide secure online communications.
B. TYPES OF LEGAL GAMING
(1) State lotteries, instant scratch games and pull-tab tickets
(2) Casino-style gambling, including shipboard and Native American casinos.
(3) Pari-mutuel racing and sport gambling.
(4) Non-profits (charity gaming), including bingo and “Las Vegas Nights” sponsored by churches, veterans’ groups, etc.
(5) Native American bingo, instant and pull-tab games.
(6) Online gaming accessed through the Internet.
C. GAMING CLASSIFICATION
(1) Class I games are social games of minimal value or traditional games played as part of ceremonies and are subject to tribal regulatory jurisdiction.
(2) Class II games are bingo and similar games, such as pull-tabs and punch-boards, regardless of whether they are electronic, computer, or other technological mechanisms, and non-banking card games that are allowed or not explicitly banned by state statute. This class is subject to tribal regulatory jurisdiction, with extensive Federal oversight by the National Indian Gaming Commission.
(3) CLASS III games primarily consist of slot machines, casino games, banking card games, dog racing, horse racing, and lotteries. Class III gaming may only be conducted pursuant to a compact reached between the Native American tribe and the state in which the tribe is located.
D. INSTANT TICKETS
(1) Pull-Tab is a game where a player purchases a card and pulls away tabs to reveal a winning or losing combination of symbols or numbers. Pull–tabs are often associated with bingo and other charity gaming venues. They are not part of the state-run lottery systems.
(2) Pull-Tab Vending Machines or PTVM are units that dispense instant pull-tab tickets in exchange for money. Some PTVM have monitors that display the results of the ticket.
(3) Scratch Tickets are instant lottery tickets that are usually associated with state run lotteries. The game is played by scratching away a latex covering that reveals either a winning or losing sequence of numbers or symbols.
ORIGINATION
THE PROBLEM
Once an instant ticket is printed it becomes active, meaning that it is redeemable for cash if it is a winning ticket. The potential for fraud in this type of situation has been obvious to many. The manufacturers and retailers have often fallen victim to fraud and theft involving the instant tickets.
The main problem seems to be the inability to track the tickets until they are sold. Because of the larger number of places to redeem winning tickets and the remote areas that some exist in, there has been very little that can be done to stop fraudulent redemption. These types of schemes have been known to involve individuals all the way from the printer to the cashier. Even instant tickets that are dispensed from ITVMs leave large opportunities for theft.
THE PRODUCT
There appear to be two different types of Instant Ticket Vending Machines. The most common can best be described as a metal cabinet that has glass windows displaying the tickets available for purchase. These units are outfitted with bill and coin acceptors and a ticket-dispensing unit. They are similar to other vending apparatus that you would find in most public settings and are often manufactured by companies that sell phone card vending machines.
The other type of unit is less common and has an appearance more like that of a casino gaming machine. Their appearance is similar to a casino slot machine with active screens that display information and advertising. They are a much more substantial machine with a more appealing appearance. These units are also equipped with bill and coin acceptors and a dispensing unit.
Unfortunately these machines are no more secure than the “standard dispensing unit.” The tickets are still active prior to being put in the machine and any number of people have keys. Some of the companies have tried to create a more secure product by using thicker steel and making a more secure locking system. Although these methods have added security to the product they still failed to address the problem of the active ticket prior to distribution. At this point in time there are no products available on the market that offer a fail-safe means of ticket distribution and accountability.
A SOLUTION
The software developer, Mr. Tommy Jones Jr., has worked in the gaming industry since the 1970’s and has had the opportunity to develop an understanding of the business. Mr. Jones became aware of the lack of proper security as it pertained to instant ticket games and began developing a system to try and solve this problem. The Copper Rush Fever® game appears to have solved the main security problem pertaining to the active tickets.
These tickets, although fully printed and playable, will not be active at the time of printing, as is currently the practice. Each ticket will be sequentially numbered with a unique bar code on the back. Each box of tickets will be designated to a specific location and a specific machine at that location. The ticket numbers and bar codes will be recorded into a host computer. The tickets will be received by the designated location and placed into the machine. These particular vending machines have a dispensing unit that actives the ticket at the moment of purchase. The bar code on the back of the ticket is scanned and read to verify the sale of that particular ticket at that location and to notify the host computer of its activation. Now that the ticket has been scanned and the host computer has been notified the ticket now becomes live. When a winning ticket is redeemed, the point of payment will scan the bar code to confirm its legitimacy.
ONLINE
What makes this system so advanced is its use of the online application to communicate the status of activation. Without the acknowledgment from the host computer that the ticket has been legitimately scanned, the ticket will not register as active and the fraud will be detected. When a winning ticket is sold the host computer is aware that the ticket is available for redemption and aware of the redemption value. If a validated winning ticket is brought for redemption and the win amount has been altered, it can be detected at the point of payment. The online system will communicate the win amount to the point of payment at the same time that verification of the ticket is relayed. The machines have been designed not to operate without the online service and can also be turned off via the host computer.
Another added attraction to the online system is its ability to provide accurate accounting information for each machine at any given moment. Upon request any authorized person may access all account information pertaining to a specific machine. The tickets are distributed on consignment and for each ticket sold deposits are electronically transferred. The account that maintains the machines will be required to set up a trust account that will transfer the royalty amounts to the company on a periodic basis. In the event an account goes past due or if there is any concern of fraudulent operations the machine can be shut down by means of the online system.
Every 8 hours the system will print a report to relay the activity of that shift and every 24 hours a report of that day. The reports can be quite detailed and easily customized to meet the needs of the different locations and different clients. Also a report can be produced on demand any time if the need arises.
PROGRESSIVE JACKPOT
There is also a key feature regarding player appeal that is made available with the online system. Progressive Jackpots are currently one of the most popular gaming trends. The online systems allow machines to be linked locally, statewide and nationally. As tickets are sold from linked locations the progressive jackpot will keep increasing in value. The advanced security allotted by the online system coupled with the VPN will ensure the integrity of the jackpot amount and verification of the winning ticket
SECURITY
The host computer will be maintained in a “Black Vault” room with access only to authorized persons to insure the integrity of the relay information. The use of the VPN Network cloud is to insure the security of the information traveling online. The VPN will be administered by MCI WorldCom and will ensure a private Internet connection. All security and accounting can be handled efficiently and securely by the online system.
There is an additional security feature that is part of the Copper Rush Fever® unit. The hardware for each unit has been specially designed to compartmentalize all of the security modules of the unit. Security boxes containing the tickets and the money can be easily removed from the unit so that they may be unlocked in a secure location. Each module will have locks that are keyed to two different patterns so that 2 different keys will be required to open the compartment. Only properly authorized individuals will have access to the keys for each of these compartments. Because these compartments can be easily removed from the unit, they can be taken to a vault area for opening. The ITVM’s of the metal cabinet variety do not offer this type of security measures. On many of those units, the money is removed right there in the public environment.
DESIGN
The Copper Rush Fever® game will be designed like the ITVM’s that resemble casino slot machines. It will have a screen that displays information and advertising. Money will be accepted into the machine through a coin or bill validator and then a ticket will be scanned in the dispensing unit and presented to the end user. The machines are designed to have a high quality appearance and will stand alone like a gaming machine.
PULL-TAB TICKET
The Copper Rush Fever® ticket will be in the pull-tab form. Pull-tab games are played by revealing symbols located under perforated tabs contained on cardboard tickets. When the game symbols are revealed, winning is immediately determined by matching the symbols to a pre-determined set of prizes identified on the ticket. Pull-tab tickets generally sell at three different price points, $.25, $.50, $1. These games use symbols as the play format. Players win set prize amounts by meeting the criteria established on the ticket. The overall odds tend to range from 1:3 to 1:7. They are designed to be played primarily in social settings such as bingo halls, bowling alleys, restaurants and taverns. While the top prize featured varies, each pack or “sleeve” is guaranteed to feature a top prize. Most pull-tab games only offer one way in which a win can be achieved.
The Copper Rush Fever® Tab is a unique approach for pull-tab type games. This ticket will offer the player multiple winning combinations to achieve 21 ways to win. The basis for the multiple ways to win is based on the slot machine pay schedule which offers up to 8 pay lines. The only resemblance to the Class III game is the pay off scale, not the operation of the game itself. Most reels offer 3 pay lines and the rest range from 2 to 8 pay lines. The reels contain a glass panel with the information as to the value of a win when certain combinations are achieved. Each winning combination will have corresponding pay lines that progress in value, the more money that is played. The odds of winning are not increased; the amount of pay off is increased.
Unlike reels which require the player to increase the bet 2 or more times to receive the progressively higher pay out, these tickets will have one set price - $1.00. The ticket that will be distributed by the Copper Rush Fever game will allow the player to incrementally increase the pay out without requiring an additional amount added to the cost of the ticket. The indicia displayed on the card will offer several different winning combinations. Coupled with the three pay lines and a Progressive Jackpot, each ticket will contain up to 21 different winning possibilities.
ACCESSORIES
Each Copper Rush Fever® unit distributed to a location will be stocked with additional parts that can be easily replaced in the field. Because of the compartmentalized design of the unit all working parts of the machine can be replaced in the field.
The Copper Rush Fever® unit will also have the ability to be easily transformed into a Class III gaming unit with the installation of ancillary parts made available by the Company. A new software board and a hopper can be ordered and field-installed by a qualified professional on site and the machine is then transformed into a reel game.
INFORMATION
The lack of public information on the legal gaming industry is significant. Due to the nature of the industry, it is difficult to attain completely accurate information. It seems that most readily available information is slanted to reflect the perception of the writer, which is usually self-serving. The information provided in this document has been acquired from sources believed to be accurate and fair.
In the United States, on an annual basis, the gaming industry has gross revenues that exceed total revenues from the recording industry, video games, movies, professional sports and theme parks put together. It has been estimated that legalized gambling generates gross revenues of nearly $100,000 a minute. It is no wonder that the gaming industry has become the subject of considerable controversy and rapid growth. Forty-two states now have pari-mutuel wagering, thirty-nine have lotteries, fourteen have casinos and 47 have legal bingo.
In 1998, worldwide instant ticket sales approached $28 billion, or approximately 20 percent of total lottery sales. In North America, instant ticket sales reached $15.5 billion, or 37 percent of total lottery sales on the continent. Instant ticket sales outside of North America were $12.2 billion, or 15 percent of total lottery sales.
INDIAN GAMING
The boom in tribal gambling began in the mid-1970’s, when tribes in Florida, Wisconsin, Connecticut and California operated relatively modest, low-stakes bingo halls on their reservations. Since then, Indian Gaming in the United States has grown to become a nearly $8 billion industry. There are approximately 557 federally recognized tribes, and of those, at least 441 have some form of gaming. Class II gaming is the most common form, consisting mostly of bingo, lotto and instant tickets.
INDIAN GAMING REGULATORY ACT
IGRA was passed by the Congress in 1988 and endorsed by President Reagan. The principal goal of the Act was to promote tribal economic development, self-sufficiency and to regulate gaming on Indian lands. Although gaming has been the single most influential factor promoting tribal economic development, it has not been a complete solution. According to The Act, net revenues from gaming are to be used for (i) funding tribal government operations or programs; (ii) providing for the general welfare of the Indian tribe and its members; (iii) promoting tribal economic development; (iv) donation to charitable organizations; or (v) to help fund operations of local government agencies.
In the gaming industry it is predicted that for every job produced by gaming another job is created outside of the gaming industry. Unfortunately Native Americans are not filling enough jobs created both inside and outside. Therefore, the economic development in these communities has not yet flourished to its full potential.
TRIBAL ECONOMIC DEVELOPMENT
In modern times, the American Dream has become the opportunity to own your own business. There is pride in ownership that rounds out a person’s life and adds to a community. Within the Indian communities, interdependence between the individual and the community enables the mutual benefits of pride of ownership and economic development. Once a community starts to enjoy the financial rewards of such a union, their focus can then be directed towards education. The tribe is able to educate its own people to learn new trades and new careers and then it is able to furnish them with stable and well paying jobs. All of this feeds the economic development of the community. When the socioeconomic levels begin to rise, the tribes will become less dependent on the government and can begin to regain the pride of their heritage. The Indian community sees the gaming industry as an avenue to legitimately stimulate their economy in an attempt to achieve that end.
The type of revenues associated with the gaming industry would allow the tribal communities to fulfill basic needs that we take for granted. Not only will they have the opportunity to realize the American Dream, but also new schools, hospitals and shopping centers can be built. This type of revenue stimulation in a community can have long reaching effects that build pride in ownership and economic development for generations to come.
STANDARD OPERATING PROCEDURE
Although Indian Gaming has been legal and regulated since 1988, economic development among the tribal nation has not become what the government had envisioned. The relationship between the non-Indian entities within the gaming industry and the Native Americans has been less than ideal. Broken promises, misleading information and dubious contracts on the side of the non-Indian companies have characterized this relationship. These types of transactions have only served to downgrade economic development and community pride.
The distributorships that have been established within the Native American communities have been tainted by the status quo. Kickbacks and bribes have become increasingly common and have created an unseemly atmosphere surrounding those transactions. These companies have given no consideration to the idea of conducting business legitimately and receiving a contract because they deserve it. They will often raise the price of the machines substantially to cover the cost of the kickbacks and for added profits for themselves. Because of the lack of integrity and the presumption that the Indian community can be bought, an air of distrust exists creating racial barriers and tension. The tribal nations have begun to feel trapped by these standards, they are tired of being gouged and having the integrity of their people tarnished.
PALACE’S OPERATING PROCEEDURE
Palace Gaming has examined the market, the industry and the way business is currently conducted inside of the industry. The way in which Palace views the opportunity appears to be unique to the status quo. It has been their expressed desire to do the opposite of what has been demonstrated in the past and has created disharmony. The Company wishes to capitalize on the missed opportunities of their competitors by forming partnerships within the Indian communities. The first step in this partnership will be to set up distributorships that will be owned and operated by Native Americans. They will not engage in the bribery of the distributors or the extortion of the casino.
The Indian gaming communities tend to think alike and learn from each other, they are tired of the current way of doing business and they are looking for economic growth. If a distributor of gaming equipment were to come into these communities and offer opportunity, revenue and honest transactions, both parties could enjoy a tremendous victory. Once this way of doing business is established within even a small number of tribes, it is logical that the rest will want to have this type of respect for their own communities.
NON-INDIAN GAMING
The breakdown of classifications of gaming is more commonly refereed to in direct relationship to Indian gaming. Class II gaming that takes place off tribal lands tends to be most common among bingo halls and is referred to as Charity Gaming. The reason for this classification is that church bingo halls and events referred to as “Las Vegas Nights” are generally held for charity purposes. Charity gaming rarely involves Class III games or gaming devices. Many Christian denominations have regular bingo sessions every week. There are many non-religious organizations that host daily and weekly bingo games. Across the United States and Canada several hundred thousand bingo games are held each day.
PTVM’s are often found in bingo halls and non-profit facilities where Class II gaming is permitted. When the dispenser units are available in those situations, the proceeds are usually distributed to a specific charity or retained by the church. The vending units can be utilized by the patrons during and between bingo sessions. Even these entities have trouble with theft, lack of regulation and accounting where the tickets are concerned.
ITVM’s can also be found at pari-mutuel racetracks, OTB parlors, cruise ships, ferries, sports bars and sports stadiums. The units are generally freestanding and available for public use in designated areas. These establishments are generally controlled environments where minors are not allowed free range. In this type of setting, the machines are directly used by the patrons. The owner of the business or of the machine usually retains the profits. These games are regulated and taxed by the appropriate governing agency.
Because of the Class II classification, these machines are subject to much less governmental regulation. Class III games are only permitted in authorized casinos and on Indian Reservations that have a compact with the state allowing Class III gaming. Conceivably any state allowing a state-run lottery and the sale of instant tickets would allow the use of the ITVM’s on a restricted basis. Currently thirty-nine states allow the sale of lottery tickets.
INTERNATIONAL MARKETS
The laws and regulations governing all classes of gaming vary widely from country to country and region and region. Obtaining accurate information on the international market is even more difficult than obtaining information about domestic gaming. Many foreign countries have much more lenient regulations pertaining to gaming. Some have zero tolerance. However, most countries that allow regulated gaming have similar rules and regulations to that of the American government.
Currently the use of PTVM’s in Europe, Canada, South America, Mexico and Australia is prevalent. It is not known if any technology exists in any foreign country that is comparable to the Copper Rush Fever™ game. There are European and Canadian companies that manufacture and distributes PTVM’s. These machines tend to resemble the “standard dispensing unit.”
THE STANDARD DISPENSING UNIT
In the Class II gaming industry there are 2 types of ITVM’s. The standard metal cabinet dispenser that has glass windows displaying the variety of instant tickets available for purchase is most common. The market is mostly comprised of medium-size private companies and most of them are relatively young. The older companies tend to have other products that they distribute and manufacture. Both types of ITVM’s appear to be relatively new items on the market, most originating in the last 10 years.
There seems to be little variance in appearance when considering the metal cabinet design. Some are smaller tabletop units and others are the size of a soda can dispenser. Both have glass windows that display the varieties of tickets available from that dispensing unit. The main security offered by these units is that they have the ability to be locked. Some have modular locking units that can be removed from the unit and opened at a different location. However, this feature is not common in most of these units, and they still lack proper security functions.
There appear to be two public and four private companies that manufacture this type of ITVM. All six companies are well established and are mid-sized. Both public companies control the majority of the market share while the private companies tend to operate on a more local basis. All six companies are more inclined to offer scratch tickets instead of the pull-tab tickets. The public companies tend to target the state lotteries while the private companies seem to concentrate on the Indian gaming and charity markets.
There is very little information available on the companies that distribute these units. They appear to all be companies that distribute a variety of product or instant tickets. There does not appear to be any distributor of the units that is Native-American based. If such distributorships exist, they are most like small and poorly funded, as there is no information readily available regarding them.
A SIMILAR UNIT
There is one unit known to be available on the market that closely resembles the Copper Rush Fever® design. The Lucky Tab II unit resembles a casino-style reel game. These units sort of look, sound and operate like a slot machine. Money is put into the machine through a money acceptor and the patron then selects the ticket he wants by viewing the monitor and pushing a button. A ticket is then dispensed into a tray at the bottom of the machine. The video monitor has the capability to read and display the information contained on ticket. Because they are operated by software they have a more interactive quality to them and are more expensive. They are low maintenance and capable of making reports detailing the day’ activity. The only security feature that this unit totes is that the money and tickets are housed in a “secure metal locked cabinet.”
It is reported that these units sell 2,800 to 3,000 tickets every week in their current locations. The ticket is a standard preprinted pull-tab ticket that is dispensed from a role. The tickets that are dispensed range from denominations of $0.25, $0.50, $1.00, $2.00 up to $5.00. The machines can be modified to dispense tickets other than the Lucky Tab tickets. When a winning ticket is dispensed, the monitor will display some type of animation and a tune will play to alert the patron that they have received a winning ticket.
THE REST
There are a couple of unusual ticket dispensing units available on the market. There is Swiss company that makes a novelty-dispensing unit that is reminiscent of a jukebox. The machine has a clear glass covers that allows the patron to view a mechanical arm picking up a ticket and dropping it into a reciprocal that can be accessed by the patron. This unit offers very little security and because of its novelty commands a higher price tag.
An American company produces a device called the Oasis which operates as a “paperless” ITVM. This is an electronic instant ticket vending system (ITVM) that offers scratch tickets, bingo and/or pull-tabs with the same prize structure, same game themes and same method of play as traditional methods, only it is on a video screen. The Oasis™ ITVM Network is a computer-linked delivery system for the scratch-ticket or pull-tab game. This is a freestanding unit about 4’ high and has a game monitor on the top surface. On the front side of the cabinet there is a bill acceptor and a slot where a voucher is dispensed if the monitor reveals a winning combination. A retailer, operator or cashier then redeems the voucher for the amount stated on the voucher. This game offers online security at the point of purchase and because it has no physical ticket it eliminates that security risk. This machine also generates a report detailing the activity of the day.
THE INDUSTRY
In marketing efforts to non-Indian facilities, the security benefits and jackpot ability of the Copper Rush Fever® game should be featured. This should be a sound marketing avenue because these features are not yet available on the standard equipment. The significance of two important factors, security and player appeal, would seem much more important than an increase in cost.
The plan to utilize Native American distributors in the Indian gaming community, which is long overdue, will lend a natural asset to the marketing appeal of the game in that sector. With racial barriers broken down and improvement in the financial infrastructure of the tribe, one would have to assume the product would be well received.
THE PRODUCT
When comparing the Copper Rush Fever® unit to the standard ITVM, obviously, there is really very little in common other than the fact that both units dispense pull-tab tickets. These machines contain no software or monitors and do not operate online. Unit price varies between the two and there is no similarity in appearance. Because of this, all further comparative analysis will pertain to the remaining competition.
The Lucky Tab II unit closely resembles the Copper Rush Fever® game in initial appearance. However, the monitor on the latter will not display the indicia that is printed on the ticket or make any audible or visual indication when a winning ticket is dispensed.
The key element setting the two units apart is the online technology available that accompanies the Copper Rush Fever® unit. The Lucky Tab unit will not be able to produce an exact, up-to-the-minute status report on the machine activity. It will not have the ability to connect to other machines and progress a jackpot play option. Most importantly, the Lucky Tab dispenser will not have the ability to activate a preprinted ticket at the point of purchase. Because of that very issue, the Lucky Tab II offers really nothing more than the standard dispensing unit, other than a higher price tag, and bears no further comparison.
The Oasis™ unit is somewhat advanced and offers a solution to the security issue of live tickets. There are, however, some inherent traits that will make this machine a hard sell. First, the machine is rather large and takes up valuable footage on the casino floor where every inch counts. These machines sell for nearly 50% more than the Copper Rush Fever® and carry a much higher maintenance cost. Despite the inflated cost of the equipment, this company does not provide a leasing option for the client. Because of the nature of the machine and the stringent regulations regarding Class II vs. Class III, games many states may consider this game to be too similar to a Class III game. This would not make it possible to place the equipment on properties where only Class II gaming is permitted. However, this product does not have the capability to be converted to a Class III gaming machine. Finally, investigation of the distributing company has led to the conclusion that they are lacking good standing in the Native American community.
After examination of the circumstances, one would have to conclude that there are many factors that need to be considered when evaluating the feasibility of the project. The following points are for review and consideration of importance.
Ø There is a definite need for improved security where the instant tickets are concerned.
Ø The industry is rapidly expanding.
Ø A very lucrative opportunity exists locally, nationally and globally.
Ø Indian gaming is becoming a substantial player in the gaming industry.
Ø Economic Development is the main consideration of the tribal council.
Ø Progressive Jackpots are a major contributor to player appeal.
Ø The competition is substantial and is currently designing technology in attempt to solve the problems.
Ø The gaming industry is intensely competitive.
Beginning with the intense competitive nature of the gaming industry, it is necessary to give a more complete understanding of the environment. From the beginning, the gaming industry has displayed a very Darwinian environment; the strong survive, or maybe the strong-stomached survive. Most of us have been around long enough to have watched Nevada flourish. There is little doubt what the financial rewards of gaming are capable of being. This factor has led the industry to become intensely competitive. As was noted with Indian Gaming, many companies, no matter how big or small, will stoop to unseemly levels in order to secure a contract. Therefore, it might be safe to say that the industry is cloaked in certain ruthlessness.
The companies that currently occupy the market have survived thus far and have not been hurt to badly by the current method of business. The fact that they have survived is a credit in their favor, however the majority have not flourished at the accelerated rate of the gambling world. It seems that everywhere some type of gaming has been approved, rapid proliferation has followed. There is currently no company that addresses all of the security issues, racial issues and player appeal. If there were one, I believe that company would have risen to the top and flourished at the same rate as the industry. That would lead to the conclusion that there is a definite need for these issues to be resolved.
As the year 2000, approached many Americans purchased handguns to protect themselves from their own countrymen. In other words we do not live in a world where we can trust everyone. Many simple and complex schemes have been exercised in attempt to either steal instant tickets or alter the information on them in some way – not everyone can be trusted. Because of that issue, there has been a lingering concern and various actions have been taken to solve that problem. So far, none have been successful. The issue remains that once a ticket is live it is vulnerable to fraud. Consequently, the biggest advancement in ITVM’s would be the ability to eliminate that risk.
The rights of the Native Americans and the government’s responsibility have been a long and tiring battle for both sides. Despite the fact that common ground has not been met, both entities want the same resolution – for the Indian communities to become self-sufficient and prosperous. When non-Indian companies undermine the integrity of their clients and soil the standard of business, it only pushes the solution further away.
The Indian Gaming community is becoming a large and powerful organization. Most likely the future will see a continued and zealous competition for those spending dollars. Therefore, it would be logical to conclude that a company that would form an alliance with these individuals and give them the respect they deserve could benefit substantially from that type of union. In the gaming industry it truly is a “whom you know” environment.
The gaming industry has demonstrated time and again that it has not even approached its revenue cap. This is apparent as design companies scramble to come up with the biggest, best and most popular game. The games with the largest player appeal are the ones to receive to most gaming dollars and the most demand from purchasers. The progressive jackpot ranks high in allure to the avid gaming patron. Up until now, none of the PTVM’s have had the technology to progress a jackpot on line and add that type of player attraction. Pull-tab games have always been popular and the instant ticket market is very lucrative, but nothing compared to the lottery. Lotteries command huge sale volumes when a jackpot progresses to several million dollars. Accordingly, the popularity of the pull-tab game as it now stands, coupled with a progressive jackpot, lends itself to tremendous profit potential.
In conclusion, it would stand to reason that a company able to tackle all of the obstacles, survive the competition and resolve the major problems plaguing the immediate business would stand to profit greatly.