2. NAGRA 2006 Scottsdale, AZ The New Mexico Model

3. NEW MEXICO GAMING CONTROL BOARD  Established By Statute In 1997 Agreed Upon Relationship Between Compacts and “Limited” Non-Tribal Gaming  Began Operations in July 1998  Direct Regulation Of: Legalized Gaming  Racetrack and Not For Profit Casinos  Bingo and Raffle Oversight Of Tribal Compacts

4. JCS – Jurisdictional Control System The JCS is a computer system used to monitor and control the individual slot machines on a casino floor.

5. JCS – In New Mexico  Currently running two systems. The legacy system has been in place since 1999 and still serves four racetrack casinos and 67 non- profit casinos. System will be phased out in about a year. The replacement system is called AEGIS (Advanced Electronic Gaming Information System from Scientific Games) and has communications based on SAS with the ability to encompass any new protocols.

6. JCS - Tribal  The JCS in New Mexico has the capability and capacity to monitor all Tribal Casino floors but under the current Compacts this is not a requirement.  Tribal monitoring is done by a sharing of information as defined by the agreements within the Compact.

7. JCS - Defined  A JCS is NOT a slot accounting system. It is a system that monitors the compliance of the individual machine. The system, verifies and controls the software versions in the game at a binary level and Guarantees the software is compliant with the laws and rules of the jurisdiction. ( NO TAPING OF EPROMS IS NECESSASARY)

8. JCS - Continued  The JCS captures all events on a Gaming Device including all Coin meters and internal interlocks giving the regulator complete information about net-revenue, game play and machine entries.  The system provides a daily transaction of each GM and Venue. In New Mexico, a slot accounting system MUST reconcile with the JCS and Revenue Payments are based on the JCS record only.

9. JCS - Continued  The JCS provides the regulator the ability to disable any individual machine or an entire venue at the order of the Board for any cause.  In New Mexico, venues are limited to a certain number of gaming hours per day. The JCS will automatically disable all machines at all venues at the end of the official gaming day.

10. Pros and Cons  New Mexico uses the JCS as a regulatory tool to enhance the regulatory process by keeping tighter control over the Games and the all important Coin-In and Coin Out.  The JCS allows our Enforcement and Audit staff to concentrate on the other aspects of Regulation (The People, Security and Surveillance, Minimum Internal Controls and the Money!)

11. Pros and Cons - Continued  The JCS requires a highly trained technical staff and better trained Slot Technicians at the venues.  It requires more planning of Casino and GM changes and constant communication between the regulator and the licensee.  It (potentially) has a limiting influence on GM variety due to Manufacturer participation with the Protocol. (New Mexico has solved this with a SAS protocol based system)

12. Considerations  New Mexico did the analysis! The JCS allows us to effectively regulate a very large state with widely dispersed venues far more cost effectively than with the traditional human driven process. (We currently have 59 employees and would have to have more than 100 in multiple large field offices in lieu of the system) The system is far more accurate and timely in capturing GM data. The data from the system is court admissible.

13. Considerations  The JCS provides Real Time control over the GMs and daily billing. (NMGCB NEVER has to await financial reports from a venue. We give the venue daily reports on their net- revenue and we bill them monthly with an indisputable number.) The State receives its share upfront and the regulator is never chasing the dollar!

14. Conclusion A Central Monitoring System is not the only, nor even best, tool for regulation. That remains in the domain of a trained and motivated staff. What it does provide is direct control over Slot Machine Gaming, and Revenue capture. It insures to the public the integrity and fairness of the games they play, and allows the gaming regulator the knowledge that this aspect of the regulatory function is beyond compromise.

15. For Questions Please Call: Greg Saunders Deputy Executive Director Chief Information Officer Public Information Officer gsaunders@nmgcb.org (505) 841-9716