From the perspective of America it can be confusing to understand the UK and European market approach to prize payout machines. The Amusement With Prizes (AWP) and Skill With Prizes (SWP) designations of cash payout hardware an interesting opportunity in the European markets growth, an impressive alternative to the labored Gaming Machine USA alternative. Adding to the confusion the ambiguous area of new machine legislation was compounded by new Governmental edicts in 2005.

Since early 2000, the UK gaming machine sector had machines that sat outside of ratification. Fixed Odd Betting Terminal (FOBT) and Sector 16/21 machines that involve video skill gaming were rounded up to be covered by the UK existing Amusement Machine Licensing Duty, paying at a gaming machine rate. FOBT machines have found a successful home in the licensed betting office retail environment and had proven a profitable coin-operated addition to the betting office storefront. In being rated as a value added tax liable platform, the FOBT’s profitable ambiguity will be reined-in and so impact its popularity.

Leisure Link Group - The largest of the suppliers of coin operated systems to the industry, and a vast implementer of the new thinking on gaming and terminal systems, their prominent placement at the front of ATEI belied a major stirring in the structure of this edifice. Comprising a vast investment, and known to be constantly re-investing themselves, ATEI ’06 started with the breaking news that Leisure Link investment company Henderson had placed the operation up for sale with a reputed £200 million price tag. Rumors were rife of possible acquisition and management buyout opportunities.

Leisure Link Group looks over Leisure Link Solutions (Leisure Projects) - facility largest estate of networked terminals in Europe claiming over 30,000 pay to play networked terminals in pubs shops, licensed betting offices, bingo halls and casinos, while supplying 90,000 coin operated products to over 25,000 leisure retail venues. More recently established Inspired Broadcast Networks - founded 2000, the software, development, network with Fixed Odd Betting Terminal (FOBT) management and running over 30,000 systems. Revolution Entertainment Systems - founded 2004, as the digital terminal manufacturer as well as provider of online content. And finally Inspired Leisure Link Italia - the subsidiary is a serve based software provider to Gmatica with over 11,000 networked AWP systems across Italy, business expanding to include the newly legislated SWP 7 networked terminals and jukebox business.

The company had on their booth a plethora of new systems to support their aspirations to dominate the connected amusement and gaming scene. Products such as their ‘Video Lottery Terminals’ (VLT) for the Leisure Link Italy market, ‘International SWP - iTbox’, ‘Multi-Win Roulette’ terminal with Ticket-in and Ticket-Out operation via Four-way-win functionality. ‘Virtual Sports’ system with their horse racing, greyhound racing, football, speedway betting, these systems coming to the market in 2003 and have generated 2.5 billion in turnover. ‘FOBT’ terminal based on iTBox terminal with up to 4 terminals per venue mainly in License Betting Offices, ‘Video AWP’ offering graphics to the reel based experience. ‘Digital Retailing’, demonstrated on booth with a Coca-Cola drinks vending system with mobile top-up, ring tones, logos, phone cards and MP3 music downloads supporting a Wi-Fi hotspot. ‘The Music’ offering an advance digital jukebox, created by Inspired and Entertainment UK with over 2 million tracks available 1,500 venues round UK - and finally the conventional ‘iTBox’, a multi game SWP or Pay-for-Play system with 30 games, and tournament play on stream.

The vast opportunity that these three groups represent, beyond just the assets and the service contracts, Leisure Link has attempted to carve up a market, and may now be carved up themselves, each one of these technology operations standing on the cusp of what is seen as financial success if appropriately applied. It has however been the recent rush of acquisition and merger from Asian, that has now trickled down into the international scene, and it has been suggested that the ‘domino’s effect will start a spate of such activities in our market.

Nova Productions - The influential developer of SWP and gaming content had a reserve attitude at the exhibition. Though launching ‘Club Scratchcard Bingo’, a new payout video gaming products, the company was still smoldering following the collapse of their legal battle with Bell-Fruit. They had instigated a 12-day trial regarding infringement of the Nova ‘Pocket Money’ SWP. The outcome was revealed a few days before the ATEI event, the judge claiming in a tightly worded statement ‘both actions have fail’, in a High Court judgment. Though Bell-Fruit claimed to be happy with the outcome, they did not comment on the proposal that Nova would appeal this ruling.

It was the Nova legal action that caused ripples through the SWP scene, especially as Nova planned to sue a number of other developers also caught copying their original content, linked in incriminating communication reported to comment on reverse engineering plans by key manufacturers. The detail legal battle had revealed the financial state of a number of leading SWP manufacturers linked to the action and had split the industry. What effect this outcome will have is yet to be seen, though the announcement of Leisure Links’ sale a factor in future thinking.

Deith Group - What many have cited as the most recent ‘domino’ to drop, Deith announced the day of the exhibition that a 60 per cent acquisition, by Photo Me International (PMI) for £1.23 million, which represents 1,038,961 PMI shares. Deith has focused on amusement and gaming systems in recent years, the formidable Deith dynasty coming from a family background at the heart of UK amusement.

At ATEI Deith showed a considerable number of AWP, SWP and gaming machines, and confirmed that their future would see a 90 per cent investment in the casino and gaming opportunities that their new investment and market support from the PMI group offers. PMI is known for operating over 4,000 coin-operated kiddie rides, while also operating over 20,000 photo booths worldwide - a considerable operation to support Deith aspirations. The executive of the group confirmed that they would still support their distribution of SEGA video systems, and also they will continue to expand the placement of the Canadian TrioTech catalogue.

Dominating the corner of the Deith booth, TrioTech placed an ‘XD’ effects theatre, which saw during the duration of the show hordes of interested visitors queuing to try the two-minute 3D film experience. As observed by TrioTech executives the system was free and in the middle of the latest video amusement extravaganza, but still guests to the show spent hours queuing to ride their system, causing a logjam between the queue to play SEGA’s HotD4. Also from TrioTech on the booth was their ‘MadWave’ two-person ride theatre, and the completed ‘Wasteland Racer’ (PC Hardware) in its motion format version, TrioTech revealing that a conventional cockpit version is about to be released.

TrioTech have increased their investment in their 3D theatre business, which has snowballed in recent months following a series of prominent sales. Deith have dedicated a sales guy to support the brand in Europe, and TrioTech exclusively revealed that they have started developing their own 3D film experiences using Canadian talent. Software created will go to support not just the expandable XD theatre but also the new XD Transportable mobile-theatre that will be revealed soon.

Cosmic Video Amusement - One of the major UK distributors investing in the widest possible selection of amusement products to fulfill the needs of the evolving amusement scene, CVA has an extensive relationship with Global VR with the latest ‘PGA Golf’ (Proprietary Hardware) and ‘Need for Speed Underground’ (Proprietary Hardware) on their booth. Along with a strong relationship with Merit Entertainment, CVA has been actively scaring the international scene for the latest and greatest amusement opportunities to invest in. The company had on their booth during the London show, a production prototype of the TLC Industries’ ‘Texas Fold’em Select’ (PC Hardware) gaming content. In an agreement with the American manufacturer, CVA is working closely with the company to develop a version of the content to be placed in the European sector.

Merit Entertainment - Adjacent to the CVA booth, and underpinned by the tournament and service support that their relationship has achieved for Merit, they demonstrated their latest joystick enhanced ‘Elite Edge ION’ and ‘e.V.o ION’ terminal. The company has developed a special redemption version of their game system for the family market and in Europe has created a cash payout SWP version of their hardware. In an acquisition during 2005, Merit acquired the British SWP and Gaming software developer Games Factory, and has combined this operation to now represent the aspirations of Merit Entertainment to increase their market presence to compete against other touchscreen manufacturers prevalent in Europe.

TAB Austria - A very large touchscreen and tournament operator, the company has placed considerable money in the development of their range of systems. Expanding their market penetration the company expanded the software available for their ‘Virtual Pinball’ (PC Hardware), the 42” flat plasma display offers a representation of futuristic cabinet design, currently with 3 pinball, 2 action and 1 strategy game available to play on the platform, the company demonstrated their latest content addition at ATEI hoping to cement adoption; the addition of tournament support for this platform having found favor with players.

PhotoPlay - The Austrian based FunWorld owned touchscreen operation saw an increase to their 60,000 connected European game systems that have created a vast penetration in the hearts and minds of the gaming scene. The company showed a bevy of new content, both connected and conventional. It also demonstrated the ‘Photo Play Sportster Xtreme’ (PC Hardware), a flexible terminal that offers a motorized display that can be adjusted for standing and seated application. The company is looking to increase their penetration against attacks by Merit and others in 2006.

Felix Group - The company is famous for the creation of the first Point-of-Sale (POS) kiosk concept with their ‘Everyone’s A Winner’ system - a platform that took the idea of printed coupons and developed an online system that allows operators to offer guests a win-win delivery system. This system is linked to special offers and vouchers, so that players come away with something after each game. 2006 marks new development for the company with the ‘MAX BOX’ (PC Hardware), a multifunction digital retail kiosk that through multiple agreements incorporates the widest possible connected content to maximize user opportunity. Presented to the trade the new concept incorporates ATM, Digital Jukebox, Mobile Phone top-up, Mobile downloads, MP3 download, free Wi-Fi hotspot, Digital photo processing and the ‘Everyone’s a Winner’ content in a single POS package, the company having high aspirations for their concept.

Doogi Doogie Co. - Leading the charge from the mere amusement and trying to inject new thinking into what is video content, the Korean developer made their first Sonja to London to present their unique take on the BeatMania music interface. The company showed their ‘Doogi Doogie’ (PC Hardware) music system. Based on the drum mania style concept, the system is much more with a full-blown drum kit with 20 levels of play, the game system is a interactive musical experience with the player not only beating along in time, but being pulled into the game experience sing-along. Seen as a natural progression in the original concept the product is seen as targeting karaoke as well as amusement and fun centers.

Positive Gaming - Continuing the BeatMania addiction in Europe, the Norwegian company exhibited at ATEI showing a very unique take on the concept of music gaming. The company -- a sponsor of the Machine Dance World Championships in Hamburg, Germany 2006 -- has worked for BeMania to be treated as an official sport. Founded in 1998, the company succeeded last year to get official world sport and dance discipline recognition under the International Dance Organization - the world’s largest dance organization. They have now become a prominent distributor of the ROXOR ‘In the Groove 2’ (PC Hardware), with a machine on display at the show. Now comprising 130 songs with 1,100 step patterns, the system also has a new ‘fitness mode’ combined with a USB memory card and Internet ranking to aid competition.

Positive Gaming also demonstrated at the show their license of the ‘Cobalt Flux’ system from Cobalt Flux Europe, Sweden. Best described as a mobile dancing stage, these individual systems can be networked and used as fitness systems, interactive dance mats for large groups of dancers all moving to the same central screen. The game system has evolved into a fitness and exercise aid (as seen with the Konami agreement), and it is hoped with sports recognition Position will be in a strong placement to help drive the effort.

FX Simulation - Helping drive the development of attraction-based simulation, the FX platform with over 30 UK based two person simulators, the company has redesign the cabinet and enhanced the software and firmware package to create the ‘X2’. The sleek design and smooth lines of the cabin found many admirers during the show - the company already looking at extensive interest generated.

This years ATEI was supported by an additional event held upstairs of the main hall - the Visitors Experience Show (VES), offered as a means to attract people from the park and museum industry to the crossover opportunity of ATEI, supported by industry endorsement by the British Association of Leisure Parks, Piers and Attractions (BALPPA). Though sparsely attended, the event gathered some interesting exhibitors.

Laser Shot Inc. - The company well known for their sports hunting and shooting laser technology, at VES they displayed the production prototype of their Six Shooter system that offers a multiple gaming experience with their patented laser technology. Hoping to be presented in a complete format for the ASI exhibition, the company is looking at adding redemption ticketing, and are also working on a Wild West version of the software to support their current Extreme Sports experience.

Arcada - A newcomer to the international amusement and attraction scene is Lithuanian based ‘Arcada’, another company coming from the application of shot training systems for law enforcement and military, this company applies a specially developed interactive shooting display technology that allows for SoftAir pellet weapons to be tracked and interact with game and training software. The company had a SoftAir version of their system running a variety of software experiences to show its versatility, the company hoping to attract interest from the park and venue sector.

Robotsrus - One of the larger attractions at the show was supplied by UK firm Robotsrus, and their ‘Robogeddon’ battling radio controlled robot game. The system based on the popular television DiY robot combat, takes specially design RC robots with ramming and flipping capability with four players attempting to score points by ramming the respective goals or flipping over. The game housed in an inflatable structure targeted for fairs, parties and carnivals, the experience offering a compelling experience.

GoalStriker Group - The soccer sports scene was well represented at ATEI / VES, the third of the physical kicking simulators was ‘GoalStriker’. Using the company’s infrared technology to track the accuracy of the players kick, the large system aimed at the park and entertainment venue facility market. The company has already established 40 sites worldwide and the increase in fitness based entertainment hopes to boost their placement.

Feretti International - The Italian motion simulator company came to VES with their prototype ‘F3’ three-person concept; the system offering a passive ride experience with adjacent seating and an extreme motion profile. The company hopes that they will be able to achieve a competitive price for the system aiming for the shopping mall and family entertainment venue sector.

While the ATEI celebrated its 62nd year, the ICE event adjacent to the event gathered the best of the gaming betting and gambling trade in one site. Overflowing slightly as the event was boosted by the ICEi addition comprising the best of the On-Line gaming sector. Companies such as Bally and Astro vied for the biggest and best exhibition booths reminiscent of the gargantuan Global Gaming Expo in Las Vegas.

The future for ATEI will see great change next year, at the end of the event the organizers revealed their plans for its expansion. The biggest revelation is that the ATEI show will be moved upstairs to the top floor of the event looking down on the newly relocated ICE and ICEi component. ATEI and its 300 exhibitors will be located in a smaller space, making room for the explosion that has hit the betting and gaming scene. It is expected that the organizers see a need of space for their ICE event and that this move will placate the demand for additional space - the offer of free web access also thrown into the pot. How long ATEI stays at the Earls Court venue was also thrown into question with leaks that the Football Association Premiership soccer team Chelsea FC, owned by Russian Billionaire, was linked to acquiring the Earls Court exhibition venue - for a sum of over £400 million. These claims were later denied, though the venue has been placed up for sale by site owner St. James Capital - 2007 will be very interesting indeed for the London show!

The boiling pot of rumor had been stoked by backroom whispers (the Stinger responsible for its own amount of stoking the fire - and had broken much of what was doing the rounds). The main rumor surrounded Leisure Link. Facing financial changes, the operation was rumored to be looking for acquisition, and a possible floatation on the London Stock Exchange. The second big rumor was Brent Sales may become a victim of the Bandai / Namco merger. The official fierce denials were beginning to sound hollow as more and more industry sources confirmed links with possible MBO or American distribution investment. Lastly (but by no means less important) Deith Sales, the prominent distributor, was linked to an acquisition of their own (broken by Stinger back in October Stinger #433), ATEI was seen as the make or break of this rumor.

The situation was rammed home by the final announcement on the future of the conjoined exhibition.

For ATEI a relocation to the first floor mezzanine, and disruption of previous layout; some of the double height booths will be offered the chance to retain ground floor placement but space will be hard fought over. Companies such as Deith Sales having completed by 2007 their embrace of gaming will embrace the new move. Sources also revealed that though some booths knew by December of the proposed changes others found out the hard way at the end of the event - and are resistant to moving.

Sources to the Stinger spoke of pressure from the influential gaming forces to maximize the show’s focus on ICE against dwindling old school amusement. Show owners at first proposed split show dates, but this was rejected by international visitation. Expansion of the ICEi venture cemented this decision.

Amongst success, ATE had its issues, represented by the lackluster Visitor Experience Show that sat on a quarter of the upstairs space that will be the ATEI's new home. The second attempt by ATE to embrace the ride, attractions and visitor market was woefully under-attended and under-populated. The VES proved a victim of indifference, and was also hurt by support of the IAAPA Europe event later that month and a move by trade association BALPA to swap loyalty to an agreement with competing UK event Leisure Industry Week. Future ATE plans will be minus any current visitor attraction component.

The amount of new amusement hardware shown at ATEI'06 placed into question what a trip to Chicago in winter would achieve. The American spring show is now placed under considerable pressure to shape up or ship out. A need for rationalization that just a return to Las Vegas will not abate.