Operator Interface: Gaming On?

Illinois’ legalization of video gaming requiring operator involvement has given renewed fire to other state operator associations' push for similar legislation in response to state budget crises. Ohio has approved gaming at racetracks. A measure newly hammered out in Pennsylvania authorizing video gaming units in bars and taverns is awaiting consideration by the legislature. Pollsters report that 79% of most likely voters in North Carolina say their state should regulate and tax video gaming to provide money for education — one of many causes being championed in by The Entertainment Group of North Carolina, a lobbying group of operators and related businesses.

At the same time, debates have been revived about the pursuit of gaming vis a vis society’s well-being, making for sometimes tricky uphill battles. As expressed by an amusement operator and trade leader in RePlay’s March 2009 Operator Interface, “I would like to see the gambling initiative get ratcheted down. It’s not a way to build a country by getting money from gambling. It’s a very bad idea.” But more lawmakers' "desperate times necessitate desperate measures" attitudes are increasingly receptive to the operators' rallying cry, "A crisis is a terrible thing to waste."

Are you or your association pushing for video gaming in your state? Where does your state association stand in advancing similar agendas, or is operator-run video gaming politically unfeasible? What’s the conventional wisdom regarding gambling in your territory? How do you feel about the possible proliferation of gaming personally and as an operator?

Operator Interface: ATMs in Action

ATMs have played an increasingly greater role in the amusement route operator's offerings to locations and in collected revenues. Equipment providers are now standard and expected exhibitors at tradeshows, showing their latest and greatest wares. Whether you've operated cash dispensers for many years or a few months, RePlay wants to know what propelled you to operate them, your experiences maintaining them in the field, and the benefits and concerns they bring to your business.

Is security an increased concerned when servicing them? Do you split the fee with the location? Has the economy influenced cash withdrawals and fees? What advice would you give to others entertaining their implementation?

Your input may be selected for publication in our forthcoming September 2009 issue.

Operator Interface: Distribution Down South

This summer marks major changes in the distribution landscape of the Southeast. In the wake of Greater Southern closing its doors and Birmingham Vending shuttering its Florida branch, Betson and Brady Distributing have quickly positioned themselves to seize the regional marketplace.

Betson just opened its 12th office -- its first branch to serve the region -- in Marietta, Ga., supplying product to its new home state, Mississippi, Alabama, Tennessee, Florida and Arkansas, along with promotional deals for product from Raw Thrills, Chicago Gaming and Jennison Entertainment, among other factories they represent. In an interesting twist, David Capilouto, former co-president of Greater Southern, will manage the branch.

Meanwhile, Brady -- the dominant southern distributor headquartered in Charlotte with offices in Memphis, Orlando and Miami -- seeks greater penetration of their territory by also centralizing an office, still yet to open, in the Atlanta area. They will be the exclusive provider of Valley product for Georgia and Alabama and a host of other games, including the ICE line.

What role does distribution play for your business in light of the tier's consolidation and regional players branching into broader territories? How have your business decisions been influenced by these developments? Can the combined forces of these particular distributors, the national titan and the existing institution, cultivate growth potential for coin-op amusements in the South?

Operator Interface: On-Location Advertising

On-location advertising platforms are the newest offerings for locations by operators. TouchTunes' Barfly; Ecast's IQ; Tap.tv, which has partnered with Rowe and Merit; and Rivals Media, a group of nine distributors that recently partnered up to bring forth On Site, are banking that their customizable networks will grow from a buzz to a trend.

Before this development, flatscreen TVs in bars and taverns were sometimes seen as counterproductive to coin drop. Now they're a potentially promising revenue stream for operators from third-party advertisers wanting to get their name out, as well as for a clever motor for driving the location's business.

Have you implemented a customizable media solution to your locations and their patrons, or do you plan to? Do you think the service is a viable addition to your menu of services? Which of the three systems do you think excels in its features? Advertise your thoughts, and your opinions may be selected for including in the next issue of RePlay Magazine.

Operator Interface: Preparing FECs for Summer Lovin'

Only several months away is the hotly anticipated summer season, traditionally bringing higher traffic and warmer profits to FECs. To capture the full potential of the summertime market, however, changes in how amusement goods are offered is in order. How are you preparing your facility to entice out-of-school kids and families looking for daycation options? What new promotions, policies and ideas can be set in motion to put a fresh spin on attractions, creating the sensation of new experiences within a favorite familiar location? In what ways could the public's concern over the economic downturn be capitalized on by emphasizing the cost-effectiveness of FEC fun? Share your plan of attack for getting customers out of the house, through your doors, on your games and at points of sale, opening their wallets again and again.

Operator Interface: Coin-Op's Next Frontier?

New and innovative product with improved return on investment: that's the biggest need that amusement operators continue to express to RePlay. As part of our mission to increase open dialogue between operator and manufacturer tiers, share what specific developments you would like to see come from factories to enliven coin-op's sales and image. What technological advances would you like to see play a role? What kind of thinking is needed on both sides of the coin to not just deliver new and improved product for the 21st-century consumer but to market them as well?

Operator Interface: Barack & Business?

President Barack Obama has taken office and started working on the initiatives set forth during his campaign. Among other pressing concerns, jump-starting the economy tops the list, a process that will no doubt be long and contain numerous moveable parts. Employers may see changes in healthcare and even tax credits based on new hires, among other proposals presented in the lead up to his election.

How you think Obama may potentially affect small businesses like amusement operators across the country? What specific changes would you like to see implemented to assist companies struggling in this difficult financial market?

Operator Interface: New Changes for New Year

The deepening recession and prolonged election season dominated 2008, characterizing it as a transition year. As we enter 2009, what resolutions and changes can be made in your business and in the amusement trade as a whole to soldier through the prevailing economic climate? How might the new year differ from this one for the amusement industry in terms of operating and promoting amusement games?

Generating Advertising Revenue Ideas for Coin-Op

The promise of advertising revenue for amusement operators is topping industry headlines, once more. Operators, please give us your thoughts about the prospect for advertising from your touchscreen games, jukeboxes and possibly even remote screens connected to your equipment on location.

iPod Nights: Not Music to Your Ears

The ascendency of digital music led to a new dilemma for jukebox operators: the hijacking of jukes by consumer iPods. In so-called iPod Nights, consumers plug in personal Mp3 players for sharing personal music with friends and other patrons, disrupting the cashbox.

The practice, which reached a crescendo in 2005, has been condoned and even marketed by certain owners, catching the eyes and ears of national media outlets. That same year, the AMOA pressed the Recording Industry Association of America to defend its member copyrights against infringement only to be informed that policing such events would not be worth their effort when facing larger illegal file-sharing issues.

Have iPod Nights in your area continued at the same pace? What factors influence their happening the most? What threat might they pose down the road? What percentage of revenues do you estimate they knock off, and what possible solutions could exist to curtail them?

Operator Interface: How to Keep Heads Above Water?

Wide-spread flood damage in the Midwest has once again put disaster preparedness in the forefront of minds of business owners everywhere. Hundreds of millions of dollars in losses continue to be tallied, including amusement equipment and at least one operator's office building in the most hard-hit area of Cedar Rapids, Iowa. Meanwhile, states down river are shoring up levees as the Mississippi River rises.

What measures do you have in place in the event of a natural disaster in your area? If you have experienced a similar event, what advice do you have for operators across Iowa, Wisconsin and Missouri going forward?

If you run an amusement route or facility in the affected areas, what advance preparations were you able to make? What damages were incurred and how has business been disrupted? To what extent were losses recoverable or irrevocable? What are the steps you're taking to restore locations and your business?

ASI 2008: Your Verdict?

By all unofficial accounts, ASI 2008 saw a downturn in exhibitors, attendees and energy from previous years. Nevertheless, manufacturers unveiled impressive new product by most standards, including the buzz-worthy Big Buck Hunter Safari from Betson/Raw Thrills and Global VR’s WWII-drama driver, Blazing Angels.

Operators on the show floor who spoke to RePlay voiced opinions ranging from enthusiasm about purchases made for jumpstarting the summer months, to deep concerns about the amusement industry riding today’s downhill economy, to calling for a springtime one-show solution to ameliorate the industry’s ills. Meanwhile, exhibiting suppliers were divided between those making fair sales on the first two days and others who did less writing overall than they had hoped.

What was your impression of the event and the product on hand? What role does ASI continue to play in your business year? What factors may have contributed to this year being slower overall?

Operator Interface: No Smoking?

Smoking bans gripping locations are initially causing a 30% drop-off in coin-op revenues, according to industry estimates. That fluctuates from route to route, region to region, but many are alarmed over the cumulative effect over the next decade. In fact, the recent AMOA Council of Affiliated States was devoted almost exclusively to this issue.

“We need a grass-root development to band together to bring this inequity before the U.S. Supreme Court,” proposed one Connecticut operator to RePlay. “At least then we will know once and for all if this is imminent domain. If it is, then pay us for taking our business away. Between all the bar owners and operators, I am sure we can afford a high-priced lawyer to bring this issue to the court.”

Since anti-smoking sentiment and legislative fervor have gained momentum not only in the U.S. but around the world, what is a realistic course of action for the industry to take? If smoking bans are inevitable in this political climate, is the best that operators can hope for a statewide ban (as opposed to ones for selected communities) and one that exempts age-restricted locations like bars and taverns? Have lobbying efforts toward that end been measurably helpful?

Smoking bans are definite challenges, but operators are troubleshooting, diversifying, partnering with entertainment providers and more to rethink their companies and to staunch their losses. Join the dialogue and share your efforts and prescriptions for confronting and offsetting the smoking ban issue.

We're Looking for a Few Good Operators (Under 40)

They say you don’t exist — or at least not in any sizeable numbers. They say the industry is drying up with little to no fresh blood, new perspectives or confidence in the future. We know there are 20- and 30-somethings in the field, diligently pounding the pavement on the street and in tradeshow aisles. Step out of the woodwork and share your reasons for entering into the coin-op amusement industry — and staying. What are the positives about the business? As a member of coin-op’s younger class, what’s your opinion on the divides between generational stances and ways of looking at the problems we all face? The role of the operator? The industry at large?

The Operator's Vote

The race is on. The calendar is speeding toward Super Tuesday, February 5, when voters in 22 states descend on polling stations to vote for their candidate to lead the Democratic and Republican Parties’ race to the White House. (For the record, that’s you operators in Ala., Alaska, Ariz., Ark., Calif., Colo., Conn., Del., Ga., Idaho, Ill., Kan., Mass., Minn., Mo., N.J., N.M., N.Y., N.D., Okla., Tenn. and Utah.)

If you’re engaged in this primary process — or have already participated in the Iowa and New Hampshire caucuses or elections in Nevada, South Carolina or Florida — are coin-op issues on your mind in the voting booth? Have candidates specifically spoken to your needs and interests as a small business owner directly or indirectly? How did that affect your selection of a candidate? What concerns and causes will be on your mind as operator and citizen come the presidential election this fall?

Operator Interface: Vegas Expo or Bust?

What are your plans for attending the AMOA Expo, Fun Expo and souvenir show this September? What expectations do you have?

If you're going, what company reps do you want to talk to? Do you have any potential purchases in mind?

Operator Interface: Should the AMOA, AAMA and IALEI co-locate their tradeshows?

Give us your Yeas and Nays on whether the time has come to combine the AMOA and Fun Expos with the Amusement Showcase International.

Does the schedule of one show in the spring and one in fall, in addition to IAAPA, actually spread the downsized coin-op trade too thin? Would consolidation bolster tradester and exhibitor attendance, perhaps giving a shot of adrenaline to the overall health of the industry? Would seasonal distributor open houses become even more popular?

Or are the ripe buying times for route vs. location operators -- fall vs. spring, respectively -- too inflexible for compromise? What about the AMOA and AAMA, who both rely on their shows as moneymakers?

Why or why not? Discuss.

Operator Interface: Do you give what you receive?

What charitable deeds does your street operation make to the local community? Donations, sponsorships, scholarships? If you have a location, are there causes you support outside of offering discounts or coupons?

Do you publicize these good works and, by proxy, give your business and the industry at large a better public image?

Are such donations just a luxury that only larger companies can afford? Can everyone give back in some way, regardless of size and overall health of the business?

Share your thoughts, words and deeds with us today.

Lucky or Good?

As most in the coin-op trade know, Club Lucky and Promo Nation are groups of amusement operators that have formed national consortiums to run tournament promotions. Club Lucky, in particular, is bargaining for direct buying rights from manufacturers.

Is this almost 20-person strong collective, drawn from larger-than-average operating companies, justified in asking for the special clout as major, multi-state operating businesses and arcade chains? How will local competitors of club members be affected, competitively? And how does the group fit into the larger discussion of the necessity for the industry’s middle-tier — regional distributorships?

ASI 2007, part ii: Wrap Up

What did you take away from ASI 2007? What caught your eye as interesting? What was “all hat and no cattle”?

Considering its size, was it a more focused show on the core of the industry, catering to buyers in a more intimate format, as show planners argue? If not, what was the tradeshow's main value?

Also, as a recent blogger posed, “Why does coin-op need two shows a year when a much larger industry such as amusement parks only has one (IAPPA)? Is there so much new equipment shown each year that we need two shows? If a regional show is required, why not depend on the distribution network to provide it?”