Annual Meeting 2011

AGENDA

FINANCIAL REPORT

2011 ACHIEVEMENTS

Standards Update OAC CIC

KEYNOTE

PLATINUM MEMBERS

MISSION STATEMENT

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.

BOARD OF DIRECTORS2011

Lyle Bell Seminole Tribe of Florida Chairman

Adrian Marcu IGT Vice – Chair

Rick Gilhuly Manitoba Lotteries Secretary

Tom Beauchamp Penn National Gaming Treasurer

Jim Morrow Aristocrat TechnologiesWalt Eisele Bally TechnologyMelissa Price Caesars EntertainmentJeanne-Marie Wilkins Isle of CapriSteve Sutherland Konami Gaming

Bob McKenzie MEIDon Doucet SPIELOMarc Pace WMS Gaming

FINANCIAL REPORTTom Beauchamp - Treasurer

FINANCIALS2011 Projected vs. Budget

2011 (projected)

2011 (budget) Variance

Revenues $ 1,421,623 $ 2,084,850 (32%)

Expenses ($ 1,594,176) ($2,148,768) (26%)

Net ($ 172,553) ($ 63,918) (179%)

Equity/Cash $ 98,343 $ 206,978 (53%)

FINANCIALS2012 Budget vs. 2011 Projected

2012 (budget) 2011 (projected)

Variance

Revenues $1,686,200 $1,421,623 19%

Expenses ($1,575,716) ($1,594,176) (1%)

Net $ 110,484 ($ 172,553) 164%

Equity/Cash $ 208,828 $ 98,343 112%

2011 ACHIEVEMENTSPeter DeRaedt - President

ORGANIZATION

Reorganized GSA Streamlined policies Enhanced membership value

Providing members with R&D and operations advantage over competitors

Providing members more control as they are directly invested Exclusive for members

Standards Certification Manufacturer ID code

Reassessment of membership benefits Introduction of Bronze membership level

MEMBERSHIP & CERTIFICATION

Certification requires membership To participate in fault reporting and resolution processes To get access to critical updates (technical bulletins) Lose product certification when membership lapses

Manufacturer ID (MID) code given to members only Issued by GSA to one company only for its sole and exclusive

use May not be sold, transferred or used by others Unauthorized use is strictly forbidden Termination of membership will lead to revocation of MID

Industry created and managed test scripts

EDUCATION

Canada South America Europe Asia

Growing government interest Austria Greece South Australia

GSA available to provide information and education

STANDARDS REALIGMENTEthan Tower – Director Standards Development

STANDARDS UPDATE

December – Serial GAT 3.50 released. Clearly defined the implementation and certification

requirements for Serial GAT.

February – S2S 1.5 released. Resolved long-standing ambiguities in S2S communications

and took the first steps in aligning S2S with G2S.

March – G2S 1.1 released. Consolidated clarifications and corrections to G2S 1.0. Clearly

established the core requirements for G2S implementations.

May – Serial GAT 4.0 completed and member ratification process started. Includes authentication of peripheral devices such as note

acceptors and printers.

STANDARDS UPDATE

July – GDS 1.2 completed and member ratification process started. Includes clarifications and corrections to GDS 1.1. Adds full multi-lingual

support and 2-D barcode support.

August – S2S 1.6 completed and member ratification process started. Includes enhanced download and GAT support plus alignment of player

tracking with G2S.

August – G2S 2.1 completed and member ratification process started. Include various OAC extensions, manufacturer extensions, and other

significant functionality improvements. 

October – Planned release of Serial GAT 4.0.

Year-End – Planned release of GDS 1.2, S2S 1.6, and G2S 2.1.

GSA STANDARDS HAVE BEEN STABILIZED AND READY FOR ADOPTION

CIC

Paul DiGrazia – Chair of the Certification and Interoperability Committee

CERTIFICATION & INTEROPERABILITY COMMITTEE

Charter Drive guidelines to enable interoperable business solutions Define, manage & promote GSA certification program

Accomplishments Developed initial proposal for common set of GSA test scripts Created interoperability testing framework & templates

Next Steps Finalize approach & timeline for creating GSA test scripts Plot new GSA interoperability assets for upcoming projects

GSA CERTIFICATION VS. GSA COMPLIANT VS. INTEROPERABILITY

GSA Certification Vendor compliance to GSA Certification Guide GSA approved lab certifies vendor implementation

GSA Compliant Vendor protocol implemented per GSA standards Protocol implementation NOT certified by GSA approved lab

Interoperability Ability to operate in a multi-vendor gaming environment Focused on vendor ability to deliver end-to-end, product level,

business solutions

VALUE OF GSA CERTIFICATION

Operator Provides industry foundation for innovative gaming concepts to

drive coin in Strategic component in making purchase decisions Improve Operator’s product acceptance testing process

Vendor Pre-requisite for providing reliable, interoperable gaming

content Reduce costs & time to market associated with developing

multi-vendor, interoperable solutions Eventual industry interoperability requirement

ACCELERATING GSA CERTIFICATION

Operator adoption of Interoperable network products

GSA Certification needs to be an open book test: GSA Certification & Interoperability Committee (CIC)

developing common set of test scripts for the industry to ensure consistency of certification

Reduces vendor costs for achieving & maintaining GSA Certification

Industry certification focus remains GSA standards G2S v2.1 for the near term

KEYNOTE

Muriel Grimble – Executive Director Gaming Products and Services AGLCCarol Hardy – Assistant Director Marketing Oregon LotteryJim Lightbody – VP Casino and Community Gaming BCLC

Evolution of the GSAKeynote 2011October 5, 2011

Why are we Here?Muriel Grimble

Muriel GrimbleExecutive Director, Gaming Products and Services

Been with AGLC for 25 years growing the business from a small instant lottery ticket market to a multiple channel enterprise gaming jurisdiction

Responsible for the strategic direction and development of Alberta’s $1.5 billion Gaming Business:

25 casinos and 3 Racing Entertainment centers 6000 Video Lottery Terminals Electronic Bingo Ticket Lottery

Co- Chair of Canadian Cross Country Working Group (Oregon)

Jim Lightbody Vice-President, Casino and Community Gaming

BCLC since 2001 - VP of Lottery Gaming

Helped transform and grow the lottery business through increased focus on channel partner relationships, data analytics, marketing, product development and overall customer centricity

Serves as VP of Casino, Casino and Community Gaming responsible for the strategic direction and business development for: 17 casino’s 12 community gaming centre’s and a $1.6 billion line of business

Carole HardyAssistant Director, Marketing

Been in the gaming industry since the late 1980s

Responsible for the product development and management of a portfolio of seven traditional product lines and Video Lottery Products A $1.04B business

Responsible for market research and sales analysis, corporate advertising and Internet Marketing programs

Chair of the Oregon Council on Problem Gambling

Avid supporter of Oregon’s role in the GSA

AGENDA

Operator Vision for the GSA

BCLC Jurisdictional Overview

Oregon Jurisdictional Overview

Alberta Jurisdictional Overview

Next Steps

Summary

Q&A

Operator Vision for the GSA

Why are standards so important to us?

Standardization is central to our strategy of providing customers with the products they want, and when and where they want them

Standards are critical to interoperability and improved time to market of gaming products

Interoperability is also critical to our strategy of implementing Best of Breed solutions

Lower product cost, decreased customization

Helps to facilitate the convergence of across gaming businesses

How has the GSA/OAC Relationship Supported our Business Strategy to

date? Protocols

Full featured, non-proprietary gaming protocols (G2S, S2S, GDS)

G2S as Wide Area Protocol

Standards PUI – Player User Interface Responsible Gaming

Interoperability and Certification (current focus)

Workgroup efforts on Internet Gaming (current focus)

GSA Current State

High percentage Vendor representation on board

Effective Operators Advisory Committee

Active Certification development committee

Strong technical committees resourced by the Vendor community

Third party labs active within the membership

Funding model based on tiered dues structure

Critical Success Moving Forward

Increased Operator Membership

Increased Operator Leadership Aligns the GSA to market needs

Partnership with Regulators Regulators recognize they can also benefit from

standards A group of forward thinking Regulators are working with

the GSA to identify regulatory areas that lend themselves to standardization

Critical Success Moving Forward

Stabilized Funding A new business model must be developed to sustain the

GSA Allows GSA to expand the scope of its Standardization

initiatives

GSA must move to fulfill its broader standards mandate and move beyond protocol standardization to become a comprehensive standards organization Our industry must continue to focus on those things that

add business value and standardize the plumbing

The Urgency

Although there are 3 jurisdictions here today, we are a small representative group of a much larger operator community aligned with this strategy.

The planning and research is over… For the current suite of protocols

We are implementing strategies focused on the principles of converging gaming businesses

BCLC Jurisdictional Overview

Gaming Management System

With a corporate objective of creating a player centric company, BCLC must invest in infrastructure and technology to support current operations and enable future growth.

It will enhance revenue, integrity of our operations, improve our social responsibility in gaming facilities and deliver an enhanced gambling experience to our current and future players.

We will build public trust and support for BCLC gaming.

Trendlines

Operators are faced with rising cost of technology: Operators cannot continue to spend more and more dollars on

integrating proprietary technology. We must maximize effective use of limited budgets by leveraging standards with legacy systems and new mobile platforms.

Having no standards results in: Increased risk Increased cost Slower time to market

BCLC’s Vision: Customer-centricity Plug and Play capabilities Best of breed We want to be integrators of platform technologies: standards

are a way for BCLC to reach our vision while decreasing time to market.

Oregon Jurisdictional Overview

Oregon

Jurisdictional Overview

Oregon operates over 12,000 VLTs in a Wide Area Network consisting of 2300 retail locations

In Fiscal Year 2011 Video Lottery generated over $720M in net sales

Today’s VLT network is comprised of products from 4 suppliers and based on the proprietary DXS-4 protocol

Oregon’s #1 gaming initiative is to migrate from a proprietary Video Lottery gaming product to one based on GSA standards by: Implementing a G2S Central System Deploying new VLTs based on G2S Upgrading the WAN to Ethernet from Frame Relay Installing Ethernet LAN wiring in 2300 retail locations

OregonImportance of Certification

Certification and Integration is crucial to Oregon’s plan to migrate to a new generation VL product

Oregon’s vision for the future is that products based on GSA protocols, standards and guidelines are tested, certified and integrated at a base level before they are marketed to operators We want more of a plug-n-play environment

As a standards organization the GSA must lead VLT and system vendors towards product certification and interoperability

Oregon Technology Convergence

Oregon’s goal is to create a single view of the player To continuously enhance the player experience with products,

and Improve our ability to interact with our players

Create games experiences that tap into social media

First leverage our current product portfolios Play for fun games Create loyalty

Oregon

Leveraging Our Current Products

OregonTechnology Convergence

Backbone of responsible gambling Future loyalty programs Future gaming libraries

Vision is the PUI could provide Internet delivered game content on VLTs or standalone devices

Need to develop standards to set the stage for US operators as we venture into Internet, mobile and social gaming

Alberta Jurisdictional Overview

“A player-centric gaming experience that encourages a healthy balance

between sustaining revenue

and Responsible Gambling,

and positions the AGLC

for the future.”

The Gaming End-State – 2018 The Gaming End-State – 2018

Gaming Program Phases

VLT System and Hardware Replacement

Project UpdateProject Status

Gaming Management System

• Awarded- Spielo

Enterprise Service Bus

• Awarded- Software AG

Games Download and Configuration

• Acquired functionality as part of GMS- Spielo

Player User Interface Platform and Player Experience Management

• RFP issued Sept 16th. Closes Oct 13th

VLT Replacement • RFP closed Sept 16th

Telecommunication Network

• Awarded- Telus

Gaming ProgramProjected Timelines

2016 2017201520132012 20142011 2018

Operator - Next Steps

OAC members are purchasing and implementing systems based on GSA standards ALC Alberta BCLC OLG Oregon Quebec Coming soon: Manitoba and Saskatchewan

With Standardization, more is better. More operators implementing standards means more vendors/products, more cost effective delivery = more business value

The continued evolution of our business strategies depends on standardization and partnership with the GSA is our obvious choice

Keynote Summary

Standardization is central to our strategy of providing customers with the products they want, and when and where they want them

Standards are a critical to interoperability and improved time to market of gaming products

Interoperability also critical to our strategy of implementing Best of Breed solutions

Lower product cost, decreased customization

Internet and mobile are becoming realities in our businesses. Need a way to integrate these channels into on our legacy businesses

Helps to facilitate the convergence of across gaming businesses

Keynote Summary cont.

Investment in the GSA We view the cost associated with developing standards as an

investment in achieving our business strategies not a cost

The governance of the GSA must evolve into a 3 way partnership of Operators, Regulators and Manufacturers

Operators

RegulatorsManufacturers

GSAGSA

Operator Initiatives

RECOGNITION

THANK YOU