Annual Meeting 2011 AGENDA FINANCIAL REPORT

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 DIRECTORS 2011 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 Technologies Walt Eisele Bally Technology Melissa Price Caesars Entertainment Jeanne-Marie Wilkins Isle of Capri Steve Sutherland Konami Gaming Bob Mc. Kenzie MEI Don Doucet SPIELO Marc Pace WMS Gaming

Tom Beauchamp - Treasurer FINANCIAL REPORT

FINANCIALS 2011 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%)

FINANCIALS 2012 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%

Peter De. Raedt - President 2011 ACHIEVEMENTS

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

Ethan Tower – Director Standards Development STANDARDS REALIGMENT

STANDARDS UPDATE § December – Serial GAT 3. 50 released. § Clearly defined the implementation and certification requirements for Serial GAT. § February – S 2 S 1. 5 released. § Resolved long-standing ambiguities in S 2 S communications and took the first steps in aligning S 2 S with G 2 S. § March – G 2 S 1. 1 released. § Consolidated clarifications and corrections to G 2 S 1. 0. Clearly established the core requirements for G 2 S 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 – S 2 S 1. 6 completed and member ratification process started. § Includes enhanced download and GAT support plus alignment of player tracking with G 2 S. § August – G 2 S 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, S 2 S 1. 6, and G 2 S 2. 1. GSA STANDARDS HAVE BEEN STABILIZED AND READY FOR

Paul Di. Grazia – Chair of the Certification and Interoperability Committee CIC

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 G 2 S v 2. 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 KEYNOTE

Evolution of the GSA Keynote 2011 October 5, 2011

Muriel Grimble WHY ARE WE HERE?

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)

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 Hardy Assistant Director, Marketing § Been in the gaming industry since the late 1980 s § Responsible for the product development and management of a portfolio of seven traditional product lines and Video Lottery Products § A $1. 04 B 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 (G 2 S, S 2 S, GDS) § G 2 S 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 $720 M 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 G 2 S Central System Deploying new VLTs based on G 2 S Upgrading the WAN to Ethernet from Frame Relay Installing Ethernet LAN wiring in 2300 retail locations

Oregon 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

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

Oregon 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

Alberta Jurisdictional Overview

The Gaming End-State – 2018 3 201 5 2018 “A player-centric gaming experience that encourages a healthy balance between sustaining revenue and Responsible Gambling, and positions the AGLC for the future. ”

Gaming Program Phases

VLT System and Hardware Replacement Project Update Project 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 16 th. Closes Oct 13 th VLT Replacement • RFP closed Sept 16 th Telecommunication Network • Awarded- Telus

Gaming Program Projected Timelines 2011 2012 2013 2014 2015 2016 2017 VLT Modernization Casino Modernization Ticket Modernization Bingo Modernization Other Networks 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 Operator Initiatives GSA Manufacturers Regulators

Q&A

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RECOGNITION

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