nclgs addiction, game design & game revenue june 7, 2014

company confidential

NCLGSADDICTION, GAME DESIGN & GAME REVENUE

June 7, 2014


In the beginning…

Consideration - Risk - Reward

It was a simpler time…


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%.


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?


drilling down

13:69E-1.28A Standards for the approval of a slot machine game

(a)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.


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.


drilling down


(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.


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.


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


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.


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.


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.


drilling down


(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 Flush5 coin wager


drilling down


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.


drilling down


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.


drilling down


(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.


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


final notes

Source code reviewed to ensure the following are implemented correctly:

> Reel strips

> Weighted tables

> Basic Rules of the game


design standards

nclgs addiction, game design & game revenue june 7, 2014

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