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Liquidity Las Vegas – 16 November 2010 William Scott – VP Commercial GTECH G2

Liquidity Las Vegas – 16 November 2010 William Scott – VP Commercial GTECH G2 Liquidity Sharing across jurisdictions and regulations (Danish case) May, 20 th 2010. Liquidity...improves players experience. Peer to Peer Games, such as Poker, require liquidity

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Liquidity Las Vegas – 16 November 2010 William Scott – VP Commercial GTECH G2

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  1. Liquidity Las Vegas – 16 November 2010 William Scott – VP Commercial GTECH G2 Liquidity Sharing across jurisdictions and regulations (Danish case) May, 20th 2010

  2. Liquidity...improves players experience • Peer to Peer Games, such as Poker, require liquidity • Players online at all times of the day • Similar experience, game choice and value • Tournaments require large number of players • Casino and Bingo also require “liquidity” • Some are pari-mutuel game – In Bingo more players means higher prizes • Jackpot games - Casino progressives require play • Experience - Table games are more fun with more players

  3. Current Poker Networks • Cross Border Networks • Licensed in countries such as Malta, Isle of Man, Gibraltar etc; • Players from numerous countries – Europe or beyond • County Networks – Ring fenced • Licensed in countries such as Italy, France, Sweden etc; • Players from a single country • Country Networks – Non Ring fenced • Licensed in countries such as Austria and Denmark • Share liquidity with other jurisdictions

  4. Regulation impact on poker liquidity • Countries in Europe are regulating gaming • Regulated – Austria, France, Italy and Sweden • Proposing Regulation – Canada, California, Denmark, Greece, Florida, New Jersey, Romania etc; • Regulation needs to take into account liquidity issues • Low liquidity levels will not stop cross leakage • Negative impact on player experience • Regulation needs to address • Similar tax (and therefore rake) levels • Poker rules harmonized • Agreements in place to share liquidity

  5. Technical minimum liquidity requirements • Base on Italy, the maximum networks that can be supported are as follows (Note that not all will have the minimum liquidity): Minimums to technically maintain a Poker network are as follows:

  6. Issues to be addressed by regulators • Sharing of liquidity for small populations • Between various country (state) and/or cross border networks • Harmonization of poker rules • Similar tax and rake percentages • Poker servers based in an agreed location • Network management • Fraud and Security, including dispute resolution • Information sharing • Network settlement

  7. GTECH G2 GTECH G2 brings together, under one brand, the combined expertise of GTECH and its extensive lottery insight with leaders in the interactive gaming A complete gaming portfolio of poker, bingo, casino, sportsbetting, fully managed services and instant games. The group includes Boss Media, a leading innovator in software and systems for Poker, Casino and Bingo entertainment; Finsoft , a leading provider of enterprise-wide real time trading solutions for the commercial sports betting industry – both interactive and retail; St Minver, a fully managed service provider of Internet games to media, lifestyle, and other brands; and Dynamite Idea, a developer of unique, innovative digital instant and side games.  Consolidating combined talent and expertise into one premiere brand means that GTECH G2 can provide a flexible digital solution to all customers, large or small, wherever they may be.

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