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NCLGS ADDICTION, GAME DESIGN & GAME REVENUE June 7, 2014

NCLGS ADDICTION, GAME DESIGN & GAME REVENUE June 7, 2014. In the beginning…. It was a simpler time…. Consideration - Risk - Reward. guidance. 1977 - NJ CASINO CONTROL ACT § 5:12-100 Games and gaming equipment

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NCLGS ADDICTION, GAME DESIGN & GAME REVENUE June 7, 2014

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  1. NCLGS ADDICTION, GAME DESIGN & GAME REVENUE June 7, 2014

  2. In the beginning… It was a simpler time… Consideration - Risk - Reward

  3. guidance 1977 - NJ CASINO CONTROL ACT § 5:12-100 Games and gaming equipment e. All gaming shall be conducted according to rules promulgated by the division. All wagers and pay-offs of winning wagers shall be made according to rules promulgated by the division, which shall establish such limitations as may be necessary to assure the vitality of casino operations and fair odds to patrons. Each slot machine shall have a minimum payout of 83%.

  4. need for clarity • The question is, 83% of what? • Every wager? • Every day? • The average return for the casino? • Each cabinet? • Each game in each cabinet?

  5. drilling down • 13:69E-1.28A Standards for the approval of a slot machine game • Except as otherwise provided in this section, each slot machine game which requires a wager shall have a theoretical return to player (RTP) equal to or greater than 83 percent. • Cycle: The number of all possible game outcomes (permutations) • The theoretical RTP is calculated for one cycle of the game.

  6. need for clarity • The question is: 83% of what? • 3.9.8 Paytable Specific Meters. In addition to the one set of master electronic accounting meters required above, each individual game available for play shall have the paytable meters “Credits Bet” (i.e., Coin In) and “Credits Won” (i.e., Coin Out) in either credits or dollars. Even if a double up or gamble game is lost, the initial win amount, and not credits bet amount, shall be recorded in the game-specific meters. • ___ • Each individual game must meet the minimum RTP requirements.

  7. drilling down 13:69E-1.28A Standards for the approval of a slot machine game (b) Except as otherwise provided in this section, all winning combinations used in achieving the minimum theoretical RTP for each slot machine game shall be available on each play that requires a wager. ___ This is an assumption made but verified via source code review.

  8. drilling down Inge S. Telnaes US Patent Number 4,448,419 Electronic gaming device utilizing a random number generator for selecting the reel stop positions.

  9. drilling down Virtual Reel Technology Display randomly selected game outcomes > No secondary decisions > No near miss Mapping requirements for fairness of display > No disproportinate display of blanks or high value symbols Limitation on odds Volatility

  10. drilling down Game Volatility Game volatility is the expression used to describe the frequency of prize payouts based on the hit table or frequency of pays: > Low volatile game - steady flow of smaller prizes > High volatility - higher value awards and more erratic prizes. Ontario 20.2.1  The intent of the following standards is to avoid potentially large deviations of a game’s actual payback from its theoretical payback, and to achieve the minimum required payback within the game’s expected lifetime.

  11. drilling down Ontario 20.3 Award Odds 20.3.1 The top award must not have odds exceeding 17 million : 1. All other awards and accumulated awards displayed on the gaming equipment must not have odds exceeding 34 million : 1. New Jersey 13:69E‐1.28A Standards for the approval of a slot machine game (c) Slot machines shall not offer a play with odds greater than 100 million to 1.

  12. drilling down Nevada Reg 14 Tech Standards 2.070 Jackpot Odds. If the odds of hitting any advertised jackpot that is offered by a gaming device exceeds 100 million to one, the odds of the advertised jackpot must be prominently displayed on the award glass or video display GLI 11 v 2.1 3.4.3 Odds. The highest single advertised payout on each gaming device shall occur, statistically, at least once in 50,000,000 games.

  13. drilling down 13:69E-1.28A Standards for the approval of a slot machine game (d) The theoretical RTP of a slot machine game shall not decrease by more than one- hundredth of a percentage point with an increased wager unless the aggregate total of the decreases in theoretical RTP for plays offered by the slot machine game is no more than one- half of one percent. Straight Flush 5 coin wager

  14. drilling down 13:69E-1.28A Standards for the approval of a slot machine game What’s not included in calculating RTP: (e) The following shall not be included as a payout when determining the theoretical RTP of a slot machine: > A payout of merchandise or thing of value; (in-lieu-of exception) > A complimentary; or > A limited time payout. ___ Cash in lieu of merchandise must equal the minimum value for the RTP.

  15. drilling down 13:69E-1.28A Standards for the approval of a slot machine game What’s not included in calculating RTP – Future progressive awards: (f) The projected contribution from a progressive award may count toward the theoretical RTP of a slot machine in order to achieve the minimum theoretical RTP as approved by the Division. Not sure when this rule would be invoked.

  16. drilling down 13:69E-1.28A Standards for the approval of a slot machine game (i) When a slot machine offers a play which permits a patron to risk an award or make a subsequent wager as an extension of a game outcome, the slot machine shall: > Only allow the patron to risk an award if the award can be increased as a result of continued play; and > Disclose the optimal strategy or provide mathematically sufficient information for the patron to derive optimal strategy if the choice affects the theoretical RTP of the slot machine.

  17. final notes Reflexive Technology is Prohibited > Each game outcome is independent RNG analysis tested to most strict standards > Diehard battery of tests Games with skill > RTP calculated using optimal strategy Fixed Odds Accuracy in advertising, artwork and help screens Last game recall requirements Extensive metering requirements

  18. final notes Source code reviewed to ensure the following are implemented correctly: > Reel strips > Weighted tables > Basic Rules of the game

  19. design standards

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