PART 1: BUILDING BRIDGESSupporting the Industry through global collaboration

AGENDA

PART 1: Building Bridges Who Are We

The Pace Of Change

The Impact

A Parallel Industry

Some Thoughts

PART 2: Online Gaming … The Next Generation

WHO ARE WE?

An International Trade Association

Formed in May 1998

Currently 62 members (operators, vendors, test labs)

We are an association that enables collaboration between: The Industry Domain (Suppliers / Operators / Test Labs) The Policy Domain (Governmental Agencies and Regulators)

Create information standards (G2S, S2S, …)

PLATINUM MEMBERS

GSA’S ROLE IN BRICK & MORTAR CASINO INDUSTRY

Focused on brick and mortar 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

CURRENT COMMITTEES 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 Advisory Committee (formation stage)

GLOBAL DEPLOYMENT (70+ COUNTRIES)

PACE OF CHANGE IN OUR WORLD

Speed of adoption is significantly faster as population gets more tech savvy

The Internet – its size doubles every 5.32 years

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 Gerd Leonard (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.

IMPACT ON THE GAMING INDUSTRY

Gaming is moving to a personal device anywhere anytime

Gaming is shifting from game centric to system centric to player centric

Old technologies ‘crush’ the ability to drive business As the markets mature, operators that do not

innovate will die

Some regulators are using Independent Testing Labs (ITL’s) for certification

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%

Dec 2012: 28 year Londoner won $530,584 at William Hill property playing a game on his phone!

Source: Casino City Press

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

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

ADVANCES IN TECHNOLOGY HELP CARD COMPANIES NOTICE

IRREGULARITIES FIRST

CC companies know more about you then your friend or spouse!

HOW TO ADDRESS THESE CHALLENGES ?

Consider moving away from Prescriptive RegulationsPrescription is the result from the lack of trust between policy and industry domain and this resulted into a policing mentality.

Towards…

Risk Management Approach Security Auditability Accountability ITL’s to verify

The compliance and enforcement process is elevated Regulators must not chase the internet

THE ROLE OF GSA

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

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

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

UNFETTERED DATA ACCESS

“Open Standards give you peace of mind”

PART 2: ONLINE GAMING… The Next Generation

Online Gaming – The Next Generation As online gaming is being accepted in more

and more jurisdictions, the industry is maturing. Regulations.

Operations.

Technology.

Sometimes technology can be a hindrance, other times it can be a facilitator.

As we look towards the next generation of iGaming technology, there will be some distinct benefits to regulators.

Traditional View of Online Gaming

iGaming PlatformPlayer

Registration

Geo-Location

Player Accounts

Game Services

Other Services

Player Verification

Location Verification

Payment Processing

Independent External Systems

Evolving View of Online Gaming

iGaming PlatformPlayer

Registration

Geo-Location

Player Accounts

Game Services

Other Services

Player Verification

Location Verification

Game Services Payment Processing

Externalization of Game Services

Why Is This Bad? Complexity!

iGaming PlatformPlayer

Registration

Geo-Location

Player Accounts

Other Services

Game Service #2

Multiple Game Services from Multiple Manufacturers

Game Service #1

Game Service #3

Why Is This Bad? Complexity!

iGaming Platform #1

Player Accounts

Game Service #2

Multiple iGaming Platforms Accessing the Same Game Services

Game Service #1

Game Service #3

iGaming Platform #2

Player Accounts

Why Is This Good? Accountability!iGaming Platform

Player Registration

Geo-Location

Player Accounts

Game Services

Other Services

Player Verification

Location Verification

Game Services Payment Processing

Independent Roles and Responsibilities

Why Is This Good? Accountability! Game services can be controlled and

operated by independent third-parties – like payment processing, geo-location, and player verification services.

This creates an arms-length relationship between the iGaming operator and the game supplier.

Activity reported by game services can be audited and reconciled against the activity reported by iGaming platforms.

Game services and iGaming platforms can be independently tested and approved.

Why Does This Sound Familiar?

Slot Machine Wagering Accounts,Ticket-In-Ticket-Out,

Progressive Jackpots

Independent Audit and Reconciliation

Standards!

Where Does GSA Fit In? In 2013, GSA made two important

organizational changes to help support efforts to bring standardization to online gaming.1. Started a new Online Gaming Committee (OGC).

OGC will focus on the development of protocols specifically for online gaming.

2. Re-established the Regulatory Committee (RAC). RAC will develop requirements for central

monitoring of online gaming operations. RAC will also address other issues of common

interest to the regulatory community.

Where Does GSA Fit In? 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.

Third-Party Game Interface

1

2

3

Third-Party Game Interface What is being addressed?

Game Launch URL.

Game Session Start / End.

Game Cycle Start / End. Restoration and completion of incomplete games.

Monetary Transactions. Wagers, wins, and special transactions. Standardized wager descriptions. Demo play, free play, social gaming.

Revenue Recognition. Revenue is reported on the day that the final outcome of a

wager has been determined.

Game Authentication Remote game authentication (GAT) started

with gaming machines.

Game Authentication Terminal

Game Authentication With G2S and GDS, game authentication

was expanded onto the network and into peripheral devices.

Game Authentication

ServerPeripheral Device

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

ProgressiveServer

Game Authentication The next logical step . . . extend game

authentication to iGaming platforms and game servers.

Game Authentication

Server

Bonus Server

Progressive Server

iGamingPlatform

GameServer

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.

Questions?