The Future of Gaming Technology

In publishing gaming trade journals for years, CEM and its publisher have read and written about various gaming trends often throughout this time. When we thought about how to tackle this “future of gaming technology” article, we decided to take a look back at various predictions from years past. Going back a whole decade, there has been much buzz about server-based and server-supported gaming. Even 10 years ago, thoughts were that it was imminent and hurdling toward reality. However, as we sit today, this is not yet an embraced reality.

There was similar excitement about i-gaming years ago. However, when the Bush administration passed the Unlawful Internet Gambling Enforcement Act in 2006, much development on this front ceased, at least from a business perspective in the United States. But with the stark reality of a long economic recovery and budgetary shortfalls, there seems to be a change of heart.

So we turned to the experts to give us the answers—or their best predictions. Listen to essays from suppliers, associations and other professionals, weighing in on what they think the reasons are that SBG has not yet been aggressively deployed in gaming, as well as how long it will be before we see U.S.-based i-gaming operations and what its impact might be on traditional brick-and-mortar operations. Their responses were thoughtful and candid, and we think each has an interesting perspective to share with CEM readers and the industry as a whole. Listen and join the discussion!

Frank Fahrenkopf Jr., President and CEO, American Gaming Association

Innovation: It’s a hallmark of success, and a trademark of the commercial casino industry.

Through innovation and investment in new technologies, the industry has revolutionized the casino floor, modernizing everything from games and security to design and marketing. Where patrons once traversed casinos carrying buckets of coins, floors today are virtually cashless thanks to ticket-in/ticket-out (TITO) technology. Multi-player games allow customers to compete against each other on a single machine, and radio frequency identification (RFID) in casino chips helps many properties improve security and player tracking.

One of the most significant innovations in gaming technology in recent years has been server-based gaming, linking machines across a single property or across the country, increasing operational efficiencies and allowing increased versatility and flexibility in delivering superior gaming experiences to customers. This emerging technology once again was a hot topic among industry executives in early October at the Global Gaming Expo, the industry’s premier event and trade show.

The operational efficiencies made possible through server-based gaming are clear, but the technology has been slow to take hold on gaming floors across the country due to the elongated replacement cycle brought about by the recession. Those properties that have introduced the technology, such as Aria Resort and Casino in Las Vegas, have reaped the benefits, and I have no doubt that, as the economy recovers, more and more casinos will look to this new technology as a way to enhance their business.

Another technology that holds great promise for our industry is online poker.

Throughout the past several years, the American Gaming Association (AGA) has taken a measured approach to the issue of online gambling. We had concerns about the availability and effectiveness of tools and technologies to support effective regulation.

However, during the last few years, more than 85 countries have legalized online poker, many with highly controlled and effective regulatory systems to protect their citizens. They offer tested, real-world evidence that the latest technological developments and advancements in the operational process can allow the U.S. to implement a safe and secure online poker system.

The AGA believes that a strong regulatory model for the licensing and regulation of online poker that preserves states’ rights to determine what types of gambling are allowed within their borders is the best approach to ensure a consistent regulatory and legal framework.

Poker is a beloved pastime enjoyed by millions of Americans from all walks of life. It has played a strong role in our nation’s cultural history. Licensing and regulation of online poker in the U.S. would ensure American consumers are protected and that the jobs and revenues associated with this billion-dollar industry are realized here in the United States.

To the extent that poker is permitted under state laws, it is essential that online poker operators adhere to the same stringent regulations that govern brick-and-mortar casinos. The AGA recently introduced a Code of Conduct for U.S.-licensed online poker companies that outlines the measures the AGA thinks are necessary to ensure that American consumers are playing online poker in a fair and secure environment provided by a responsible operator.

The code includes provisions to prevent minors, as well as individuals living in states where online poker is illegal, from gambling online. The code also mandates implementation of tools and practices to prevent money laundering and cheating, and to promote responsible gaming among online players. This strict regulatory system is vital—and possible thanks to modern technologies currently being used in the global online poker industry and in other industries like online banking here in the U.S.

The millions of Americans who are playing poker online deserve to know they are playing safely with law-abiding operators. Regulating online poker will provide U.S. law enforcement officials with unambiguous rules and clear procedures to prosecute illegal operators.

The AGA is working to educate members of Congress about the Code of Conduct and the need for strong enforcement against illegal operators and unambiguous U.S. laws. While there are still many challenges ahead, the passage of legislation is more likely today than it has been in a decade. Some regulatory and technical issues are yet to be addressed, but proposed legislation could receive consideration by Congress later this year.

It’s important to be realistic in acknowledging that Congress has some major issues to attend to during the remaining part of the year. Neither the AGA, nor anyone else, can guarantee or predict whether the online poker issue will break through, but the AGA and others are working hard to educate members of Congress about this issue and the need for a federal solution.

If licensing and regulation do­ occur, AGA members see online poker as a natural complement to their existing business and a way to extend their brand. Online poker isn’t just a growing trend; it is a critical underpinning in the evolution of our business.