Veteran and Fraternal Organizations: New Product Trends

January 10, 2014

Presented by:Chris Robertson

Director of Business Development

AGENDA

I. Traditional Products

II. Gray Machines

III. New Trends

TRADITIONAL PRODUCTS

GRAY MACHINES

• Prevalent in many states

• Undocumented number of machines – in the hundreds of thousands

• New laws leading to machine seizures

NEW TRENDS

• To support Veteran and Fraternal organizations,

regulators are approving regulated alternative products

• Several states are following with this trend

NEW TRENDS: DELAWARE

• Late 2012 veterans’ groups and fraternal organizations told to stop illegal slot operations

• Law passed early 2013 to allow slot machines

• Active since May 2013

NEW TRENDS: MISSOURI

• Pull-tabs discontinued in 2010

• Replaced with scratchers, a more secure product, and Keno

• Demand brought back pull-tabs Oct 2013• Electronic pull-tab dispenser• Improved security and accounting

NEW TRENDS: OHIO

• Veterans’ halls under scrutiny for gray machines

• Lottery offering new product

• Chosen product questioned by AG at this time and rejected by organizations

• Intention is to provide regulated alternative

NEW TRENDS: MARYLAND

• The law grandfathered machines on eastern shore, allowing slot machines in veteran and fraternal halls

• Leaves out the Veteran and Fraternal organizations in rest of state

• Aug 2012 new law authorized lottery to provide Veterans’ halls with ITVMs with video displays

NEW TRENDS: NEW MEXICO

• NM Gaming Control Board looking for additional support of charities

• Approved modernized pull-tab ticket dispenser

• Launched in May 2013

NEW TRENDS: FLORIDA

• Pull-tabs approved in 2007• 2008 AG Opinion against pull-tab dispensers• Historically, amusement games permitted• HB155 restricts video products• Compact does not permit electronically-

assisted pull-tabs or similar Lottery products

WHAT CAN YOUR STATE DO?