GAMING DEVICE TECHNOLOGY:

Today’s Presentation Slot Systems Slot Systems How Slot Machine’s Work How Slot Machine’s Work Internet Gaming Internet Gaming

Slot Systems Type of machine played Type of machine played Time on machine Time on machine Total time Total time Type of machine Type of machine Denomination of machine Denomination of machine –Number of coins played Games per minute Games per minute

Another Goal is to Maintain Player Interest in Gaming Devices Slot Machines Slot Machines –New Games Sound & Lights Sound & Lights Game within a game Game within a game Other Games Other Games –Electronic Versions of Traditional Games –New Games

Did you every wonder how a machine can have a 95.6 % hold? Or any other specific number above 75% in Nevada Well it’s a function of a formula that says 1. The percent is part the probability of winning 2. The amount you win 3. The probability of losing 4. The amount you bet

So that formula is: EV = P (win) x ($payoff) + P (Loss) x (- $bet)

Slot Machine Old Mechanical Machines had 20 symbols per reel (typically) counting blank spaces. Slot Machines - How do they calculate how they pay?

How do Slots Work? Stat Reminder: What’s the probability of tossing heads on a coin? 1/2 What’s the probability of rolling a one on a single die? 1/6 What’s the probability of drawing the queen of hearts? 1/52

Back to that old machine A single reel has 20 symbols and one jackpot symbol…..say a lemon A single reel has 20 symbols and one jackpot symbol…..say a lemon The probability of getting the lemon is….? The probability of getting the lemon is….?

Another Stat Reminder If I say what is the probability of tossing a head on a coin….you say ½ If I say what is the probability of tossing a head on a coin….you say ½ If I say what is the probability of getting a tail on the first toss and the second toss of the coin……….. If I say what is the probability of getting a tail on the first toss and the second toss of the coin……….. You have to multiply the probabilities and we know it is less likely to happen You have to multiply the probabilities and we know it is less likely to happen ½ * ½ = 1/4 ½ * ½ = 1/4

So………. On that old machine with 3 reels, 20 symbols the probability of hitting 3 lemons is…… On that old machine with 3 reels, 20 symbols the probability of hitting 3 lemons is…… 20x20x20 = x20x20 = 8000

SLOT MACHINES Today’s machines can have hundreds of virtual reels: More than 300, and they don’t have to be the same number on each reel.

Now Look So now we have say 256 symbols per reel…and the jackpot is…. 256 x 256 x 256 = or16,777,216

Or a slight change to 300 symbols per reel is: 1/300 x 1/300 x 1/300 = 27,000,000 To 1

Other Technologies for Gaming –Lighting (internal and external) –People moving –Air Filtration –Sound (both increase and decrease) –Virtual Reality Games and Attractions –Aroma

Internet Gaming

What is an Internet gaming? Includes board, card, role playing and other multi-player or human vs. computer game environments. Includes board, card, role playing and other multi-player or human vs. computer game environments. I the second most popular type of site on the Internet I the second most popular type of site on the Internet Casino-style games & sports betting on the Internet. Casino-style games & sports betting on the Internet.

Background of Internet Gaming The first Internet gambling site was launched in 1995 with an investment of just $1.5 million. The first Internet gambling site was launched in 1995 with an investment of just $1.5 million. Now about three times the revenue of porn sites (about $6 billion). Now about three times the revenue of porn sites (about $6 billion). MGM Mirage & Harrah’s MGM Mirage & Harrah’s - First Launched play-for-fun sites to test software and delivery systems in anticipation of some future date when the laws will change. - First Launched play-for-fun sites to test software and delivery systems in anticipation of some future date when the laws will change.

The kinds of Internet Gambling Blackjack Blackjack Roulette Roulette Baccarat Baccarat Slot Machine Slot Machine Pai Gow Poker Pai Gow Poker Craps Craps Video Poker Video Poker Live Poker* Live Poker* Sports Betting* Sports Betting*

AB466 State of Nevada In 2001 the State Legislature Nevada Regulators permission to Create Regulations If: In 2001 the State Legislature Nevada Regulators permission to Create Regulations If: –The could identify the player –They could determine the player was 21 –They could determine the player was in the State of Nevada

Federal Legislation concerning Internet gambling The 1961 Wire Act The 1961 Wire Act – prohibit regulated online sports books – prohibit regulated online sports books from accepting bets from out-of-state from accepting bets from out-of-state bettors. bettors. The Travel Act The Travel Act - Prohibit any person from using wire facilities - Prohibit any person from using wire facilities with the intent to distribute the proceeds of, with the intent to distribute the proceeds of, promote, manage, establish, or carry on any promote, manage, establish, or carry on any illegal gambling activities. illegal gambling activities.

Current Federal Legislation Bill HR556 The Internet Gambling Funding Prohibition Act. Passed in House, Goes to Senate. Bans Electronic Payments ( June 11, 2003 U.S. House Voted to Block Web Gambling Payments -has not passed the Senate) Bill HR556 The Internet Gambling Funding Prohibition Act. Passed in House, Goes to Senate. Bans Electronic Payments ( June 11, 2003 U.S. House Voted to Block Web Gambling Payments -has not passed the Senate) –NEW JERSEY-Virtual casinos would not be able to collect gambling debts incurred by New Jersey customers under terms of a bill given unanimous approval by the state Assembly. Bill HR3215 Combating Illegal Gambling Reform and Modernization Act. Basically bans all Internet gambling. Bill HR3215 Combating Illegal Gambling Reform and Modernization Act. Basically bans all Internet gambling.

Can You Gamble Online? Gambling on the Internet is not Legal anywhere in the U.S. Gambling on the Internet is not Legal anywhere in the U.S. No U.S. Citizens have been prosecuted for Internet Gambling No U.S. Citizens have been prosecuted for Internet Gambling One U.S. Citizen has be sent to prison for running an off shore Internet Gambling Site. (Jay Cohen) One U.S. Citizen has be sent to prison for running an off shore Internet Gambling Site. (Jay Cohen) There are 1300 online gambling establishments in over 30 countries, however not all are reputable. There are 1300 online gambling establishments in over 30 countries, however not all are reputable. –Examples – Online since – 24hrs daily 7 days a week –There are many other major corporation sites that you can trust. Or use the Internet Gaming Commission at

How does Internet Gambling work? Log in to the world wide web from any computer and find a site that offers what you would like. Log in to the world wide web from any computer and find a site that offers what you would like. Choose the type of payment you will use, for example Visa, MasterCard, Firepay, Neteller (Instacash), Western Union, Personal Checks, Paypal, Local Bank Transfers, etc. Choose the type of payment you will use, for example Visa, MasterCard, Firepay, Neteller (Instacash), Western Union, Personal Checks, Paypal, Local Bank Transfers, etc. Once funds are received (always upfront) you can start to play. Some sites require a download of their software. When done cash out and select type of reimbursement or payment. Once funds are received (always upfront) you can start to play. Some sites require a download of their software. When done cash out and select type of reimbursement or payment.

Other System Player Tracking Player Tracking Cage and Credit Cage and Credit Table Games Table Games Slot Management Systems Slot Management Systems Casino Management Systems Casino Management Systems

Casino Systems Table Games Player Tracking Slot Management Hand held device Tables Cashless gaming On Device Marketing Cage and Credit Address Hygiene Software Table Tournaments Bingo System Cen t ral Data Surveillance Automated Table Tracking Slot Devices Hard and Soft Count Floor Graphics Slot Tournaments Device and Player Dashboard Player Bonus Screens Hand held Device Slots