113 East offers a down to earth approach to distributor deals and product innovation
Chris Rogers, CEO and founder of 113 East, is backing himself against Asia’s more established gaming equipment distributors and consultants. The Macau-based company takes its name from the territory’s geographical coordinate on the Earth’s surface—113 degrees of longitude East. It’s an assertion of the business’s physical link with the Macau community but also an echo of its global reach. 113 East has networks in Australia, Europe, United States and South America. Mr Rogers says his motivation in setting up the company was to provide an alternative to standard supplier-distributor arrangements.
“There was a void in the market for strong, partnership based supplier-distributor relationships,” he says.
Strengthening partnerships
“Many distributors are standoffish with their clients—they’re reluctant to give out market information and involve them in the business,” suggests Mr Rogers.
He has 14 years of gaming industry experience and says he understands the business needs of both Asian and Western suppliers. With a team of on-the-ground partners in key Asian markets, he navigates potential pitfalls including political and cultural hurdles.
“To deal with operators in places like Cambodia, many suppliers from the US and other Western markets want strategic partners that sit on both sides. I can communicate with them and provide all the required reporting and use my networks to open their business to new markets,” he states.
Before branching out on his own in October 2007, Mr Rogers worked for Stargames, then Shuffle Master, for 10 years.
“In 2006 I was brought over to Macau to establish and manage Shuffle Master’s Asian business. I successfully built the Macau office from three people to almost 20 in two years. My ride with the company was great in terms of professional development. I obtained key management roles as the business transitioned, built up tremendous global networks, and developed a varied skill set which prepared me to run my own business. I learned everything, from sales and marketing, to finance and reporting, and even a bit of game development,” he explains.
Clear vision
The catalyst for 113 East’s establishment was a growing desire to, as he describes it, “put it all on the line and back myself”. “I had always wanted to work for myself and knew I had to at least try—I’d prefer to fail than to never give it a go,” he explains.
With the support of his wife, Kylie, and a few positive omens, like receiving a telephone number that ended with 113, he threw his hat in the ring.
“113 East’s philosophy is to support good ideas. The products I represent have to have an angle, and I have to be able to work with the people behind them. I am building my reputation on representing quality products and reputable suppliers—that’s especially important in a small market like Macau which contains the biggest players in the world.”
After turning down approaches for representation from a number of slot manufacturers, Mr Rogers struck a distribution and long term consulting deal with Weike Gaming Technology, a supplier of gaming machines, electronic table games, gaming management and jackpot systems in Asia. Providing sales and marketing support as the company’s Director, sales and marketing, he also helped recruit its game development manager and production manager and restructure its sales and marketing teams.
Brand building
“I have input into the company from every aspect,” he says. “Together with CEO, David Kinsman, 113 East has done an enormous amount of work on Weike’s product and built up the perception of the company. When David and I joined, not many people had heard about Weike; now, there aren’t too many operators that haven’t.”
Since April 2008, 113 East has also distributed Bally Technologies products in Vietnam, Cambodia and Laos—all, exciting but challenging markets.
“This year has been tough, for everybody, operators and suppliers alike, but 113 East is more than happy to take on Asia’s hardest markets for companies like Bally Technologies because we can represent them well. Bally now has product in Laos and Cambodia for the first time, and there are machines in Vietnam waiting to be installed. As things move forward I am proving 113 East is a valuable partner.”
In addition, 113 East represents Paltronics, a global systems provider for casino gaming, media infrastructure and content distribution, in South East Asia, and Orion Art, a supplier of customised gaming signs, throughout Asia. J8, a developer of Internet, mobile and SMS sports betting, and gaming products, is another key partner throughout Asia. These five companies are currently the company’s core focus.
New games
Another area Mr Rogers believes has a lot of potential is table games and table design. He has exclusive distribution rights for Fortune 8, a new game that is awaiting approval by Macau’s gaming regulator, the DICJ. The game will go live into Las Vegas Sands Corp.’s Venetian Macao and Sands Macao properties, and SJM’s Grand Lisboa. There are also plans to install it in Singapore at LVS’s Marina Bay Sands property subject to approval by the regulatory body there. A total of 16 Fortune 8 tables will be installed across the four properties.
113 East’s technological reach also goes beyond table games and into the structure of the table itself. The company produces the Gaming Protection Series (GPS) of products; tables that can be sold as standalone units.
The design, which is the brainchild of surveillance and gaming industry veteran Wayne Stevens, claims a higher level of electronic security than standard mass gaming tables, provides more leg room for players, hides electronics and messy cables, and is fully customisable: “We can even include things like phone chargers in high-end VIP models,” announces Mr Rogers.
Innovative table
“Every table operator in Macau looked at the table and provided feedback about how we could customise the product for their operation,” he adds.
“The tables have the potential to reduce the number of supervisors required per pit, enable casinos to promote higher edge games, and increase games per hour for some games, so they basically pay for themselves,” he claims.
The company says the GPS table can also improve suppliers’ sales propositions. “Table game and table equipment suppliers could pitch proprietary games and sell more games and equipment with our table,” Mr Rogers contends. “Things like shufflers can be built in, and there are fewer supervisors involved. That gives casinos more reasons to buy new games and suppliers could ‘up-sell’ their peripheral equipment.”
The concept is a simple and the company believes effective one, but Mr Rogers and Mr Stevens admit it will take time to convince table operators to change entrenched attitudes about how tables should look. That hasn’t stopped them pushing forward with plans to begin a manufacturing operation in Thailand, though.
Worthwhile risk
“I’m willing to take a risk and back people, just like many have backed me to get me where I am today—I believe in making decisions,” he states. “As a small business owner you have to have faith that your fundamentals are absolutely correct. That doesn’t mean every decision will be the right one, but you need to believe in the way you do business.
“There is no greater accountability than carrying the future of your company and your employees in your hands. I like the fact that there is no safety net and at the end of the day it’s all up to me to keep things running.”
Within two years of launching, 113 East has established itself as a consulting and distribution business and ventured into manufacturing. Mr Rogers also plans to capitalise on the presence he has built in emerging markets to move into gaming operations and provide non-gaming consulting for the Indochina region.
“113 East’s first year was about survival, this year’s about reinvesting in our people, products and marketing. Next year we’ll take it to the next level with our existing clients and some new ones,” he predicts.
“I believe more companies want to be told how it is so they can make good business decisions and save themselves money.
