Finding the Holy Grail:

Is Server Based Gaming The Next Big Thing?

Gaming Executive Summit

Madrid, July 10, 2008

Our Platinum Members

Discussion Topics

• Industry Facts and Inevitabilities• SB Gaming

– Demystifying industry confusion

• SB Gaming– How far away is the dream from being realized?

• Will SB Gaming actually deliver a better experience for customers and better returns for operators?

• How do you add value when having limited interaction with the customer?

Gaming is Changing

• Revenue– < 50% from gaming – Majority of revenue is spas, shows, hotel, restaurants, other

services….

• Globalization– More choices, more suppliers due to open standards

• Yield management per 30sft– Digital Gaming Device - the portal through which you will sell your

products not only generate gaming revenue!

Technological Inevitabilities

• Industry will quickly adopt technologies from outside gaming• Innovations will come as much from the outside as from the

inside• Content will be more portable• Customers will be more comfortable with new experiences• Data demand will increase• Security will increase and become more complex• Useful life of products will be more challenging to predict

Demystify Industry Confusion

• Server Based Gaming• System Based Gaming

Game outcome is determined by the system. If the system goes down so does your floor.

See NV Technical Standards 1.010(27)

• System Supported GamingGame outcome is determined by the game itself. The system provides support to the game

through downloading of software and remote configuration and other applications. If the system goes down the floor can still operate.

See NV Technical Standards 1.010(28)

• Server Based ProductsA marketing term used by IGT to describe System Supported Gaming

• Thin Client• Thick Client• Smart Client• Dumb Terminal

Netw

oked Gam

ing

SB Gaming…Today’s focus

• Networked Gaming– System Supported Gaming

Game outcome is determined by the game itself. The system provides support to the game through

downloading of software and remote configuration and other applications. If the system goes down the floor

can still operate. See NV Technical Standards 1.010(28)

• Digital Gaming Devices (DGD)– Gaming devices that use digital infrastructure to deliver and manage

content, communications and security

• Networked Floor Capabilities– The ability to dynamically and bi-directionally interrogate, configure

games and move content or data to and from a Digital Gaming Device

SB Gaming/Networked Gaming is all about Downloadable Games and

Denom ConfigurationXX

The Power of Open Networks

How Far Away Is The Dream From Being Realized? An Operator Dream…

Control

Built In-House

Exit Strategy

Plug & Play

FlexibilityIndependence

Grow Business

CreativityQOS

How Far Away Is The Dream From Being Realized?

• Foundational technologies agreed upon• Vendors are implementing GSA Standards• Most operators are making or planning network

infrastructure investments• MGM CityCenter requested vendors to support GSA

Standards

• Business technology evolution vs Consumer technology revolution

• Networked gaming is a journey NOT a point in time

Better Experience For Customers?Better Returns For Operators?

• A networked floor facilitates enhanced CRM– Allow you to reach out to your player – follow your customer– Offer him the products and services he wants when he wants them

• Make the slot machine the portal to the entire property

• Adjust accrual rate of base points of promotional credits per base-game wager

– Will ‘socialize’ your gaming floor• Players can collaborate, compete and/or cooperate

• Obtain 360 degrees view – determine customer’s net worth

• Offers operators ‘floor asset’ management tools

Networked Gaming – Customer Benefits

• Improved service • 100% uptime• Marketing at the point of play• Redeem points for any product/service• Customized experienced through Player profile• Communal gaming - group play features • Customize bonus offerings based on games or events

Networked Gaming - Operator Benefits

• Maximize revenue based on player demographic – Optimize floor for peak demand– Create floor themes for specific events– Maximizing game life cycle – instantly replace older games with

latest ‘hot’ games– Real-time one-to-one marketing

• 100% uptime• Grow in different directions• ROI

– Business Intelligence and CRM– Application dependant

Conclusion

• Networks are here - deferred spending• Need to staff appropriately• Applications that drive the most basic needs will initially

drive networked gaming– Player does not want to wait– Player wants to be known – reward for his loyalty– Player expects rewards

• Set the stage to serve the demographics of the future• Networked gaming

– Experiment at lower cost– Learn faster– Adapt faster

• Interoperability is key

The Impact of GSA Standards

• They are the enabler of Networked Gaming

• They drive innovation in the gaming industry

• They are being implemented by all major manufacturers both on the games and in the systems  

    

The Impact of GSA Standards

Game Storage Transaction Manager

Outcome Manager

BIS Systems

CMS Systems

Ticket Systems

EDWG2S

Library and Approval System

POS Systems

Hotel Systems

S2S

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