The UNLV IGI Global Gaming Capital Initiative · media attention. Dr. Yoseloff’s insights into innovation in gaming was covered in a piece in the Las Vegas Sun while Troy Pettie

TheUNLVIGIGlobalGamingCapitalInitiative

QuarterlyProgressReport

ReportingPeriod:July 1sttoSeptember 30th,2016

October31,2016

Global Gaming Capital Initiative at UNLV

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TableofContents SectionI:ProposalProgress..................................................................................................................................................2

1. MajorAccomplishment1..........................................................................................................................................3



4. AdditionalAccomplishments..................................................................................................................................5

5. Commercialization/Partnering........................................................................................................................10

6. IntellectualProperty................................................................................................................................................12

7. Programmatic&ProjectChanges......................................................................................................................12

8. LookingForward........................................................................................................................................................12

SectionII:Performance.........................................................................................................................................................13

Table1:ProgressTowardMetrics...................................................................................................................................14

ProjectScorecardNarrative...............................................................................................................................................15

SectionIV:MonthlyLogsofActivitiesforReportingQuarter.........................................................................16

SectionV:Appendix.................................................................................................................................................................18

Appendix1–Sales/ClientSheet......................................................................................................................................18

Appendix2–ScorecardSupportingDocumentation...............................................................................................22


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ProjectPurposeTheGlobalGamingCapitalInitiative(GGC)seekstoreinforceNevada’spositionastheworld’sthoughtleaderingamingandhospitality,whichremainthelargestcontributorstoNevada’soveralleconomyandthelargestcontributorsofjobsforNevadans.TheaccelerationofglobalizationandtheriseofnewtechnologiesthreatenthecontinuedviabilityofNevada’sgaming‐relatedeconomy,andfocusedinvestmentinresearchandinnovationisnecessarytomaintainNevada’scompetitiveadvantage.Inresponse,theUNLVInternationalGamingInstitute(IGI)hasproposedastrategythatwill:

1. Providetworeports(onefocusingondesignandonefocusingonindustry,government,andacademicstrategy)thatwillresearch,define,anddeveloprecommendationsfor“TheIntegratedResortof2050.”Specifically,thisprojectwilldevelopinitiativesthatensurethatstakeholdersaredoingallthattheycantoensurethelong‐termhealthofthegaming/hospitalitysectorinNevada.

2. BuilduponasuccessfulexistingmodeltocreateinnovativeandcommerciallyviablegamesthatattractthenextgenerationofgamblersthroughtheCenterforGamingInnovation(CGI).

3. Increasetheefficiency,productivity,andprofitabilityofnon‐gamingoperationsinintegratedresortsthroughthecollaborationofindustry,entrepreneurs,andUNLVstudentinventorsthroughtheHospitalityLab.

4. Examinethecostsandspeedtomarketchallengesforgaminginnovationsbyconductingresearchthatexploresthesekeyissues,andthenadvocatingformoreconsistentregulationacrossjurisdictionswhereappropriate.

5. StrengthentheeconomyofNevadabydevelopinginitiativesthatexpandtheleadershiproleofwomeninthegamingindustry,therebyexpandingthepooloftalentavailabletoleadthisindustry.

TheGovernorhasstatedhiscommitmenttoreinforceNevada’sstatusastheglobalintellectualcapitalforgamingandhospitality,andhascalleduponUNLVtoleadtheway.ThisGlobalGamingCapitalInitiativeanswersthatcall,witheffectiveandappropriateacademically‐basedstrategiestoachievetheseobjectives.


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SectionI:ProposalProgressDuringthereportingquarter,theGlobalGamingCapitalInitiativehascontinuedtoprogresstowardmeetingproposedmetrics.Majoraccomplishmentsforthecurrentreportingperiodinclude:

1. MajorAccomplishment1:UNLVInnovationShowcasedattheG2EGlobalGaming

Expo’sInnovationLabInlateSeptembertheAmericanGamingAssociationofferedthefirst‐everInnovationLabattheG2EGlobalGamingExpo.Locatedintheheartoftheshowcasefloor(directlyoppositeofIGT’sownshowcasespace),theInnovationLabofferedthreedaysofpresentationsanddiscussionsonchangesinthegamingindustryandshowcasedfutureinnovations.TheCenterforGamingInnovationwasinvitedtoparticipateinthiseventandwasfeaturedprominentlyonthefirstandsecondday.ThreestudentinnovationswerepresentedandshowcasedontheopeningdayoftheInnovationLab.TroyPettieandEvanThomasdemonstratedtheirradicalnewpuzzleslotgame“LineemUp”(whichseekstosolvetheindustryproblemofaddingskill‐basedgamestoattractMillennials);BrittneyMartinodemonstratedherLightShieldCardshoe(designedtoeliminateedgesorting,amajorproblemthatledtotensofmillionsinindustrylosses);andJohnLukasikdemonstratedhishouse‐bankedfantasyfootballgameScoringFrenzy(whichcreates,forthefirsttime,acompellinghouse‐bankedfantasyfootballgame,therebypotentiallylaunchingthefantasyfootballwageringerainNevada’ssportsbooks).Inadditiontothesethreestudentpresentations,Dr.Yoseloffgaveapresentationonthestateofinnovationinourindustrytoday.Allofthesepresentationsattractedsizeableaudiences,werewellreceived,andgeneratedmediaattention.Dr.Yoseloff’sinsightsintoinnovationingamingwascoveredinapieceintheLasVegasSunwhileTroyPettieandEvanThomas’groundbreakingpuzzleslot“LineemUp”receivedawrite‐upandvideointheLasVegasReviewJournal.AsaresultoftheirdemonstrationsattheG2EInnovationLab,allthreestudentinnovationsreceivedpromisingcommercializationleadswithmajorcasinogamedistributors.HospitalityLabdirectorRobertRippeealsogavepresentationsoneSports,Hospitalityinnovation,androboticsanddronesinhospitalityattheInnovationLab.


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TheLabgeneratedsignificantmediainterest,including:LasVegasReviewJournal.September."UNLVStudentsdevelopCandyCrush‐likegameforcasinos.ArticlefeaturesCGIstudentinventorsTroyPettieandEvanThomasandtheirboldnewslotgame.http://www.reviewjournal.com/business/casinos‐gaming/unlv‐students‐develop‐candy‐crush‐game‐casinosLasVegasSun.September."UNLVgamingexpertlamentsindustry'slackofinnovation."ArticlefeaturesDr.Yoseloff'stakeonthestateofinnovationingamingtoday.http://lasvegassun.com/news/2016/sep/29/unlv‐gaming‐expert‐laments‐industrys‐lack‐of‐innov/

2. MajorAccomplishment2:IGIdesigns,develops,andlauncheseSportsLabRobertRippee,DirectorofHospitalityLab,launchedNevada’sfirst(andquitepossiblythefirstever)eSportsLabatamajoruniversity,andcreatedNevada’sfirst(andquitepossiblythefirstever)eSportsclass–builtuponthefoundationsofIGI’sestablishedmodelofclassroom‐basedinnovation.TheclassisbaseduponexploringandpotentiallyfulfillingafundamentalproblemfacingNevada’sIntegratedResort(Casino)Industry:HowtoengagethemillennialbycreatinganeconomicallyviablebusinessmodelforeSportsintheIntegratedResort.Thecoursewasopenedforregistrationtwoweekspriortothebeginningofthesemester,andfilledwithinafewdays.Thetwenty‐onestudentsrangefromundergraduatebusinessandhospitalitytoLawSchoolstudents.Moreinformationwillfollowinthenextreport(whenthesemesterends),asindustryshowcasesandmentorshipinitiativesarethrivinginthisnewenvironment.

3. MajorAccomplishment3:GOED/GovernorSandoval’sTradeMissiontoAustralia.

InlateJulyandearlyAugust,IGIExecutiveDirectorBoBernhardwasinvitedtothistrademissiontohelporganizethemission’sgaming‐orientedinitiatives.Thissuccessfulvisitincludedseveralmajorgamingmilestones,including1)visitswithCEOsfromIGT,SciGames,Ainsworth,andAristocrattodiscusschallengesandopportunitiesfortheseNevadacompaniesastheyexporttoAustralia(theinternationalmarketwithmoregamblingmachinespercapitathananyother),2)majorpresentationstovariousChambersofCommerceemphasizingthecross‐nationalimportanceofgaming,and3)amajornewcollaboration,signedintoeffectbyGovernorSandoval,betweenIGIandtheUniversityofSydney(Australia’stopresearchuniversity)onsportswageringintegrity–atopicofcentralimportancetotheStateofNevadaasmajornewsportsleagueseyeexpansionintoLasVegas.Thistrademission


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representedamajormilestoneinGovernorSandoval’svisionofbuildingIGIintoa“globalintellectualcapital,”inawaythatreinforcesthestate’sstatusasthe“ideafactory”andprimaryexporterintheglobalgaming‐tourismeconomy.Itgoeswithoutsaying,perhaps,butthesekindsofinitiativesarepreciselywhatisneededforthestate(andtheCityofLasVegas)tomaintainitsleadershipstatusinthegrowinginternationaltourismindustry.

Followingthisground‐breakingtrip,theLasVegasReviewJournalfeaturedapieceonIGI’sstatusastheworld’smostrespectedgaminginstitute–inessence,validatingthatweareachievingthemissionthatthisGlobalGamingCapitalInitiativesetsouttoachieve.

http://www.reviewjournal.com/opinion/columns‐blogs/inside‐gaming/unlv‐s‐international‐gaming‐institute‐world‐s‐most‐respected

4. AdditionalAccomplishments

InternationalCenterforGamingRegulationestablishesitsreputationasaglobal

centerofexcellence

FollowingtheappointmentofthefullstaffcomplementoftheInternationalCenterforGamingRegulation,theaimduringthisquarterwastolaythegroundworkforICGRtobecomeaninternationalcenterofexcellenceintheareaofgamingregulation,whichinturnservesthestate’sstatusastheGlobalIntellectualCapitalasitexpandsintonewmarkets.ThefocusoftheCenterinachievingthisgoalistoensurethattheworld’sregulatorshavethebestresearchandeducationavailable,therebyensuringthelong‐termsustainabilityandgrowthoftheindustryasawhole.

Intheareaofresearch,thefollowingdevelopmentsemergedthisquarter:

● FollowingtheCenter’scallforResearchFellowshipswithaviewtopromoteresearchintheareaofgamingregulation,elevenapplicationswerereceived.Theseapplicationsweresubjectedtopeerreviewswhereafteritwasdecidedtoawardtwonewfellowshippositions.TheseappointmentswilltakeeffectonNovember1stwithcompletiondatesofMay1st.Aspartofthefellowshipprogram,thePrincipalInvestigatorswillspeakatinternationalconferencesontheirresearchtopicsanduponcompletionwillproducewhitepaperswhichwillbeusedasabasisfor“Summits”conveningtheworld’sgamingregulators.


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● TheCenter’steamiscurrentlyinadvanceddiscussionswiththeBritishColumbiaGamingRegulatoronaprogressiverestructuringoftheirregulatoryframeworkandpractices.Thisisajurisdiction(likemostgamingjurisdictionsaroundtheworld)thathostsmorethanadozenNevadagamingandtechnologycompanies.

Intheareaofeducation,thefollowingprogresshasbeenmade:

● TheCenterhasdevelopedregulatoryeducationalprogramsinPre‐Licensing,Financial&BackgroundInvestigations,andGamingAudit,Compliance,andEnforcement.APre‐LicensingFinancial&BackgroundInvestigationsprogramcoincidedwiththeGlobalGamingExpo(G2E)inSeptember.Thiscourserapidlyfilledup,andclassevaluationswerepositive.

● TheCenterhostedamajorglobalroundtableattheG2EinSeptember.Thiseventwasasymbolicandsubstantivesuccess,asitwasattendedby50regulatorsrepresenting25jurisdictionsaroundtheworld,andreviewswereuniformlypositiveabouttheopportunitytoconveneandshareinthisground‐breakingcross‐jurisdictionalsetting.TheCenteriscurrentlyindiscussionswiththemajorEuropeangamingevent(ICEconferenceandexhibitioninLondon)aboutofferingasimilarroundtableprogramattheireventinFebruary.

● Inadditiontothiscourse,theCenterbeganofferingitsEssentialsofGamingLaw&Regulationaimedateducatingexecutives,attorneys,andindustrycompliancestaffnewtothegamingindustry–asthispopulationwasidentifiedashavingparticularlystrongeducationalneeds,giventhatsofewindividualscometoregulatorypositionswithexperience.TheCenterisalsolookingatcutting‐edgetopicsthatnew(ornovice)jurisdictionsaresuddenlyfindingimportant;thefirstsuchcourse,tobeheldnextquarter,willbeon‘UnderstandingSportsBetting’,asthefederalgovernmentcontemplateswidespreadsportsbettinglegalization.

● Inaddition,theCenterproposed,andwasawarded,acustomizedtrainingprogramforthePanamanianregulatorybody‐JuntadeControlDeJuegos‐fordeliveryinDecember2016.AsimilarcustomizedprogramintheareaofgamingauditwillbedeliveredinDecembertotheMichiganGamingAuthority.Otherproposals,invariousstagesofprogress,areaimedatnewjurisdictionsinAlabama,Georgia,Brazil,andJapan.TheCenterisfastbecomingthego‐toeducationalresourcefortheglobalindustry.

● TheCenteriscurrentlyindiscussionswiththeNorthAmericanGamingRegulatorsAssociation(NAGRA)toprovideallregulatorytrainingforNAGRA’smembers.Inaddition,theCenterhasworkedwiththetrainingbranchoftheNationalIndianGamingAssociation(NIGA)onpossiblypartneringontrainingprograms.This


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would,ofcourse,representacomprehensivemovetowardourobjectiveofbecomingtheworld’seducationalresourceforregulators.

Insum,thisCenterisproceedingexactlyasplanned–asago‐tothoughtleaderingamingregulationandpolicy,whichofcourseissocrucialtothesuccessfuloperationsofmanyofNevada’slargestcompanies.

IGIDirectorofResearchrecruited

FurtherreinforcingtheGOED/KFinnovationmandate,IGIhiredanewresearchdirector(atnocosttoGOED–100%ofsalary/benefitspaidbyUNLV/IGI).Dr.BrettAbarbanelistheworld’sleadingauthorityoneSportsandinternetgamblingresearch.UponearningherPh.D.,Dr.AbarbanelchoseafacultypositionatUCLAoverHarvard–andwhileatUCLAforthepastthreeyears,sheheadedtheuniversity’ssocialandrecreationalgamblinginitiatives.Dr.AbarbanelwasattractedtoUNLVbytheinnovationinitiativesoutlinedabove–specifically,theeSportslab,theHospitalityLab,andourCenterforGamingInnovation.Dr.Abarbanelhasprovidedkeynotesonherresearchatvirtuallyallofthemajorconferencesinourfield,bothhereintheUnitedStatesandinEuropeandAsia.Thishiringisamajorcoup,notjustforIGIbutforUNLVasitseekstoachieveTopTierstatusasaresearchuniversity.

AmbassadorProgram–Singapore&Macau

IGIExecutiveDirectorBoBernhardtraveledtobothSingaporeandMacau,wherehedeliveredindustry‐facingeducationalandleadershipprogramsbasedonthelatestresearch–toaLasVegasgamingindustrycompany(LasVegasSands)withaglobalfootprint.Theseprogramshavebecomequitepopular–inbothlocations,therewere3days’worthofprogramming–andalsorepresentadiverseandnon‐GOED‐supportedrevenuestreamthatcomesdirectlyfromindustryleaders.Importantly,thisprogramservedasafoundationaltrainingprogramfortheopeningofthenewParisianMacao,thenewestpropertyinthatjurisdiction.

IR2050

TheKnowledgeFund‐supportedIR2050(whichfundsaresearchassistantfocusingon“theintegratedresortofthefuture”)continuestoflourishaswell.ThisresearchassistanthasallowedustopartnerwiththerenownedHospitalityDesignprogramintheUNLVSchoolofArchitecture(SOAHD).Thissemester,studentsinbothprograms(IGIandtheSOAHDprogram)arecollaboratingontwoprojects:1)thewaysinwhichhyperlooptransportationcanbeincorporatedintoLasVegasStripintegratedresorts,and2)thewaysinwhichglobalizationofgamblinggamechoiceandnon‐gamblingamenitychoiceswillaffectLasVegasStripcompanies.


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GamingInnovation

TheCenterforGamingInnovationcontinuedtodevelopitsroleasaresourcetotheglobalgamingindustryonthetopicofemerginggamingproducts.Duringthisquarter,CGIexploredpartnershipswithPechangaResortsandCasinos,theBritishColumbiaLotteryCorporation,andClubNSW(anAustralianoperatorassociation)toplacetheCGI’snewestgamesontheirfloors.CGIwasalsofeaturedthisquarterinvariousmediapublications:local(seelinksonpage4),national,andtrade.ClubLifeMagazine.September"WhatcanwelearnfromPokemonGo?Whyvideogamesarethefutureofgamblinggamedesign.ContributionwrittenbyDr.Sahl.https://issuu.com/cnsw/docs/clublife_sep_2016

GlobalGamingCapitalkeyspeaking/advisingopportunitiesthisquarterincluded:

HospitalityInnovationRobertRippee,directorofHospitalityLabandeSportsLab,wasinvitedtospeakatthree

conferences:o June–PaneldiscussioninHospitalityInnovationspecificallyrobotics,Hospitality

TechnologyConference,NewOrleans,LA.o September27–The26thAnnualLodgingConferenceheldinPhoenix,AZ.Rippeespokeon

hospitalityinnovationatUNLVtoapackedroomofseniorhospitalityexecutives,developersandrelatedcompanies.

o September28‐29–InnovationLabatG2E–deliveredpresentationsonrobotics,drones,andinnovationinhospitality.

GamingInnovationExecutiveDirectorDr.MarkYoseoffspokeoninnovationatG2EGlobalGamingExpoattheend

ofSeptember.o ThreeCGIstudentinnovationswerepresentedatG2EInnovationLab.

G2EKeynoteCEOPanelForthethirdstraightyear,IGIExecutiveDirectorBoBernhardmoderatedtheCEOpanelthatopenedtheThursdayoftheGlobalGamingExpo.Thisyear,CEOsfromcommercialcasino,tribalgaming,andgamingtechnologycompaniesfocusedoninnovation–asDr.Bernhardguidedtheconversationthrough a range of topics including sports betting, eSports, the convergence of hospitality andgaming,therelationshipsbetweentechprovidersandoperators,andthefutureofthecasinofloor.


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NationalCouncilonProblemGamblingConferenceBoBernharddeliveredtwokeynotesatthenation’slargestproblemgamblingconference–whichheldits30theventinNewYorkCityinJuly.ThefirstwasaTED‐styletalkexaminingthewaysinwhichthegamblingresearchfieldsits“ontheshouldersofgiants,”andthesecondwasaclosingpanelonTheStateofGamblingResearch.Thiseventwasattendedby500internationalrepresentativesfromnon‐profit,industry,andgovernmentsectors. BrettAbarbanelspeaksatEASGConferenceinPortugalIGIResearchDirectorDr.Abarbaneldeliveredapresentationentitled,“ThefutureofGamblingSpaces:eSportsandtheworldofcompetitivevideogaming,”asakeynoteplenarysessionattheEuropeanAssociationfortheStudyofGambling’s11thEuropeanConferenceonGamblingStudiesandPolicyIssuesinLisboninSeptember2016.Thetalkgeneratedagoodamountofinterestfromregulators,industry,andacademefromaroundtheworldandIGIhasbeenaskedtosubmitfundingproposalsforresearchineSportsandgamblingtotheGBResponsibleGamblingTrust. MidwestGamingRegulatorsSeminarInJuly,AndréWilsenachparticipatedinaone‐dayregulatorsseminarorganizedbyGLI,wherehespokeontheregulationofiGamingandMobileGaming.

SingaporeSymposiumonCasinoRegulationandCrimeInJuly,AndréWilsenachattendedthe4thSingaporeSymposiumonCasinoRegulationandCrime,wherehespokeaboutRegulatoryEnforcementandSupervision.

UNLVGamingLawConferenceInAugust,AndréWilsenachandJenniferRobertsparticipatedintheUNLVBoydSchoolofLaw’sGamingLawConference.Andrémoderatedasessiononthechallengeswhichnewgamingandbettingproductsposetoregulators.JennifermoderatedsessionsontheregulationofcasinogaminginNewJerseyandtechnologycompliancematters.AndréalsoaddressedtheconferenceonthefunctionsofthenewCenter.

InAugust,JenniferRobertscoordinatedaContinuingLegalEducationseminarthroughtheNevadaStateBarontheintersectionbetweengamingandtheentertainmentindustry.Duringtheone‐dayevent,shemoderatedapaneldiscussionamongleadinggamingcompanycounselonentertainmentcontracts.

InSeptember,AndréWilsenachcontributedtheintroductorychaptertothe3rdEditionofthebook‘GamingLaw–EuropeanLawyerReference’.Thisbookisissuedannuallyandcontaintheregulatoryframeworksandpracticesofallmajorlegalgamingjurisdictionsaroundtheworld.

InSeptember,JenniferRobertsauthoredanarticleonkeydecisionsmadebyNevadacourtsoflawthataffectgaminginNevadaGamingLawyermagazine.


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InAugust,JenniferRobertscommencedinstructionofthefallsemestercourse,FundamentalsofCasinosOperations&Management,attheUNLVWilliamS.BoydSchoolofLaw.ShealsostartedteachingtheGambling&GamingLawcourseofferedattheS.J.QuinneyCollegeofLawatUniversityofUtah.

Finally,wewouldnotethateachofthesedevelopmentsislinkedtoboththeinnovationobjectivesandthebroaderobjectiveofmaintainingtheglobalintellectualcapital.

5. Commercialization/Partnering

HospitalityLab:TwoprojectsmoveintosalespipelineforcommercializationAsindicatedinthepriorreport,theHospitalityLab’s8studentteamssubmitted7patentapplicationsinSpringSemester2016.Twooftheprojectswereselectedashavinghighpotentialforcommerciallicensingtothehospitalityindustry.Presentationswerescheduledandconductedforboth.Forthefirstinvention,WindowMagic,thetechnologywaspresentedtoGenting(thecompanybuildingthenewResortsWorldLasVegasontheStrip),whichexpressedinterestinputtingtheinventionineachofitsnewroomsasitbuildsitsproperty.Afollow‐uppresentationwillpresentafeasibilitystudy/prototypeincollaborationwiththeUNLVCollegeofEngineering.Inaddition,WindowMagicwillbepresentedtoWynnResortsinOctober.Thesecondproject,Trendy,waspresentedtoamajorretailer‐‐alsotoafavorableresponse.AsecondpresentationwithretailerexecutiveswasscheduledforOctober.Consistentwiththeuniversity’s(andGOED’s)emphasisonstartups,theTrendyprojectteamisexploringthispathtobuildingtheirowncompany.Tothatend,theywillbecollaboratingwithUNLV’sCenterforEntrepreneurship.GamingInnovation:SaleofIPtoGenesisGamingTheCenterforGamingInnovationispleasedtoreportsignificantcommercializationsuccessesinthelastquarter.InAugust,GenesisGamingSolutions,thesecondlargestcompanyinthetablegamesindustry,acquiredintellectualpropertyoffivestudenttablegamesdevelopedintheCenterforGamingInnovation(andultimatelypurchasedbyBigBetGaming).ThetransferofIPincludedroyaltypaymentstothestudentinventorsandapaymenttoUNLVof$5,000.TheIPtransfertoGenesisretainsthecontinuingroyaltysharingarrangementsthatwerepartoftheoriginalcontractswithBigBet.Inadditiontothefivetablegames,GenesisGaminghasacquiredtheIPrightstotwoadditionalCGIinnovations,SlidetoDecideandColorChangingGamingObject,in


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asimilarlystructureddealthatoffersaninitialpaymentandroyaltysharingtotheinventors.ThisarrangementpresentsagreatopportunitytoexpandtheexposureandcommercialgrowthofstudentinnovationsasGenesisisagrowingcompanywithawidedistributionnetwork.

Table1:IndustrySupportforIGIreceivedthisquarter

TheindustryisinvestinginIGIinunprecedentedways,alongsideGOED.Thissectionsummarizesthisleveragedsupport.Center/project

Amountreceived

For

IGI $60,000 AinsworthGame Technology donated$60,000toestablishan“InnovationScholarship”toafundoneGraduateAssistantpositionoverthenextthreeyears.

eSportsLab $750 UnrestricteddonationbyMr.LesOttolenghi,EVPandCIOofCaesar’sEntertainmentGroup,tofundaneSportsClubforIGI’seSportsLabtouseasitexploresbusinessmodels,gamingplatformsandeSportsgames.

Overall,IGIhasleveragedGOEDsupportintomuchlargerfinancialinvestmentsinoursuccessfulprogramsinsupportoftheGlobalGamingCapitalinitiative.In2015,IGIwasawardedmorethan$2.5milliondollarsinadditionalfundingsupportforitsprogramsbeyondthesupportreceivedfromGOED(outlinedinthetablebelow):Table2:ExternalsupportforIGIduring2015Center/project

Amountpledged/received

From

InternationalCenterforGamingRegulation

$1million WynnResortsAssociationofGamingEquipmentManufacturers(AGEM)GamingLaboratoriesInternational(GLI)

InternationalCenterforGamingRegulation

$1million NevadaStateLegislature(forthisbiennium)

IGI $200,000 StateofNevadaDepartmentofHealthandHumanServices‐NevadaProblemGamblingProject

IGI $400,000 Grantsonbusinessresearchandteachingtopics


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6. IntellectualProperty

GamingInnovation:

CGIfiledonenewprovisionalapplicationforavideoslotthatisatwistontraditionalBaccarat.ThisgameisalreadyinearlytalksforpotentialdistributioninAsia.

7. Programmatic&ProjectChangesDr.MelissaRorie,AssistantProfessorintheUNLVDepartmentofCriminalJusticewithintheUNLVGreenspunCollegeofPublicAffairs,washiredtoworkontheregulatory“speedtomarket”study.Dr.Rorie’sareaofresearchexpertiseisinregulatorybestpractices,sosheisanidealadditiontoourgrowingteam.

8. LookingForward

Inthenextreportingquarter,wewillreportonDr.BoBernhard’skeynoteaddressattheClubsNSWAnnualConference(equivalenttotheU.S.G2EeventfortheAustralianclubmarket),andgrowingworkthatbuildsuponGovernorSandoval’sTradeMissiontoAustralia,whichincludedtheground‐breakingcollaborationestablishedwiththeUniversityofSydney.InNovember,IGIwilloperateitsExecutiveDevelopmentProgramatLakeTahoe,Nevada,whichconvenesindustryCEOsintheindustry’spremiereducationalevent,withmorethan60“next‐generationCEOs”inattendance,representingdozensofinternationalgamingcompaniesandgovernments.TheHospitalityLabexpectstomovecommercializationofoneortwoprojectstowardstermsheetsandlicensingagreements.Thethirdprojectwilllikelyprogressinitseffortstobecomeastartupenterprise.Thefourthgaminginnovationclassiscurrentlyunderway.Thefocusforthenextquarterwillbetodevelopstrongstudentideasintoviablegamingproducts.BothDr.YoseloffandDr.Sahlwillbeparticipatinginpanelsinupcomingconferencesontopicsrelatedtofosteringinnovationingaming,skill‐basedgaming,andthegamificationofhospitalityspace.WealsoanticipatesignificantcommercializationadvancementfortwoofthestudentinnovationsthatwerefeaturedattheInnovationLabatG2E.


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ThenextquarterwillalsopresentnumerousopportunitiestocontinuetoexpandtheglobalfootprintoftheInternationalCenterforGamingRegulation.Intheareaofresearch,theCenterwillworkwiththetworesearcherswhohavebeenawardedAcademicFellowshipstopromotetheCenterthroughtheirresearch.Therewillbeadditionaltrainingprogramsindevelopment.ICGR’sExecutiveDirectorandAssociateDirectorwillduringthecourseofOctoberandNovemberparticipateintheEuropeaneGamingCongressinBerlin,theInternationalMastersofGamingLawconferenceinDublinandtheInternationalAssociationofGamingRegulatorsconferenceinSydney.JenniferRobertswillalsoleadapaneloncybersecurityforgamingattorneysattheNevadaStateBarGamingLawConference.

The“speedtomarket”studywillalsocontinuetomoveforwardwithacademicrigorandobjectivity,overseenbyMelissaRorie,Ph.D.,AssistantProfessorintheDepartmentofCriminalJusticewithintheUNLVGreenspunCollegeofPublicAffairs.ProfessorRoriehasbeenworkinginclosecollaborationwiththeCenter’sexecutivetodevelopaquestionnaireandseriesoffollow‐upinterviewquestionsfordistributiontoandcoordinationwiththefourlargemanufacturersofgamingequipment;thedrawingofasamplethatmeetsacademicstandards;registeringtheprojectwithUNLV’sInstitutionalResearchBoard;finalizingnon‐disclosureagreementsbetweenUNLVandthemanufacturers;andengaginginpre‐testingoftheinitialresearchinstruments.TheplanistohavebyNovember1thepre‐testingcompleted,thesamplingofjurisdictionsfinalized,andthequestionnairedistributedtothemanufacturersprovidingdata.


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SectionII:PerformanceTable3:ProgressTowardMetrics


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ProjectScorecardNarrative IntellectualPropertyRevenueReceivedbytheUniversity$5,000inroyaltyrevenuestemsfromthesaleofBigBetintellectualpropertytoGenesisGaming(seepage10fordetails).Numberofresearchgrantsawardedto(andreceived)byIGIresearchteamsandfaculty:Onegrant:fromtheStateofNevadaDepartmentofHealthandHumanServicesfortheNevadaProblemGamblingProject.AmountofresearchfundingreceivedbyIGIresearchteamfromindustryorpublicsectoragencies:Table4:Breakdownofresearchfundingreceived

Center/project

Amountreceived For

IGI $139,372 StateofNevadaDepartmentofHealthandHumanServices‐NevadaProblemGamblingProject

NumberofsponsoredresearchprojectsexecutedonbehalfofIGIresearchteam:One(seeabove).Numberofpatentapplicationsfiled:CGIfiledonenewprovisionalpatentapplicationforavideoslotthatisatwistontraditionalBaccaratthisquarter.ThisgameisalreadyinearlytalksforpotentialdistributioninAsia.Table5:PatentFilingsthisquarterPrimaryInventor

ApplicationNo. ApplicationDate

Type CommercializationStatus

MingchengTong 62/370910 08/04/16 Provisional EarlyNegotiations


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Amount/valueofgifts/donationreceivedbyUNLVinsupportofIGI:Table6:Breakdownofgifts/donationsreceivedthisquarter

Center/project

Amountreceived For

IGI $60,000 Ainsworth GameTechnology InnovationScholarshiptofundoneGraduateAssistantforthreeyears.

eSportsLab $750 DonationtocovertherentalexpenseofholdingtheeSportsLabclassinaneSportsvenue–givingstudentsanimportant“handson”experience

Totalnumberofstudentinternships:FourKnowledgeFundgraduatestudentshired:

AronKock MartaSoligo JohnLukasik ShekinahHoffman

SectionIII:Budget

PleaseseethequarterlyreporttotheGOEDBusinessOffice.

SectionIV:MonthlyLogsofGlobalGamingCapitalInitiativeActivitiesforReportingQuarter

July:IGI:ExecutiveDirectorBoBernhardtraveledtoAustraliaontheGovernor’sTradeMission.Strategicretreat:two‐daystrategicretreatfortheIGIteamtoreflectonthesuccessesoflastyearandtodiscussandagreeobjectivesforthecomingyear.RegulatoryCenter:AndréWilsenachparticipatedinaone‐dayMidwestregulatorsseminarorganizedbyGLI,wherehespokeontheregulationofiGamingandMobileGaming.Andréalsoparticipatedinthe4thSingaporeSymposiumonCasinoRegulationandCrimewherehespokeaboutRegulatoryEnforcementandSupervision.GamingInnovation:negotiationswithGenesisGamingregardingsaleofintellectualproperty.


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August:IGI:BoBernhardledResponsibleGamingAmbassadorTrainingsessionsinbothSingaporeandMacaufortheLasVegasSands.eSportsLab:newclassdeveloped,agreed,andmarketedtostudentsforthefallsemester.HospitalityLab:“Trendy”apppitchedtoNeiman‐MarcusInnovationTeam.RegulatoryCenter:AndréWilsenachandJenniferRobertsparticipatedintheUNLVBoydSchoolofLaw’sGamingLawConference.JenniferRobertscoordinatedaContinuingLegalEducationseminarthroughtheNevadaStateBar.JenniferRobertscommencedinstructionofthefallsemestercoursesatUNLVWilliamS.BoydSchoolofLawandtheS.J.QuinneyCollegeofLawatUniversityofUtah.GamingInnovation:Finalrecruitmentofstudentscompletedforthefallsemestergaminginnovationclass–workingalongsidedepartmentsacrosscampustoattractthebestandbrighteststudentstothisuniqueprogram.September:MuchofSeptemberwasfocusedonpreparingandshowcasingallofIGI’sinnovationattheG2EGlobalGamingExpo.eSportsLab:theneweSportsLabclasscommencedwith21students.HospitalityLab:RobertRippeespokeatG2EConferenceontheIntegratedResortoftheFutureandRobotics.RegulatoryCenter:AndréWilsenachcontributedtheintroductorychaptertothe3rdEditionofthebook‘GamingLaw–EuropeanLawyerReference’.JenniferRobertsauthoredanarticleonkeydecisionsmadebyNevadacourtsoflawthataffectgaminginNevadaGamingLawyermagazine.RegulatoryRoundTableatG2E.GamingInnovation:fallGamingInnovationclasscommenced.


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SectionV:Appendix

Appendix1–SalesPipeline

Company Name Company Type Opportunity Type

Notes (Progression and Next Step)

Leads ‐ Awareness

Campion Platt Interior Designer Product Sale/Licensing

Discussion about possible opportunities

Prospects ‐ Interest

Neiman Marcus Retailer

Product Sale/Licensing

Discussion about app for travel

Resorts World Las Vegas/Genting

Hotels and Gaming


Discussion about use of OLED screens in high end suites

Caesars Entertainment

Hotels and Gaming

Collaboration Discussion about CSR for eSports

AGS

Game Distributor


Discussion about next‐gen game design/opportunities

Boyd Gaming

Hotels and Gaming


Discussion about deployment of student games in casino


Hotels and Gaming

Collaboration Discussion about next‐gen gambling games

DEQ

Table Game Distributor


Discussions on several student table games

Gamblit

Game Distributor


Beginning discussions to review student skill‐based slot games

IGT

Game Distributor


Interest in two student games

Interblock Gaming

Game Distributor


Interest in three student games

Konami

Game Distributor


Discussion about next‐gen game design/opportunities.

Scientific Games

Game Distributor


Interest in distributing one student innovation

Station Casinos

Hotels and Gaming

Product Licensing/ Development

Discussions about developing promotional apps.

Qualified ‐ Desire

MGM Resorts Hotels and Gaming

Collaboration Product Sale/Licensing

Interest in consultation/product development related to the gaming space of the future and game security

Las Vegas Sands Corp.

Hotels and Gaming

Distribution Interest in video gambling product.


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Negotiation ‐ Action


Hotels and Gaming

Product Licensing

Negotiation on developing national promotion

FuelYouth App Developer


Negotiating to develop social/gambling app

GPI Game Apparatus Distributor

Product Licensing

Currently in discussion about licensing student patent for enhanced card shoe security.

Won or Lost

Big Bet Gaming Product Sale Student Game: Show Pai

Genesis Gaming Systems

Product Licensing

Student Apparatus: Slide to Decide/Color Changing Object

GamesalesinthegamingindustryEachgamesoldbytheCenterforGamingInnovationusuallyincludesupfrontmoney,whichcanvarygreatlyinamountfromafewthousanddollarstosixfiguresums.Allofthesalesincluderoyaltiestotheinventorsforeachmachineortableinstalledandgeneratingrevenueforthedistributor.Forexample,upfrontmoneyprovidedtostudentinventorsforasalemaybemodest(lessthan$5,000)andthen,inaddition,theinventorsreceivea20%royaltyforthegrossincomeforeachtableinstalled(whichisfairlystandardwhendistributingtablegames).AllstudentIPdevelopedandsoldthroughCGIhasbeenoutrightsold(sometimestheinventorretainscertainrightstothepatent,orthesalecoversbrickandmortarapplicationsbutnotinternetoptions).BigBetGamingLLC*hasbeenaparticularlyfruitfulvenueforCGI'stablegamesbecausetheyhavecommitted(andmadegoodontheircommitment)togeteverygameapprovedforuseinNevadaandtoplacethosegamesincasinos.Thetimetodevelop,patent,commercialize,andofferagameonacasinofloorcanbelessthanayearinthecaseoftablegames.Aslotpatenttakeslongerduetotheincreasedcostandtimeinvestmentneededtodevelopandtestthegame.Asuccessfulgamblinggamecanonlygeneraterevenueifitispopular,bothwithcasinosandplayers,aprocessthatcantakeyears.ThegoodnewsisthatthenumberofpatentsbeinggeneratedbyCGIincreasesthelikelihoodthatoneortwopopulargameswillemergetogenerateastrongrevenuestreamfortheprogram,toproviderevenuestothegamemanufacturers,andtoincreasegamingrevenueinNevadaandbeyond.FormostCGIproducts,thesalesprocessissurprisinglyquickoncetheinitialdemonstrationoftheproductismade.Ifagamegeneratesinterest,thesalemaybefinalizedinamatterofafewmonths.


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AdditionalNotesonCGIMetricsBecauseofthelongdevelopmentcyclesofgamingproducts,primarilyduetotheregulatoryapprovalprocess,newgamesandequipmenttypicallytakeonetotwoyearsfromprojectcompletiontoapprovalforuseincasinos.Atthispoint,withthefinancialhelpofBigBetGaming,LLC*,sixprogram‐developedgames,namely:40XBlackjackTM,CasinoBattleTM,FlipCardTM,PaiWowPokerTM,ShowPaiTMandSuperThreeCardTMhaveallreceivedapprovalforuseinNevadaandhavemadetheirNevadadebuts.Asfarasthefuturefinancialsuccessofthesegames,andthefuturerevenueduetoUNLVasaresult,thisisunpredictable.Typically,ittakesuptofiveyearsforanewcasinotablegametogainmarketacceptance.Asfarasthecurrentdispositionandassociatedtechnologytransferofprojectscreatedintheprogram,oneproject,DominoDragonTM,whichisanewmethodofscoringslotmachineshasbeenacquiredbyKonamiGamingandisindevelopment.ThesixapprovedtablegameslistedabovewereacquiredbyBigBetGamingandmodestadvanceswerepaidtothestudents,resultinginasmallflowtoUNLV.NowthatthesegameshaveNevadaapproval,BigBetGamingnegotiatedaresaleofthesegamestoGenesisGaming,aglobalgamingequipmentanddistributioncompany.ThisagreementwascompletedinAugust.Inadditiontothesixgamesnamedabove,thetechnologytransfertothisacquiringcompanyincludestwootherprojects;acolorchanginggamingapparatusandSlidetoDecideTM.Thissaleincludesbothsomeupfrontpaymentsandfuturepaymentsbaseduponperformance.Thusfar,revenuetoUNLVhasbeenapproximately$35,000;however,becauseofthepotentialfutureincomestreamsfromtheseproducts,shouldtheybesuccessful,andcontinuingtechnologytransfer,totalrevenueovertimeisexpectedtobesubstantiallygreater.Besidesthetechnologytransferalreadydiscussed,severalstudentshavedecidedtopursuefuturedevelopmentontheirown,understandingthattheystillhaveafinancialobligationtoUNLVforanyrevenuederivedfromtheirprojects.Specifically:TroyPettieandEvanThomashaveformedGuruGamestodevelopLine‘emUpTM,asanewstyleskilled‐basedvideogame,aswellasanumberofothergamesthattheyhaveintheworks.TheyareintheprocessofgettingfundingfromaBusinessAcceleratorandshouldcreatearevenuestreamforUNLV.JohnLukasikhasdevelopedScoringFrenzy,anewhouse‐bankedfantasysportsgamewhichappearstohavegreatfuturepotential.JeffreyHwang,anotedauthorandprizewinningpokerplayer,aswellasastudentoftheprogram,hasfoundedHighVarianceGamestodevelophisuniquesuiteofhigh‐volatility,crossoverpoker/casinogames.Inadditiontoallofthesestudents,onestudenthasfoundemploymentinthegamingindustry;JohnNguyenhavebeenemployedbyStationCasinosasadirectresultofhisgame,ShowPai,whichiscurrentlyofferedatthePalaceStationCasino.


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*BigBetGamingLLCwasestablishedbyCGI’sExecutiveDirectorDr.MarkYoseloffasameansofgettingstudent‐inventedtablegamestothecasinofloorquickly.AstheformerCEOofShuffleMaster,andasthedeveloperofseveralsuccessfulgamblinggameshimself,Dr.Yoseloffisanexpertintablegameinventionanddistribution.Breakingintothegamingindustryisextremelydifficult,andindependentinventorsoftenfindcommercializationtobeaformidablechallenge.Inordertobreakthroughthisbarrier,BigBetGamingwasestablishedasacommercialoutletthatwouldnototherwisehavebeenavailable.AsDr.YoseloffistheFounder,establishedcompaniesreadilyviewBigBetGamingprojectsasviableopportunitiesforrevenue.Withoutthecompany,manyofthegameswithpotentialwouldgounnoticedorflounderonthevine.BigBetiscommittedtogettingthetablegamesitpurchasesfromstudentsapprovedandoncasinofloorsinashortamountoftime.Thisisevidencedbythefactthatwithin18months,fourgameshavebeenapprovedforuseinNevadacasinosandtwoofthosegameshaveactuallymadeittocasinofloors.AllCGIparticipantsareadvisedbothduringtheclass(bytheuniversity’sintellectualpropertyofficers)andduringanynegotiationwithBigBetthattheyarenotobligedtoselltheirgametoBigBet,andallCGIparticipantscontinuetobeexposedtoopportunitieswithothermajorgamedevelopersaswell.ParticipantsareencouragedtoseekindependentadvicefromUNLV’sOfficeofEconomicDevelopment,BoydLawSchool,and/ortheirownpersonalattorneyoradvisor.Alltransactionsandprocessesareregularlymonitoredbytheuniversity’sintellectualpropertyofficers.Thistypeofarrangementisnotabnormalintheareaofuniversity/privatecollaborationinthedevelopmentofintellectualproperty.Thankstothismechanism,CGIhasaneffectiveandefficientmeanstogetstudents’gamesoutontocasinofloors‐generatingrevenuemuchfasterandingreaternumbersthanwouldotherwisebepossible.


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Appendix2–ScorecardSupportingDocumentation

Documents

The UNLV IGI Global Gaming Capital Initiative · media attention. Dr. Yoseloff’s insights into innovation in gaming was covered in a piece in the Las Vegas Sun while Troy Pettie