REGULATING AI-BACKED GAMING
landscape, but regulators must also iterate their testing protocols to license the games accurately and correctly. The United States has a complex system of laws regarding licensed sports betting and gaming. At present, there are 38 states where sports betting is legal, either online or through retail outlets. Of these, 30 states offer mobile and retail betting options, and eight only allow retail betting. At the time of writing, North Carolina is poised to become the next state to enter the online sports betting category. All products and games go through the same labor-intensive process of testing, approval, and certification. In most cases, the company will also need one or more licenses (manufacturing, associated equipment, etc.) to operate and distribute their product. New products with cutting-edge technology are also subject to strict scrutiny and licensing, but their technology may not fit within existing product categories. Often, a new product will be tested to Gaming Laboratories International (GLI) standards, making the testing and certification process faster on a state-by-state basis. The company must still be licensed in each US state where it hopes to operate. What exactly does it take to get a mobile skill game with new, never-before-used technology, tested and licensed? Let’s walk through the step-by-step process for one such game that utilizes AI technology. The novel game Winner’s Circle is a fixed odds and handicapable AI-based pari- mutuel virtual horse racing system that runs in the sportsbook areas of many Las Vegas casinos and other locations, including US jurisdictions where sports betting is legal as well as international locations. Winner’s Circle is a handicap-able AI-powered virtual horse racing system that distributes races for pari-mutuel and fixed odds wagering. The races are shown in the sportsbook areas of many Las Vegas casinos and other US and international jurisdictions where sports and race betting is legal. The Winner’s Circle platform technology is a patented live AI- powered virtual sporting event system with the following key features:
• Fully handicap-able racing with complete past performance and real-time pool information. • State-wide deployment allows for large pools and exciting Pick-6 and other exotic wagers. • Fixed odds races are shown in periods of lower wagering liquidity. Also, unique to Invincible GG, racing enthusiasts can also own, train, develop, and compete with their AI-powered horses in these same Winner’s Circle events via Owner’s Club, Invincible GG’s associated mobile racing game. Here we outline the five- step process of independent testing, approval and distribution which saw Winner’s Circle become one of the first AI-powered video games to secure regulatory approval. Step #1: DIAGNOSTIC TESTING : In Nevada, parallel testing is done by both the Nevada Gaming Control Board (NGCB) and an independent testing laboratory (GLI, BMM, etc.) to ensure the product conforms to the state standards for distributing and operating the product. This was the first-ever product where an AI-based simulation technology was used to determine the outcome of a wagering event. Therefore, there was a need to develop new testing protocols to complete a diagnostic test to determine whether the product met Nevada's gaming standards. The NGCB Technology Division, the ITL, and Invincible GG had to work together to develop countless new testing processes to rigorously validate that the product was compliant with industry and state-set standards. Step #2 FIELD TESTING: After the initial tests are complete and the product is deemed compliant with industry and state standards in the laboratories, there is a second set of operating standards that must be tested and met through the live operation of the product in the market at scale. This testing phase is done in the field, at one or more casinos, or with licensed gambling operators. The tests replicate the normal day-to-day offering of the product to casino visitors. At the same time, behind the scenes, the technology is being evaluated for its customer acceptance, reliability, accuracy, integrity, and player experience over a six-month period. There are typically a host of operating requirements that need to be complied with, including the normal gameplay and operation
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IMGL MAGAZINE | JANUARY 2024
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