FINANCIAL REPORT
2011 ACHIEVEMENTS
Standards Update
OAC
CIC
KEYNOTE
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.
2011
Lyle Bell
Adrian Marcu
Rick Gilhuly
Tom Beauchamp
Seminole Tribe of Florida
IGT
Manitoba Lotteries
Chairman
Vice – Chair
Secretary
Penn National Gaming
Treasurer
Jim Morrow
Walt Eisele
Aristocrat Technologies
Bally Technology
Melissa Price Caesars Entertainment
Jeanne-Marie Wilkins Isle of Capri
Steve Sutherland
Bob McKenzie
Don Doucet
MEI
SPIELO
Marc Pace WMS Gaming
Konami Gaming
Tom Beauchamp - Treasurer
Revenues
Expenses
Net
Equity/Cash
2011 Projected vs. Budget
2011 (projected) 2011 (budget)
$ 1,421,623 $ 2,084,850
($ 1,594,176)
($ 172,553)
$ 98,343
($2,148,768)
($ 63,918)
$ 206,978
Variance
(32%)
(26%)
(179%)
(53%)
Revenues
Expenses
Net
Equity/Cash
2012 Budget vs. 2011 Projected
2012 (budget) 2011 (projected)
$1,686,200 $1,421,623
($1,575,716)
$ 110,484
$ 208,828
($1,594,176)
($ 172,553)
$ 98,343
Variance
19%
(1%)
164%
112%
Peter DeRaedt - President
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
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
Canada
South America
Europe
Asia
Growing government interest
Austria
Greece
South Australia
GSA available to provide information and education
Ethan Tower – Director Standards Development
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.
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
Paul DiGrazia – Chair of the Certification and 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
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
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
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
Muriel Grimble – Executive Director Gaming Products and Services
AGLC
Carol Hardy – Assistant Director Marketing Oregon Lottery
Jim Lightbody – VP Casino and Community Gaming BCLC
October 5, 2011
Muriel Grimble
Executive 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)
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
Assistant 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
Operator Vision for the GSA
BCLC Jurisdictional Overview
Oregon Jurisdictional Overview
Alberta Jurisdictional Overview
Next Steps
Summary
Q&A
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
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)
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
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
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
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
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.
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.
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
Importance 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
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
Leveraging Our Current Products
Technology 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
“A player-centric gaming experience that encourages a healthy balance between sustaining revenue and Responsible
Gambling, and positions the AGLC for the future.
”
Project
Gaming Management
System
Enterprise Service Bus
Games Download and
Configuration
Player User Interface
Platform and Player
Experience Management
Status
• Awarded- Spielo
• Awarded- Software AG
• Acquired functionality as part of GMS- Spielo
• RFP issued Sept 16 th .
Closes Oct 13th
VLT Replacement
Telecommunication
Network
• RFP closed Sept 16th
• Awarded- Telus
Projected Timelines
2011 2012
VLT Modernization
2013 2014 2015 2016
Casino Modernization
Ticket Modernization
2017 2018
Bingo Modernization
Other Networks
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
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
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
Operator Initiatives
GSA
Manufacturers Regulators