Social Gaming Considerations

Social Gaming

Considerations

Casino Gaming Technology Advances

Casino Gaming Technology

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.

Unregulated Gaming Technology

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.


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%.


• 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.


54 milliondaily active players

23 millionmonthly active users

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.

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.

UK Office of Fair Trading

1. Information on costs2. Material information on the game3. Contact details and complaints

handling4. Commercial intent of the game5. In-game purchases must not

appear necessary unless they are6. No use of commercially aggressive

strategies7. No direct exhortations aimed at

children8. No unauthorized payments

GLI VoluntarySocial 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

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?

In the meantime, the games will continue.

Thank You!

Kevin Mullally

Vice-President of Government Relations

and

General Counsel

Gaming Laboratories International

(702) 236-9508

[email protected]

Questions?

Documents

Social Gaming Considerations