Gaming Standards Association The Drive to Protocol Standards

As Nevada Gaming Commissioner Randolph Townsend stated at a workshop: (the Boyd School of Law, Sep 2011) To interest the next generation of casino players, the state has to be on the cutting edge of technology. “Its not about the green felt anymore, its not about dealing cards anymore, its not even about slot machines anymore – its all about technology”

The Drive to Protocol Standards  Industry Getting Together  Standards Update  Regulator Benefits  Spheres of Influences  Evolution of Gaming  Regulatory Challenges  Collaboration

INDUSTRY GETTING TOGETHER

PLATINUM MEMBERS

Industry Getting Together History / Structure  GSA is an international non-profit trade association of gaming manufacturers, suppliers and operators established in 1998  GSA is funded through corporate membership dues  GSA is organized in committees of members  Board of Directors  Technical committees (TRA, S2S, G2S, GDS, AOC)  Certification and Interoperability Committee (CIC)  Operators Advisory Committee (OAC)

Industry Getting Together Mission Statement The Gaming Standards Association (GSA) is an international trade association that creates benefits for gaming manufacturers, operators, and regulators. We facilitate the identification, definition, development, promotion, and implementation of open standards to enable innovation, education, and communication for the benefit of the entire industry.

STANDARDS UPDATE

GSA Standards Serial GAT Transport

GSA Standards  GDS – Gaming Device Standards – v1.2 April 2012  USB-based protocol used by Electronic Gaming Machines (EGMs) to communicate with peripheral devices.  Note acceptors, hoppers, printers, card readers, etc.  G2S – Game-to-System – v2.1 April 2012  Network-based protocol used to communicate between EGMs and systems.  Meters, events, ticket-in-ticket-out, progressives, bonuses, etc.  S2S – System-to-System – v1.6 March 2012  Network-based protocol used to communicate amongst gaming and non-gaming systems.  Player registration, player comps, table games, G2S support, etc.

GSA Standards  Transport – Points-to-Point and Multicast – v1.2 July 2012  A common set of network-based protocols used to communicate G2S and S2S messages.  SOAP, HTTP, TLS, NTP, DNS, DHCP, etc.  Serial GAT – Game Authentication Terminal – v4.0 Oct 2011  Serial protocol used to authenticate software on EGMs and their peripheral devices.  Can also be accessed through G2S and S2S.

GSA Standards Certification  Streamlines the regulatory process by reducing quantity and variety of test to be performed  Provide assurance to regulators that an end-point meets the requirements of the protocol.  Notes:  GSA certification is NOT regulatory certification.  Regulatory requirements may go beyond the protocol requirements.  Test labs must be ISO accredited for GSA standards.  The technical committees produce a “checklist” of required and optional features.  A product may be certified for a subset of a protocol.  Certified products are posted to the GSA website.

Central Monitoring System Recommendations (GSA OAC31 – S2S extensions) Fixed Odds Table Games Parimutu el Internet Gaming Machines Lottery 1.Registration of operators, properties, and EGMs 2.Reporting of wagers and winnings 3.Reporting of security-related events 4.Authentication of game software 5.Remote disablement of EGMs

REGULATOR BENEFITS

Regulators Benefits of Standards  First: Allows for more effective Monitoring  Second: Provide more accurate Reporting  Access to data that can be used, manipulated and analyzed  GSA standards put regulators in control  Owner/Guest host model enables detailed remote monitoring  Unbiased access to data directly from the gaming end points  On-demand compliance reports showing legality of installed software versions (GAT)  Configuration changes to gaming machines  Peripheral firmware download to printers and bill validators  Bi directional interrogation of gaming machines for validation of device configuration  Standards will help to better monitor and control the industry  Share cross jurisdictional business and technical requirements

Unfettered Data Access for Regulators

Remote Regulatory Monitoring (G2S)

Remote Regulatory Monitoring (S2S)

SPHERES OF INFLUENCES

PLAYER REGULATOR PARTICIPANTS IN GAMING OPERATOR Policy Makers Domain Consumer Domain Industry Domain THE STAKEHOLDERS DOMAINS Governments (Tribal, State, Federal), Policy Makers, Regulators, Law Enforcement, Legal systems Family Members, Morals and Social groups and the Public Operators, Test Labs, Service Providers, Trade Organizations, Supporting Industry, Unions, Lobby groups Sets proper behavior - Awareness, Educational Campaigns, Public funding of NGO & Agencies Expects to be protected as a player and as a consumer through preventive measures and Public Information. In some societies he expects to be compensated also for the cost of remedial measures. Demands higher economic benefits Increases product awareness and facilitates accessibility Controls the gaming market by setting the parameters on legal rights through licensing, performs Integrity checks, establishes standards and procedures, carry our continuous monitoring and supervision of the industry Demands share of control, Self regulation BALANCING THE FORCES

PLAYER Regulating Land Based Gaming GAME Gaming Establishment Full Control of POINT OF PRODUCTION Full Control of POINT OF PRODUCTION Full Control of POINT OF CONSUMPTION Full Control of POINT OF CONSUMPTION Same political jurisdiction THE LOCATION OF THE WAGER IS WHERE IT IS OFFERED, ACCEPTED, & RECORDED REGULATOR OPERATOR

ONLINE GAMING REGULATORY MODEL The Internet Gaming Server Plays Remotely Manages the Gaming Services Remotely Point of Production Point of some Economic Benefit Point of Consumption Point of Real Economic Benefit THE LOCATION OF THE WAGER IS WHERE IT IS: OFFERED, ACCEPTED, & RECORDED

Location of an Online Wager  The 3 locations of the wager is where it is Offered, Accepted and Recorded.  These locations may be in different political/judicial boundaries  Currently all jurisdiction regulates the location where the wager is offered  Jurisdictions that control their gaming markets insist that these locations must be one and the same

EVOLUTION OF GAMING

Evolution of Gaming GSA formation Operators, Test Labs GSA a Platform for Global Collaboration Protocol Standards / Interoperability Cross Jurisdictional standard reporting, Online player protection INDUSTRY DOMAIN POLICY DOMAINMonitoring / Reporting/Transparenc y Multiple Standards

Evolution of Gaming Regulation Game Centric System Centric Gaming Policy focused on games played within controlled environment Technical Standards re cabinet, assoc. equipment, communication Testing & Certification Investigation & Audit All gaming activity within licensed property Online gaming challenges principles of existing regulations Gaming device outside controlled environment Everything is happening on the system System parts can be located outside jurisdictional control Focus of regulatory control needs to be on the system

Approach to Regulatory Policy PrescriptiveRisk-Based ENFORCING RULES e.g.: Suitability as operator – check everything about the candidate When operating a casino, a regulator does not check every game. Operator does that based on a set of procedures There are a set of check/balances How do we achieve a balance?

A Standards Based Approach Standards Prescriptive Risk-Based Transparent everyone aware of same requirements/obligations Subjective No interpretation to the rules Collaboration Wikinomics based on open standards Reduce costs As control systems are standards based Drive innovation Easier for community to develop new technologies based on open standards A standards based approach to regulations is ideal for regulators and operators since it is:

REGULATORY CHALLENGES

Challenges for Regulators Technology  Rapid technology innovation extending gaming from rigidly regulated platform to public personal device  Game centric to System centric  Regulators are loosing full control of the gaming ECO system  Regulators need better systems to reach out to the game play  Regulators developed standards somewhat in isolation

Challenges for Regulators  Regulators everywhere face the same challenges of collecting, processing and reporting information more efficiently, accurately and cost effectively  Regulators need the tools to monitor the industry and protect the consumer and they need to be preventative rather than curative  The amount of information that needs to be processed is beyond the current resources  Online gaming collaboration between the various stakeholders in the industry is essential to create solid regulations using common standards

Regulators Benefits of Standards For anyone in the regulatory community responsible for gathering and preparing large amounts of data for analysis and decision making, standards based reporting offers substantial benefits by:  Improving the quality, accuracy and reliability of information as it enters, is processed within and then reported by regulators  Enhancing the breadth and depth of information that can be included in analyses and reports on a routine basis, with minimal to no added cost  Addressing the need to find long-term solutions to pulling time and costs out of the reporting process  Encouraging stronger ongoing communication and cooperation among members of a regulator’s information supply chain through development and usage of shared information standards PWC – standards based regulatory reporting / XBRL Without standards we don’t have benchmark for practices for online gaming

COLLABORATION

MacroWikinomics Anthony D Williams Macrowikinomics Mass collaboration – by engaging all stakeholders - is reinventing the way businesses communicate, solve business problems, create value and compete in the new world economy. We are faced with many global threats that undermine global peace and stability:  Cyber attacks  Food security (e.g.: tainted milk)  Toxic toys  Climate change  Water scarcity  Emerging technologies  Infectious diseases… regulatory system that learns and improves

The New World of Collaboration

Collaboration Todays citizens are armed with information and willing and able to solve these issues. How to make them an extension of the regulatory system and bring the gaming industry together? GSA has the ability to re-invent itself by moving away from the protocol centric focus and create an environment allowing global collaboration addressing the true needs of the industry. GSA should invite other stakeholders to join on this quest. Thank you to all GSA contributors A great book to read - “FATAL SYSTEM ERROR”

“Open Standards give you peace of mind”

STANDARDS CERTIFICATION MEMBERSHIP