Gaming Standards Association Annual Meeting

Mandalay Bay Resort & Casino Las Vegas, NV April 3rd, 2002

Platinum Members

Annual Meeting

Other Members

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)

Annual Meeting

Chair Vice Chair Secretary Treasurer

Board Of Directors

Gregg Solomon Rich Schneider Bruce Rowe Marc Comella Robert Del Rossi Pamela Hugill Ali Saffari Thomas Nugent Steve Sutherland Fred Lychock Scott Kreeger Rob Siemasko Annual Meeting Mandalay Resort Group Acres Gaming Harrah’s Entertainment Bally Gaming & Systems Aristocrat Technologies CashCode IGT JCM American Konami Gaming Shuffle Master Gaming Station Casinos WMS Gaming

The Team

Secretariat

Executive Director PJ Stegen Dir. of Technology Standards Rex Carlson Project Manager Sandy Bishop

Workgroup Chairs

BOB SAS S2S USB Tim Britt Mansour Esmaili John Chamberlain Larry Hollibaugh Steve Kastner Scott Stewart Annual Meeting GSA GSA GSA Konami Aristocrat Technologies IGT IGT Acres Gaming Aristocrat Technologies

Annual Meeting Agenda

• Welcome & Introductions (9:30-9:45) • Roll Call, Approval of Minutes (9:45-10:00) • Treasurer’s Report and Approval of 2002 Budget (10:00-10:10) • 2001 in Review – Vision, Mission & Accomplishments (10:10-10:35) • 2001 in Review – Recognition of Ass’n Leaders (10:35-10:45) • 2002 Technology Goals (10:45-11:15) • GSA Opportunities Today & Inevitabilities (11:15-11:25) • Future Technology Realities (11:25-11:40) • Industry Implications (11:40 – 11:50) • Obligations to our Members (11:50-11:55) • Questions and Answers/Closing Remarks (11:55-12:00) Annual Meeting

GSA Update

PJ Stegen Executive Director Gaming Standards Association

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. Annual Meeting

Accomplishments 2001 Technology

• IGT/SAS agreement naming GSA for SAS change management • Specification change management process developed • Functionality matrix completed comparing SDS, GamPro A,

GDAP and SAS protocols

• Awarded Top 20 Most Innovative Gaming Products for GamPro-A

by the American Gaming Summit

• Strategic alliance with GLI • Survey of GSA members re: future technology completed • Created operator statements of direction and points of

convergence

• SVC – Bally developed GAT protocol using GSA SVC, currently

used by New Jersey Regulators to test authentication

• SC Link Patron Interface protocol drafted Annual Meeting

Accomplishments 2001 Technology

• GamPro A version 2.01 standard & toolkit developed – Implemented by: • Aristocrat • Acres • Konami • Mandalay Resort Group • B Link RS232 Standard for Bill Acceptors adopted – Created by: • CashCode • Global Payment Technologies • JCM American • Mars Electronics • Migration from link committees to workgroups – Dissolved A, B & C Link committees – Created SAS, Best of Breed (BOB), System to System (S2S) and USB workgroups Annual Meeting

Accomplishments 2001 Strategic,Membership & Regulatory

• 2001 strategic plan in place • New members: – Boyd Gaming – Gold Club – MIS-Group – Namitech • Member development plan completed and member recruiting

package revised

• 168 members participated in GSA workgroups, committees and

forums

• UNLV regulators survey completed • NJ regulatory forum hosted to provide joint industry comments

on proposed NJ regulations

Annual Meeting

Accomplishments 2001 Regulatory Advisory Council

• At 2001 Strategic Planning Session, formation of Regulatory

Advisory Council (RAC) recommended

• RAC Kick Off Meeting to be held at NAGRA on April 22, 2002 • Charter: – Institute an open forum comprised of regulators and GSA members to review current and future technology that affects regulators, manufacturers and operators • Goals: – Provide regulatory opinions to GSA on the implications of both current & future technologies in the gaming industry – Provide a vehicle for GSA and its members to solicit the regulatory community for its opinions on technical proposals – Provide a single point of contact for the industry that provides regulators the ability to request resonse on regulatory proposals related to technology Annual Meeting

Accomplishments 2001 Regulatory Advisory Council

•

2002 Proposed Activities:

– Provide a list of current problematic issues facing the regulators that could be improved through standardization – Provide a list of business and technology inevitabilities that regulators, manufacturers and operators will have to face together in the future – Serve as a checkpoint and source of input for GSA workgroups and forums to ensure alignment with regulatory needs Annual Meeting

Accomplishments 2001 Marketing

• GSA rebranded the association • Revised strategic marketing plan to reposition GSA’s

key messaging to:

– GSA membership is made up of key industry players including manufacturers, operators and regulators, who are the voice of the industry for technology and regulatory issues – GSA technology supports SAS and A-Link (we are a multi- protocol provider) – GSA t echnology

will be

the “Best of Breed” standard protocol in the gaming industry – GSA supports interoperability through its “GSAWorks” testing and logo certification program, the definitive resource for gaming regulators and laboratories Annual Meeting

Accomplishments 2001 Marketing

• Raised industry awareness through: – GSA quarterly newsletter published – Trade shows & events: • ICE • Southern Gaming • Global Gaming Expo • World Gaming Congress & Expo – Issued 7 press releases and articles in industry publications – Speakers bureau participation at: • Southern Gaming • EGO Estoril Conference • Global Gaming Expo • Slot Managers Institute • John Marshall Law Institute Annual Meeting

Accomplishments 2001 Operations

• Redesigned GSA’s web site and created a new document

download center

• Shortened new member application process • Tied GSA’s reporting and budgeting processes to strategic plan

format

• Distributed executive leadership responsibilities to even

workload and assure succession planning, through creation of Board Vice Chair position

• Created Executive Committee to handle administrative issues • Increased fiscal reserves by $40,616 • Created a project specific funding model for future technology

development based on business justified requirements

Annual Meeting

Recognition of 2001 Association Leadership

PJ Stegen Executive Director Gaming Standards Association

GSA Recognition

Marc Comella Peter DeRaedt Pamela Hugill 2001 Board Of Directors: Tom Oliveri Bruce Rowe Ali Saffari Scott Kreeger Fred Lychock Rich Schneider Gregg Solomon Steve Sutherland 2001 Committee Chairs John Chamberlain Jim Morrow Luke Duyndam Carolan Pepin Larry Hollibaugh Marketing & Speakers Bureau Jenny Holaday

Annual Meeting

Marlon Silver Tom Mitchell

Technology Goals 2002

Rex Carlson Director of Technology Standards Gaming Standards Association

IGT – SAS Agreement Inception & Advantages

• September 2001 – IGT endorses future development of

SAS as a GSA specification by entering into a binding agreement with GSA

• GSA SAS version 6.00 (derived from IGT SAS version

5.10) estimated to be released July 2002

• Benefits of this agreement for GSA are: – Solves today’s game to system standardization problems – Widely implemented feature rich protocol – Time tested Annual Meeting

2002 Workgroup Projects

• GSA SAS Workgroup Charter – Ensure input to protocol development by workgroup members – Ensure that implementation of the protocol can be consistently achieved between manufacturers – Provide for the ability to have consistent third party certification of protocol implementations – Provide and support test and development tools for achieving consistent implementation; including both simulators and implementation guides – Outline and correct ambiguities within the protocol documentation, while maintaining backwards compatibility Annual Meeting

2002 Workgroup Projects

• GSA SAS Workgroup Accomplishments to date: – Defined charter, goals and timeline – Clarified ambiguities in protocol – Identified missing functions in SAS 5.10 – Preliminary GSA SAS version 6.00 draft protocol in progress – Established polling/grouping command buckets – Performed initial review of test and development tools including: • SAS host simulator toolkit • Acres SAS protocol test tools – Reviewed cancelled credit regulations to assure protocol met requirements Annual Meeting

2002 Workgroup Projects

• System to System Workgroup

– Standardize interface between gaming host systems in the casino – Standardize interface between gaming and non-gaming host systems to provide a hospitality/gaming industry solution – Develop Patron Interface Standard (Est. release date Sept. 2002) – 2002 systems for standardization and promoters: • Player Management/Table Rating – Acres, Mikohn • Player Management/Slot Rating – Bally, Konami • Slot Accounting – Aristocrat Technologies • Data Hygiene/Data Warehouse – Harrah’s, Konami, Mandalay – Above specifications to be issued July 2002 Annual Meeting

2002 Workgroup Projects

• USB Workgroup

– Define the use of USB for internal communication between the processing unit of an electronic gaming device and its peripheral equipment (bill validators, ticket printers, card readers, and other human interface devices) – Adopt common command sets required by peripherals – Create a USB interface standard and develop test tools – First issue of standard and tools scheduled August 2002 Annual Meeting

2002 Workgroup Projects

• BOB (Best of Breed) Workgroup – BOB is the next generation protocol for communication between gaming devices and management systems – Workgroup will focus on using computer industry standards such as XML and TCP/IP to leverage proven technologies which are supported by significant development resources – The protocol will be easily extensible with new features – Initially, the group will focus on the high level architecture and functional design including definition of standard message schemas – First PC to PC demonstration scheduled September 2002 – Ultimately a full specification, implementation guidelines and a test tool suite will be released.

– Floor transition issues will be addressed.

Annual Meeting

2002 Workgroup Projects

• BOB will: – Be the basis for a complete connectivity standard within the casino environment – Support advanced features such as authentication, remote game configuration, software downloads, peripheral control and browser-based games – Support other (non-EGD) network enabled devices in the casino – Drive efforts to win regulatory “buy-in” for the introduction of new technology based features on the casino floor – Obsolete proprietary game to system protocols Annual Meeting

2002 Workgroup Projects

• Physical Standards Workgroup (Proposed Activities) – Define physical characteristics of future technologies to provide for: • Compatibility • Ease of installation • Ergonomic consistency – Examples: • Slot base mounting and aperture • Player tracking wedges • Peripheral envelopment dimensions • Under cabinet height for slant tops – Estimated Workgroup Formation Date: Summer 2002 Annual Meeting

Interoperability Testing Center

• The GLI Lab became operational Q1 2002 • Centralized testing facilities now provide a simulated

casino environment to address product integration issues

• Assists the regulatory approval process • GSA developing Certification Testing Logo Program Annual Meeting

Technology Donations

• Acres Gaming: Patron Interface protocol and SAS Testing Tools (in process) • Aristocrat Technologies: ASP5000 protocol • Bally Gaming: SDT and GAT protocols (in process) • CashCode: Serial BACC protocol • GPT: Serial BACC protocol • IGT: SAS protocol and testing tools (in process) Annual Meeting

GSA’s View of the Future of Technology in the Gaming Industry

Gregg Solomon Chairman of the Board, Gaming Standards Association Senior VP Operations, Mandalay Resort Group

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

Annual Meeting

Technology Inevitabilities

• Floor will mimic technology products found outside our industry • Customers will become more comfortable with new ways to play

games

• Proprietary hardware and software will become the exception,

not the rule

• Third party developers will take an increasingly larger role in

providing content

• Security issues will increase and become more complex • Useful life of products will be harder to predict Annual Meeting

Future Technology Realities

FROM

•Proprietary machine design •Many hardware platforms •Many proprietary operating

systems

•Bundled hardware & software •Few content providers •No backward compatibility

TO

•PC-like slot machines •Fewer hardware platforms •Fewer standard operating

systems

•Unbundled hardware &

software

•Many content providers

-

Game library to choose from •Backward compatibility Annual Meeting

FROM

•Slot machines are single

purpose

•Game centric •Network as requirement •Numerous proprietary

communication protocols

•Multiple wire network

connections

Future Technology Realities

TO

•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

Annual Meeting

Future Technology Realities

FROM

•Machine software personality

manually installed, causing misconfiguration of games

•Physical distribution of game

content

•Static game licenses •Game centric physically

secure environment TO

•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 Annual Meeting

Future Technology Realities

FROM

•Static game content •Non-standard peripherals •Non-standard physical

configurations

•Limited monetary transactions

TO

•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

Annual Meeting

Future Technology Realities

FROM

•Bill validators accept •Simple methods of employee

and player identification

•Difficult to interface disparate

systems

•Transaction content not fully

available TO

•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

Annual Meeting

Implication for Players

• More game content choices • Better multi-media presentation by network enabled

games, signage and auxiliary display devices

• More informational functions at game enhance

patron convenience

• Improved bonus and promotional schemes • Simplified transactions with various funds transfer

options

Annual Meeting

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 Annual Meeting

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 Annual Meeting

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

Annual Meeting

GSA’s Obligations to our Members

• Run GSA like a business • Produce success stories • Keep our promises • Provide leadership and direction Annual Meeting

Closing Remarks Questions & Answers

Gregg Solomon Chairman of the Board, Gaming Standards Association Senior VP Operations, Mandalay Resort Group