1	"International Association of Gaming Regulators" International Association of Gaming Regulators September 19, 2004 PAUL D. MATHEWS President and Managing Director
2	background Founded by management team of Silicon Gaming in 2000 “Spun-out” of Silicon Gaming in March 2001 during deal with IGT Customer base originally planned to be U.S. based casino operators Customer base turned out to be UK centric….for now Development HQ in San Francisco Operations and infrastructure in United Kingdom and Alderney 75 Employees Private Company, small shareholder base with great financial credentials Profitable
3	about us WagerWorks qualifications Experienced Team with 70+ years of gambling industry experience Committed to Legal and Regulatory compliance Licensed in the most credible interactive gaming jurisdiction (Alderney) Top tier operating partnerships BskyB (Newscorp), The Rank Group (Hard Rock and Blue Square), Paddy Power, Fremantle Media, Virgin, World Poker Tour, Cash Cade and At the Races Dominant Intellectual Property Position Control the industry’s largest library of casino-proven game content Sony Pictures (Wheel of Fortune, Jeopardy, etc.) Fremantle Media (The Price is Right, Card Sharks, etc.) Hasbro (Monopoly) Action Gaming (Triple Play Poker, etc.) IGT (Silicon Gaming’s content library) WMS Gaming (entire library) Developed the most comprehensive Player Verification/Compliance tools WW eliminates barriers to entry with its Managed Service solution Entire casino solution Gaming License, Software, Customer Support, Casino Administration, Merchant Banking, Risk, etc.
4	regulatory strategy It’s our history, it’s our future. Business Probity WagerWorks officers have been qualified to operate gaming businesses System Certification and Approval WagerWorks system has been fully certified against the world’s toughest technical standards by GGS-AU Pty Ltd and TST – the two most respected accredited testing labs serving the industry System approvals granted by both Alderney and Isle of Man Alderney regulations most likely will be mirrored by the UK under upcoming “de-regulation” Only one of four GamCare “Certified” sites for dealing with problem gaming Player Verification Tools WagerWorks employs sophisticated technology and unique patent pending proprietary methodologies to address the key regulatory issues facing Internet gaming
5	the big issues Location Verification – Where is the player? Age Verification – Is the player old enough to play? Money Laundering – Is the player laundering money? Problem Gaming – Is the player a problem gambler?
6	my old sales pitch…July 2001 “WagerWorks believes no practical “perfect” solution exists to verify location and identity and to stop all money laundering and problem gambling… but by employing a multi-tied system verification and security system, high rates of compliance can be achieved. As a result, an operator can, with RESONABLE ASSURANCE understand whose playing, how they are playing and from where.” Warnings regarding illegality of playing from restricted locations Agreements by players certifying they are not in a restricted location Geographic Targeting software Computerized checking of a credit card number to verify card issuance in legal jurisdiction Computerized checking and matching to a voter database or similar registry of individuals Manual Verification in certain cases (money laundering prevention) Player Protection Features BUT, I HAD NO EVIDENDENCE AT ALL TO SUPPORT MY CLAIMS THAT THIS WOULD REALLY WORK……….
7	now I do WagerWare and our Verification Module as been “live” since June 2002 Hard Rock Casino - June 2002 to present MGM MIRAGE – Sept. 2002 to May 2003 BskyB – May 2002 to present At the Races – Oct. 2003 – present Games Xtra Casino – Nov. 2003 – present Get Minted – Nov. 2003 – present Paddy Power – Jan. 2004 – present The Price is Right – Feb. 2004 – present Virgin Games – June 2004 – present Virgin Games Casino – June 2004 – present Multi-Player Poker Room – June 2004 – present ** fully managed solution by WagerWorks Alderney or WagerWorks UK
8	results Verified and Registered over 75,000 players Systems have handled over $1,000,000,000 of handle Average bet is $14 per play! Over 75,000,000 game transactions 75,000 “live” hours or over 8 years operating experience And……. Rejected over 7,500 attempted registrations No known transactions with U.S. players or under-aged players Less then 5 AGCC reported customer disputes No reportable suspicious financial transactions No failures during intentional “false” registrations
9	verification module The Verification process consists of a progression of different checks: Location Age Residence Credit card number Credit history and fraud risk score At each step in the process, the player is evaluated and may be rejected if his score is not high enough
10	verification scoring
11	verification scoring The scoring values that drive the Verification Module are completely configurable. Flexible scoring enables operators to tune the Verification Module based on the results they receive and their own risk priorities.
12	money laundering Concerns arise from the possibility that players may be using online casinos to hide the origins of large amounts of money WagerWare’s e-commerce implementation makes money laundering largely improbable because: Limits are placed on the amount player’s may withdraw All players must go through the verification process in order to open an account Every single transaction executed by a player is recorded. The origin of funds cannot be disguised. Customer service representative monitor all deposit and withdrawal activity.
13	player protection Our goal is to offer players a valuable entertainment proposition, not entice our players to gamble money they cannot afford to spend. To help prevent problem gambling, our casinos offer player protection features that allow a player to create the following limits on their casino usage: Total stakes Total losses Deposit limits Withdrawal limits Session length Self-exclusion These player protection options are not available to players in traditional bricks and mortar casinos.
14	player protection
15	summary “WagerWorks believes no practical “perfect” solution exists to verify location and identity and to stop all money laundering and problem gambling…but by employing a multi-tied system verification and security system, high rates of compliance can be achieved. As a result, an operator can, with RESONABLE ASSURANCE understand whose playing, how they are playing and from where.”