Casino Enterprise Management

With an economic downswing comes many difficult questions. Are layoffs and downsizing the keys to minimizing overhead costs? Will cutting training, scrapping expansion plans and freezing capital expenditures help an organization ride out difficult times? Can deep discounts and lower profit margins keep cash flowing? Whether reducing costs, shrinking employee pools or all around cutting back are prudent actions—or just serve to cripple a company when recovery comes—remains to be seen. But for many gaming companies one thing is clear in the current economy: expansion is out of the question. Advanced Gaming Associates (AGA) is not one of those companies. In fact, it is experiencing steady growth despite the recession. What’s the secret? Ask AGA founder Tony Tomasello.

Building a Business
The self-described “cockiest” person to ever graduate from the Casino Career Institute, Tomasello first went to work for Bally Systems, and the corporation still remains near and dear to his heart today. “When I started at Bally, I wanted to take over the industry in no time by being the best of the best,” he boasts. It didn’t seem an unattainable goal, as he went on to become the youngest employee at the Golden Nugget opening in Atlantic City. Through his hard work and can-do attitude, he quickly rose up the ranks to become a chief slot technician. Slowly, however, Tomasello’s goals began to change. The long hours and demands of the job were no problem, but losing time with his children was. After a management change at Trump Castle, Tomasello left the casino floor—but not the industry—and opened a gaming supply business in a spare bedroom at home.

True to form for Tomasello, the business was successful and earned $600,000 in its first year. He quickly became licensed in New Jersey, and the business grew to be the largest used slot machine dealer on the East Coast, if not the country.

But although his business was by all standard measures successful, Tomasello still wasn’t satisfied. Examining his definition of success, he began to create more opportunities for himself, realizing that he had not yet achieved all that he was capable of.

When Pennsylvania emerged as a new gaming jurisdiction right in his backyard, Tomasello’s hard work and diligent planning placed him in a prime position of opportunity. Originally formed as a tiered-license jurisdiction, manufacturers were required to work through distributors, but a single entity could not hold both types of license. Most companies vying for licensure were groups of attorneys, politicians, financiers and technicians who knew the industry’s ins and outs. Tomasello fit into that last category. With confidence and drive, he decided to make a bold move and apply for a license himself. “I never had any doubt,” he said. “If I set my mind on something, I will pull it off.”

And pull it off he did by creating AGA, a comprehensive technology services firm offering help to those looking to enter the Pennsylvania market.

Recruiting the assistance of his brother, Mike, as well as other well-known industry friends, AGA sent letters to every gaming industry supplier about the creation of his new company. With an office just 30 miles east of Pennsylvania and 30 miles west of Atlantic City, the geographical position was ideal, and Tomasello hoped that the stars, fate and lady luck were equally aligned as well.

Many slot vendors were in the middle of establishing legitimate partnerships with distributors in Pennsylvania when Tomasello approached Bally Technologies. After a 45-minute face-to-face meeting with Mickey Roemer of Bally, an interim contract was formed. It would be a coup for any company, but not surprising to Tomasello, considering the high standards he sets for himself. “I do my best face-to-face,” he said. “The one-on-one is the only way that I can be comfortable with anyone I am entering into a business agreement with.”

Within a few weeks, AGA had booked 1,400 machine orders for Bally and was awarded permanent distributor status shortly thereafter. The future was looking bright, but just three months into the permanent distributor contract, the Pennsylvanian government changed its original gaming bill to allow manufacturers to work without a distributor.

Tomasello immediately contacted Bally to release them from the contract. The rules of the game had changed, and he had to accept it gracefully. Three days later, however, a call would come from that same company, stating that it was not positioned to work without the help of AGA and its staff. The supplier had no infrastructure in the state and needed installers and additional technicians to service the growing market. And so, AGA was subcontracted, and Tomasello and his technicians supplemented the supplier’s operations in Pennsylvania.

Today, nearly four years later, AGA is the largest technical support company in the market and is the only such company servicing almost every OEM and related-equipment company in the gaming industry. While he was initially told he was “crazy” and that no slot director would hire him to do what could already be done in-house, Tomasello’s business flourished. With 27 licensed technicians, AGA created new opportunities not only for the company but also for gaming operators in many states and countries. AGA has completed contracts in Puerto Rico, Chile, Panama, and most of the United States, will be in Singapore in January, and then Greece, Italy and Mexico.

AGA Today
While no competition in its field might make casino marketers drool, it has become one of the largest obstacles facing AGA. More specifically, because it’s the only company of its kind, many people have no clue what AGA does or what it can offer—or how it compares to other options. “I hired ex-directors from Atlantic City and Las Vegas,” Tomasello said. “Fred Triboletti from Harrah’s, Tom Reale from Sands, Nick Colasante from the Showboat, and most recently Jim Daniel from the Rio and formerly Cyberview Technologies. With those kind of names behind you, doors should just open up. But nobody had anything to base us against.”

Once those questions are cleared up, however, Tomasello says his services are an easy sell. “The hardest part of our business is getting people to understand what it is that we do and how we do it,” he explained.

For example, AGA took on an SDS System component upgrade at Foxwoods involving 6,800 slot machines. It would be a daunting task for any casino team, but AGA completed the upgrade in less than two weeks. It took just 15 people and 12 days, including the prep-work.

And when the Gomes+Cordish Gaming Management Group was planning a new property in Indiana, Dennis Gomes and Bob Ambrose turned to AGA—once they figured out what the company was. “I didn’t know there was a company out there doing this type of work,” noted Gomes, partner and COO of Cordish.

AGA soon began working from the ground up on the plans for the property. “We took the worry out of their hands and looked after the planning, installation and configuration,” Tomasello explained. “They gave us our own access door, and we had the property up and running before the deadline.”

“My corporate team and the team on property collectively worked with AGA to put a strategic plan in place for an installation process that had very few detours,” Ambrose said about Tomasello and his skilled technicians. “I chaired a series of preliminary meetings with the corporate team, property management, Indiana gaming officials and the AGA team that helped us avoid many of the pitfalls that can plague a casino opening. Tony and his AGA management team were involved with us on every level.”

“AGA’s managers were knowledgeable about the Indiana regulatory requirements, and they worked directly when needed with onsite Gaming Enforcement Supervisor Kyle Wentz and his staff from the IGC,” he added. “Direct communication took place daily between these two groups so there was never any confusion that could cost us delays.”

The Silverton in Las Vegas also reached out to AGA, this time to help with an 800-machine expansion. “When we showed up, their comfort level went from nervous to ‘these guys have our back,’” Tomasello said.

Joanne Kraly, vice president of gaming at the Rivers Casino in Pittsburgh cannot say enough about the performance of Tony and his guys. “They were an integral part of our opening team and became part of the Rivers family by the time we had our grand opening,” she said. “AGA was able to provide us with complete slot technical assistance from labor to training, which was vital to our successful opening since the majority of our in-house technicians had no gaming experience. They trained our guys on how to properly unload machines from shipment, place them onto bases, install system hardware and game configuration. AGA’s primary concern was to make sure the casino was successfully opened on time, and that we (Rivers), as his client, were pleased with their services. I would recommend using their service for any openings, system conversion or sign installations.”

Kevin Brady, vice president of slot operations for the Sands Casino Resort Bethlehem also had glowing reviews for AGA. “I have nothing but great things to say about Tony and his team,” said Brady. “They finished up everything ahead of schedule and exceeded my expectations. Tony was a pleasure to work with. He made sure things were going according to plan and would check up and follow through. His guys were a pleasure; they had great attitudes and came up with reasons why they could, instead of why they could not. We were ready to open two weeks before we actually opened up the facility.

As word spread about the quality of service, soon major sign manufacturers approached AGA about doing installations and service for clients east of the Mississippi, and AGA again expanded its service offerings. AGA now does sign service for just about every major sign company in the industry, either directly or indirectly.

And today, for the fourth time since he formed AGA, Tomasello’s team members are in major slot manufacturing factories in Reno and Las Vegas, assisting with equipment, quality control and assembly. Many times they work alongside manufacturers’ staff during an installation and are asked back to install player tracking equipment by the operator.

A New Horizon
Meanwhile, AGA’s technical expertise is constantly growing and continues to expand into uncharted territory. With an 18,000-square-foot New Jersey facility—which is approved for gaming storage—Tomasello hopes he can offer another service nobody has ever heard of before: à la carte infrastructure for gaming companies. The premise is that it is difficult for many companies to set up an infrastructure in Pennsylvania or New Jersey, so Tomasello will let you use his as if it was yours, if the need arises.

At Tomasello’s facility, 30 percent of the space can be rented for a short-term or long-term period. Included are conference, teleconferencing, storage and showroom facilities. Companies from anywhere in or out of the country can utilize AGA’s facility and staff, including slot techs, shipping clerks and vehicles to move equipment to and from gaming labs. And having established a rapport with the gaming labs, AGA has both the contacts and the license necessary to move equipment from one location to another. A new or out-of-state company wishing to make a presentation can rent the showroom, invite potential clients to the site and make use of the conference room. By sending just one sales person, they are able to take advantage of a full complement of supporting staff and services. 

Behind the scenes at AGA, every technician is licensed in at least two jurisdictions, technical services have increased by 300 percent since word of this infrastructure was announced, and the company is working with the state of New Jersey Economic Development Agency to entice manufacturers to come to New Jersey. “Our business and services just make so much sense for manufacturers without infrastructure in this region,” Tomasello said. “There is state revenue, loans and grants available, and with AGA’s  history of working closely with gaming commissions and labs, it’s an easy sell.”

AGA is also expanding to take on high-level data systems for most major gaming system manufacturers. “We can install the systems, allowing the OEMs to dedicate their time to product promotion and, more importantly, customer service,” Tomasello explained.

And while many operators might feel like their small installation does not attract the attention from a manufacturer that a large enterprise corporation might, size doesn’t matter to AGA. “We want the grunt jobs,” Tomasello said. “Give us the jobs that are so daunting that the operator needs the resources of a manufacturer to help them implement. We can do it because we don’t have to go through the daily politics. The client simply gives us what we need or the authority to get what we need and that’s that.”

A Common Philosophy
“I was told a long time ago by a very successful businessman that if I don’t believe in myself and if I’m not willing to put up my own money and my own name for my company, then nobody else will believe in me or it,” Tomasello said. This might explain the high standards he holds himself to—and why he expects his employees to follow suit.

“I am demanding,” Tomasello cautioned. “My employees must use clean language, have a good attitude, be on time and not use drugs. I expect the best of the best within my organization, and to ensure it, my employees are always under extreme scrutiny.” They are, however, trusted and given latitude to use their own problem-solving skills to get the job done—on time, of course—without constantly consulting the boss.

With this philosophy, Tomasello is building AGA into a  reputable organization that more and more people in the industry are starting to recognize. “When someone understands the concept of what we do, you can see it in their eyes,” Tomasello said. “In the beginning, we would get nine out of 10 jobs that we tendered.”

Even AGA, however, isn’t entirely immune to the economy: “Things have slowed down just a bit. We now get eight out of 10.”

John Wilson is the Technology Editor for Casino Enterprise Management and Owner of ICS Gaming, providing slot consulting services and game design. He has designed several slot games in both Class II and Class III markets.  He can be reached at jwilson[at]icsgaming.com.