Regulators begin the tricky task of forming rules for skill-based slot games

A man operates a joystick for a skill-based bonus game on an IGT slot machine during the Global Gaming Expo (G2E) at the Sands Expo Center on Tuesday, Oct. 2, 2012.

Nevada's effort to make casino floors feel more like arcades advanced Wednesday as gaming regulators started crafting the rules that will govern the introduction of skill into the state’s slot machines.

The Gaming Control Board held its first workshop to receive input on regulations that will implement Senate Bill 9, which Gov. Brian Sandoval signed in May. The bill directs regulators to encourage “innovative, alternative and advanced technology” in casino games — now the board is making rules to figure out exactly how that will work.

Once in place, the regulations should let slots play more like arcade and video games by allowing for an element of skill, hopefully making the games more appealing to customers who aren't attracted to the traditional, chance-controlled slots.

Board Chairman A.G. Burnett said he expects the skill-based regulations will bring a “sea change” to the casino industry.

“Really, what we are looking at is attempting to steer the state onto a new path, onto a new road, in terms of gaming,” he said. “Everyone here knows that we need a complete reinvigoration of slot games.”

The bill was championed by the Association of Gaming Equipment Manufacturers in large part to lure younger and more technologically savvy players onto casino floors. The association represents the biggest names in the slot industry, including International Game Technology and Scientific Games.

But while the industry wants the new rules to help it evolve, advocates were clear that the introduction of skill will not entirely replace traditional slots and the customers who enjoy those games.

“It’s intended to be accretive to what is on the floors today,” attorney Dan Reaser told the board, representing the equipment association. “It is not intended to cannibalize the existing market.”

Reaser presented extensive regulatory recommendations that brought to light some complications the board will need to work out as it implements the Senate bill. For example, the bill mentions three distinct game categories: games of chance, games of skill and hybrid games. Determining standards for the third category — namely, how to ensure a proper balance between chance and skill — is a tricky task for regulators.

The workshop also illuminated some of the new game possibilities the regulations could afford, such as “in-session features.” Under that proposal, included in the recommendations from the equipment association, a player could be presented with an option that allows him or her to select an item that improves gameplay. New mutliplayer games and the incorporation of social networking technology via video displays are other ideas included in the proposal.

Eric Meyerhofer, the CEO of Gamblit Gaming, said it's important that regulators let new games get to the casino floor as quickly as possible.

"If the process we end up with is too slow to move, you’ll aim at a target, and by the time it’s on the floor, it’s too late,” he said.

Gamblit makes products that play a lot like popular video games but with a wagering element added in, and the company has expressed interest in breaking into the Nevada market. In a document submitted to the board, Gamblit said the demographic targeted by the new rules is used to “playing a wide variety of ever changing content,” so casinos need to be able to keep their floors fresh with new or updated games if they want to capture those players.

Burnett said the board will soon schedule another workshop to continue crafting the regulations. Once the board is satisfied, it will pass the baton to the Nevada Gaming Commission, which has the final say over what rules are adopted.

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