Smart Cards and Wireless Casinos: Nevada Poised For High Tech Revolution

18 June 2005

June has proven to be a productive month in terms of the progression of casino games moving from mechanical to digital platforms. Assembly Bill 471 was passed and signed into law, to effectively legalize wireless gambling for casinos with 100 or more slot machines. The Gaming Standards Association announced a detailed review of downloadable games was under way. There are significant changes on the horizon, which ultimately spell out a new era in casino games.

The story began at the end of May when the Nevada State Senate passed AB471 with little opposition. The bill provided the legal structure for casinos with 100 or more gaming machines to operate wireless gaming networks within public areas of the casino. The Governor signed this bill into law two days later, after which it was sent to the Nevada Gaming Commission (NGC) for a regulatory framework to be established. The NGC rules governing wireless gaming are expected to be released in 3 to 9 months.

We will not likely see cell phone wagering and PDA platforms in the early days of this new form of gaming, although that may be a possibility at a later date, when issues around underage gambling and authorized usage areas can be addressed on such devices. Initially, the most likely form of WiFi fun appears to be a solution developed by Diamond iTech of Baton Rouge, Louisiana.

Diamond iTech, or Diamond I, as they are commonly known, have developed a system of hand-held gaming devices that can be checked out from casino cash cages or hotel front desks. The units are based on proprietary biometric technologies developed by Diamond I, in which buttons on the units double as fingerprint readers to restrict access of the game to authorized users only. The user's fingerprints and account balance information are stored on a smart card issued by the casino.

Following this development, the Gaming Standards Association (GSA) had announced that an open summit had been held to discuss the future of downloadable casino games. The summit was attended by representatives of 45 companies, not including the presenting companies.

GSA President Peter DeRaedt said, "It is clear that downloadable games are the future of the gaming industry; however, the potential is not without challenges for regulators, operators and manufacturers. We created this open forum to hear ideas from across the spectrum, enabling GSA's BOB committee to create the best possible solutions so that the future of downloadable games can become a reality"

The technologies being assessed by the Association are similar to the technologies presently used by internet gambling sites, such as BetFair and Party Poker.

"It is a standard client-server architecture." states Jerry Garner, Director of Kaleici Leisure Group.

Garner continued to say that "In many ways, these technologies are superior to traditional gaming devices, particularly in terms of regulatory compliance issues. It is much easier to monitor and regululate centralized server-based technologies than it is to control hundreds of thousands of individual random number generators."

It would appear that the gambling industry agrees. Garner's company is presently in preliminary discussions with a number of casinos in Nevada to provide them with wireless server-based poker lounges. These high tech casino lounges will help push gambling into the next generation by offering state of the art touch screen gaming against players from virtually any geographic location.

From a humble city with suspicious beginnings, to a thriving center of commerce and the entertainment capital of the world, to a high tech cyber-city where games are played over radio waves - this desert oasis has come a long way.

About Kaleici Leisure
Kaleiçi Leisure Group is a Las Vegas based consulting firm servicing gaming companies world-wide. The company focuses extensively on providing customized internet wagering solutions, multi-player gaming networks, casino brokerage services and VIP player acquisitions. Strategically located in the heart of Las Vegas, Nevada, Kaleiçi Leisure brings the resources of this gambling mecca to the fingertips of casino operators around the globe. Whether you wish to establish an internet gaming brand or just add next-generation gaming platforms to your casino floor, Kaleici Leisure Group is available 24-hours per day to help your operation grow and expand. For further information, please visit www.kaleicileisure.com