GSA OPERATOR’S FORUM August 22, 2007

1. GSA OPERATOR’S FORUM August 22, 2007 www.gamingstandards.com

2. Agenda • Opening Remarks / GSA Overview (9:00 am) • Don Karrer, Penn National Gaming • The Power of GSA Standards (9:10 am) • Don Karrer, Penn National Gaming • Vendor Product Release Schedule (10:15 am) • Peter DeRaedt, GSA President • Break (10:30 am) • Preparingfor theImplementation Process (10:45 am) • Lyle Bell, Seminole Gaming • Moti Vyas, Viejas Enterprises • Manufacturer’s Roundtable and Lunch (12:00 pm) • Manufacturer’s Representatives

3. Who are we? • Who is GSA? - We are a non-profit organization established in May 1998 • Who are we affiliated with? - Australian Gaming Machine Manufacturers Association - Macao Polytechnic Institute - Multi-State Lottery Association - UNLV • How many members do we have? - A total of members = 71 • 13 Platinum, 20 Gold, 29 Silver • 5 Advisory, 4 Affiliate

4. Who are we? • Vision - To be the leading standards forum that creates value by facilitating innovation and efficiencies for the gaming community. • Mission - The Gaming Standards Association (GSA) is an international trade association that creates benefits for 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. • Values - We will operate with integrity, fairness and transparency - We believe that open standards benefit our industry because they provide speed to market, innovation, value, and extended useful life

5. Global Membership

6. Membership Composition

7. Education • Donated funds to UNLV Foundation to establish a GSA Certified Engineering Program - International Gaming Institute & School of Informatics at the UNLV - Two GSA Affiliate Professors of Gaming Technology • Collaboration with Macau Polytechnic Institute  • Course focus: XML & Web services, Game Play, Configuration & Player Management • Certification Levels: - G2S Intern (G2S-I), G2S Certified Engineer (G2S-E), - GSA Certified Engineer (GSA-E)

8. Why are we holding an Operator’s Forum? • To educate our members and member prospects on the existing capabilities and unlimited potential of the protocols • To share implementation experience of early adopters • To discuss G2S migration strategy • To announce the formation of a GSA Operator’s Advisory Committee consisting of some of the leading gaming operators • Ensure alignment between the operator and manufacturer communities

9. The Power of GSA Standards

10. Topics Introduction to the protocols Review current capabilities Determine future requirements

11. GSA Protocols Introduction to the GSA Protocols G2S - Game to System S2S - System to System GDS -Gaming Device Standard

12. Intro to the Protocols G2S - Game to System Protocol Used to connect Gaming Devices to back of house systems SAS Replacement S2S - System to System Protocol Used to connect servers to servers In the field connecting EGM (Electronic Gaming Machine) Central Servers to a Central Accounting server

13. Intro to the Protocols G2S and S2S protocols are made up of “classes” The classes separate the protocol into smaller parts with each performing a specific function The name of the class is typically the function it provides Some classes represent physical devices (money acceptors, printers etc.) Some class functions represent a business need (such as vouchers or handpay) Some represent a protocol function (such as Communications, or registerClient)

14. Intro to the Protocols All Classes have at least one Host Owner host - the computer/Server that owns and is responsible for managing a class Guest host - primarily a “listen only” computer/server that can subscribe to events and request meters status, logs and profile information from a class (G2S Only) Guest host capability varies by class

15. Intro to the Protocols G2S and S2S protocols generate events Everything that happens on the floor generates an event. For example: money in, money out, coin jam, game started, game ended, secondary game started, player card activity, hot player threshold reached, etc. An application / operator can elect to subscribe to any event of interest and can elect to include the data affected by the event When an event occurs, a message is sent to all who subscribe to the event

16. Intro to the Protocols Transport Protocol Applies to G2S and S2S The Transport is the cargo truck – the cargo is the G2S and S2S messages. Provides security (SSL) for both protocols Ensures the G2S and S2S messages get to the correct destination Point to Point: guarantees delivery Multicast: broadcast to select group of games (e.g.: progressive updates…)

17. Intro to the Protocols GDS – Gaming Device Standard Internal to EGM USB protocol which connects peripherals (note acceptor, card reader, printer, etc.) to the main computer board in the EGM SAS – Slot Accounting System This protocol is the most widely used in the industry GSA Certification process for SAS currently in place (Operators are now starting to require certification from their manufacturers)

19. GSA Protocols Current Capabilities What can they do today?

20. Current Capabilities Real-time or Scheduled Software Download to EGMs Major benefits: More flexible floor, allowing dynamic addition of the games patrons want to play Software downloading for peripheral devices such as printers and note acceptors is next Reduced down time by not having to shut down individual games

21. Current Capabilities Central management of EGMs Major benefits: Allows for theme, denomination and pay table changes Denomination changes on slot machines are now as easy as denomination changes on table games Changes to any G2S enabled EGM can be made from a central server, independent of the EGM manufacturer

22. Current Capabilities Provide 3rd party application access to floor data Major benefits: Reduce reliance on a single vendor solution Offer solutions at the speed of business Ability to react to events as they happen Locate hot players while they are still hot Locate un-carded big players while they are playing There are 5 “Hot Player” levels; event indicates card number when one is present

23. Current Capabilities Improved access to machine meter information Can be sent on demand on periodic intervals at end of day as result of a particular event Major benefits; Reduce audit timing variances due to more flexibility in meter requests Any G2S host can request the meters they need

24. Current Capabilities Player tracking integration Player tracking functionality is fully integrated into the protocol Player peripherals can be on the EGM or on the SMIB Prevents loss of partial ratings Any G2S host can find out information about players of the game

25. Current Capabilities Secure off-line voucher validation Allow players to continue to cash-out and redeem vouchers securely when the EGM is offline Vouchers can be patron coupons or tickets Allows for a potential relaxing of current offline regulations and MICS

26. Current Capabilities New software can be downloaded to the printer Coupons, comp slips, and marketing greetings can be printed on the fly Player specific information can be printed on the ticket Print the player’s name on the ticket or coupon New printer templates can downloaded to the printer A template is a printed layout with graphics and blank fields to fill in

27. Current Capabilities New software can be downloaded to the note acceptor Provides for easy updates as new bills are released Saves labor costs and reduces downtime The note denomination ($5, $50, etc.) accepted can be adjusted from a central host computer for the entire floor Ability to quickly disable specific bills when new counterfeits come out in order to limit exposure Ability to turn on/off voucher acceptance Support for multi-coin acceptors

28. Current Capabilities GAT – Game Authentication Terminal Provides validation of EGM software At the EGM, or the Server, or from a remote location Reduce completion time and effort to perform regulatory software verification requirements Benefits: Software in EGM can be validated automatically, as often as needed Could compare results to those obtained by regulatory lab – be assured you are running legitimate code

29. GSA Protocols Future Requirements What Do You Want Next? Here are a few ideas for consideration…

30. Future Requirements What additional capabilities do you need to… Enhance your patron experience? Enhance your ability to reach your players? Gather information required to make your business more successful?

31. Future Requirements Employee class (S2S, G2S) Provide performance information Total resolution time for machine related issues, such as; tilts, hand pays, jackpots, etc. Automate the “meal book” Automate the tracking of mechanic’s play activity at each EGM Point Of Sale class (S2S) Issue a comp for food or beverage directly to the outlet Purchase show tickets with points

32. Future Requirements Entertainment class (G2S, S2S) Make restaurant and show reservations Enter sweepstakes / promotions from the EGM Apply sweepstakes / promotional winnings to the EGM as non-cashable credits Call for your car from valet Reserve a table game from the EGM Receive notification when your car or your table is ready

33. Future Requirements Shopping class (S2S) Use player points to make purchases in retail outlets Use retail purchases to accumulate player points Smart Card class (G2S, S2S) Card can be loaded with personal information such a as game preferences, play history, comp level, birthday, etc. Information can be available and updated every time the card is inserted or removed

34. Future Requirements Estimated Completion Timeline example for adding a new class or feature set - 6 – 12 months for protocol enhancements   - 6 – 18 months for manufacturer EGM and Systems implementation after the features have been incorporated into the protocol - 3 - 6 months for regulatory approval - Overall estimated time frame; 15 to 36 months - The above example assumes the operators and manufacturers priorities are in alignment and have worked together on requesting regulatory approvals We need more operators to actively participate in driving innovation as opposed to waiting for others to make it happen

35. Future Requirements Now think about 3 years from now, what capabilities will be required relative to Player tracking Table Games Multi-player games Others? What new types of devices will be connected to the EGM? What new technologies will you be attempting to loosely/tightly integrate into the EGM? What new businesses will you be building?

36. Future Requirements There is no limit to what can be accomplished using GSA standards We need to start thinking outside the box!

37. Vendor Product Release Schedule

39. How to achieve Interoperability How do we know that vendors have all correctly implemented the standards? Validation through GSA’s Certification program Standard Version implementation Aiming towards G2E interoperability demonstration for minimum agreed upon functionality

40. GSA Standards Implementation What does it mean to the Operator? What does it take to prepare?

41. A few Cold Hard Facts Every manufacturer is aggressively implementing G2S in its games SAS funeral is 1/1/11 Most server-based games will use G2S and require a high speed network Existing slot floor networks are obsolete G2S-based games will have cool new features that every casino HAS to have to remain competitive

42. Cost Justification GSA has commissioned a case study to assist in justifying the investment to senior management Costs/Benefits aside, the change is inevitable History repeats itself Bill Acceptors Ticket-In Ticket-Out

43. Major Migration Issues G2S game features likely to be available on premium games before “Legacy” slot accounting, player tracking and TITO systems can support G2S (a Bell Supposition, completely unsupported by substantiated facts but consistent with past industry experience in major new innovation) Impossible to make overnight conversion from Legacy to new G2S-based floor system. Time frame is multi-month to multi-year

44. Major Migration Issues (continued) Legacy and G2S-based systems MUST operate in parallel and harmony with each other to continue normal operations and minimize impact on casino operations Cold Hard Fact: Senior Management expects a transparent migration with no revenue interruption and a continuing level of superb customer service

45. Migration StrategiesOption 1 Buy G2S games when Senior Management wants them, wire floor as required for new games and continue purchasing SAS-based player tracking hardware for the next few years Wait for somebody to create an innovative, simple migration solution; or retire soon

46. Migration StrategiesOption 2 Wait a year or two and plan a massive, multi-million dollar Big-Bang conversion by perfectly executing a project plan which, in reality, can only be accomplished with Mythical Man Months Develop contingency career plan

47. Migration StrategiesOption 3 Work with your system vendor to implement S2S solutions for bridging the gap between Legacy and G2S floor systems DEMAND GSA-certified G2S games and S2S interfaces

48. Migration Methodology Legacy Systems Player Tracking Ticketing Accounting S2S Gateway S2S Gateway S2S Gateway S2S Protocol S2S Protocol S2S Gateway G2S Floor Network Proprietary Protocol G2S G2S GTM GTM GTM GTM GTM GTM Legacy Floor SAS-to-G2S SMIB G2S Games SAS SAS G2S

49. Organization Impact From New GSA Protocol Capabilities

50. Traditional Silos