BUILDING BRIDGES

1. BUILDING BRIDGES IMPACT OF PACE OF CHANGE ON GAMING INDUSTRY

2. AGENDA • Who are we? • The world is changing around us • Impact on policy domain • How to address these challenges • Five priorities of innovation and regulatory benefits • Game Authentication • Online Gaming Standards

3. WHO ARE WE? • An International Trade Association formed in May 1998 • Currently 63 members (operators, vendors, test labs) • Enable collaboration between: • The Industry Domain (Suppliers / Operators / Test Labs) • The Policy Domain (Governmental Agencies and Regulators) • Create information standards • Technical Committees (S2S, G2S, TRA, GAT, GDS …) • Player User Interface Committee (PUI) • Online Gaming Committee (OGC) • Architectural Oversight Committee (AOC) • Operator Advisory Committee (OAC) • Regulatory Committee (discussions) • 16 years industry support, 180+ members participated, 1573 volunteers contributed to-date

4. PLATINUM MEMBERS

6. GSA’S ROLE IN LAND-BASED CASINO INDUSTRY • Focused on land-based casinos as there was a need • Established committees to support the industry • Gained track record for the successful creation of standards • Successful due to participation from both industry and policy domain

7. CURRENT COMMITTEES • Technical Committees (S2S, G2S, TRA, GAT, GDS …) • Player User Interface Committee (PUI) • Architectural Oversight Committee (AOC) • Operator Advisory Committee (OAC) • Regulatory Committee (formation stage) • Online Gaming Committee (OGC) • Third-Party Game Interfaces – integration of third-party game services into iGaming platforms. • External Interfaces – data sharing between iGaming platforms and geo-location providers, payment processors, etc. • Data Access – providing a standard manner by which regulatory required data can be obtained from iGaming operations. • Land-Based – integration with existing land-based operations.

8. GLOBAL DEPLOYMENT (70+ COUNTRIES)

9. THE WORLD IS CHANGING AROUND US • Online revolution has changed customer behavior • Ebay is the world’s largest garage sale online • Booking.comthe world’s largest travel agency online • Amazon the world’s largest department store online • Pokerstar the world’s largest poker room online

10. PACE OF CHANGE IN OUR WORLD The Internet – its size doubles every 5.32 years Speed of adoption is significantly faster as population gets more tech savvy

11. IMPACT ON OUR LIVES • Technology is outpacing far quicker than one can manage to acquire the necessary competencies • The end of online / offline • Continuously online – Internet of Everything (IoE) • 25 Billion devices by 2015 and 50 Billion by 2020! • The personalization of everything • To quote GerdLeonard (CEO of the Futures Agency): • Machines will know us better than our closest friends and spouses. • They will give us flawless comments, advice and recommendations and very accurate personal predictions.

12. MOBILE GAMING MARKET • The massive growth of smart phones and tablets is one of the most important technology innovations in the online gaming industry in the last 5 years • By the end of 2014 there will be more than 1.75 Billion number of smartphones in use • By the end of 2014 there are more than 7.5 Billion mobile subscribers • Analysts predict an annual growth as high as 39% • Mobile devices: 49% of time spend on gaming applications and 30% on social networking applications • Dec 2012: 28 year Londoner won $530,584 at William Hill property playing a game on his phone!

13. PRINCIPLES OF GAMING POLICIES • Ensure that all games are delivered fair and in a transparent manner • Protect minors and vulnerable persons from gambling • Ensure that gaming activities are free from crime, corruption and money laundering • Protect the public interest

14. IMPACT ON POLICY DOMAIN - CHALLENGES • Technology is changing at an exponential rate • Access to the right knowledge • Resource restricted • Increased pressure to create policies and technical standards • Growing economic complexities • Increasing international interdependencies • Insufficient capacity for effective oversight

15. ADVANCES IN TECHNOLOGY HELP CARD COMPANIES NOTICE IRREGULARITIES FIRST CC companies know more about you then your friend or spouse!

16. HOW TO ADDRESS THESE CHALLENGES AS REGULATORS? • Consider moving away from Prescriptive Regulations Prescription is the result from the lack of trust between policy and industry domain and this resulted into a policing mentality. Towards… • Risk Management Approach • Outcome driven • Security • Auditability • Accountability • The compliance and enforcement process is elevated • Regulators must not chase the internet

17. FIVE PRIORITIES OF INNOVATION • Create a culture of openness • Build platforms for participation • Foster dialogue and continual improvement • Protect the public interest • Organize collective action in the industry

18. THE ROLE OF GSA

19. THE ROLE OF GSA • Provide a platform for collaboration between industry stakeholders • Enable participatory regulations • Create trusted collaborative environment between policy domain and industry domain • Create Common Data Dictionary • Offer education re standards and technology • Support the creation of a messaging standard for Central Monitoring

20. REGULATOR BENEFITS OF STANDARDS • Improves the quality, accuracy and reliability of information as it enters, processed and then reported to regulators. • Enhances the breath and depth of information that can be included in analyses and reports on a routine basis with minimum to no added costs. • Addresses the need to find long-term solutions to pull time and costs out of the reporting process. • Allows sharing of information amongst regulators on a global level. • Enables the developed of tools to detect fraudulent activities in real-time, across multiple states or countries thereby significantly supporting the principles of gaming policies. STANDARDS WILL HELP TO ACCURATLY COMPILE, REVIEW AND AUDIT

21. UNFETTERED DATA ACCESS

22. GAME AUTHENTICATION • Remote game authentication (GAT) started with gaming machines. Game Authentication Terminal

23. GAME AUTHENTICATION • With G2S and GDS, game authentication was expanded onto the network and into peripheral devices. Game Authentication Server Peripheral Device

24. GAME AUTHENTICATION • With S2S, game authentication was expanded to include the systems communicating with gaming machines, such as progressive and bonus servers. Game Authentication Server Bonus Server Progressive Server

25. GAME AUTHENTICATION • The next logical step . . . extend game authentication to iGaming platforms and game servers. Bonus Server Progressive Server Game Authentication Server iGaming Platform Game Server

26. GAME AUTHENTICATION • How does it work? • Discovery - Request the list of software components and supported authentication algorithms from an end-point. • Verification - Request verification of a particular component using a specific algorithm and user-selected seed value. • Authentication - Check the result against a known value provided by the test lab.

27. ONLINE GAMING STANDARDIZATION • The OGC plans to address a wide range of topics, including: • Third-Party Game Interface – integration of third-party game services into iGaming platforms. • External Interfaces – interfaces between iGaming platforms and geo-location providers, payment processors, etc. • Central Monitoring – regulatory monitoring of iGaming operations. • Brick & Mortar – integration with existing land-based operations.

28. THE GROWTH AND NEED CONTINUES FOR GAMING STANDARDS & COLLABORATION 2014 1998 2015 2016 2017 2018 …beyond Global Industry Growth Casinos More Regulators Technologies New Technologies 3 Standard Protocols 45 Protocols MORE COMPLEXITY! Emerging Standards 63 Members Online/Mobile Gaming 6 Members Customer/360

29. COLLABORATION - INNOVATE OR DIE

30. CREATING STANDARDS THAT DRIVE THE INDUSTRY www.gamingstandards.com

31. EVOLUTION OF DATA COMMUNICATIONThe Cost Of A New Feature Here’s why Innovation has been slow 4 ____ 5 1 2 3