G2E Interview with Gary Vecchiarelli of Galaxy Gaming

 

I was able to connect with Gary A. Vecchiarelli via Twitter prior to the G2E. Gary is with Galaxy Gaming. He is the company's Chief Financial Officer.

Gary brings over 12 years of experience in accounting and finance to the Galaxy team. Most of his career has been in public accounting with two national accounting firms, including BDO USA, LLP, the world’s fifth largest public accounting firm. At BDO, Gary played a key role in helping to open and establish the firm’s Las Vegas audit practice. He has significant experience with complex accounting issues including mergers & acquisitions, revenue recognition, SEC financial reporting and Sarbanes Oxley compliance.  During his career, his clientele has included gaming manufacturers such as Aruze Gaming America, Inc., FortuNet, Inc., and Diamond Resorts International, one of the world’s largest timeshare companies.  Gary earned his Bachelor of Science degree in accounting from San Jose State University in 2001 and obtained his CPA license in 2006 from California.

Serving as principal financial officer and principal accounting officer for Securities and Exchange Commission reporting purposes, he also serves as the Company’s Secretary and Treasurer.  Gary is also heavily involved in the operations of Galaxy Gaming, including compliance and marketing.

 

 

 

I was able to get some time during presentations in Las Vegas for this all access interview.

 

 

 

 

 

1). How long have you been with Galaxy Gaming?

 

I have been with Galaxy Gaming for approximately a year and a half.

 

2).Tell the readers about Galaxy Gaming?

 

Galaxy Gaming, Inc. is the world’s second largest provider of table games and enhanced table game systems.  We have some of the most recognizable brands available to players – including Lucky Ladies, 21+3 and Emperor’s Challenge Pai Gow.  Our current install base includes over 3,000 tables in over 500 casinos worldwide.  However, what put Galaxy on the map was a $23 million asset acquisition from Prime Table Games in 2011.  Most people know Derek Webb, who is part owner of PTG and inventor of the popular Three Card Poker Game.  As a result of the acquisition, we acquired an extensive portfolio of intellectual property from Derek, which included a revenue base in the U.S. and United Kingdom of several million dollars.  This acquisition, which included rights to Three Card Poker in the British Isles, has led us to be the #1 provider of table games in the United Kingdom.

 

3).With the merger between Bally’s and SHFL, where does Galaxy see its position with IGaming?

The acquisition of SHFL just further substantiates the role and importance of our table game segment.  With the maturity of iGaming will come the growth and availability of house banked games online.  This is where Galaxy is well positioned, because players will want to play online the same games they played in land based casinos.  Since there are only a few players in the table game market who have extensive IP and brand portfolios, I believe that online operators will need our games to attract table games players.

 

4). The Table Games market is huge in the mid Atlantic region. Do you see this continuing? (Pennsylvania & Maryland)

 

 

We definitely see table games growing in all areas where gaming is growing in general.  The mid-Atlantic region provides a specific opportunity to us and we have expanded our sales efforts to help take advantage of the growth in the region.

 

5). What are two of the latest innovations on your product line?

The latest innovation we just unveiled at G2E is our World Poker Tour Heads-Up Hold’em game.  We have brought together the exciting brand of WPT to a house banked poker game.  This game is the result of a patent that we acquired from Prime Table Games.  WPT Heads-up Hold’em has some distinct advantages to the player, including a bad beat pay table.  We are also continuing to see a lot of interest in High Card Flush, which was a revolutionary game that has won several industry awards since last G2E.  This game changes the way players think about their cards, as it is their goal to get the most cards of the same suit.  High Card Flush offers several side bets and a rich pay table where players can win 8,000 to 1.   

 

6). Are you interested in the New Jersey market?

We currently have a large install in Atlantic City, with Lucky Ladies and 21+3 being the most popular.  We also have Emperor’s Challenge and recent installs of our exciting craps side bet, Bonus Craps.  However, we still expect to grow our market share in the state.  Currently, we are considering licensing our content to iGaming operators in New Jersey as well.

 

7).The projections about New Jersey and the potential revenue are varied. What do you see for the first full year of operations?

Since iGaming is still in its infancy, I don’t think anyone can make any accurate forecasts for the near term. However, I have my eye on the long-term prospect for which I think it will be very lucrative.  While I don’t think iGaming will ever replace in-person gaming, I do think iGaming is the next big wave for the gaming industry and will provide a significant boosts to revenues (and taxes) across the board.

 

8).Do you see compacting between New Jersey, Delaware and/or Nevada in 2014?

I can’t comment on what may happen in 2014 between the states.  However, I believe eventually the states and respective agencies will need to figure out how to regulate and tax iGaming across state lines in order to keep up with the demands of business.  The industry is moving at a rapid pace, so I hope the various states and regulatory agencies will be able to see eye-to-eye and come to agreements on a timely basis.


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