Alliance Gaming to Introduce New Online Gaming Technology

28 October 1998
LAS VEGAS -- Bally Gaming and Systems, a subsidiary of Alliance Gaming Corp. (Nasdaq:ALLY), will introduce a new network architecture and online game delivery system at the Gaming Online Conference in New Orleans on Oct. 29.

The Remote Access Verification Environment (RAVE) technology provides the geographic call origination verification of its PC users and is designed to comply with current and proposed Nevada legislation regarding online gaming. Bally Gaming is the first company in the United States to offer an online gaming product that provides gaming regulators assurance that the online gaming activity originates from within their jurisdiction.

The RAVE technology is provided through a proprietary intranet whose dial-up access is restricted to subscribers and is not available to nonsubscribers such as Internet users. The first application of the technology has been designed for use by sportsbooks in Nevada.

Incorporating highly sophisticated call tracing and security measures developed in conjunction with KPMG Peat Marwick LLP and Bellcore, RAVE provides the foundation for an intra-state, closed-loop, subscriber-based system. Additional levels of security are achieved through sophisticated encryption techniques and the use of smart cards to identify and authenticate users.

"The key is to provide an effective mechanism to ensure regulatory concerns and jurisdictional boundaries are respected," said Morry Goldstein, president and chief executive officer of Alliance Gaming. "Only companies licensed by the appropriate gaming authorities will be allowed to license the RAVE technology, and only for approved applications."

Strict enforcement will be a key component to ensure that only authorized users within an approved gaming jurisdiction will have access to the system. Access restrictions imposed by the RAVE technology offer a much greater degree of consumer protection than unregulated Internet gambling.

The RAVE technology is designed to meet the stringent requirements of the Nevada Gaming Control Board. However, as this architecture can be implemented to support gaming in various jurisdictions, it can become the technology foundation for other gaming-oriented applications including horse racing and lotteries in both domestic and international marketplaces.

As a corollary to the RAVE system, Bally Gaming has also developed the SportsMaker System, which is designed to interface with sports wagering systems via a set of standard application program interfaces. SportsMaker provides a user-friendly interface with complete database collection and warehousing capability for target marketing, advertising and merchandising.

With headquarters in Las Vegas, Bally Gaming and Systems is a leading designer and manufacturer of reel-spinning slot machines, video gaming devices and slot information systems. The company is a wholly owned subsidiary of Alliance Gaming, a diversified gaming company that also operates two regional casinos and is the nation's largest gaming machine route operator.