Technology and Expansion GRAF. Botswana

1. Technology and ExpansionGRAF. Botswana Martin Britton Managing Director. EMEA

2. GLI • Operating for over 30 years, founded by James Maida and Paul Magno • 1150 staff • 24 offices located globally • Accredited for 475 jurisdictions • Subject matter experts located across the world • Many jurisdictions adopt GLI standards • Provider of independent and impartial advice • We have our own Cyber Security Company • The company has grown its international presence

3. GLI Masterclass 14:00 – 14:30Introduction - Technology and Expansion Speaker Martin Britton. Managing Director. GLI EMEA 14:30 – 15:30Auditing your Gaming Floor Speaker. Pierre Otto. Compliance Manager. GLI Africa 15:30 – 16:00 Coffee break 16:00 – 16:30GLI 33. Sports Wagering Standard Speaker. Pierre Otto. Compliance Manager. GLI Africa 16:30 – 17:00Online Gaming Regulation Amidst the Ever-Changing Technological Environment Speaker: Devon Dalbock. General Manager. GLI Africa

4. New Technology on the horizon • Sports Wagering • Internet Gaming • Skill Games • Virtual Sports • Artificial Intelligence in Casino Games • Esports • Lootboxes • Game Immersion: Virtual Reality / Robotics / Mobile • Blockchain Technology and it’s potential use in the Gaming Industry

5. Sports Wagering USA - Breaking news…Paspa’s (Professional and Amateur Sports Protection Act) been repealed • Probably the most impactful legislative change the US industry has seen during many of our careers. • Federal ban of sports wagering has been effectively eliminated and each state has the opportunity to create legislation and regulatory structure at state level • We’ve now started to see many states begin to take advantage of this by creating structure around this newly available form of gambling • Mississippi/West Virginia/PA/Rhode Island/NJ/Delaware/NV • And one of the sleeping giants NY…likely in 2019 Some will follow GLI 33 released recently

6. Internet Gaming Ongoing expansion across Europe • Multitude of countries offer online gambling in Europe and continues to expand: • UK, IOM, Gibralter, Alderney Malta, Italy, Spain, France, Portugal, Czech Republic, Romania, Bulgaria, Denmark, • More to come: Sweden, Switzerland, The Netherlands • USA - only NJ, DE, NV, and now PA are offering online casino/poker Some markets follow GLI 19 standard

7. Skill Games It seems like skill games have been discussed for a few years now…in the past year what has changed • Last year, we saw manufactures taking baby steps towards skill, with very simple versions of first person shooters or a simple amusement game like the carnival strong man hammer game • We haven’t been seeing widespread prohibitions so we are seeing a bit more interest in progression towards more advanced video mechanics and content that you might see played on a Playstation or Xbox console… • But while there might be a desire to create these games, the reality is that skill hasn’t created a significant splash in industry yet, even though there are a few games that have been released

8. Virtual Sports What are virtual sports and where are they being played? • Virtual horse racing/ virtual dog racing/ football being the common games • In UK, these games amount to about 15 - 20% of revenue for sports wagering • These virtual games basically fill the gap between the real games, during half time, in between horse racing or after the games are done for the day. • The key differentiator is these games use an RNG compared to live sports wagering

9. Artificial Intelligence Artificial Intelligence in Casino Games • What is AI and what types are there: • AI is essentially where a computer can perform tasks that normally require elements of human intelligence, such as decision making, speech recognition, visual perception…. • Learning a players actions and preferences • Are we actually seeing AI in games today ? • No ones really building robots applying Deep learning to interact, at least not yet. We’re really looking at static decision trees and very simple learning abilities. • Most common is intuitable AI, where it is reacting to action that you took • AI is being used to market players. Whether this is true AI is debatable

10. eSports eSports • Why is eSports drumming up so much attention • Staggering year-over-year growth…from the perspectives of viewership as well as revenues… • In 2017 the eSports industry earned over $696 million in business revenue with estimated wagering revenue over 1B dollars and it’s been estimated that there will be 30% growth this year. • The Intel Extreme Masters Event in Poland had record-high live attendance at 173,000 people • Sites are popping up all over the web to facilitate betting • Operators are really starting to build homes for the competitions as well

11. Loot boxes Loot boxes provide players with the opportunity to pay to open a box and acquire an unknown quantity and quality of in-game items for use within the game Has there already been action taken by regulators to intervene? • Japan has shut down operations for Gacha games • Germany, Netherland, UK China, Japan, Australia, and Isle of Man and there are multiple bills on the table in the US • Belgium banned loot boxes – FIFA 18

12. Game Immersion Game Immersion: Virtual Reality / Robotics / Mobile • Bigger Screens • We’ve continued to see the screens become bigger, higher resolution, 3D multi-layer monitors, devices that give tactile feedback to the player, devices that respond to player motion similar to a WII controller.….all trying to make that experience in front of the cabinet more immersive. • Virtual Reality • The next step is clearly virtual reality as the technology is really starting to pick up in capability • Virtual Reality has become more and more popular and accessible to the public • at G2E we saw multiple implementations that gathered a ton of interest not only with those playing it…but also with those watching… • Robotics: • This year at G2E we saw our first robot at the table game…which actually responded to questions and somewhat conducted the deal • Personal Device • We’re starting to see mobile phones used more for gaming purposes, like we are in all other industries… the technology is here, and it can be implemented in a secure way.

13. Blockchain Blockchain Technology and it’s potential use in the Gaming Industry • What is blockchain? Is this Bitcoin or something different? • A blockchain is a system where multiple computers around the world, that each contain the same long list of transactions, call a ledger, and each of these nodes validate the information within each other’s ledger. And what this does is make sure that no single source has the power to manipulate any data. If someone wanted to manipulate data, they would need to have access to multiple independent computers and corrupt each of their ledgers. • Bitcoin network worth well over $191 billion • Coins are only one application of blockchain that can be utilized. • Other industries are using it now Companies feel it can be used in the gaming industry not only for payment but games

14. In summary We have interesting times ahead There will be key questions asked: • Does it encourage problem gambling • Are games fair to players • Are players being disadvantaged • Can it protect the young and vulnerable • Does it fall within the law and regulatory framework • Does it meet the “spirit of the act” We have the above questions with current “standard” forms of gaming so the road ahead looks to be complex and we should be ready for this

15. Thank you! www.gaminglabs.com Martin Britton Managing Director EMEA +44 7747 04 7989 m.britton@gaminglabs.com