1. Social Gaming Considerations

2. Casino Gaming Technology Advances

3. Casino Gaming Technology

4. Unregulated Gaming Timeline
Introduction of modern video game consoles led to decline in video game arcades in the late 1980's.
Introduction of Gameboy handheld in 1989.
Sony Playstation introduced CD-ROM technology in 1995 along with 64-bit technology that would lead to modern gaming experience with games like Madden and Guitar Hero.
Mobile phone gaming began to emerge in 1997.
In 2001 Microsoft introduces Playstation and we begin to see console gaming interacting via the Internet.
Japanese culture spawned the first wave of mobile phone gaming applications that quickly spread to U.S. and Europe.

5. Unregulated Gaming Technology

6. Social Gaming Convergence
One recent study by a mobile analytics company found out of 780 million active participants of social games, a sizeable 90 million of those are playing casino-style games.

7. Social Gaming Convergence
That same study noted that during 2011, the use of casino-style social games increased by 60% while players of other social game types increased by 13%.

8. Social Gaming Convergence
Current estimates suggest approximately 200 million people play social games on social networking sites at least once a day.
By 2019, nearly 400 million people will play social games on a daily basis.

9. 54 million daily active players
Social Gaming Convergence
54 million daily active players
23 million
monthly active users

10. Social Game Characteristics
Played for entertainment
Played through social networks
Players may play at little to no cost
Many games are designed with social interaction and competition among players in mind.

11. Business Models
Generally, there are two business models employed in the social games industry:
Up-front cost for the game or application
Buy the application like Angry Birds
Free game or application with in-game purchases available to enhance the entertainment experience
IGT’s Double Down poker allows you a fixed amount of free chips per day with the option of buying more chips for money.

12. UK Office of Fair Trading
Information on costs
Material information on the game
Contact details and complaints handling
Commercial intent of the game
In-game purchases must not appear necessary unless they are
No use of commercially aggressive strategies
No direct exhortations aimed at children
No unauthorized payments

13. Social Gaming Standard
GLI Voluntary
Social Gaming Standard
Focus on player protection
Uses a tiered audit model
Game transparency
Security for:
Player accounts
Payment processing
Game play
Network security
3rd Party verification of:
Game functionality
Responsible gaming measures
Payment processing
Age verification (if any)
Parental monitoring tools

14. Is the Mobilization of Gaming Content "Expansion" or "Modernization"?
The Internet has become a critical delivery channel for almost all forms of commerce
Movies
Banking
Insurance
Retail
It has created new industries
Monetization of social relationships
Communications
Does is make gaming more dangerous or safer?
What are the future economics of gaming?

15. In the meantime, the games will continue.

16. Questions? Thank You! Kevin Mullally
Vice-President of Government Relations and
General Counsel
Gaming Laboratories International
(702)