Gaming Standards AssociationThe Drive to Protocol Standards

As Nevada Gaming Commissioner Randolph Townsend stated at a workshop: (the Boyd School of Law, Sep 2011)

To interest the next generation of casino players, the state has to be on the cutting edge of technology.

“Its not about the green felt anymore, its not about dealing cards anymore, its not even about slot machines anymore – its all about technology”

The Drive to Protocol Standards

Industry Getting Together Standards Update Regulator Benefits

Spheres of Influences Evolution of Gaming Regulatory Challenges Collaboration

INDUSTRY GETTING TOGETHER

PLATINUM MEMBERS

Industry Getting TogetherHistory / Structure

GSA is an international non-profit trade association of gaming manufacturers, suppliers and operators established in 1998

GSA is funded through corporate membership dues

GSA is organized in committees of members Board of Directors Technical committees (TRA, S2S, G2S, GDS, AOC) Certification and Interoperability Committee (CIC) Operators Advisory Committee (OAC)

Industry Getting TogetherMission Statement

The Gaming Standards Association (GSA) is an international trade association that creates benefits for gaming manufacturers,

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.

STANDARDS UPDATE

GSA Standards

Serial GAT Transport

GSA Standards

GDS – Gaming Device Standards – v1.2 April 2012 USB-based protocol used by Electronic Gaming Machines (EGMs) to

communicate with peripheral devices. Note acceptors, hoppers, printers, card readers, etc.

G2S – Game-to-System – v2.1 April 2012 Network-based protocol used to communicate between EGMs and

systems. Meters, events, ticket-in-ticket-out, progressives, bonuses, etc.

S2S – System-to-System – v1.6 March 2012 Network-based protocol used to communicate amongst gaming and

non-gaming systems. Player registration, player comps, table games, G2S support, etc.

GSA Standards

Transport – Points-to-Point and Multicast – v1.2 July 2012 A common set of network-based protocols used to communicate G2S

and S2S messages. SOAP, HTTP, TLS, NTP, DNS, DHCP, etc.

Serial GAT – Game Authentication Terminal – v4.0 Oct 2011 Serial protocol used to authenticate software on EGMs and their

peripheral devices. Can also be accessed through G2S and S2S.

GSA StandardsCertification

Streamlines the regulatory process by reducing quantity and variety of test to be performed

Provide assurance to regulators that an end-point meets the requirements of the protocol.

Notes: GSA certification is NOT regulatory certification. Regulatory requirements may go beyond the protocol requirements. Test labs must be ISO 17025 accredited for GSA standards. The technical committees produce a “checklist” of required and optional

features. A product may be certified for a subset of a protocol. Certified products are posted to the GSA website.

Central Monitoring System Recommendations (GSA OAC31 – S2S extensions)

Fixed Odds

Table Games

Parimutuel

Internet

Gaming Machines

Lottery

1. Registration of operators, properties, and EGMs

2. Reporting of wagers and winnings

3. Reporting of security-related events

4. Authentication of game software

5. Remote disablement of EGMs

REGULATOR BENEFITS

Regulators Benefits of Standards

First: Allows for more effective Monitoring Second: Provide more accurate Reporting

Access to data that can be used, manipulated and analyzed GSA standards put regulators in control

Owner/Guest host model enables detailed remote monitoring Unbiased access to data directly from the gaming end points On-demand compliance reports showing legality of installed software

versions (GAT) Configuration changes to gaming machines Peripheral firmware download to printers and bill validators Bi directional interrogation of gaming machines for validation of device

configuration Standards will help to better monitor and control the industry Share cross jurisdictional business and technical requirements

Unfettered Data Access for Regulators

Remote Regulatory Monitoring (G2S)

InternetGSA’s G2S Protocol

In-House Servers

RegulatoryServer

Regulatory server needs to be

always available

Remote Regulatory Monitoring (S2S)

InternetGSA’s G2S Protocol

RegulatoryServer

In-House Servers

Remote Regulatory Server usesS2S or existing protocol to

receive accounting meters andevents through in-house serverSite Controller

SPHERES OF INFLUENCES

PLAYER

REGULATOR

PA RT I C I PA N T S I N G A M I N G

OPERATOR

Policy Makers Domain

Consumer Domain

Industry Domain

T H E S TA K E H O L D E R S D O M A I N S

Governments (Tribal, State, Federal), Policy Makers, Regulators, Law Enforcement, Legal systems

Family Members, Morals and Social groups and the Public

Operators, Test Labs, Service Providers, Trade Organizations, Supporting Industry, Unions, Lobby groups

Sets proper behavior - Awareness, Educational Campaigns, Public funding of NGO & Agencies

Expects to be protected as a player and as a consumer through preventive measures and Public Information. In some societies he expects to be compensated also for the cost of remedial measures.

Demands higher economic benefits

Increases product awareness and facilitates accessibility

Controls the gaming market by setting the parameters on legal rights through licensing, performs Integrity checks, establishes standards and procedures, carry our continuous monitoring and supervision of the industryDemands share of control, Self regulation

BALANCING THE FORCES

PLAYER

Regulating Land Based Gaming

GAME

Gaming Establishment

Full Control of POINT OF

PRODUCTION

Full Control of POINT OF

CONSUMPTION

Same political jurisdiction THE LOCATION OF THE

WAGER IS WHERE IT IS

• OFFERED,

• ACCEPTED, &

• RECORDED

REGULATOR

OPERATOR

O N L I N E G A M I N G R E G U L AT O R Y M O D E L

The Internet

Gaming Server

Plays Remotely

Manages the Gaming Services

Remotely

Point of Production

Point of some Economic Benefit

Point of Consumption

Point of Real Economic Benefit

THE LOCATION OF THE WAGER IS

WHERE IT IS:

• OFFERED,

• ACCEPTED, &

• RECORDED

Location of an Online Wager

The 3 locations of the wager is where it is Offered, Accepted and Recorded.

These locations may be in different political/judicial boundaries

Currently all jurisdiction regulates the location where the wager is offered

Jurisdictions that control their gaming markets insist that these locations must be one and the same

EVOLUTION OF GAMING

Evolution of Gaming

Stand Alone EGM Accounting / Player Tracking /

Security

TITO / Download / Remote Config

Online Gaming / Cloud

0

1

2

3

4

5

6

7

8

9

10

Complexity

GSA formation

Operators, Test Labs

GSA a Platform for Global Collaboration

Protocol Standards / Interoperability

Cross Jurisdictional standard reporting,

Online player protection

INDUSTRY DOMAIN

POLICY DOMAIN Monitoring / Reporting/Transparency

Multiple Standards

Evolution of Gaming Regulation

• Game Centric • System Centric

• Gaming Policy focused on games played within controlled environment• Technical Standards re cabinet, assoc. equipment, communication• Testing & Certification• Investigation & Audit• All gaming activity within licensed property

• Online gaming challenges principles of existing regulations• Gaming device outside controlled environment• Everything is happening on the system• System parts can be located outside jurisdictional control• Focus of regulatory control needs to be on the system

Approach to Regulatory Policy

• Prescriptive

• Risk-

Based

ENFORCING RULES

e.g.: Suitability as operator – check everything about the candidate

When operating a casino, a regulator does not check every game.

Operator does that based on a set of procedures

There are a set of check/balances

?

How do we achieve a balance?

A Standards Based Approach

• Standards

•Prescriptive

• Risk-

Based

• Transparent

everyone aware of same requirements/obligations

• Subjective

No interpretation to the rules• Collaboration

Wikinomics based on open standards• Reduce costs

As control systems are standards based• Drive innovation

Easier for community to develop new

technologies based on open standards

A standards based approach to regulations is ideal for regulators and operators since it is:

REGULATORY CHALLENGES

Challenges for RegulatorsTechnology

Rapid technology innovation extending gaming from rigidly regulated platform to public personal device

Game centric to System centric

Regulators are loosing full control of the gaming ECO system

Regulators need better systems to reach out to the game play

Regulators developed standards somewhat in isolation

Challenges for Regulators

Regulators everywhere face the same challenges of collecting, processing and reporting information more efficiently, accurately and cost effectively

Regulators need the tools to monitor the industry and protect the consumer and they need to be preventative rather than curative

The amount of information that needs to be processed is beyond the current resources

Online gaming collaboration between the various stakeholders in the industry is essential to create solid regulations using common standards

Regulators Benefits of Standards

For anyone in the regulatory community responsible for gathering and preparing large amounts of data for analysis and decision making, standards based reporting offers substantial benefits by:

Improving the quality, accuracy and reliability of information as it

enters, is processed within and then reported by regulators Enhancing the breadth and depth of information that can be included

in analyses and reports on a routine basis, with minimal to no added cost

Addressing the need to find long-term solutions to pulling time and costs out of the reporting process

Encouraging stronger ongoing communication and cooperation among members of a regulator’s information supply chain through development and usage of shared information standards

PWC – standards based regulatory reporting / XBRL

Without standards we don’t have benchmark for practices for online gaming

COLLABORATION

MacroWikinomicsAnthony D Williams

MacrowikinomicsMass collaboration – by engaging all stakeholders - is reinventing the way businesses communicate, solve business problems, create value and compete in the new world economy.

We are faced with many global threats that undermine global peace and stability:

Cyber attacks Food security (e.g.: tainted milk) Toxic toys Climate change Water scarcity Emerging technologies Infectious diseases…

http://anthonydwilliams.com/2011/01/20/a-regulatory-system-that-learns-and-improves/A regulatory system that learns and improves

The New World of Collaboration

Collaboration

Todays citizens are armed with information and willing and able to solve these issues. How to make them an extension of the regulatory system and bring the gaming industry together?

GSA has the ability to re-invent itself by moving away from the protocol centric focus and create an environment allowing global collaboration addressing the true needs of the industry. GSA should invite other stakeholders to join on this quest.

Thank you to all GSA contributors

A great book to read - “FATAL SYSTEM ERROR”

“Open Standards give you peace of mind”

STANDARDS

CERTIFICATION

MEMBERSHIP

www.gamingstandards.com