Gaming Standards Association NAGRA Conference – Charlotte, SC April 23, 2002 Bruce Rowe Board of Directors, Gaming Standards Association Vice President Corporate Slot Operations, Research and Development, Harrah’s Entertainment

2 Vision and Mission Statement Vision: To be the leading standards forum that creates value by facilitating innovation and efficiencies for the gaming community Mission: GSA is an international trade association representing gaming manufacturers, suppliers, 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.

3 Members Platinum Acres Gaming, Aristocrat Technologies, Harrah’s Entertainment, IGT, Mandalay Resort Group, WMS Gaming Gold: Bally Gaming, CashCode, JCM American, Konami Gaming, MARS Electronics, MIS-Group, Money Controls, Shuffle Master Gaming, Slot-Tickets Silver: Atronic Americas, Austrian Gaming Industries, Boyd Gaming, Cirsa Interactive, Coin Mechanisms, Global Payment Technology, Gold Club, Mikohn Gaming, Namitech, Park Place Entertainment, Sierra Design Group, Sigma Game, Spielo Manufacturing, Unidesa Affiliates: Casino Management Association, European Gaming Organisation, Friedberg & Associates, HITIS, University of Nevada Las Vegas (UNLV)

4 History of Technology Telephones  Crank Phone  Rotary Dial  Touch Tone Typewriter  Mechanical  Electric  Word Processor Banking  Cash  Checks  Credit Cards Slot Machine  Mechanical  Electro- mechanical  Video CUSTOMER EMPOWERMENT Digital  Cellular  Video  P.D.A. PC  Multi-tasking  Video  Multi-media Cashless  Debit Card  Smart Card  E-Commerce PC Based  Multi-game  Multi-media  Full Video Direct Connect  Networked  Wireless

5 Floor of Today Presentation & Game Logic Multiple Communi- cations Protocols Proprietary Operating System Slot Management Systems Other Systems Bally SDS C.D.S. IGT IGS Acres Dacomm Casino Management Systems Paging Systems Etc. Over 15 Manufacturers Multiple Platforms per Vendor 49 Protocols Slot System Processor Proprietary Hardware

6 Issues & Reality Protocols are a barrier to entry Regulators challenged by a need for more: –Education –Speed –Confidence –Reciprocity –Effective model for collaboration –Strategic v.s. Tactical direction

7 Inevitabilities Casino floor will mimic technology found outside the market Customers will become more comfortable with new technology Bundled products will become a niche – not the norm Data demand will dramatically increase Security issues will increase and become more complex Useful life of products will be harder to predict

8 Floor of Tomorrow Presentation Game Logic Computer Industry Standard Communication Protocols Standard Operating System Slot Management Systems Slot System Network Interface Card Open Bus Hardware Platform Paging Systems Casino Management Systems Etc.

9 Future Technology Realities FROMTO Proprietary machine design Many hardware platforms Many proprietary operating systems Bundled hardware & software Few content providers No backward compatibility PC-like slot machines Fewer hardware platforms Fewer standard operating systems Unbundled hardware & software Many content providers - Game library to choose from Backward compatibility

10 Future Technology Realities FROMTO Slot machines are single purpose Game centric Network as requirement Numerous proprietary communication protocols Multiple wire network connections Slot machines will become multi-function - Kiosks/browser enabled/ video concierge Network centric Network as the enabler Computer industry standard communication protocols Single wire/wireless network connections

11 Future Technology Realities FROMTO Machine software personality manually installed, causing misconfiguration of games Physical distribution of game content Static game licenses Game centric physically secure environment Machine hardware and software personality broadcast to the system automatically Centralized distribution of game content via intranet Dynamic seat licensing Client/server based gaming with wide area network security requiring: –Encryption –Authentication

12 Future Technology Realities FROMTO Static game content Non-standard peripherals Non-standard physical configurations Limited monetary transactions Dynamic game content Standard peripheral command sets and protocols, allowing for interchangeability Uniform physical standards for base requirements, installation and ergonomics Cash, coin, TITO, EFT, B2B and smart card transactions

13 Future Technology Realities FROMTO Bill validators accept Simple methods of employee and player identification Difficult to interface disparate systems Transaction content not fully available Bill validators recycle Biometrics - Employee/Player Identification - Authorization of Jackpots/Fills - Player identity tracking for Title 31 and Reg. 6 requirements Standards allow for simple “plug and play” addition of various systems All transaction information made available to operators and regulators

14 Statements of Direction by Operators Games should broadcast hardware and software personality to the system Peripherals should have standard plugs, auto-configure and have same command message set for operations Transaction content (per game) –Game being played –Denomination bet –Coin-in/coin-out –Number of games played –Coins –Par Uniform product design for base footprint Single wire network Network centric 5-year backward compatibility

15 Implication for Operators Better tools increase bottom line Flexible “plug and play” components with wider choice of vendors and products Smoother installations resulting in fewer operational disruptions and reduced service costs More creative game content More advanced technology available Easier to create customized features

16 Implication for Manufacturers New installs will work the first time at a customer site (less finger pointing when problems occur) Will grow the market - we can spend less time on the mundane and more time on innovation Can concentrate on added value Defined specifications and verification services mean faster time to market and lower development cost Roll out of enhancements are planned versus incompatible chaos Faster approval cycle Reduced cost to integrate systems

17 GSA Opportunities Today Bridge the gap between existing protocols and games, systems and peripherals –Assure games and systems provides all information available to the operator –Identify the difference between required and optional features in existing protocols Secure commitment from GSA members to implement standards

18 Implication for Regulators Common features across all jurisdictions Simplification of testing and approval Built in compliance increases security Fewer resources required to verify compliance Focus approval resources towards games Simpler training for field regulators – fewer protocols System activities easier to regulate Access to a vendor-neutral technology forum Improvement in regulatory capability via new technology will prevent scandals and enhance public trust

19 Statements of Direction by Regulators ??????????