Slot Machine Models Permitted in Peru

A policy for the legalization of games of chance, whether full or partial, implies the state undertaking the responsibility of overseeing the proper operation of permitted games. In Peru, the operation of slot machines has been permitted since 1994, and since 1997, it has become mandatory for slot machine models and their game programs, prior to their operation, to pass technical evaluations with independent laboratories authorized by the Peruvian Gaming Authority.

The standing regulations, approved through Supreme Decree 009-2002-MINCETUR, set out the basic rules to be satisfied by slot machines and their game programs for their operation to be considered an unbiased and transparent activity.

The unbiased nature of the activity is guaranteed by the absolute randomness of the game so that its outcome is not conditioned by any prior game or by the amount of money held by the machine. All players must have equal chances of winning, irrespective of prior or subsequent outcomes. Slot machines are operated through a game program, and this program must ensure the random nature of the games. In Peru, a minimum 85 percent of the amount waged shall be paid to players through a statistical combination of games factoring in all possible combinations. Such an unbiased nature will allow it to pay randomly.

The transparency feature of this activity allows both consumers (players) and the state, through its regulating authority, to be properly informed. Players must be informed of the game rules, types and amounts of wages, winning combinations, prizes (payouts), and how to get a malfunction refund and/or annulment of the game. Devices that flash and make noise must also disclose this information.

For the state to properly oversee the development of this activity, it needs to know the machine’s technical data, both its physical make-up (i.e., the machine model) and its software (i.e., the flash card or EPROM that contains the game’s program). With mechanical or electronic meters, the state may know exactly how much money has been wagered in each machine per day as well as the payouts and the winning combinations of the day.

But how can the state audit the unbiased and transparent nature of this activity? There are several auditing techniques. One of the most important is the prior evaluation of the machine models and game programs to be installed in order to determine whether required legal and technical standards are satisfied. This prior evaluation can be conducted directly by the state or by laboratories that are highly specialized in this type of test and authorized by the state. Prior evaluation shall include visual examination, assessment of random features of the game, resistance testing, intrusion and fraud detection testing, and software testing.

In Peru, these tests are performed by laboratories authorized by the Directorate General of Casino Games and Slot Machines (Dirección General de Juegos de Casino y Máquinas Tragamonedas). Presently, three labs have been authorized to perform technical tests in Peru. Gaming Laboratories International Inc. (GLI) provides its services in many of the jurisdictions where the exploitation of slot machines is legal, and there are also two Peruvian labs operated by private universities, Pontificia Universidad Católica del Perú (PUCP) and Universidad Tecnológica del Perú (UTP). Once the tests are conducted, and if the laboratory believes that the slot machine model or the read-only memory card evaluated has satisfied Peruvian standards, the lab issues the Certificate of Compliance.

The registration and recording of the model or game program for slot machines, a process known as homologation, is an administrative act by which the state accepts that the model or program has satisfied the legal and technical requirements, particularly those of Annexes A, B, C and D of the regulations passed through Regulation 009-2002-MINCETUR. Prior testing by one of the three labs and the Certificate of Compliance are prior necessary steps for homologation. Further, the lab testing is like a minimum guarantee that the use and exploitation of slot machines is unbiased and transparent.
Presently, any party interested in registering a slot machine model to operate in Peru has to file an application with the Peruvian Gaming Authority satisfying 10 requirements:

1) State the commercial name and model identification code;
2) State the manufacturer’s name, nationality and registration with the Peruvian Gaming Authority;
3) Indicate, in centimeters, the height, length and width of the model;
4) Include a technical manual describing technical features, operations and maintenance requirements of the model;
5) Include drawings of all mainboard circuits, connections and components of the slot machine;
6) Include information about the read-only memory cards that make up the game program that can be installed in the model, stating the functions performed by each memory card;
7) Include a digital image of the mainboard where the RAM and main and personality programs are stored, of the machine with the door open, of electromechanical meters, and of the slot machine front and back panels;
8) List the commercial names of games that the slot machine can operate;
9) Include the Certificate of Compliance issued by any of the three authorized labs; and
10) Pay an application fee, presently U.S. $75 per application.

The application process takes about one to three months.

The authorization and registration of the game programs will be executed only regarding the main software and personality software. When such software has a support that contains other nature memories (e.g., sounds, graphics, etc.), the authorization and registration will be executed regarding all of them without exception. In order to request the registration of the game programs, the party interested shall submit an application to the Peruvian Gaming Authority, also satisfying 10 requirements:

1) Identify all codes, according to the manufacturer of each EPROM or flash memory card that is part of the game software;
2) Include a sample of each EPROM or flash card in which the game software is stored (or in substitution you can send the binary file on a CD);
3) Include information about each one of the functions executed by each EPROM or flash card;
4) State the commercial name of the game or games in which the game program can be included;
5) Identify the slot machine model(s) code in which the game program can be included;
6) In the case that any EPROM or flash card contains the payout software, indicate the theoretic percentage of minimum and maximum return for the user per each kind of bet and the technical information about the characteristics of the payout software, including at least the total of possible combinations, the total of winner combinations, the statistics regarding the percentage of return for the user, and the information of symbols and images tha appear in the software;
7) Document where the electronic fingerprints of each memory is included;
8) Include the flash card or EPROM in its original format, with a corresponding label indicating the manufacturer’s name, the date of manufacture, the memory code, the position and the piece number of the manufacturer;
9) Include the Certificate of Compliance issued by any of the three authorized labs; and
10) Pay the application fee, presently U.S. $75 per application.

The application process takes about one to two months.

Presently, 364 models of slot machines and 9,907 game programs by 51 manufacturers from 19 countries have been cleared for operation in Peru. International Game Technology (68 models), Bally Technologies Inc. (39 models) and WMS Gaming Inc. (32 models) are the manufacturers that have the highest number of models cleared. The laboratories that have issued the most number of Certificates of Compliance are GLI (174 models certified) and PUCP (142 models certified). Concerning the type of authorized machines, out of the 364 models, 260 are video slot machines, 78 are reel machines, and 26 are multiplayer gaming machines. Finally, concerning the nationality of the manufacturers of such models, most are from the U.S. (183 models), followed by Australia and Spain with 35 models each, Austria with 23, and Peru with 20 models. The most recently cleared models are K2V 2.0 and Advantage+5-Reel by Konami Gaming Inc.; Casino TFT II WB3 by Merkur Gaming GmbH; DEP4000 by DEPSA; and Megavision by Intervision Marketing Ltd.

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