2012 3G Studios Media Placements

2012 Media Placements ~ The Abbi Agency, Inc.

3G StudiosTable of Contents

Date Publication Title

12/7/2012 I4U News Exclusive: Bally Technologies Eyes Online Caming Co

3G- Sources

12/6/2012 iGaming Post Ballys Considers Bid For 3G Studios

12/6/2012 Innovate GamingBally Looks To Acquire 3G Studios In Online Gaming

Push

12/6/2012 Speed Poker InfoBally Technology Looks To Acquire Online Poker Game

Developer 3G Studios

12/5/2012 The Economic Times Bally Technologies Eyes Online Gaming Co 3G

12/5/2012 Totally Gaming Bally Tech Exploring 3G Studios Takeover

12/5/2012 Top99NewsExclusive: Bally Technologies Eyes Online Gaming Co

3G

12/5/2012 Top News Today Bally Technologies Eyes Online Gaming Co 3G

12/5/2012 NASDAQBall Technologies Considers Bid For Online Gaming

Firm 3G

12/5/2012Northern Nevada Business

Weekly3G Studios

12/5/2012 Smart BriefReport: Bally Technologies Considers Bid For Game

Developer 3G Studios

12/5/2012 Slots OnlineBally Technologies Looking To Move Into Online

Gambling

12/5/2012 Reviewed Casinos Bally Technologies Interested In 3G?

12/5/2012 Online Poker ConsultantExclusive: Bally Technologies Eyes Online Gaming Co

3G

12/5/2012 Las Vegas SunSources: Bally Technologies Eyes Online Gaming

Company 3G

12/5/2012 Casino SpyBally Technologies Considering Bid For 3G Studios

12/4/2012 BenzingaBally Tech Said To Explore Bid For 3G Studios - Reuters

12/4/2012 OraiaExclusive: Bally Technologies Eyes Online Gaming Co

3G

12/4/2012 Yahoo News IndiaExclusive: Bally Technologies Eyes Online Gaming Co

3G

12/4/2012 Yahoo FinanceExclusive: Bally Technologies Eyes Online Gaming Co

3G

12/4/2012 Yahoo NewsExclusive: Bally Technologies Eyes Online Gaming Co

3G

12/4/2012 TopixExclusive: Bally Technologies Eyes Online Gaming Co

3G

12/4/2012 Our TownExclusive: Bally Technologies Eyes Online Gaming Co

3G

12/4/2012 NBC NewsExclusive: Bally Technologies Eyes Online Gaming Co

3G

12/4/2012 Poker News PageExclusive: Bally Technologies Eyes Online Gaming Co

3G



12/4/2012 Dream Builder PortalExclusive: Bally Technologies Eyes Online Gaming Co

3G

12/4/2012 Games IndustryExclusive: Bally Technologies Eyes Online Gaming Co

3G

12/4/2012 Online Europe Betting Gambling News: Exclusive: Bally Technologies Eyes

Online Gaming Co 3G - Sources - Reuters UK

12/4/2012 Interceder Bally Technologies Eyes Online Gaming Co 3G

12/4/2012 Indian Radios Bally Technologies Eyes Online Gaming Co 3G

12/4/2012 Ad Hoc News "Los Angeles - Slot-Machine Maker Bally.."

12/4/2012 AlltopExclusive: Bally Technologies Eyes Online Gaming Co

3G

12/4/2012 att.netExclusive: Bally Technologies Eyes Online Gaming Co

3G

12/4/2012 Bets 911Exclusive: Bally Technologies Eyes Online Gaming Co

3G

12/4/2012 World NewsExclusive: Bally Technologies Eyes Online Gaming Co

3G

12/4/2012 World Casino DirectoryExclusive: Bally Technologies Eyes Online Gaming Co

3G

12/4/2012Betting Tips And Information

Blog

Exclusive: Bally Technologies Eyes Online Gaming Co

3G

12/4/2012 cardplayer.comReport: Bally Technologies Looking To Buy 3G Studios

In Online Gaming Push

12/4/2012 ReutersExclusive: Bally Technologies Eyes Online Gaming Co

3G


WeeklyCasino Operators Gearing Up For Online Poker

12/1/2012 Bosma Business Radio James Kosta, 3G Studios

12/1/2012 EGR North America The Innovator

11/22/2012 Online-Casinos.com Ten USA States Look To Partener For Legal online Gambling

11/19/2012 Online Casino Archives 3G Studos Bets On Online Gambling11/14/2012 Fox Business Online Gambling10/31/2012 KUNR Beyond The Headlines

10/28/2012 Digital TrendsAll Eyes Are On 3G And Casino Chain Eldorado For First Legal

U.S. Online Poker Platform


WeeklyVizKinect Gains Ground With Ad Agencies

10/18/2012 Online Poker Real Money Spring To Usher In Online Poker In US10/18/2012 Innovate Gaming 3G Studios Prepares For Online Poker In US10/15/2012 4 Flush 3G Studios Hopes To Provide Online Poker This Spring10/15/2012 Poker News The Nightly Turbo10/13/2012 2 News Face The State: James Kosta Of 3G Studios10/12/2012 Reno Gazette Journal Healthiest Places To Work' Winners Honored10/12/2012 2 News Online Poker Expected To Launch This Spring

10/9/2012 Rio Online Casino Eldorado Agreement To Drive Development Of 3G Studios



10/9/2012 Reno Internet Casino Eldorado Agreement To Drive Development Of 3G Studios

10/5/2012 Casinomeister 3G Studios To Bring Eldorado Resorts Online10/1/2012 Edible Reno-Tahoe Tomato Tart10/1/2012 Backgammon Gaming 3G Studios Apply For Multiple Nevada Licenses?

10/1/2012 Smart BriefEldorado Casino To Form Online Gambling Partnership With

3G Studios

10/1/2012 Gaming Today Eldorado Interactive Announces Partnership With 3G Studios


WeeklyEldorado Deal To Push Growth Of 3G Studios

10/1/2012 Reno Tahoe USAVideo Game Developer 3G Studios Partners With Eldorado

Hotel Casino To Launch Online Gambling Venture


WeeklyEldorado Deal To Push Growth Of 3G Studios

9/29/2012 Reno Gazette Journal Eldorado Casino Bets On Online Gambling

9/28/2012 Calvin Ayre Nevada Firm The Latest To Indulge In A Video Game Gamble

9/28/2012 vcstar.com Eldorado Casino Enters Deal For Online Gambling9/28/2012 Yahoo! Finance Eldorado Casino Enters Deal For Online Gambling9/28/2012 KOLO 8 Eldorado Casino Enters Deal For Online Gambling9/28/2012 Bloomberg Businessweek Eldorado Casino Enters Deal For Online Gambling

9/27/2012 KRNV News 4 3G Studios Partners With Eldorado

9/27/2012 Reno Gazette Journal Eldorado Interactive9/26/2012 cardplayer.com Nevada Internet Poker9/25/2012 Gambling911 3G Studios Prepares For Online Poker In US

9/23/2012Nevada's Center For

Entrepreneuship & Technology3G Studios- Reno's Online Jackpot?

9/23/2012 Reno Gazette Journal Reno Rebirth9/22/2012 Reno Gazette Journal Renos Online Jackpot


Weekly3G Seeks Gaming License

9/14/2012 Online Casinos Vegas Multiple Nevada License Applications By 3G Studios

9/13/2012 Gambling911Nevada Video Game Company 3G Studios Becomes First To

Enter Online Gambling Market9/13/2012 cardplayer.com Rock Band

9/1/2012 Nevada Business Magazine Gaming

8/20/2012 New Millennium Games Great Minds Think A Like


WeeklyVizKinect Lands Ontracts

7/30/2012 San Francisco Chronicle Video Games To Online Casinos7/29/2012 Online Casinos Game Developers Ready For US Market7/29/2012 SF Gate Online Gambling Lures Video Game Firms7/27/2012 Bloomberg Businessweek Game Makers Seek Jackpot7/24/2012 Daily Mail UK Online Gambling7/23/2012 Forbes The New Job Market7/23/2012 Huffington Post James Bio

7/15/2012 New York TimesWith Gambling In Decline, A Faded Reno Tries To Reinvent

itself7/12/2012 Fox Reno Summer School Game Designing


Date Publication Title7/12/2012 News 4 KRNV Local Students Make A Game Of Summer School7/12/2012 KOLO 8 Student Video Games6/28/2012 KUNR: Behind The Headlines Beyond The Headlines: Apples In Northern Nevada6/26/2012 Nevada Newsmakers Online Gambling 6/25/2012 KUNR Kickball T5ournament 6/22/2012 2 News Kickball Match At Aces Ballpark 6/22/2012 News 4 KRNV Kickball For A Cause

6/22/2012 RGJ Northern Nevada Kickball Fundraiser

6/21/2012 RGJ Northern Nevada Kickball At Aces Ballpark

6/15/2012 KUNR Beyond the Headlines: Reno's New Media Scene

6/15/2012 Yahoo Upcoming Events 1st Annual Kickball Match

6/15/2012 North Lake Tahoe Bonanza 1st Annual Kickball Match 6/15/2012 Tahoe.com 1st Annual Kickball Match 6/15/2012 Sierra Sun 1st Annual Kickball Match 6/15/2012 newsreview.com 1st Annual Kickball Match 6/15/2012 American Towns 1st Annual Kickball Match 6/15/2012 gonnahappen.com 1st Annual Kickball Match 6/13/2012 Trendspotters Welcome to our new client: 3 G Studios!

Bally Technologies is reported to be exploring a bid for online

poker game developer 3G Studios, in what would be the latest

deal to combine online gambling and casino gaming on social

media.

Reports out of Nevada say several Bally Technologies

executives were scheduled to visit 3G’s offices in Reno, Nevada early this week to determine

whether to make a formal bid.

Bally have made no official comment on these runours, along with Abbi Whitaker, a

spokeswoman for 3G Studios declined comment but acknowledged the company recently hired

Wedbush Securities as its financial adviser.

Another source familiar with the matter said 3G, which helped develop a mobile version of the

music video game Rock Band for Harmonix Music Systems, had been talking with others about

a potential acquisition or partnerships.

“3G is holding initial talks with potential buyers,” said that source, mentioning video game

maker Activision Blizzard, slot-machine maker International Game Technology and video game

giant Electronic Arts as potential buyers or partners.

A sale of 3G could range between $60 million and $100 million, the source said.

Activision Blizzard had no immediate comment, while IGT and Electronic Arts declined

comment.

In August, 3G Studios applied to the Nevada Gaming Control Board for an online gaming

license, and it is scheduled to start an online poker site called SlotALot with casino operator

Eldorado Hotels in the spring. It also makes a free game available on tablets and smart phones

that is played for virtual currency.

Bally looks to acquire 3G Studios in online gaming push 6th December, 2012

Las Vegas-based Bally Technologies is exploring the option to

acquire video game company 3G Studios to gain a first-mover

advantage in regulated interactive gaming in the US. Whilst

Bally already holds an online poker license in Nevada, 3G is

ready with games to enter the market.

“Mobile and online gambling will revolutionise the US gambling industry,” commented James

Kosta, 3G Studios CEO, “With our extensive experience in video game development, mobile

gaming, social gaming and gambling technology, 3G Studios is uniquely positioned within this

emerging industry.”

The Reno-based game studio has innovative plans to combine traditional

video games with gambling. It suggests that whilst lawmakers continue to

work on legislation and companies bid for licenses, the company has been

developing creative solutions to bring real-money gambling to proven video

games such as Rock Band™.

In August, 3G Studios applied to the Nevada Gaming Control Board

multiple online service provider’s licenses and plans to launch an online

poker site called SlotALot with casino operator Eldorado Hotels. It also makes a free game

available on tablets and smart phones that is played for virtual currency.

According to Reuters, a sale of 3G Studios could range between $60m and $100m. It falls shy of

the $500m paid buy IGT in January to enter the social gaming market through DoubleDown

Interactive. Bally have made no official comment and 3G spokeswoman, Abbi Whitaker

declined to comment acknowledged the company recently hired Wedbush Securities as its

financial adviser.

Other potential buyers or partners of 3G Studios include video game makers Activision Blizzard

and Electronic Arts, as well as IGT. Activision Blizzard had no immediate comment, while IGT

and Electronic Arts declined comment.

Carlo Santarelli, gaming analyst with Deutsche Bank, said, “The social gaming business is up

for grabs. I think we’re in a space where we’ll see deal activity, largely on the technology side.

For casinos, social gaming content is king right now.”

About 3G Studios

3G Studios, Inc. is an independent video game development studio with a portfolio consisting of

titles such as STACKED with Daniel Negreanu and Combat Elite, along with four titles

available on iTunes and Brave Arms, available on the Facebook platform.

The company believes in developing games and services based on proven mechanics that are fun

to play together and easily accessible, whether players are in the same room or around the world.

More Information

Website: 3GStudios.com

Twitter: @3GStudios

Facebook: 3GGames

About Bally Technologies, Inc.

With a history dating back to 1932, Las Vegas-based Bally Technologies designs, manufactures,

operates and distributes advanced gaming devices, systems and technology solutions worldwide.

Bally’s product line includes reel-spinning slot machines, video slots, wide-area progressives,

mobile and interactive applications, and Class II, lottery and central determination games and

platforms.

Bally also offers an array of casino management, slot accounting, bonusing, cashless and table

management solutions.

More Information

Info: InnovateGaming.com/Bally-Technologies.com

Website: BallyTech.com

Twitter: @Bally_Tech

Facebook: Facebook.com/BallyTechnologies

Linkedin: Linkedin.com/Company/Bally-Technologies

12/6/2012

LOS ANGELES: Slot-machine maker Bally Technologies is exploring a bid for online poker game

developer 3G Studios, in what would be the latest deal to combine online gambling and casino

gaming on social media, said two sources with knowledge of the talks.

One source said several Bally Technologies executives were scheduled to visit 3G's offices in

Reno, Nevada on Tuesday to determine whether to make a formal bid.

Bally had no immediate comment. Abbi Whitaker, a spokeswoman for Reno, Nevada-based 3G

Studios declined comment but acknowledged the company recently hired Wedbush Securities

as its financial adviser.




"3G is holding initial talks with potential buyers," said that source, mentioning video game

maker Activision Blizzard , slot-machine maker International Game Technology

and video game giant Electronic Arts as potential buyers or partners.



comment.



http://economictimes.indiatimes.com/topic/Bally-Technologies

http://economictimes.indiatimes.com/topic/3G-Studios

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http://economictimes.indiatimes.com/topic/Harmonix-Music-Systems

http://economictimes.indiatimes.com/topic/International-Game-Technology



Other slot makers have made moves to enter social gaming, which they view as a way to

market to younger gamblers as well as tap a potentially lucrative market for online market that

generates revenues by charging users to pay for virtual chips.

Several US casino operators are teaming with online game developers as they gear up for the

Internet gambling market which is expected to reach $10 billion in bets a year by 2017. .

Market leader IGT paid $500 million in January for DoubleDown Interactive, which makes free

slots, poker and other games for Facebook. DoubleDown produced $35.8 million in fourth-

quarter revenues, IGT said, a 20 per cent hike from the third quarter..

http://economictimes.indiatimes.com/topic/Hotels

http://economictimes.indiatimes.com/topic/Facebook

12/5/2012

Leading slot machine developer Bally Technologies is considering purchasing online poker

game developer 3G Studios in their latest bid to combine online gambling and casino gaming on

social media platforms.

Reuters has reported that a source within the company said that several Bally Technologies

executives were meeting at 3G’s offices today to determine whether to make a formal bid.

They reported that a source inside 3G Studios confirmed that the company had been talking with

other companies about potential acquisition.

“3G is holding initial talks with potential buyers and the sale could range between $60 million

and $100 million,” the source said.

Fellow leading slot machine developer International Game Technology as well as video game

developed Electronic Arts are also considering whether to make a bid.

The move is the latest by slot machine developers to enter the online and social gaming

industries.

International Game Technology paid $500 earlier this year for Double Down Interactive as they

attempt to gain a slice of the internet gambling market that, according to Reuters, is expected to

reach $10 billion in bets a year by 2017.

Carlo Santarelli, analyst for Deutsche Bank, believes that online gambling is the future of the

industry and that casinos as well as casino game developers are desperate to get a slice of the

action.

“The social gaming business is up for grabs. I think we’re in a space where we’ll see deal

activity, largely on the technology side. For casinos, social gaming content is king right now,”

Santarelli said.

Bally Technologies and International Game Technology have both been granted online gaming

licenses in Nevada that allows them to partner with casinos to provide online games through

their machines with the final member of the big three slots developers WMS Industries expected

to announce a similar plan shortly.

Rumours of a Bally Technologies interest in the Reno-based social gaming software developer

3G appeared to be confirmed by an exclusive Reuters news agency report Tuesday that Bally

execs were scheduled to visit 3G offices that day.

Neither company would comment on the reports, although it is rumoured that 3G has been

talking with several companies about a potential acquisition or partnership agreement.

Among the companies said to be interested in 3G are Activision Blizzard, slot-machine maker

International Game Technology and video game giant Electronic Arts, with acquisition pricing

anywhere between $60 million to $100 million being bruited about.

IGT acquired social gaming company Double Down Interactive for $500 million in January

2012, with the acquisition delivering $35.8 million in fourth-quarter revenues, a 20 percent hike

from the third quarter.

Both IGT and Bally have been granted online gaming licenses in Nevada, which allows them to

partner with Nevada’s casinos to provide online poker and other games through their machines.

None of the aforementioned companies were prepared to comment when approached by Reuters.


licence, and it is scheduled to start an online poker site called SlotALot with casino operator

Eldorado Hotels in the spring (see previous InfoPowa report). It also makes a free game available

on tablets and smart phones that is played for virtual currency.

Carlo Santarelli, analyst with Deutsche Bank, told Reuters: “The social gaming business is up for

grabs. I think we’re in a space where we’ll see deal activity, largely on the technology side. For

casinos, social gaming content is king right now.”

According to the American Gaming Association, about 85 countries have legalised online

gambling and an estimated $35 billion is being bet worldwide online each year.

12/4/2012

Exclusive: Bally Technologies eyes online gaming co 3G - sources 12/4/2012

LOS ANGELES (Reuters) - Slot-machine maker Bally Technologies is exploring a bid for

online poker game developer 3G Studios, in what would be the latest deal to combine online

gambling and casino gaming on social media, said two sources with knowledge of the talks.

One source said several Bally Technologies executives were scheduled to visit 3G's offices in

Reno, Nevada on Tuesday to determine whether to make a formal bid.

Bally had no immediate comment. Abbi Whitaker, a spokeswoman for Reno, Nevada-based 3G

Studios declined comment but acknowledged the company recently hired Wedbush Securities as

its financial adviser.




"3G is holding initial talks with potential buyers," said that source, mentioning video game

maker Activision Blizzard, slot-machine maker International Game Technology and video game

giant Electronic Arts as potential buyers or partners.



comment.





Other slot makers have made moves to enter social gaming, which they view as a way to market

to younger gamblers as well as tap a potentially lucrative market for online market that generates

revenues by charging users to pay for virtual chips.

Several U.S. casino operators are teaming with online game developers as they gear up for the

Internet gambling market which is expected to reach $10 billion in bets a year by 2017.

Market leader IGT paid $500 million in January for DoubleDown Interactive, which makes free

slots, poker and other games for Facebook. DoubleDown produced $35.8 million in fourth-

quarter revenues, IGT said, a 20 percent hike from the third quarter.

"The social gaming business is up for grabs. I think we're in a space where we'll see deal activity,

largely on the technology side. For casinos, social gaming content is king right now," said Carlo

Santarelli, analyst with Deutsche Bank.

Online gambling is now legal in Nevada and Delaware, while Wisconsin, New Jersey,

California, and nine other states are moving towards legalization after the Justice Department

ruled last year that only online betting on sporting contests was unlawful.

According to the American Gaming Association, about 85 countries have legalized online

gambling and an estimated $35 billion is being bet worldwide online each year, including by

millions of people in the United States.

Slot maker WMS Industries Inc said in October it expected to announce partnerships to provide

online game platforms to land-based casino operators.

Both IGT and Bally have been granted online gaming licenses in Nevada, which allows them to

partner with Nevada's casinos to provide online poker and other games through their machines.

Social gaming company Zynga, a market leader with 34 million online users of its virtual

currency poker title on Facebook, has said it plans to move into real money gambling.

But some industry executives see Zynga as an attractive takeover target with its stock price

hoving just above $2 a share down from a 52-week high of $15.91.

12/4/2012

12/4/12

12/4/2012

12/04/2012

Bets911 News-Exclusive: Bally Technologies eyes online gaming co 3G – sources – Reuters

Exclusive: Bally Technologies eyes online gaming co 3G – sources

Reuters LOS ANGELES (Reuters) – Slot-machine maker Bally Technologies is exploring a bid for

online poker game developer 3G Studios, in what would be the latest deal to combine online

gambling and casino gaming on social media, said two sources with …

and more » Tue, 04 Dec 2012 19:31:02 GMT

http://www.bets911.com/online-gaming-news/exclusive-bally-technologies-eyes-online-gaming-co-3g-sources-reuters/

http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNEOJII6Sx7vT2BB1_ZBgPJR5Ib9qw&url=http://www.reuters.com/article/2012/12/04/us-3gstudio-bally-idUSBRE8B313F20121204

http://news.google.com/news/more?ncl=dCTUEgPMu2IQmnM&ned=us

Exclusive: Bally Technologies eyes online gaming co 3G - sources December 4th, 2012 LOS ANGELES (Reuters) - Slot-machine maker Bally Technologies is exploring a bid for online poker game

developer 3G Studios, in what would be the latest deal to combine online gambling and casino gaming on social

media, said two sources with knowledge of the talks. One source said several Bally Technologies executives were

scheduled to visit 3G's offices in Reno, Nevada on Tuesday to determine ...

http://news.yahoo.com/exclusive-bally-technologies-eyes-online-gaming-co-3g-192607723--sector.html

Nevada-based gaming company 3G Studios — developer of the popular PlayStation 3 version of Rock Band — is looking at potential buyers, Reuters reported Tuesday.

One is Bally Technologies, another Nevada firm, which has done business with 3G before.

Bally Technologies is already an online poker licensee in Nevada, although its games haven’t started yet, while 3G is an applicant to get into the real-money gaming space.

3G told Card Player in September that it wanted to bring real-money betting to the U.S. video game market, on products such as Rock Band and Call of Duty. The firm has marketed itself as having creative ideas for how to merge traditional video game play with gambling.

According to Reuters, Activision Blizzard, International Game Technology and Electronic Arts are possible buyers of 3G. The price tag: $60-$100 million.

While social gaming exists as a solution for tech firms looking at the online betting space without real-money deposits, traditional online gambling is the grand prize. Right now, online poker is legal in Nevada and Delaware, while some on Capitol Hill are trying to push a federal measure that potentially could legalize only web poker.

3G studios CEO James Kosta told Card Player in September, echoing the sentiment of many of his competitors, that poker is viewed as the gateway game.

http://www.reuters.com/article/2012/12/04/us-3gstudio-bally-idUSBRE8B313F20121204

http://www.cardplayer.com/poker-news/14058-rock-band-developer-applies-for-web-poker-license

http://www.cardplayer.com/poker-news/14136-nevada-internet-poker-the-gateway-to-gambling-on-video-games-says-gaming-executive

http://www.cardplayer.com/poker-news/14556-commercial-casinos-in-full-court-press-to-legalize-online-poker-during-lame-duck

(Reuters) - Slot-machine maker Bally Technologies is exploring a bid for online poker game developer 3G Studios, in what would be the latest deal to combine online gambling and casino gaming on social media, said two sources with knowledge of the talks.

One source said several Bally Technologies executives were scheduled to visit 3G's offices in Reno, Nevada on Tuesday to determine whether to make a formal bid.

Bally had no immediate comment. Abbi Whitaker, a spokeswoman for Reno, Nevada-based 3G Studios declined comment but acknowledged the company recently hired Wedbush Securities as its financial adviser.

Another source familiar with the matter said 3G, which helped develop a mobile version of the music video game Rock Band for Harmonix Music Systems, had been talking with others about a potential acquisition or partnerships.

"3G is holding initial talks with potential buyers," said that source, mentioning video game maker Activision Blizzard, slot-machine maker International Game Technology and video game giant Electronic Arts as potential buyers or partners.


http://www.reuters.com/sectors/industries/overview?industryCode=90&lc=int_mb_1001

Activision Blizzard had no immediate comment, while IGT and Electronic Arts declined comment.

In August, 3G Studios applied to the Nevada Gaming Control Board for an online gaming license, and it is scheduled to start an online poker site called SlotALot with casino operator Eldorado Hotels in the spring. It also makes a free game available on tablets and smart phones that is played for virtual currency.

Other slot makers have made moves to enter social gaming, which they view as a way to market to younger gamblers as well as tap a potentially lucrative market for online market that generates revenues by charging users to pay for virtual chips.

Several U.S. casino operators are teaming with online game developers as they gear up for the Internet gambling market which is expected to reach $10 billion in bets a year by 2017.

Market leader IGT paid $500 million in January for DoubleDown Interactive, which makes free slots, poker and other games for Facebook. DoubleDown produced $35.8 million in fourth-quarter revenues, IGT said, a 20 percent hike from the third quarter.

"The social gaming business is up for grabs. I think we're in a space where we'll see deal activity, largely on the technology side. For casinos, social gaming content is king right now," said Carlo Santarelli, analyst with Deutsche Bank.

Online gambling is now legal in Nevada and Delaware, while Wisconsin, New Jersey, California, and nine other states are moving towards legalization after the Justice Department ruled last year that only online betting on sporting contests was unlawful.

According to the American Gaming Association, about 85 countries have legalized online gambling and an estimated $35 billion is being bet worldwide online each year, including by millions of people in the United States.

Slot maker WMS Industries Inc said in October it expected to announce partnerships to provide online game platforms to land-based casino operators.

Both IGT and Bally have been granted online gaming licenses in Nevada, which allows them to partner with Nevada's casinos to provide online poker and other games through their machines.

Social gaming company Zynga, a market leader with 34 million online users of its virtual currency poker title on Facebook, has said it plans to move into real money gambling.

But some industry executives see Zynga as an attractive takeover target with its stock price hoving just above $2 a share down from a 52-week high of $15.91.




http://www.reuters.com/subjects/facebook?lc=int_mb_1001

http://www.reuters.com/finance?lc=int_mb_1001




http://www.reuters.com/subjects/facebook?lc=int_mb_1001

Golden Gaming’s Chris Porter refl ects

on a busy year The politics of sports

wagering in New Jersey How to protect

your egaming business against fraud

PLUSEXCLUSIVE

DATA Has the Full Tilt Poker

relaunch been a success?

EXCHANGE WAG E R I N G D R A W S N E A R E R I N

C A L I F O R N I A

THE INNOVATORMEET 3G STUDIOS CO-FOUNDER JAMES KOSTA, THE MAN WITH THE IDEAS TO CHANGE THE INDUSTRY

001_eGRNA9_coverxx.indd 1 29/11/2012 15:25

18 egrnorthamerica.com

James Kosta

The innovatorJames Kosta is already a familiar name in certain circles, but if you have never heard of him, you soon will. Tom Washington speaks to the man behind one of the most exciting developers in egaming

P ushing the limits of innovation is not something always associat-ed with an industry tied down with regulation. But as online gambling

draws closer in the US, the same bright young minds responsible for the explosion of success-ful start-up technology businesses are getting in on the act, and bringing their genius-like pro-gramming skills with them.

James Kosta is a case in point. Having en-joyed a successful career working for some of the world’s best-known technology brands, he is now at the sharp edge of the online gambling in-dustry, aiming to take the regulated US market by storm and with eyes firmly fixed on the rest of the world, too.

Much of the puzzle is already in place, includ-ing a partnership with Las Vegas casino group Eldorado, which will see his online poker prod-ucts among the first to launch in Nevada, while licensing deals in Europe and Asia are just around the corner.

An eventful past will have prepared the 3G Stu-dios founder and CEO for the topsy turvy, unpre-dictable world of egaming. A bona fide computer whiz kid, Kosta’s prowess saw him recruited by

profile

018-021_EGRNA9_Profile-JamesKosta.indd 18 29/11/2012 11:29

egrnorthamerica.com 19

the government’s intelligence services aged just 17, the same year he first fell in love with the world of video gaming while serving an internship at George Lucas’ studio, Lucas Art. His passion for gaming took a back seat for some time, however, as his life took what he describes as a “detour”.

A career as an intelligence analyst began with the Navy and ended at the CIA where he was ultimately responsible for tracking the money going to warlords and “radical” sheiks in North Africa and the Middle East. Aged 21 and finished with government life, Kosta then found himself in the shadows of Seattle’s snow capped moun-tains and was headhunted for a job at Micro-soft’s corporate HQ. “It’s amazing how many ex-Spooks go and work for companies like Micro-soft and Intel; they really like having those kinds of people,” he says.

Kosta spent nine years on and off at the technol-ogy colossus, with spells consulting for the likes of Dell and Disney in between. During that time, he was one of the architects of two groundbreaking server technologies, including the Remote Desk-top Protocol for Microsoft, which provides users with a graphical interface to another computer over a network connection.

Talking through his eventful career, he then mentions, almost in passing, that he “had a couple of dotcoms, which I sold for millions of dollars and after doing so decided to retire”. Not bad for a 28-year-old.

Now 37, Kosta hasn’t left his time working in intelligence completely behind him, and is hoping to put his expertise into good use to transform the egaming industry. “I spent a great deal of time de-veloping systems for the CIA, which would look for outliers in social groupings, processing mas-sive amounts of data to look for people who were acting out of the norm,” he explains.

“We have now reversed that and created a system called ‘Freud’, which does nothing but try and create groupings of people. It will ana-lyse, for instance, large groups of gamblers, their behaviour, and try to find commonality between

them so that we can then exploit this in our game development.

“The way computer games like Grand Theft Auto are developed is by allowing players to do whatever they want within the game and then standing back and watching what they do. We see developing gambling games in the same way – let’s give them a forum to play the way they want and then watch and try to work out the common-alities. It’s a very cool system.”

Light bulb momentThe first video game company Kosta co-found-ed in 2002, BattleBorne Entertainment, special-ised in military-style titles before he “got kind of bored”, preferring to lend his skills to developing games designed to tap into a new demographic of gamers, namely families and women, which he says are “underserved” in the gaming industry. So, in 2006, 3G Studios was born, and was soon hired to be the brains behind Playstation’s successful Rockband series of games, as well as Stacked, a poker video game built for MTV Games.

It was a year or two after launch, while building up 3G Studios’ portfolio of games, that Kosta had a vision of the future. Monetising social gaming – very much the boom industry at the time – was complicated; the lack of barriers to entry meant the market was saturated with developers large and small. What was the next big thing, the next money spinner in an already illustrious career? Kosta explains his light bulb moment: “The real problem in free-to-play turned out to be that everybody could do it. You had a company like Electronic Arts competing with a two-person company working in a garage somewhere. So we started looking beyond that and tried to find the next monetisation model that everyone would move on to.

“The logical conclusion was gambling. If we start looking to the future and say that one day

I spent a great deal of time developing systems for the CIA, which would look for outliers in social groupings, processing massive amounts of data James Kosta

James Kosta was recruited by the Us government’s intelligence services at the age of just 17


20 egrnorthamerica.com

every video game will incorporate gambling in one form or another, it means we have an op-portunity to be groundbreaking. That’s really the thought process of 3G Studios and where we are going; we want to capture that 21 to 25-year-old audience and lead the video game industry into the much larger industry of gambling.”

Kosta, by his own admission, didn’t know much about the gambling world when he set his company on its new course. Determined to be at the forefront, however, he has spent the past two-and-a-half years readying himself for the transition and the start of a regulated US market. The first move was a complete shift in focus away from the traditional console-based games 3G was developing. The company was di-vided into two primary functions. The first lev-erages Kosta’s expertise by offering server-based gaming – whereby games can be played on devic-es linked to a central system – to clients with less capable devices such as Smart or internet ena-bled TVs. “We believe Smart TVs are going to be big,” he says, adding that 3G Studios is set launch a Smart TV casino next year.

The development of gambling products, meanwhile, meant he was forced to get to grips with, and understand, the casino customer in detail, a journey which led to a partnership with gaming machine manufacturer IGT. In a deal to suit both parties’ strengths, Kosta’s team was brought in to develop online games aimed at at-tracting players the gaming supplier struggled to reach with its normal products, while IGT helped him learn what he needed to know to succeed in the egaming industry.

“IGT took us under its wing and we start-ed working with four distinct divisions of the

company to develop games that would attract the younger audience – a new demographic that is more used to playing Angry Birds on their mobile phones. They taught us all about creat-ing math models and taught us about building to the gambler mentality. It was an awaken-ing; it is extremely different from the standard gamer mentality.”

Over the course of those two years, 3G Studi-os developed roughly 24 games, which IGT and other B2B suppliers licensed and integrated into their own platforms, while two additional poker games were created specifically for IGT and will be launched next year.

However, Kosta’s innovative, boundary-push-ing instincts were being shackled, and it wasn’t long until his vision for his business broadened. “We had to stay relatively traditional [when working on behalf of IGT]. Some of the proto-types we built were very exciting but were out-side of IGT’s realm of focus. For instance, we built a pinball game, one that you can play on your iPad but under the surface there is a slot machine. So, even though it feels like you’re having a fan-tastic game of pinball, every time you shoot a ball on the table the slot machine is spinning in the background and determines the outcome. We adjust the physics of the pinball based on that known outcome.

“We showed it to IGT and they loved it, but they didn’t have a way to capitalise on it. 3G Studios has about a dozen games like that, which we are going to be introducing to the market ourselves.”

The games will be offered through 3G Stu-dios’ partnership with Las Vegas-headquar-tered Eldorado Resorts, a family-owned nation-al casino group with properties in, among others, Reno and Los Angeles. The deal was announced in September and facilitates Kosta’s entry into

Currently on the growing waiting list of interactive poker licence applications, 3G Studios and its partner Eldorado will face stringent background checks and technology tests before going live in the Silver State. The new, real-money games will be jointly

launched under the 3G Studios and Eldorado Interactive brands, with three products announced so far and three more in production.

The three products revealed thus far are SlotALot, a new arcade-style slot game experience for iOS, Android and Facebook, Outlaw Poker, which will be the poker product for regulated gambling,

and Split Pot Poker, which is the poker product for play money.

With SlotALot ready to launch at the time of going to press, Kosta predicts 3G Studios will be approved by the Nevada Gaming Commission in the spring, with real-money poker following immediately afterwards.

GoinG live in nevada

James Kostaprofile

▼

SlotALot, a new arcade-style slot game experience for iOS, Android and Facebook


egrnorthamerica.com 21

Nevada’s soon-to-be-active online poker market, as only land-based casinos can obtain an opera-tor licence.

Real-money poker is set to be launched early in 2013 under a joint brand once both partners are licensed by the state’s Gambling Commis-sion. In the meantime, the imminent release of virtual currency freeplay casino platform Slo-tALot, to be made available as a mobile app and on Facebook, will provide a useful revenue stream and testing ground.

Trusted advisorA keen observer of egaming regulation, Kosta was recruited by Senate majority leader Harry Reid as an expert advisor on what the politi-cian’s much anticipated federal online poker bill should look like. And he very much has his own ideas of how the industry will evolve over the coming years. “There are 12 states that are looking to legalise next year and we expect to

be active in each and every one of them as they do so. It’s kind of a waiting game. We believe the model [of needing a land-based licensed partner] is going to continue throughout the US, because the chances of a brick and mortar that has been operating for some time committing some kind of fraud is far less risky.

“The downside to the federal bill is that it im-mediately declares all online gambling to be il-legal and then puts in place a 15-month quiet period to get online poker regulation ready. That would be damaging to a company like ours that has essentially all the pieces in place. But there are some very good things about the bill – such as that it would make Nevada the only state that would be able to issue licences for the first five years or so.”

Meanwhile, Kosta’s appetite for innovation re-mains as strong as ever, saying almost impatient-ly, that “we kind of have to start with poker but we’re really focused on finding ways to bring gam-bling to that younger demographic”.

One such method is what he describes as “leader board betting”, of which 3G Studios has obtained a patent. Harking back to the days of arcade games, the system can be integrated into an existing game and offers players the chance to gamble on the fact that no one can beat their achievements. Take a standard racing game, for example. If one player records an exceptionally fast lap time, the system will ask whether they would like to post a bet that they will retain that record for 24 hours. When that player places his bet, his friends are instantly notified of the op-portunity to bet against them and try to defeat their achievement.

“It’s a beautiful system because it goes back to the arcade days when you would put your name at the top of the scoreboard and see if you can hold that position,” explains Kosta. “And you can even back your friend to keep their record, so if people do bet against them you get a share of the pot at the end if they win. It’s a really cool system and a new way to do skill-based betting. We are cur-rently in negotiations with some of the largest video game publishers in the world to licence it.”

With so much attention on the start of the online poker industry in the States, operators would be forgiven for overlooking the endless possibilities online gambling represents. Social gaming has exploded by offering players the chance to “gamble” on anything and everything, and with innovators like Kosta entering the fray, the future of online gambling could look very dif-ferent to how it does today.

There are 12 states that are looking to legalise next year and we expect to be active in each and every one of them as they do so James Kosta

3G studios, launched by Kosta in 2006, has teamed up with eldorado Resorts to offer a range of new freeplay casino and real-money poker games


James Kosta, the CEO of Nevada based 3G Studios appeared

on Fox Business earlier this week to discuss what he called

his company’s $20 million bet on online gaming.

Kosta revealed that 3G Studios has invested around $20

million in online gambling and pointed out that online

gambling is already legal in the state of Nevada and said that

3G Studios is hoping that it will become legal in around a

dozen states over the next year.

The company now specialises in producing games for mobile

devices and believes that the small screen devices are

uniquely suited to gambling.

Kosta said that the current generation of gamers over the age

of 21 and the upcoming generation do not really want to

physically visit a casino; he even claimed that most would not want to log in on a PC, instead

Kosta belives that the future lies purely in mobile gaming.

Since the increase in popularity of free-to-play games and the decline of the expensive console

game, Kosta said that he believes that “gambling is the next form of monetisation for video

games.”

3G Studios has applied to the NGC for a license and Kosta said the company is ready to launch

an online service as soon as they get an answer.

Fox Business

Online Gambling

11/14/2012

Beyond the Headlines: Recapping City Council Races;

Latino Voters & New Frontier in Online Gambling

by KUNR - October 31, 2012

On this edition of Beyond the Headlines:

Segment 1: Recapping the Reno City Council Races with the RGJ's Brian Duggan and KUNR's

Kate McGee.

Segment 2: Why do Latino voters flock to Pres. Obama and what can the GOP do better with

this key voting bloc? Dr. Emma Sepulveda with UNR's Lation Reseach Center discusses her new

book: Converging Dreams: Why Latinos Support Obama.

Segment 3: We look at the first-ever partnership between a video game company and a casino.

We hear from Reno's 3G Studios and Eldorado Interactive and what their joint venture could

mean for gambling and for Nevada's economy.

http://www.unr.edu/latinocenter/

http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&ved=0CCEQFjAA&url=http%3A%2F%2Fwww.amazon.com%2FConverging-dreams-latinos-support-ebook%2Fdp%2FB009IPQMFK&ei=zWGRUPjhD5HRigK_yYHwDg&usg=AFQjCNGEpCDoUzJ11fywtFCvdqfndOD-5A

http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&ved=0CB8QFjAA&url=http%3A%2F%2Fwww.3gstudios.com%2F&ei=bGKRUMmpNMGLjAKQ5IGoBA&usg=AFQjCNF9Fo90EseZLhAPY0U_NrQ1JwExlQ

http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&ved=0CC8QFjAA&url=http%3A%2F%2Fwww.eldoradoreno.com%2Freno-news%2FVideo-Game-Developer-3G-Studios-Partners-with-Eldorado-Hotel-Casino-to-Launch-Online-Gambling-Venture%2F&ei=fWKRUNCTF4qqigKB8YCwDw&usg=AFQjCNGKa_qv9YkSDeToPp8Y-UEDGyUC1g

3G Studios And Eldorado Have Partnered To Launch The First Online Poker

Site In The U.S., But It Will Be Restricted To Nevada Citizens.

Online gambling has been a Pandora ’s Box for poker players in the United States. But that all changed

overnight in 2011 on a day dubbed Black Friday, when sites were forced to stop offering real money to

players. Online gambling activities have since moved off shore, operators of online gambling hubs that

were predominant in the United States like FullTilt were shut down, and online poker players fled to

Canada or Europe to continue their careers. But the black out on Internet gambling may end as early as

next year, contingent on the success of the first ever online real-money poker site that’s planning to

launch on U.S. soil.

3G Studios, the company partly responsible for the development of the game Rock Band, and Eldorado

Interactive, LLC, owner of a chain of resorts and casinos in Nevada, have entered into a ground-breaking

partnership that could change the course of online gambling in the United States for millions of online

poker players this coming spring.

http://www.3gstudios.com/pages/home/

http://www.eldoradoreno.com/

http://www.eldoradoreno.com/

And there is plenty of red tape they’ll have to cut through; this industry is heavily monitored and

regulated. For starters, Nevada restricts online gaming licenses to brick and mortar casinos. The surface,

this might appear to be politically charged, but in reality, the Nevada gaming board is reducing its risk.

“Casinos already have a history of successfully detecting fraud, putting security controls in place,

reporting to the gaming board, and paying their taxes,” founder and CEO of 3G, James Kosta, explains.

Second, the law will only allow online gambling sites to focus on online poker and its many derivations.

3G and Eldorado’s real-money gambling poker site will offer 12 games initially, but Kosta told us that he

hopes to eventually offer 15 and 20 additional poker games pending the gaming board’s approval.

But that’s just the tip of the iceberg: To meet the standards of the Nevada gambling board, which oversees

the regulations for gambling, an online gambling operator has to meet its strict requirements.

For example, an online gambling operator must collect geolocation, age, and identity verification data to

make sure that its gamblers are of age and located within the state of Nevada. They must be equipped to

detect money laundering and collusion, which Kosta says was “the most difficult of all.” For example, if

hackers were to DDOS the online poker site, 3G has to handle the fallout in respect to the players that

may lose or gain money at the time of the attack. They’ll even have to enable a feature to blacklist

addictive or problem gamblers, which according to Kosta is a little known fact about the gambling

industry.

Because 3G and Eldorado will be the first to launch a legal online gambling site on U.S. soil, all eyes will

be on Nevada and the partnership. “It’s going to be a learning experience for the gaming commission,”

says Kosta. With criticisms and pressure from legislatures looking for reasons to forever ban online

gambling in the United States, the gaming board is on edge and limiting online gaming to a fairly select

group of people “who can respond very quickly to threats.” Kosta adds. “In one way it’s a very political

process, getting your gaming license.”

On the other hand it’s an expensive and laborious endeavor that will run 3G several hundreds of

thousands of dollars for thorough independent testing, and between $750,000 and $1 million for the

gaming license alone. “It’s meant to be an exclusive club for a while. Everybody is paying attention to

whether or not Nevada can successfully launch these games and regulate them,” says Kosta.

3G and Eldorado aren’t looking to become the kings of poker. Instead the partners are looking to create a

cross-platform online gambling service with social features baked-in to target the casual arcade gamer.

You can call it a social poker site, but Kosta noticeably treads carefully here and tells me that “it’s

misplaced to be pushing social gaming in the real money environment.” There’s a delicate balance

between social and gambling that 3G and the gambling industry is trying to figure out right now with the

million dollar question being, “Does adding social hooks increase participation?” For instance if you’ve

hit a real-money jackpot would you necessarily want to publish that fact on Facebook or Twitter? Or, if

you lost a significant amount, would you want that fact broadcast to your social network?

Before 3G and Eldorado’s real-money gambling site is launched to mobile devices and desktops, it will

release a series of play-money casino games like its recently announced SlotALot Casino. But 3G’s heart

isn’t just in casino games, and Kosta eventually wants to turn his venture into a platform for betting on

first-person-shooter and strategy games for the PlayStation and Xbox systems. But for now, 3G will work

on getting the hearts and minds in the market on board with online gambling.

Vizkinect Gains Ground With Ad Agencies

John Seelmeyer, 10/22/2012

It’s not unusual for producers of B-movies to generate 80 percent of their budgets from product-placement deals.

Reno’s VizKinect is carving a niche for itself with technology that helps movie producers strengthen their pitch to

advertisers and helps advertisers better understand how audiences see the placement of their products in movies.

The company rolled out technology this spring that allows marketers to see in real time how audiences view a

commercial.

“We can tell them quantitatively how many people saw their product and how to improve it,” says Norman Smith,

president and chairman of the privately held company.

Small dots — a separate color is assigned to each viewer — scamper across a researcher’s video monitor as the

software tracks the paths that viewers’ eyes follow as they watch video programming.

The company is gaining traction with advertising agencies that want to see precisely what viewers are looking at

when they see a commercial.

A test of a political ad earlier this year, for instance, found that a large majority of viewers were looking mostly at

the teeth of a candidate rather than the message of the commercial.

For producers of smaller-budget films, data about viewership is likely to translate directly into more lucrative deals.

One VizKinect client, David Zito, the producer of the 1984 hit dance movie, “Breakin,’” says his latest production

includes spots for product placement from more than 20 companies ranging from a computer maker to a bicycle

manufacturer to sportswear and clothing companies.

He’s working with VizKinect to create data that will help him get top dollar for placements in the new hip-hop

movie, “The Boogaloo Kid.” The value of product placement depends on their ability to capture the eyes of

moviegoers, and even a slight shift can result in dramatically different results.

Smith points, for example, to a test of a scene from “Giant Killer Hogs,” an upcoming movie produced by Reno-

based company, Antipode Entertainment, Inc. Two product placements — one for Harley-Davidson, one for Captain

Morgan Rum — are part of the scene as neon signs to either side of a bar’s menu board. The Captain Morgan sign to

the right of the menu drew substantially more eyeballs and could have commanded a higher placement fee.

The eye-tracking technology allows for quick turnaround of tests, and VizKinect’s newly launched Web and mobile

software allows producers to see the results of the tests on their own computer or mobile device.

“They can make changes as they are editing the ad,” says Bailey Hein, one of the company’s eight staff members.

Along with film producers and makers of television commercials, VizKinect is also working with videogame

producers such as Reno-based 3G Studios. Smith says the company’s growth has been slowly bootstrapped as it

develops new clients through referrals from existing customers as well as through the connections of its directors

and advisory-board members.

Growth would be accelerated, he said, as the VizKinect is able to raise additional capital that allows it to open

offices in Los Angeles and Emeryville, closer to the hubs of the movie and technology industries.

Spring to Usher in Online Poker in US Posted on October 18, 2012 by Sophia

The introduction of online poker in the US has been a debatable topic for the past year. Players can

rejoice as it seems the wait could be over come spring. As the Nevada Gaming Commission continues to

approve licenses to online poker operators and manufacturers in the absence of an internet poker bill,

several companies are set to commence online poker operations in the country within the next few

months. One of the hopefuls is 3G Studios whose license application is pending with the gaming

commission in Nevada.

Eldorado Resorts Collaborates with 3G Studios to Offer Online Poker

3G Studios is a video game company offering land-based services in the US. Like the rest of the gaming

industry, 3G is well-aware that online poker is not only the new frontier, but also presents one of the most

profitable ventures in the real money gambling industry today. The dearth of online poker services in the

US is an untapped market.

Eldorado has signed a partnership deal with 3G Studios to offer online poker services. The latter is

waiting on the decision of the commission with whom it has filed a license application. 3G Studios is

quite confident of being sanctioned an approval as it has fulfilled all the requirements for it.

3G CEO Counting on Congress to Pass Internet Poker Bill

Although licenses have been approved for several companies starting with South Point Poker, the

Congress has still not passed the internet gambling bill or started the framework for establishing

regulations of online poker at a federal level in the country. In spite of this, the CEO of 3G Studios, James

Kosta, continues with plans of offering online poker by the beginning of next year.

Kosta has declared that online real money gambling is the future of the gaming industry and it does not

benefit anyone in the industry if the Congress continues to procrastinate on the issue. Kosta further stated

online gambling is pure entertainment for those who approach it with the right intentions.

Senator Heller Hints at Passing Online Poker Bill by End of 2012

The gaming and gambling industry were extremely disappointed when an official spat between Nevada

Senators Reid and Heller became public. The latter is one of the staunchest supporters of the federal

online poker bill and enlisted the help of his Republican counterpart to secure votes.

This was not to be as Heller changed his position on how to pass the bill without consulting Reid. Their

respective offices released official statements on their individual versions of the transpired events. It

became evident that Nevada and the rest of the US states will not be able to commence online gambling

operations as long as the senators do not see eye-to-eye.

However, in a recent debate between Berkley and Heller, the latter declared that the US would have a

federal online poker bill in place before the end of this year. This news was met with trepidation by online

players and the rest of the gambling industry as it is not yet clear on how exactly this would happen.

http://www.onlinepokerrealmoney.net/poker-news/spring-to-usher-in-online-poker-in-us

http://www.onlinepokerrealmoney.net/author/sophia

http://www.onlinepokerrealmoney.net/poker-news/nevada-gaming-commission-continues-to-approve-online-poker-licenses

http://www.onlinepokerrealmoney.net/poker-news/nevada-gaming-commission-continues-to-approve-online-poker-licenses

http://www.onlinepokerrealmoney.net/poker-news/time-running-out-to-enforce-internet-poker-regulations-in-2012

3G Studios prepares for online poker in the US

18th October, 2012

With online poker in the US at the centre of debate for the past year, companies

weigh up the capital investment with first-mover advantage.

Video game company 3G Studios is one such company and announced this week

that it has applied for multiple online service provider’s licenses in Nevada.

The company is now waiting on the decision of the gaming commission to be

granted the application and is confident of receiving approval. As recent

developments in Nevada point towards intra-state legislation soon passing in

Senate, 3GStudios is hoping that it will be able to start offering online poker services early next year.

James Kosta, 3GStudios CEO, commented, “What we are looking forward to is two, three, or four years

from now at a federal level, you’ll be able to start gambling on casual games and arcade games with your

friends.”

Eldorado Resorts has signed a partnership deal with 3G Studios to offer online poker services and is also

hopeful that legislation will pass by the end of the year.

Kosta is pulling out all the stops in anticipation of launching online poker services within the coming

months. He stated that online gaming is the next stop for the gaming industry and envisions extending

services to mobile and social applications.

“Mobile and online gambling will revolutionise the US gambling industry,” added Kosta, “With our

extensive experience in video game development, mobile gaming, social gaming and gambling

technology, 3G Studios is uniquely positioned within this emerging industry.”

Although licenses have been approved for several companies starting with South Point Poker and

including Bally Technologies and IGT, Congress has still not passed an internet gambling bill or started

the framework for establishing regulations of online poker at federal level in the US.

KTVN in Reno interviewed about those against iGaming, to which he responded, “When people contain

themselves with that box and decide that they’re going to spend $10 an hour gambling or $50 an hour

gambling, whatever they can afford that’s responsible, then it absolutely is a form of entertainment.”

About 3G Studios

3G Studios, Inc. is an independent video game development studio with a portfolio consisting of titles

such as STACKED with Daniel Negreanu and Combat Elite, along with four titles available on iTunes

and Brave Arms, available on the Facebook platform.

The company believes in developing games and services based on proven mechanics that are fun to play

together and easily accessible, whether players are in the same room or around the world.

3G Studios Hopes to Provide Online Poker This Spring

by Sadonna Price on October 15, 2012

Hoping to follow in the footsteps of Bally Technologies and International Game Technology, 3G

Studios has announced they have applied for an online gaming license in the state of Nevada.

The local video game company is hoping that they will be granted a license and then begin

offering online poker as soon as this spring.

The CEO of 3G, James Kosta, stated that the company has teamed up with Eldorado and they

would love to be able to provide online poker in the spring. Kosta commented: “What we are

looking forward to is two, three, or four years from now at a federal level, you’ll be able to start

gambling on casual games and arcade games with your friends.”

Kosta has also stated that online gaming is the next step for the gaming industry. Kosta is

envisioning betting on sports option via the iPhone and then eventually offering $1 to $2 on the

cell phone on games such as Words With Friends.

KTVN spoke with Kosta and asked him about what he would say to those who are against his

support of gambling as well as his idea of offering it online and he stated: “When people contain

themselves within that box and decide they’re going to spend $10 an hour gambling or $50 an

hour gambling, whatever they can afford that’s responsible, then it absolutely is a form of

entertainment.”

Despite Kosta’s ideas, they will not be able to begin until online gaming is available on a federal

level. Congress must pass the option and it has seemed unlikely to be in the near future.

However, in a recent debate between Dean Heller and Shelley Berkley, Heller commented that

legislation for online gaming will be passed by the end of the year.

http://www.4flush.com/author/sadonna23

From Video Games to Online Gaming

On Monday, 3G Studios announced it has applied for an online gaming license in Nevada. The local

video game company focuses on mobile gaming devices such as the iPhone and PlayStation Portable

(PSP). The company hopes that it will be granted a license and can begin offering online poker this

spring.

“What we are looking forward to is two, three, or four years from now at a federal level, you’ll be able to

start gambling on casual games and arcade games with your friends," said James Kosta, the CEO of 3G.

Kosata believes that customers will be able to bet on sports using their iPhone, and even wager on cell

phone games like Words With Friends.

KTVN Channel 2 in Reno, Nevada, spoke with Kostas about those against mobile gambling, and he

responded: “When people contain themselves with that box and decide that they’re going to spend $10 an

hour gambling or $50 an hour gambling, whatever they can afford that’s responsible, then it absolutely is

a form of entertainment.”

3G Studios, who worked in tandem with Harmonix to release a mobile version of Rock Band is no

stranger to poker — in 2006, it worked with MTV to create Stacked with Daniel Negreanu, a poker video

game for the PSP.

'Healthiest Places to Work' winners honored

Oct 12, 2012

Winners of the second annual “Healthiest Places to Work” were announced Oct. 3 at The

Chamber’s Healthcare Forum.

The winners are: 3G Studios, for small business with fewer than 25 employees; Bristlecone

Family Resources, for medium business with 26 to 150 employees; and NV Energy, for large

business with more than 150 employees.

The other finalists were Bosma Group PC, PC Doctors Inc. and Renown Health.

The awards were given to companies who show healthy choices, options and overall employee

well-being is a workplace priority.

Winners went through a nomination, survey and interview process to be selected.

Online Poker Expected to Launch This Spring

Posted: Oct 12, 2012 4:17 PM PDT Updated: Oct 18, 2012 3:51 PM PDT

Last June, Bally Technologies and International Game Technology were given the first online

gaming licenses in Nevada.

3G Studios is a local video game company that has applied for one as well.

James Kosta, the CEO of 3G said they and the Eldorado have teamed up, in hopes of

providing online poker as soon as this spring.

"What we are looking forward to is two, three, or four years from now at a federal level, you'll be

able to start gambling on casual games and arcade games with your friends."

Kosta said online gaming is the next step for the gaming industry. He envisions betting on sports

from your iPhone and eventually, even throwing down a $1-$2 dollar on the cell phone game

Words With Friends.

There are still some hurdles at the federal level, however. Online gaming has not been given the

nod by Congress. Although, last night in the Senate debate between Dean Heller and Shelley

Berkley, Heller said they will pass legislation by the end of the year to legalize online gaming.

I asked Kosta what he would say to those who say he is wrong for supporting gambling and

wanting to offer it online.

"When people contain themselves within that box and decide they're going to spend $10 an hour

gambling or $50 an hour gambling, whatever they can afford that's responsible, then it absolutely

is a form of entertainment."

To watch the interview, tune into Face the State. It airs four times this weekend.

4:30 am and 4:30 pm Saturday and 5:30 am and 2:30 pm on Sunday.

10/9/2012

Eldorado Agreement To Drive Development Of 3G Studios

3G Studio’s partnership with Eldorado Resorts to generate online gaming, a deal announced last week,

indicates the Reno-based video game programmer is moving towards a large-scale growth, President

James Kosta says.

Eldorado Interactive, a subsidiary of Eldorado

Resorts, arranges to launch its free-to-play slots later

this month, and it additionally has a comparable

poker product in beta testing that ought to go live in

November. A model of the poker game played for

actual currency is expected to be discharged by the

initial quarter of 2013 as Eldorado Interactive

obtains certification and licensing from the state

Gaming Control Board.

To manage the change from developing video games to online gambling, 3G is broadening its impact at

300 E. Second Street, and its added offices in Shanghai and Delhi to assist in writing code.

3G presently employs around 80 people and anticipates to employ between 120 and 150 by year-end,

Kosta states. Its Reno office is adding yet another 13,000 square feet formerly utilized by the law firm

Fennemore Craig Jones Vargas. 3G likewise is in the midst of securing $ 20 million in project finance

from investment banks in San Francisco and Seattle to aid in funding its growth. It’s the initial time the

provider has pursued investment resources.

“We have had some friend and family money come in, but this is the first time we have actually gone out

and seeking venture and bank funding,” Kosta states.

3G in September filed for approval from the Gaming Control Board for three separate licenses to

construct, host and market the technology that will certainly operate an online gaming web site. Currently,

http://nevadaonlinecasinologin.com/

simply online poker is legal, however 3G expects to introduce games in additional areas as they likewise

come to be legal. Kosta claims online sports wagering could be next, adhered to by games such as bingo

or keno, and lastly, gambling games such as slots.

Video game giants such as Zynga and Electronic Arts likewise look to get in the online gaming field, he

keeps in mind– yet 3G was first.

“We are out there ahead of everyone else,” Kosta states. “We are the very 1st video game company to file

to become a licensed technology service provider in the United States.”

Due to monetary reporting requirements and Gaming Control Board oversight, game designers need to

partner with a foundation organization, which resulted in the joint project, Kosta states. The Eldorado

Interactive endeavor is likely the initial in a surge of such partnerships as U.S. modern technology dealers

couple their services with Nevada-based casino operators.

“Those brick and mortar operators already understand the banking and reporting requirements, and they

are best equipped to be able to deal with having a successful online operation out of the gate,” Kosta

claims. “Companies like ours can focus on creating new content and servicing the customers and looking

for ways to drive revenue from the player base, while operators like Eldorado Interactive will be focused

on the banking and reporting requirements and expanding the venture into other jurisdictions as they

become legal.”

3G Studios has been getting ready for entry into online gaming over the past couple of years as it looked

for methods to offset the time, prices and risk of establishing video games. It entered ancillary sectors

such as streaming video and at some point licensed technology with Netflix and Hulu. Business

executives also spent time collaborating with groups at IGT and Bally to inform themselves on market

requirements for online gaming.

3G plans on bringing more arcade-style gameplay to gamblers– and more importantly, drawing laid-back

video gamers to the gaming market. For instance, 3G’s Outlaw Poker incorporates a quick-draw

tournament with the poker hands– players’ poker cards determine the result of a shoot-out and whether

their personality lives or is peppered with bullets.

It’s additionally sprucing up the look of games of pure possibility, such as slot machines. As an instance,

3G’s Fish Fortune sportfishing game costs users for each cast and compensates them with cash for fish

caught. One more instance is a horse racing game that’s been recast as a monster truck racing game to

target the 25 – to 45-year-old male audience.

“These are just some of the ways we are going to be revolutionizing that industry,” Kosta states.

3G Studios actually has about 20 games in hand that span numerous various sectors of gaming.

“There are some very significant games and some very significant offerings, but we will start with poker–

we have to play by the rules,” Kosta points out.

http://casinodotcoms.com/

https://signup.netflix.com/

October 9th, 2012

Eldorado Agreement To Drive Development Of 3G Studios 3G Studio’s partnership with Eldorado Resorts to generate online gaming, a deal announced last week,

indicates the Reno-based video game programmer is moving towards a large-scale growth, President

James Kosta says.

Eldorado Interactive, a subsidiary of Eldorado

Resorts, arranges to launch its free-to-play slots later

this month, and it additionally has a comparable

poker product in beta testing that ought to go live in

November. A model of the poker game played for

actual currency is expected to be discharged by the

initial quarter of 2013 as Eldorado Interactive

obtains certification and licensing from the state

Gaming Control Board.

To manage the change from developing video games to online gambling, 3G is broadening its impact at

300 E. Second Street, and it’s added offices in Shanghai and Delhi to assist in writing code.

3G presently employs around 80 people and anticipates to employ between 120 and 150 by year-end,

Kosta states. Its Reno office is adding yet another 13,000 square feet formerly utilized by the law firm

Fennemore Craig Jones Vargas. 3G likewise is in the midst of securing $ 20 million in project finance

from investment banks in San Francisco and Seattle to aid in funding its growth. It’s the initial time the

provider has pursued investment resources.

“We have had some friend and family money come in, but this is the first time we have actually gone out

and seeking venture and bank funding,” Kosta states.


construct, host and market the technology that will certainly operate an online gaming web site. Currently,

simply online poker is legal, however 3G expects to introduce games in additional areas as they likewise

http://renointernetcasino.net/wp-content/uploads/2012/10/wp14.jpg

http://nevadaonlinecasinologin.com/

http://casinodotcoms.com/

come to be legal. Kosta claims online sports wagering could be next, adhered to by games such as bingo

or keno, and lastly, gambling games such as slots.

Video game giants such as Zynga and Electronic Arts likewise look to get in the online gaming field, he

keeps in mind– yet 3G was first.

“We are out there ahead of everyone else,” Kosta states. “We are the very 1st video game company to file

to become a licensed technology service provider in the United States.”

Due to monetary reporting requirements and Gaming Control Board oversight, game designers need to

partner with a foundation organization, which resulted in the joint project, Kosta states. The Eldorado

Interactive endeavor is likely the initial in a surge of such partnerships as U.S. modern technology dealers

couple their services with Nevada-based casino operators.

“Those brick and mortar operators already understand the banking and reporting requirements, and they

are best equipped to be able to deal with having a successful online operation out of the gate,” Kosta

claims. “Companies like ours can focus on creating new content and servicing the customers and looking

for ways to drive revenue from the player base, while operators like Eldorado Interactive will be focused

on the banking and reporting requirements and expanding the venture into other jurisdictions as they

become legal.”

3G Studios has been getting ready for entry into online gaming over the past couple of years as it looked

for methods to offset the time, prices and risk of establishing video games. It entered ancillary sectors

such as streaming video and at some point licensed technology with Netflix and Hulu. Business

executives also spent time collaborating with groups at IGT and Bally to inform themselves on market

requirements for online gaming.

3G plans on bringing more arcade-style gameplay to gamblers– and more importantly, drawing laid-back

video gamers to the gaming market. For instance, 3G’s Outlaw Poker incorporates a quick-draw

tournament with the poker hands– players’ poker cards determine the result of a shoot-out and whether

their personality lives or is peppered with bullets.

It’s additionally sprucing up the look of games of pure possibility, such as slot machines. As an instance,

3G’s Fish Fortune sportfishing game costs users for each cast and compensates them with cash for fish

caught. One more instance is a horse racing game that’s been recast as a monster truck racing game to

target the 25 – to 45-year-old male audience.

“These are just some of the ways we are going to be revolutionizing that industry,” Kosta states.

3G Studios actually has about 20 games in hand that span numerous various sectors of gaming.

“There are some very significant games and some very significant offerings, but we will start with poker–

we have to play by the rules,” Kosta points out.

https://signup.netflix.com/

3G STUDIOS TO BRING ELDORADO RESORTS ONLINE

5 October 2012

Taking terrestrial into the internet gaming sector

Nevada-based gaming technology firm 3G Studios has partnered with Eldorado Resorts

subsidiary, Eldorado Interactive, with the intention of launching an online gambling venture as

U.S. legislation unfolds.

Several free-to-play games including 3G Studios' virtual currency-based SlotALot Casino will

launch within the next few months with an online real-money poker site planned pending the

outcome of the company's licence application in Nevada.

This deal follows similar in the past few months most prominently Bally Technologies who have

signed multiple deals with terrestrial casinos that include most recently American Casino &

Entertainment Properties, Mount Airy Casino Resort and Station Group's Golden Nugget Casino.

A company blog revealed that the partnership intends taking advantage of further legalisation in

the US online gambling sector with all games developed so as to easily cross over into the

monetised sector.

10/1/2012

Tomato Tart (Two Variations) (courtesy of James Kosta of 3G Studios in Reno, serves 5 to 6)

One 1-pound box frozen puff pastry (Pepperidge Farm is best), thawed in the refrigerator for 12 to 24

hours

1 large egg white

2 ounces grated Parmesan cheese (or Italian cheese blend)

1 pound Roma or heirloom tomatoes

3 tablespoons flour

2 tablespoons fresh basil leaves, coarsely chopped

Salt

Pepper

Italian Style:

2 tablespoons garlic, crushed

2 tablespoons extra-virgin olive oil

8 ounces low-moisture mozzarella cheese, shredded

French Style:

8 tablespoons brown mustard

8 tablespoons crème fraîche (or Philadelphia cream cheese)

Preheat oven to 425 degrees F and move rack to lower-middle position. Beat egg white in small bowl

with fork. Dust work surface with flour, and lay pastry flat. Overlap two pieces of pastry by one inch and

use a rolling pin (or your thumb) to press together. Cut four, 1-inch-wide strips, taking two strips from top

of pastry square and two from a side. Lay strips on edges of pastry to form rim. Overlap at corners. Trim

any excess. Rub olive oil onto a baking sheet and place shell on it.

Brush shell with beaten egg, sprinkle inside shell with Parmesan cheese. Poke holes all over center with

fork. Bake 15 minutes, then lower oven temperature to 350 degrees F. Bake until nearly golden brown

(about 15 minutes more). Let pastry cool on a wire rack. Then turn oven to 425 degrees F.

While pastry bakes, cut tomatoes into 1/8-inch-thick slices and place on paper towels. Sprinkle with salt

and cover with another paper towel, pressing down slightly. Let stand for 20 to 30 minutes.

For Italian-style tart: Sprinkle mozzarella cheese into pastry shell. Layer tomatoes into shell evenly. Mix

garlic, olive oil (add salt and pepper to taste) in dish and brush mixture over tomatoes.

For French-style tart: Layer tomatoes evenly into shell. Mix mustard and crème fraîche. (If using cream

cheese, soften in microwave.) Brush on tomatoes.

Bake 15 to 17 minutes or until pastry is browned and cheese is melted. Cool on wire rack. Sprinkle with

basil.

Add sausage and mushrooms to create a main course.

10/1/2012

Eldorado Deal To Push Growth Of 3G Studios Rob Sabo, 10/1/2012

3G Studio’s partnership with Eldorado Resorts to produce online gaming, a deal announced last

week, means the Reno-based video game developer is headed for a large-scale expansion,

President James Kosta says.

Eldorado Interactive, a subsidiary of Eldorado Resorts, plans to launch its free-to-play slot

machines later this month, and it also has a similar poker product in beta testing that should go

live in November. A version of the poker game played for real currency is expected to be

released by the first quarter of 2013 as Eldorado Interactive earns certification and licensing from

the state Gaming Control Board.

To handle the transition from creating video games to online gambling, 3G is expanding its

footprint at 300 E. Second Street, and it’s added offices in Shanghai and Delhi to help write

code.

3G currently employs about 80 people and expects to employ between 120 and 150 by year-end,

Kosta says. Its Reno office is adding another 13,000 square feet formerly occupied by the law

firm Fennemore Craig Jones Vargas. 3G also is in the midst of securing $20 million in venture

funding from investment banks in San Francisco and Seattle to help finance its growth. It’s the

first time the company has sought investment capital.

“We have had some friend and family money come in, but this is the first time we have actually

gone out and seeking venture and bank funding,” Kosta says.


build, host and market the technology that will run an online gaming site. Currently, only online

poker is legal, but 3G expects to launch games in other areas as they also become legal. Kosta

says online sports betting could be next, followed by games such as bingo or keno, and lastly,

games of chance such as slot machines.

Video game giants such as Zynga and Electronic Arts also seek to enter the online gaming arena,

he notes — but 3G was first.

“We are out there ahead of everyone else,” Kosta says. “We are the very first video game

company to file to become a licensed technology service provider in the United States.”

Due to financial reporting requirements and Gaming Control Board oversight, game developers

must partner with a brick-and-mortar institution, which led to the joint venture, Kosta says. The

Eldorado Interactive venture is likely the first in a wave of such partnerships as U.S. technology

providers pair their services with Nevada-based casino operators.

“Those brick and mortar operators already understand the banking and reporting requirements,

and they are best equipped to be able to deal with having a successful online operation out of the

gate,” Kosta says. “Companies like ours can focus on creating new content and servicing the

customers and looking for ways to drive revenue from the player base, while operators like

Eldorado Interactive will be focused on the banking and reporting requirements and expanding

the venture into other jurisdictions as they become legal.”

3G Studios has been preparing for entry into online gaming over the past few years as it sought

ways to offset the time, costs and risk of developing video games. It entered ancillary industries

such as streaming video and eventually licensed technology with Netflix and Hulu. Company

executives also spent time working with teams at IGT and Bally to educate themselves on market

expectations for online gaming.

3G plans on bringing more arcade-style gameplay to gamblers — and more importantly, drawing

casual video gamers to the gaming market. For instance, 3G’s Outlaw Poker combines a quick-

draw tournament with the poker hands — players’ poker cards determine the outcome of a shoot-

out and whether their character lives or is peppered with bullets.

It’s also revamping the look of games of pure chance, such as slot machines. As an example,

3G’s Fish Fortune fishing game charges users for every cast and rewards them with cash for fish

reeled in. Another example is a horse racing game that’s been recast as a monster truck racing

game to target the 25- to 45-year-old male audience.

“These are just some of the ways we are going to be revolutionizing that industry,” Kosta says.

3G Studios already has about 20 games in hand that span several different segments of gaming.

“There are some very significant games and some very significant offerings, but we will start

with poker — we have to play by the rules,” Kosta says.

Reno Tahoe USA News Releases

Video Game Developer 3G Studios Partners with Eldorado

Hotel Casino to Launch Online Gambling Venture

2012-10-01

This is the first partnership in the United States of America between an experienced video game

developer and a brick-and-mortar casino operator.

This partnership combines the Eldorado's expertise in the heavily regulated gambling industry with one of the most progressive and forward-thinking gaming technology firms. The initial focus of the partnership will be on the state of Nevada, while the partners plan expansion as laws allow. "3G Studios is proud to have our technology and gaming platforms used by one of the most well respected casino operators in Nevada, " said James Kosta, founder and CEO of 3G Studios. "Eldorado has been expanding into new territories and we're excited to be part of their expansion online. With our extensive experience in video game development, mobile gaming, social gaming and gambling technology, 3G Studios and Eldorado Interactive plan to deliver the next-generation gambling experience to a much wider demographic."

Eldorado Interactive and 3G Studios plan to launch an online, real-money poker site, once licensing has been approved. Over the next several months, the partners will be releasing several free-to-play games, including 3G Studios' recently announced SlotALot Casino that can be played for virtual currency. The SlotALot games are the first examples of the next-generation, online gambling games that 3G Studios has been developing for web browsers, tablets and smart phones.

While the partnership between a video game company and a brick-and-mortar casino is already leading to innovative new gaming technology, the true potential of the partnership will become more evident as the legalization of online gaming spreads across the nation. Online poker is already legal in Nevada and Delaware, and many other states, including Wisconsin, New Jersey, California, and nine other states are on the verge of lifting the prohibition on the practice. Many gambling experts predict that other forms of online gambling, apart from poker, may also be legalized on a federal level or state by state in the near future. If online gambling is legalized in more states, 3G Studios and Eldorado Interactive will be uniquely positioned to offer a full slate of online gambling on their jointly-branded website. All games are being devised with gaming regulations in mind so that real-money play will be possible as laws change. "3G Studios is committed to developing the highest quality online gambling games on the market. This partnership allows us to launch one of the first legal Nevada-based online poker sites, while still developing the online gambling products that will dictate the future of gambling in the U.S.," said Kosta. About Eldorado Interactive

Eldorado Interactive is a wholly owned subsidiary of Eldorado Resorts, a Nevada limited liability company which was formed in 1996, which became the successor to a predecessor partnership, owns and operates the Eldorado Hotel Casino, a premier gambling destination and entertainment facility located in downtown Reno, Nevada which opened for business in 1973. In addition, Eldorado Resorts owns and operates the Eldorado Resort Casino in Shreveport, Louisiana. Resorts is also a 50% partner with MGM Resorts International in the Silver Legacy Resort Casino, a major themed hotel casino in Reno, Nevada. The Company's business strategy draws upon three decades of experience successfully operating these properties with its deep management team, which include Chief Executive Officer Donald Carano, several members of his immediate family. The key element of the Company's strategy is to provide patrons with unsurpassed personal service that is designed to foster customer loyalty and generate repeat business. This dedication to service is supported by a variety of high quality amenities, including well-appointed hotel rooms and suites and numerous critically acclaimed dining and night life venues. The success of Resorts is evidenced by its superior gambling utilization. About 3G Studios

3G Studios, founded in 2006, has been on the leading edge of video game innovation, collaborating on one of the most sophisticated poker games to ever be released (Stacked with Daniel Negreanu) for MTV Networks, and releasing Brave Arms, the first first-person shooter game for Facebook. The company has sold millions of copies of console games including Rock Band for the Sony PS3 in collaboration with Harmonix and Jillian Michaels’ Fitness Ultimatum 2009 for the Nintendo Wii. 3G Studios licenses technology and software to Netflix, Hulu, IGT and Bally Entertainment.

Nevada firm the latest to indulge in a video game gamble September 28, 2012

3G Studios are hoping to bring real money gambling and betting to the world of video games and

are prepared to use a Nevada online poker licence to do so. CEO and founder James Kosta

recently spoke to Card Player and revealed that his company, also responsible for PlayStation 3

version of video game Rock Band, is looking to introduce video game elements into their poker

product.

“We are starting to bring traditional video game elements into something as tried and true as

poker mechanics,” he said, adding that they are working on a concept entitled “Outlaw Poker” –

they haven’t yet decided it will include Full Tilt board members as playable characters.

The company recently inked a deal with Eldorado Resorts, a land-based casino firm in the state,

and need an “established back-end” in order to run internet poker. Kosta is hoping poker will be

his back door into the gambling industry but is very real in understanding that to make it a big

part of their company they will need to extend their reach beyond poker.

“If it stopped at poker it would be a flawed business model,” Kosta told Card Player.

“Ultimately, if we break even on poker we would be quite happy. Even if we’re losing money

with poker, our goal would be to continue to push legislation forward so that we can introduce

other games.”

Further than this, Kosta is convinced that as many as a “dozen states” will pass bills in 2013 and

he’s of the opinion that Nevada passing and opening up is the key to all of this.

“If we can successfully regulate and operate here in Nevada, under the laws, then we should be

able to convince other states to allow us to move in,” Kosta added.

There are of course other companies, such as Virgin Gaming, that have brought an element of

gambling to video games so in that sense what Kosta is doing isn’t completely unheard of. It’s

just a more interesting way of doing things and it will be fascinating to see how it plays out.

http://calvinayre.com/2012/09/14/business/3g-studios-files-application-for-nevada-online-gambling-license-becomes-first-video-game-company-to-do-so/

http://calvinayre.com/2012/09/25/legal/casinos-screwed-if-harrah-reid-bill-fails-to-pass/

http://calvinayre.com/2012/09/21/poker/pokertrip-enterprises-awarded-nevada-affiliate-license/

RENO, Nev. — RENO, Nev. (AP) - The Eldorado hotel-casino is betting that

online gambling will be legalized in the months or years ahead.

A subsidiary of the Reno casino, Eldorado Interactive, announced plans Friday to

form an online partnership with the Reno-based video game developer 3G Studios.

James Kosta, founder and CEO of 3G Studios, says they are excited to have their

technology and gambling platforms used by a such a well-respected casino

operator.

Kosta says it puts both in position to take advantage of online gambling when he

says it inevitably will be legalized at either the state or federal level. He says 3G

also is developing online gambling games for web browsers, tablets and

smartphones.

Eldorado Casino Enters Deal For Online Gambling

Posted on September 28, 2012

RENO, Nev. (AP) — The Eldorado hotel-casino is betting that online gambling will be legalized

in the months or years ahead.

A subsidiary of the Reno casino, Eldorado Interactive, announced plans Friday to form an online

partnership with the Reno-based video game developer 3G Studios.

James Kosta, founder and CEO of 3G Studios, says they are excited to have their technology and

gambling platforms used by a such a well-respected casino operator.

Kosta says it puts both in position to take advantage of online gambling when he says it

inevitably will be legalized at either the state or federal level. He says 3G also is developing

online gambling games for web browsers, tablets and smartphones.

Published: 9/27 2:35 pm

RENO, Nev. (KRNV & MyNews4.com) -- Eldorado Interactive,

LLC a subsidiary of Eldorado Resorts, and 3G Studios have

entered into a letter of intent to form a strategic online

partnership. This is the first partnership in the United States of

America between an experienced video game developer and a

brick-and-mortar casino operator.

This partnership combines the Eldorado’s expertise in the heavily regulated gambling industry with one

of the most progressive and forward-thinking gaming technology firms. The initial focus of the

partnership will be on the state of Nevada, while the partners plan expansion as laws allow.

Eldorado Interactive and 3G Studios plan to launch an online, real-money poker site, once licensing has

been approved. Over the next several months, the partners will be releasing several free-to-play games,

including 3G Studios’ recently announced SlotALot Casino that can be played for virtual currency. The

SlotALot games are the first examples of the next-generation, online gambling games that 3G Studios

has been developing for web browsers, tablets and smart phones.

While the partnership between a video game company and a brick-and-mortar casino is already leading

to innovative new gaming technology, the true potential of the partnership will become more evident as

the legalization of online gaming spreads across the nation. Online poker is already legal in Nevada and

Delaware, and many other states, including Wisconsin, New Jersey, California, and nine other states are

on the verge of lifting the prohibition on the practice. Many gambling experts predict that other forms

of online gambling, apart from poker, may also be legalized on a federal level or state by state in the

near future.

If online gambling is legalized in more states, 3G Studios and Eldorado Interactive will be uniquely

positioned to offer a full slate of online gambling on their jointly-branded website. All games are being

devised with gaming regulations in mind so that real-money play will be possible as laws change.

The Eldorado casino — actually a

subsidiary called Eldorado Interactive —

and the Reno-based video game developer

3G studios announced today they intend to

form an online partnership.

As soon as licensing is approved, they will

launch an online, real-money poker site.

And 3G is preparing to go live with its

SlotALot.com online slot machine site for

virtual currency.

The hope is that as online gaming is

inevitably legalized widely in the United States — either on the federal or state level — they will

be situated to take advantage with their expertise in online gaming and casinos.

The SlotALot games are the first examples of the next-generation, online gambling games that

3G Studios has been developing for web browsers, tablets and smart phones.

Read a full story on 3G and the ways online gambling could boost Northern Nevada's economy

here.

“3G Studios is proud to have our technology and gaming platforms used by one of the most well

respected casino operators in Nevada, ” said James Kosta, founder and CEO of 3G Studios, in a

press release. “Eldorado has been expanding into new territories and we’re excited to be part of

their expansion online. With our extensive experience in video game development, mobile

gaming, social gaming and gambling technology, 3G Studios and Eldorado Interactive plan to

deliver the next-generation gambling experience to a much wider demographic.”

http://blogs.rgj.com/renorebirth/2012/09/22/new-online-gambling-ventures-could-be-jackpot-for-reno/

Cardplayer.com

Nevada Internet Poker The Gateway To Gambling On Video Games, Says Gaming Executive Reno-Based 3G Studios OK With Losing Money On Card Playing by Brian Pempus | Published: Sep 27, 2012

Nevada-based gaming company 3G Studios wants to bring real-money betting to the U.S. video game market. The firm is a developer of the popular PlayStation 3 version of “Rock Band” and wants web gambling on it, as well as first-person shooters like “Call of Duty”, in the future, the company’s CEO and founder James Kosta told Card Player.

The company’s gateway to such gambling? Internet poker.

Real-money Internet gaming has been authorized in Nevada, but only poker for the time being. 3G Studios has applied for a web poker license to get out in front of this new industry.

For poker, 3G wants to target the more casual customer. The firm just inked a deal with land-based operator Eldorado Resorts, which owns casinos in Reno. In Nevada, technology firms eying Internet gaming are required to have a brick-and-mortar alliance.

In addition to that partnership, 3G will rely on another technology firm that has an established “back-end” for web poker. In other words, 3G needs a poker server. It hasn’t acquired one yet, but talks are ongoing. 3G’s contribution to the final product would be on the front-end.

http://www.cardplayer.com/authors/355-brian-pempus�

Cardplayer.com

Kosta said his company hopes to give poker a “visually spectacular presentation.”

In addition to aesthetics, 3G wants to add some animated violence to the game. The company is planning a product called “Outlaw Poker” — which could allow players to witness their characters duel it out with pistols after contesting a split pot.

“We are starting to bring traditional video game elements into something as tried and true as poker mechanics,” he said. Before doing so, Nevada regulators would have to OK it.

Since 3G is targeting those who prefer to play for shorter periods of time and tend to play micro-stakes, the poker-only business is not sustainable, according to Kosta.

“If it stopped at poker it would be a flawed business model,” Kosta admitted. “Ultimately, if we break even on poker we would be quite happy. Even if we’re losing money with poker, our goal would be to continue to push legislation forward so that we can introduce other games.”

3G’s plans for web gambling on games like Rock Band, as well as slots and real-life sporting events, will take some time and leave poker as the only option for awhile. Kosta said that Internet poker could be aided by a 10-state partnership, with Nevada at the helm. He said “negotiations” are ongoing between state legislators for such a mammoth deal.

“If we can successfully regulate and operate here in Nevada, under the laws, then we should be able to convince other states to allow us to move in,” he said.

According to Kosta, other revenue-starved states wouldn’t want to be burdened by drafting their own web poker rules and licensing firms (many that would already have a Nevada license).

For firms like 3G to have access to other states, Kosta said Nevada could “vouch” for them.

Many in the industry don’t think Nevada’s resident and tourism numbers are large enough to make online poker a cash cow. Thus, in the absence of a federal regime, a state-by-state patchwork would help. The catch: Many other states have failed at legalization.

Kosta believes more than a dozen states will pass bills in 2013, with Nevada’s regulators essentially calling the shots under a compact. Kosta added that he prefers a state-by-state model and doesn’t think a federal online poker bill will pass this year or in 2013.

Regardless of where the legalization efforts are, it’s not about poker for 3G.

“Poker is the low-hanging fruit for everybody,” said Kosta, who called Zynga his company’s largest competitor. Zynga hasn’t applied for a license in Nevada.

3G Studios Prepares for Online Poker in US: An Interview With CEO James Kosta

3G Studios is the first video

game company to apply for an

online poker license in the state of

Nevada, where real money web

gambling is set to launch in the

coming months.

Gambling911.com’s Payton

O’Brien had the opportunity to

interview 3G Studios founder

and CEO James Kosta to discuss

what the future may hold for his

company.

Payton O’Brien:Tell us the objective of getting into the 'real money' online gambling market

and how are you going to go about doing this? Do you intend to form partnerships and is 3G

Studios looking to offer more of a stand-alone online poker and gaming site?

James Kosta: We have a lot of experience in the free-to-play gaming market and in the

terrestrial casino market, so we feel this is going to play out very well for us. Our timeline and

our plans as directly as I can relate it, would be to receive partial certification right after the start

of the new year. We have 20 products spread over four major forms of gambling, with poker as

the only one that is legal right now. So, we will submit our poker products to independent testing

laboratories next month. Once those are approved, we will receive certification. We will be

launching our free-to-play casino product next month to people everywhere.

In terms of forming partnerships, what we really specialize in is the video games like ‘Rock

Band’ and (we) always have a direct relationship with the customer. We are best known for

going after the 21 to 45 year-old audience. Typically casino operators really struggle with this

market. The people come in, go party and leave. They (the casino operators) are not getting

enough people engaged in gambling on the floor. So what we bring to the table is the relationship

we have with this audience.The fact is that we are building games that are attractive to that

audience.

We are interested in poker and games that become legal, like craps, but we are really less

focused on the casino gambler that goes home and logs onto their computer. Whether gambling


becomes federally legalized (online) or in other states, I just don’t see this happening. So what

we are focused on is introducing social and arcade games that incorporate gambling and use rule

sets that have been around for ten if not hundreds of years.

Payton O’Brien: As you are aware, Harry Reid and Dean Heller do not appear to be on the same

page when it comes to how they are going to proceed with the federal online poker legislation.

While those two are busy pointing fingers, not much is getting done at the federal front and states

like New Jersey and Delaware are moving forward with their own laws. What are your plans

should federal legislation not pass? Do you believe Nevada will decide to move forward with

state compacts (similar to Powerball concept) should the federal government not act? What is

your thought process on how this will all shape out in the coming year?

James Kosta: We work closely with Reid and Heller. The bill gives Nevada a head start. Only

states that have a proven history of regulating gaming should get into this. States that haven’t had

experience in regulation would be an absolute mess. Nevada is considered the gold standard in

terms of gaming control. Even speaking to the European operators, they say the same thing. But

for my company, I am a little fearful because federally legalized gambling, if it goes through

establishing a poker commission and that sort of thing, it will become a mess. It will be

extremely expensive. You will only see the biggest players. We would like to see a state-led

process. The only thing that Reid and Heller are arguing is whether the bill should go through the

House or Senate first.

Delaware has just approved online gambling, but as they are a state with a population of only

947,000 people, they have to come up with $15 million a year for the regulation. So people in the

state are saying, ‘Why don’t we just partner with Nevada?’ We say, if you are certified in

Nevada, you are certified here. Believe it or not, there are over 10 states in negotiations with

Nevada to create reciprocity. I think that is the way we are going to go, state compacts.

Payton O’Brien: So for the time being you are going to launch with your free-to-play platform?

James Kosta: We are going to co-brand our free-to-play platform with an operating partner. We

will be launching in states where these particular games aren’t legal and establishing that brand

so that, as soon as it does become legal, our games and our operating partner are already well

known.

Payton O’Brien: What are your thoughts on Zynga entering the “real money” gambling space?

James Kosta: Well, everybody talks about it and I am yet to see it. Their struggling is well

documented.

Payton O’Brien: Any plans outside the US?

James Kosta: Yes. We are currently partnering with operators in Asia and Europe to distribute

some of our games, but we are also looking at becoming an operator in some of those

jurisdictions. Our primary focus of course is on the US market.

Payton O’Brien: Do you have any interest in getting into the online sports betting market?

James Kosta: Oh, yeah...in a big way. The reinterpretation of the Federal Wire Act is on our

minds, but that is a pretty archaic law when you really look at it. The decision that came down

(last month) that online poker is a skill-based game excites us greatly and leads us to believe that

somebody is going to go back and review the Federal Wire Act in relation to sports betting pretty

quickly and that is a huge market.

September 23rd, 2012

Reno's online jackpot? Northern Nevada could become a major player in developing casino games for the Internet, smartphones, social networks 12:08 AM, Sep 22, 2012 |

3G Studios is the first video game company to apply for an online poker license.

Later this month, the Reno-based software developer will launch SlotALot.com, where people can play slot machines.

And, later this fall, it will launch an online poker site.

For now, players won’t be able to win real money, just tokens for more play. Don’t sniff — virtual gambling for fake money is already a $2.4 billion annual industry.

But the U.S. online gambling market for real money may reach $13.4 billion in five years, according to the estimate of researcher H2 Gambling Capital, as cited by Bloomberg News.

When it happens, 3G will be poised to capitalize. In fact, on Monday or Tuesday, 3G hopes to announce an exclusive partnership with a major Nevada casino.

And Northern Nevada has a chance to become the hub for gambling software development online, on phones and on social media networks.

The perception of skill

Before diving into the legal and business ramifications of online gambling, there’s the fun stuff of what the games will be like.

James Kosta, CEO of 3G Studios, said he can’t talk about a lot of the new gambling software his company is creating but there’s one he can. It’s a pinball game.

“When you wager, you’re actually purchasing your balls and you’re able to cash out after scoring on the table,” he said.

“We have to limit how much skill is involved so we applied for a patent on the perception of skill in a chance-based game.”

Now there’s a thought-provoking phrase: the perception of skill in a chance-based game.

“Let’s say you’re playing pinball, we’ve already calculated what you’re going to win — the instant the wager is placed, we have to know what the result will be,” Kosta said, referring to gambling regulations. “We allow you to influence the ball, but we’re always reversing that influence. There are plenty of opportunities for us to undo whatever good you’ve done.”

He said the whole thing relies on the perception of skill.

“Think of carnival games like tossing a ring on a bottle,” he said. “It’s purely chance-based — you can do everything you think that will bring more luck, but it won’t. We have to be able to show the gaming board how we calculate odds. So, in the back of the pinball game, there’s a slot machine.”

Effect on casinos

It’s this reinvention of the slot machine so it’s played like a pinball game that leads some online gambling supporters to think online won’t harm brick-and-mortar casinos.

“We’re aiming for a different gamer requiring a different game,” Kosta said.

Another example is 3G’s SlotALot.com, which launches later this month and will feature only virtual winnings “until laws catch up.” It’ll be available online with social hooks into Facebook, Twitter and Google Plus, and it’ll launch on the iPhone and Android platforms, too.

“Our inspiration is what if Pixar opened a casino so everything is character driven and there’s great animation,” Kosta said. “It’s a new slot experience to attract people who probably wouldn’t visit a casino.”

Bill Eadington also doesn’t think online gambling will harm Nevada’s casino industry.

He’s a professor of economics and director of the Institute for the Study of Gambling and Commercial Gaming at the University of Nevada, Reno.

“It’s very different from brick-and-mortar casinos,” he said. “Nevada has a very good reputation (with gambling) and there’s lots of potential economic spinoff.”

In fact, online gambling could help prominent casinos because they’ve got names the public recognizes.

“Branding is important,” Eadington said, mentioning Caesars and its World Series of Poker as two names that might convey trust to people offering up their credit card information to a gambling site.

Michael Wiltshire — president of New Millennium Games, which works with server-based systems where games run on distant computers for higher security and easier updating — said that casinos have worried about the internet taking away players similar to the way Indian casinos siphoned from Reno’s feeder markets.

But, he said, the advent of social gaming and the amount of people playing online has changed minds.

“The thinking has transitioned to ‘What if we could introduce players on the Internet to our brand and we could convince them to come to a specific property because we’ve built a relationship through these social games?’” Wiltshire said.

“If you have 220 million people playing a game” — that’s how many people play on the virtual DoubleDown casino monthly — “how many are you going to be able to get to come to Reno: 1 percent or a half-percent? No one knows how that pans out.”

But it gives brick-and-mortar casinos a way to attract new visitors.

Wiltshire said, “Suppose you’re the Grand Sierra and you have that 2,000 seat showroom and you’ve sold only 1,400 tickets. You can contact people playing on your game and say, ‘Come up and join us.’ And if you don’t have full occupancy, you can contact players with special offers for your shows, restaurants and other services.”

Great jobs

The software development required for these sites will bring in well-paying jobs.

“Casinos require a medium skill level (in their workers), and education levels are not dramatic — high school plus a smattering of university-educated people in management and marketing,” Eadington said. “The casino industry has more parallels with the auto industry than with Silicon Valley.”

But online gambling requires more. It needs mathematicians, programmers and engineers to create exciting new game software; anti-fraud security; geolocation to verify that players are in a legal jurisdiction even if they’re on a phone; identity verification (are you old enough, are you who you say you are?); and compatibility that allows players with different operating systems, online providers and devices to play against each other seamlessly.

“It’s a different kind of industry,” Eadington said. “It tends to have higher average incomes and better training and backgrounds than jobs at typical casinos. I call them high value added jobs.”

The Nevada advantage

But where these companies locate is not certain.

Consider online poker. Companies behind the development, operation and support of poker sites may want to locate where the most players are.

Nevada is the only state with legalized online poker now, but we’ve got a very small population, and what if California — with 14 times the population — were to legalize it, too?

Two scenarios could play in our favor. If passed, U.S. Sen. Harry Reid’s federal online poker legislation could contain restrictions that would give Nevada a head start over most other states. (A federal framework would also help the gaming industry by avoiding 50 states with 50 different sets of rules, Eadington said.)

Or there could be reciprocity agreements where online licenses issued in Nevada are recognized by other states thanks to our gold-standard gaming regulatory system.

“Worldwide, Nevada is recognized as the hardest place to get a license,” Kosta said.

Mark Lipparelli of the Nevada State Gaming Control Board said that more than 35 companies have already sought online licenses.

“Being vetted by our high standards will have a positive impact wherever else companies go,” he said.

The absence of federal legislation is “not optimum” and “that puts Nevada at some degree of risk,” Lipparelli said.

The reason is players may gravitate toward other markets as other places also approve online gambling. He said this was especially likely to happen in states with online lotteries, among American Indian tribes and in clusters of states with horse racing.

Wiltshire said he thinks Nevada is a perfect testing ground to prove the merits of online gambling.

“We proved it with brick-and-mortar gaming — it was established here first with rules and regulations that are now duplicated by everybody else,” he said.

Kosta said Nevada is enticing because of its tax structure and because, if you’re not located here, the investigative fees to get licensed are prohibitive for most smaller firms.

And gaming’s big brand names are headquartered here.

Reno vs. Vegas

But the vast majority of those headquarters are down south. So what can Reno bring to the table that Las Vegas can’t?

“There’s been several of us entrepreneurs in the area who have been trying to raise Reno’s and Northern Nevada’s profile as a tech center,” Kosta said. “With everything online, we have a much better quality of life than Las Vegas. We’re much closer to the Bay Area.

“We have better connectivity than Vegas. When they ran the fiber optic lines through the U.S., the feds already had the right of ways on the rail lines so they ran the lines down the train tracks. The main connections between the East and West coasts runs right down Second Street in Reno.

“What it amounts to is our web hosting is faster and cheaper than Vegas and than most states. We’re significantly cheaper for businesses to connect — that’s why Apple’s putting its data center here.

“I think this is our chance.”

MULTIPLE NEVADA LICENCE APPLICATIONS BY 3G STUDIOS

14th September, 2012 at 14:13:12

Source: http://www.onlinecasinosvegas.com

Local firm interested in online service provider licences

Reno, Nevada-headquartered video game developer 3G Studios has reportedly applied for multiple

Online Service Provider licences with the Nevada Gaming Control Board.

The company said it plans on launching one of the first licensed, real-money U.S.-based poker sites

utilising geo-location software to ensure players are resident in Nevada at initial launch.

The unnamed site will feature other casino-style games that involve virtual currency with a view to

converting to real-money-play as USA gambling restrictions relax.

Mobile and online gambling will revolutionize the USA gambling industry, said James Kosta, founder and

chief executive officer of 3G Studios. With our extensive experience in video game development, mobile

gaming, social gaming and gambling technology, 3G Studios is uniquely positioned within this emerging

industry.

3G Studios is known for its console video games such as MTV's Stacked with Daniel Negreanu and Rock

Band for the Sony PS3 in collaboration with Harmonix. It has also had technology and licencing

relationships with IGT and Bally.

http://www.onlinecasinosvegas.com/online-casinos/igt-casinos.php

09/13/2012

Nevada Video Game Company 3G Studios Becomes First to Enter Online

Gambling Market

Video game developer 3G Studios

filed with the Nevada Gaming

Control Board for multiple Online

Service Provider’s licenses,

making them the first video game

company to move into the U.S.

online gambling market. With this

move, 3G Studios will be the first

video game company to be

approved for real-money gambling

in the U.S.

These licenses allow 3G Studios to stand alone as an innovative leader in the emerging field of

mobile gambling. 3G Studios understands the technological back end and the user experience

that drives gaming, and they also have the advantage of being immersed in Nevada’s gambling

environment.

3G Studios plans to launch one of the nation’s first licensed, for-money U.S.-based poker sites.

The site will initially be restricted to Nevada residents, and geo-location software will ensure that

gamblers are located in Nevada at the time of the wager. The site will also feature other casino-

style games that can be played for virtual currency, and as U.S. gambling restrictions loosen,

may be also played for real money in the future.

“Mobile and online gambling will revolutionize the U.S. gambling industry,” said James Kosta,

Founder and CEO of 3G Studios. “With our extensive experience in video game development,

mobile gaming, social gaming and gambling technology, 3G Studios is uniquely positioned

within this emerging industry. We plan to leverage that experience to deliver the next-generation

gambling experience to a much wider demographic.”

Kosta said this opportunity opens up a new accessibility to gambling that is critical to engaging a

wider demographic, many of whom grew up on console video games and now casually game on

their smart phones.


09/13/2012

An August decision by a Federal Judge ruled that poker was a game of skill opened the door for

online poker sites to surface in states that legalized the practice. Nevada joined Delaware in

legalizing online gambling, and at least 10 other states are expected to follow suit next year.

3G Studios is a Reno, Nev.-based gaming company known for best-selling console video games

and one of the most sophisticated poker console games to ever be released (MTV’s Stacked with

Daniel Negreanu). 3G Studios’ experience in immersive console games as well as social and

mobile games gives the Nevada company a unique perspective on the evolving U.S. gambling

landscape. 3G Studios has also licensed technology and games to gambling-industry

heavyweights IGT (International Game Technology) and Bally.

About 3G Studios

Founded in 2006, 3G Studios is a video game and technology developer that has worked on titles

such as Rock Band for the Sony PS3 in collaboration Harmonix, Jillian Michaels’ Fitness

Ultimatum 2009 for the Nintendo Wii, and Facebook first-person shooter Brave Arms. 3G

works across a myriad of platforms from traditional consoles and handhelds to mobile and web-

based games. 3G worked extensively on video streaming solutions used by some of the largest

streaming video providers in the world. In late 2010, the company expanded into casino game

development for clients such as IGT.


Cardplayer.com

'Rock Band' Video Game Developer Applies For Nevada Internet Poker License Wants To Be First Company Of Its Kind To Snag License by Brian Pempus | Published: Sep 13, 2012 |

Video-game developer 3G Studios, based in Nevada, which helped build the popular “Rock Band” for the PlayStation 3, has applied for an online poker license in the Silver State, the company said Wednesday.

3G Studios could be the first company of its kind licensed for real-money poker in the U.S. The company added that its platform will also have other

casino-style games, but those will utilize “virtual currency.”

“Mobile and online gambling will revolutionize the U.S. gambling industry,” James Kosta, CEO of 3G Studios said. “With our extensive experience in video game development, mobile gaming, social gaming and gambling technology, 3G Studios is uniquely positioned within this emerging industry. We plan to leverage that experience to deliver the next-generation gambling experience to a much wider demographic.”

3G Studios has already been doing business with International Game Technology and Bally Technologies, a couple of Nevada’s largest gaming device manufacturers. Both companies are also looking to be involved with Nevada intrastate online poker.

The real-money industry will likely kick off this fall with the launch of South Point Poker.

http://www.cardplayer.com/authors/355-brian-pempus�

New Millennium Games

Tuesday, August 21, 2012

Great Minds Think Alike-and so do We!- James Kosta: Nevada can pave way for a business

boom- 8-17-12 and Mike Wiltshire: Missed Opportunities with Internet Gaming- 5-8-02

Nevada can pave way for a business boom Legislation that will legalize and regulate online gambling can have major fiscal and

business benefits for the U.S., and Nevada should consider leading that revolution.

About 10 years ago, international poker sites like Party Poker began popping up and

taking bets from American players. While the American government heavily frowned on

the activity, it could take no legal action because the sites were offshore.

Poker is exempt from the Federal Wire Act of 1961 because it is considered a game of

skill and not a game of chance. But what prohibits the U.S. from taking advantage of

online poker betting is a law that prohibits domestic companies from using interstate

wires to exchange money. There are no restrictions on foreign money exchanges, and,

since 2006, about $72 billion has left the U.S. economy and been dumped into foreign

online gambling sites.

Gambling is about the chances of winning. And gamblers are willing to bet real money

on that principle alone. We in Nevada are no strangers to this concept. But online

gambling in the U.S. can only be played for two purposes: education or one-sided

betting, meaning the poker site can accept money for additional chips but not reward

winnings with money.

While debates rage on in different states over legalizing online gaming, the most logical

solution is to clarify and reduce the federal restrictions on returning money to the

gambler. Without this legislation, money will continue to leave the U.S. and stream into

overseas gambling companies.

There are several reasons why the U.S. should federally legalize the exchange of

money for betting purposes: International gambling sites are already making money off

of American gamblers, and none of that money returns to the U.S. in the form of

business growth or tax revenue. An even bigger issue is the fact that the U.S. is losing

some of the best talent and brightest minds by not allowing them to use their skills here.

They are departing the U.S. for opportunities to engineer the sites and run the

businesses connected to them in other countries.

The ideal solution is for the U.S. to adopt federal gaming laws that allow companies in

Nevada and New Jersey, which are already regulated by gaming boards, to develop

and release products nationally. Because of the states’ gaming industry knowledge,

they can and should play a leadership role in establishing the technology to run the

online gambling engine. Nevada, in particular, has an incredible number of

entrepreneurs and gaming engineers.

This will put Nevada in a prime role in the online and dot.com revolution. Instead of the

Bay area and Silicon Valley leading the way, Nevada can develop the technology and

pave the way for a new online business boom. However, if money exchange

prohibitions are not lifted, the U.S. will continue to miss out on large sums of taxable

funds and Nevada will lose the opportunity to lead the way in online gaming innovation.

James Kosta is founder and CEO of 3G Studios Inc. in Reno.

Reno Gazette Journal, August 17, 2012

Reno Gazette Journal, Letter to Editor

Missed Opportunities with Internet Gaming

The Internet remains the fastest growing medium in history. Nevada is positioned as no other jurisdiction to take advantage of Internet gaming as a source of tax revenues, employment opportunities and an environment friendly high-tech industry. Prohibition of Internet gaming will not prevent people from gambling online and will put covert operators beyond the reach of regulators, depriving players of the protection of open and disclosed Internet gaming and licensing procedures. Leveraging Nevada's existing lead would provide our gaming industry with the opportunity and incentive to develop technologies and solutions that would be licensed worldwide and provide jobs and promote revenues. Internet gaming will flourish with or without the state of Nevada, as will the technologically innovative firms, which bring Internet gaming to the global marketplace. Ignoring this obvious trend will lead to a continued migration of gaming revenues to other markets. As legal and logistical issues are sorted out, it is imperative that Nevada remains on the cutting edge of gaming development. Our lead in this area will ensure that Nevada remains the gaming capital of the world. Mike Wiltshire, Reno

Online Gambling Game Developers Ready

for US Market

Published Sunday, July 29, 2012 - Online-Casinos.com

The online gambling industry is growing without a

doubt and the spinoff industries are growing right along

with it. As online gambling positions itself to enter the

US market once again with all the ducks in a row

developers of games are also lining up to supply the

huge potential.

Game developers are not only looking at the US to sell

new products but are also going to other emerging

regulated online gambling jurisdictions. Video games

developer 3G Studios headquartered in Reno Nevada

USA at the heart of America’s gambling state has plans

to be producing games for gambling in the very near

future. 3G Studios has contracted 80 developers in

India and China with expectations to grow to 200 by

the end of the year dedicated to games for gambling.

The race is on in the USA which is expected to bring handsome rewards for developers that are

ahead of the curve when it comes to internet casino products. 3G Chief Executive Officer, James

Kosta, commented on the changes in gaming direction, “Gambling is fundamentally going to

change from something … where you had to sit in a casino and physically spin the wheel, to

something that you could do casually while you have a three-minute break at work,”

The competition is formidable as other developers of games see the need and attempt to fill it.

Betable, a firm located in the U.K. recently announced they will be assisting game producers to

make real money gambling a reality in regulated jurisdictions. International Game Technology

another proactive firm acquired one of Facebook’s popular virtual casinos, Double Down

Interactive, for $500 million recently. On the other side of the fence John Acres, founder of

casino consultant group Acres 4.0, says game development is a waste of time, he says. “It’s not a

matter of tech but a matter of licensing,” said Acres.The stock market has been reflecting this

fact with stocks in already licensed companies seeing investor interest surge.

3G Studios, a video game developer in Reno, is betting on online gambling.

The private company, with 47 U.S. employees, has hired almost 80 contractors in India and

China and expects to have 200 dedicated solely to making gambling games by the end of the

year. 3G is one of a handful of game makers jockeying for gambling business, expecting states,

hungry for new tax revenue, to open the floodgates for Internet casinos.

Nevada is accepting applications for online gambling licenses, and in June, Delaware became the

first state to approve online casino gambling for state residents, starting next year. Other states,

including California and New Jersey, are considering loosening the rules for wagering on the

Web after the Department of Justice reversed a longtime ban on many types of Internet betting

in December.

3G Chief Executive Officer James Kosta thinks online gambling will draw bettors beyond the

casino crowd, just as casual games such as "Angry Birds" attracted new players who would

never log on to "World of Warcraft."

"Gambling is fundamentally going to change from something where you had to sit in a casino

and physically spin the wheel, to something that you could do casually while you have a three-

minute break at work," he said.

The 6-year-old game developer, which helped produce Jillian Michaels' "Fitness Ultimatum

2009" and released its own first-person shooter title, "Brave Arms," on Facebook, plans to open

an online slot machine site in August. Americans will play for free with virtual currency until it

is legal to wager cash, Kosta says, while European customers will be able to play for real money.

Real-money bets

3G isn't alone in anticipating looser gambling rules. Betable, a London startup, recently

announced plans to help game developers add real-money betting, both on the Web and on

mobile phones, in jurisdictions where online wagering is legal. In February, Zynga CEO Marc

Pincus said the San Francisco company is open to the possibility of entering the social gambling

http://www.sfgate.com/?controllerName=search&action=search&channel=technology&search=1&inlineLink=1&query=%22Department+of+Justice%22

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sphere. International Game Technology acquired one of Facebook's more popular virtual casinos,

"Double Down Interactive," for $500 million in January.

But John Acres, founder of casino consultant group Acres 4.0, says game studios are wasting

their efforts.

Even if online gambling is made legal, there will be so much red tape that most tech companies

won't be able to make money, he said. "It's not a matter of tech but a matter of licensing," Acres

said. States must provide licenses for Internet gambling, and the process will be lengthy

and complicated.

That means the deck is stacked in favor of companies that already have licenses: casino giants

such as MGM Resorts and Bally. Like 3G and other upstarts, established gambling companies

are building Web presences with play-money games to draw in potential players. In addition to

building to its own games, 3G has teamed up with Bally to help the casino develop online

offerings. Other game companies that don't work with the casinos could be pushed out of

the profits.

The giants could still benefit even if online gambling isn't legalized. Chicago slot machine maker

WMS Industries in mid-July announced the creation of a new division, Williams Interactive, to

oversee its products on the Web. The group recently released its second Facebook offering:

"Jackpot Party Casino," which builds on popular brands available in brick-and-mortar casinos.

New customers

Williams Interactive CEO Orrin Edidin says having slots both online and in the real world could

attract new customers for casinos.

"We help build a community of players that you can market to convert from free-to-play to pay-

for-play," he said.

Kosta says 3G will profit as nongamblers begin to place small bets on casual games. He

anticipates the studio will invest $5 million in its gambling business over the next few years.

Even if online betting is slow to come to the United States, he expects the investment to pay off

as game players in Europe and elsewhere warm to the idea.

"When people are going to be willing to bet $5 or $10 a week - when you get 140 million of

those devices together, it's going to make for a whole lot of money changing hands every week,"

he said.

http://www.sfgate.com/?controllerName=search&action=search&channel=technology&search=1&inlineLink=1&query=%22John+Acres%22

http://www.sfgate.com/?controllerName=search&action=search&channel=technology&search=1&inlineLink=1&query=%22MGM+Resorts%22

http://www.sfgate.com/sports/giants/

http://www.sfgate.com/?controllerName=search&action=search&channel=technology&search=1&inlineLink=1&query=%22Party+Casino%22

http://www.sfgate.com/?controllerName=search&action=search&channel=technology&search=1&inlineLink=1&query=%22Orrin+Edidin%22

By Kate Abbott on July 27, 2012

3G Studios, a video game developer in Reno, Nev., is betting on online gambling. The private

company, with 47 U.S. employees, has hired almost 80 new contractors in India and China and

expects to have 200 dedicated solely to making gambling games by the end of the year. 3G is

one of a handful of game makers jockeying for gambling business, expecting states, hungry for

new tax revenue, to open the floodgates for Internet casinos.

Nevada is accepting applications for online gambling licenses, and in June, Delaware became the

first state to approve online casino gambling for state residents, starting next year. States

http://www.businessweek.com/authors/45826-kate-abbott

http://www.usatoday.com/news/nation/story/2012-06-28/delaware-online-gambling/55897914/1

http://www.usatoday.com/news/nation/story/2012-06-28/delaware-online-gambling/55897914/1

including California and New Jersey are considering loosening the rules for wagering on the

Web after the Department of Justice reversed a longtime ban on many types of Internet betting in

December.

3G Chief Executive Officer James Kosta thinks online gambling will draw bettors beyond the

casino crowd, just as casual games such as Angry Birds attracted new players who would never

log on to World of Warcraft. “Gambling is fundamentally going to change from something …

where you had to sit in a casino and physically spin the wheel, to something that you could do

casually while you have a three-minute break at work,” he says.

(Kosta, who once worked for the CIA, has a colorful past. He settled a lawsuit with the Securities

and Exchange Commission in 2004 over his alleged involvement in a pump-and-dump stock

scheme and was ultimately required to pay $50,000. Kosta said in a statement that he was “never

a subject of a criminal investigation” and “there was no admission or proof of wrongdoing in the

agreement.”)

The 6-year-old game developer, which helped produce Jillian Michaels’ Fitness Ultimatum 2009

and released its own first-person shooter title, Brave Arms, on Facebook (FB), plans to launch an

online slot machine site in August. Americans will play for free with virtual currency until it is

legal to wager cash, Kosta says, while European customers will be able to play for real money.

3G isn’t alone in anticipating looser gambling rules. Betable, a London startup, recently

announced plans to help game developers add real-money betting, both on the Web and on

mobile phones, in jurisdictions where online wagering is legal. In February, Zynga (ZNGA)

CEO Marc Pincus said the company is open to the possibility of entering the social gambling

sphere. International Game Technology (IGT) acquired one of Facebook’s more popular virtual

casinos, Double Down Interactive, for $500 million in January.

But John Acres, founder of casino consultant group Acres 4.0, says game studios are wasting

their efforts. Even if online gambling is legalized, there will be so much red tape that most tech

companies won’t be able to make money, he says. “It’s not a matter of tech but a matter of

licensing,” Acres says. States must provide licenses for Internet gambling, and the process will

be lengthy and complicated.

That means the deck is stacked in favor of companies that already have licenses: existing casino

giants such as MGM Resorts (MGM) and Bally (BYI). Like 3G and other upstarts, established

gambling companies are currently building Web presences with play-money games to draw in

potential players. In addition building to its own games, 3G has partnered with Bally to help the

casino develop online offerings. Other game makers that don’t partner with the casinos could be

pushed out of the profits.

The giants could still benefit even if online gambling isn’t legalized. Chicago-based slot-machine

maker WMS Industries (WMS) in mid-July announced the creation of a new division, Williams

Interactive, to oversee its products on the Web. The group recently released its second Facebook

offering: Jackpot Party Casino, which builds on popular brands currently available in brick-and-

mortar casinos.

http://www.sec.gov/litigation/litreleases/lr19043.htm

http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=FB

http://go.bloomberg.com/tech-deals/2012-07-09-investors-betting-on-betable-it-can-help-social-games-make-money/

http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=ZNGA

http://www.businessweek.com/articles/2012-03-28/social-game-makers-place-their-bets

http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=IGT

http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=MGM

http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=BYI

http://www.marketwatch.com/story/bally-technologies-launches-us-igaming-platform-with-golden-nugget-properties-2012-06-26

http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=WMS

Williams Interactive CEO Orrin Edidin says having slots both online and in the real world could

attract new customers for casinos. “We help build a community of players … that you can

market to convert from free-to-play to pay-for-play,” he says.

Kosta says 3G will profit as non-gamblers begin to places small bets on casual games. He

anticipates the studio will invest $5 million in its gambling business over the next few years.

Even if online betting is slow to come to the U.S., he expects the investment to pay off as game

players in Europe and elsewhere warm to the idea. “When people are going to be willing to bet

$5 or $10 a week … when you get 140 million of those devices together, it’s going to make for a

whole lot of money changing hands every week,” he says. Kosta, at least, appears to be going all

in.

By Matt Blake PUBLISHED: 04:32 EST, 24 July 2012

How a teen hacker sentenced to 45-years in prison became a CIA agent... and then a multimillionaire

James Kosta came off the rails and divorced his parents at 13 At 14, he was convicted of 45 counts of technical burglary and convicted to 45 years in

prison Instead he was allowed to join the Navy at 18 as intelligence analyst At 20 he joined the CIA tracking funds of warlords in Africa and Middle East At 24 he sold his first dotcom company for tens of millions of dollars Now 37 his games development firm turns over more than $10m a year He also mentors 'troubled youth' to help unlock their potential 'When you look a little deeper, as people did with me, you're able to get kids focused

on their potential'

For software developer James Kosta, life has played virtually like a video game, with a new character on every level.

From parental divorcee to computer hacker, convicted criminal to Navy intelligence analyst, CIA agent to multimillionaire - the 37-year-old knows how to role-play.

At 13 he was already earning $1,500 a month as an IT consultant. He even managed to persuade his school to let him 'formalise the computer club' and run his business from there.

With an 18-year-old girlfriend, pockets full of cash and friends aplenty he began skipping school and staying out late into the night.

Then his parents issued him with an ultimatum: If he wanted to live under their roof he had to give it all up and focus on school.

http://www.dailymail.co.uk/home/search.html?s=&authornamef=Matt+Blake

'I went to court and proved to a judge I was responsible enough to be on my own,' he told the Huffington Post.

Alone and with nobody to reign him in, he turned his knack for computers into low-level hacking.

But his solo activities soon caught the attentions of the online criminal underworld and he was swiftly recruited into a criminal hacking collective.

He and his accomplices began hacking the sites of big business and military, including the systems of major banks, General Electric and IBM. For this 14-year-old nothing was out of bounds.

Then early one morning there was a bang on the door. Naked and bleary eyed, Kosta answered and was bundled to the ground by an FBI tactical squad armed with MP-5 sub-machine guns.

'I was terrified. When you're that young, because your parents always give you warnings, you expect someone to say, hey, knock it off. I never expected any action like that.'

And because he was now divorced from his parents, he was officially a 14-year-old adult.

http://www.huffingtonpost.com/2012/07/10/james-kosta-3g-studios_n_1662994.html?ncid=edlinkusaolp00000003

He was found guilty of 45 counts of technical burglary and sentenced to 45 years in jail.

But he says the judge saw a spark inside the troubled and neglected child and decided to give him a chance of atonement.

After a year in juvenile detention, he was released on a suspended sentence and offered a spot in the military on the condition that he would not commit another crime.

'For me, it was a no-brainer,' he says. 'I knew if I went to maximum security for youth, a guy like me probably wouldn't have a good experience.'

As soon as he was eligible, he joined the Navy and was swiftly stationed in the intelligence division, responsible for tracking money wired between warlords and radical sheiks in North Africa and the Middle East.

From there he was drafted into 'penetration testing on military installations', in some of the first stages of technological warfare.

However, by the late 1990s, it began to dawn on Kosta that he wanted to make more of his life than propping up the establishment and started one of the first commercial websites focused on financial markets with his brother. In 1999 they sold it for tens of millions of dollars.

The New Job Market: Permanently

Temporary

If you have a job, congratulations. Just don’t bet on keeping it, or

on your next one being very durable either.

These days, businesses are relying on temps more than

ever, according to The Wall Street Journal. “For some

companies, the shift to part-time or temporary help may be a

short-term response to an uncertain economic environment,”

the Journal reported. “But some companies see a longer-term

shift.”

The article cited as an example 3G Studios, a videogame developer in Reno, Nevada, that has

replaced the bulk of its workforce with outside contractors. “Engineers were outliving their

usefulness from one project to another,” CEO James Kosta told the Journal. “When projects end,

it’s better to re-evaluate your entire staff and almost just hire anew.”

What an evolution. “When the temp industry first started, some 50 years ago, it supplied low-

level clerks to take the place of ledger keepers, receptionists, telephone operators, or stenos in the

typing pool who were sick or on vacation,” wrote Peter Drucker in Managing in the Next Society.

“Today there are temp suppliers for every job, all the way up to temp CEOs.” (For more on this,

check out this recent “Drucker on the Dial,” on which Jody Greenstone Miller discusses

voluntarily temporary executives.)

Drucker noted that “the reason usually offered for the

growth of temp work is that they give employers

flexibility,” but Drucker’s own view was different. “The

driving force behind both the steady growth of temps and

the emergence of the PEOs is the growing burden of

rules and regulations for employers,” he wrote. (PEO is

for professional employer organization, which helps

companies outsource.)

And what of engineers who outlive their usefulness? Might that be another cause? One thing we

know is that Drucker felt that workers do indeed grow obsolete—and, what’s worse, the most

obsolete of them all is sometimes the person at the top. French statesman Charles de Gaulle was

a case in point. As dangerous as frequent cabinet overthrows can be to a country, Drucker, as he

wrote in The Age of Discontinuity, felt that de Gaulle “lived long enough to demonstrate that the

inability of an institution to get rid of a top man who has outlived his usefulness is just as serious

and dangerous.”

http://www.flickr.com/photos/34120957@N04/4045973322

http://online.wsj.com/article/SB10001424052702303684004577511014173561108.html

http://www.forbes.com/places/nv/reno/

http://www.forbes.com/managing/

http://www.forbes.com/companies/next/

http://books.google.com/books?id=Eiu0-ZA0K_AC&pg=PT70&lpg=PT70&dq=When+the+temp+industry+first+started,+some+fifty+years+ago,+it+supplied+low-level+clerks+to+take+the+place+of+ledger+keepers,+inauthor:Peter+inauthor:Drucker&source=bl&ots=KgoIZBWCuV&sig=NtyEeRBKhUxZ7wx2Os0X0YNOG_g&hl=en&sa=X&ei=q1MHUKSYIKHL2QXzwMDvBA&ved=0CDAQ6AEwAA#v=onepage&q=When%20the%20temp%20industry%20first%20started%2C%20some%20fifty%20years%20ago%2C%20it%20supplied%20low-level%20clerks%20to%20take%20the%20place%20of%20ledger%20keepers%2C%20inauthor%3APeter%20inauthor%3ADrucker&f=false

http://thedx.druckerinstitute.com/2012/07/shift-work/

http://books.google.com/books?id=1Zp7_rJ1vcMC&pg=PA197&lpg=PA197&dq=lived+long+enough+to+demonstrate+that+the+inability+of+an+institution+to+get+rid+of+a+top+man+who+has+outlived+his+usefulness+is+just+as+serious+and+dangerous+inauthor:Peter+inauthor:Drucker&source=bl&ots=2wqLuquz2b&sig=JQv_wCpHdwxYWoawplixsPjfU1k&hl=en&sa=X&ei=cVYHUJPUAsnW2gWZv-ysBA&ved=0CDEQ6AEwAA



Temporaryness isn’t all bad.

Who gains from the increasing importance of temporary work—and who loses?

This post first appeared on the Drucker Exchange, a daily blog produced by the Drucker

Institute at Claremont Graduate University. Check out more posts here.

http://thedx.druckerinstitute.com/

James Kosta, 3G Studios: A Wild Ride For

Jailed Teen Hacker Turned Video Game

Entrepreneur

Posted: 07/23/2012 2:48 pm Updated: 07/23/2012 3:26 pm

James Kosta woke up at 5 a.m. to the sound of someone pounding on his door. Groggy and

naked, he opened the door and was tackled by members of an FBI tactical team, armed with MP5

submachine guns, who started securing all his computers. Kosta was 14 years old.

Kosta's life has often played out like some surreal video game. At 13 years old, he emancipated

himself from his parents, only to be busted by the feds one year later for illegal hacking. After

his release, Kosta worked for the CIA, and by 24, he was a tech entrepreneur making millions.

Today, Kosta, 37, runs 3G Studios Inc., a video game business that's set to pull in $10.5 million

in revenue this year.

But startup success wasn't what Kosta expected for himself as a teenager facing 45 years of jail

time for 45 counts of technical burglary, including hacking into the systems of major banks, GE

and IBM. When a judge gave him a break, Kosta seized the opportunity to turn his life around.

HuffPost Small Business found out how Kosta's intense reality eventually led to virtual success.

Why did you seek emancipation from your parents?


I was making money from consulting work, so I approached the school with the idea of

formalizing the high school computer club I had started into a business. By my 13th birthday, I

was earning about $1,500 a month ... and spending money with friends, coming home late,

skipping school. When I had an 18-year-old girlfriend, my parents said if I lived under their roof,

I'd have to concentrate on school, give up my girlfriend and shut down my business. I went to

court and proved to a judge I was responsible enough to be on my own.

How did you turn your computer skills to hacking?

I fell in with a bad crowd focused on what networks we could get into, both military and

commercial. Just like gangs and the mob have initiations, if you want to be part of the most high-

profile, advanced hacking groups, you have to cut your teeth. It was nothing destructive. A lot of

it was for bragging rights, to say you pulled something off.

You might have been a global hacker when you were arrested, but you were still a kid.

Were you scared?

I was terrified. When you're that young, because your parents always give you warnings, you

expect someone to say, hey, knock it off. I never expected any action like that. Also, what came

to light very quickly was that I wasn't technically a kid. When you're emancipated, they have the

right to charge you as an adult.

How were you able to get out of the 45-year sentence?

After being in for almost a year, the judge agreed to suspend my sentence if I didn't commit

another crime and I agreed to join the military when I was eligible. I think what he saw was an

intelligent kid who needed discipline. For me, it was a no-brainer. I knew if I went to maximum

security for youth, a guy like me probably woudn't have a good experience.

In between, they stuck me in a boys camp in Santa Barbara. We were on the second line of

fighting forest fires. To see those firefighters in action and have them respect me meant a lot, and

shaped me as a man. That's when I first realized I could be helpful to people instead of being

nefarious.

At 18, you started serving in the Navy. How did you end up in the analyst division of the

CIA by age 20?

I was working on a Naval Intelligence project that got transferred to the CIA. I was responsible

for tracking the money going to various warlords and radical sheiks in North Africa and the

Middle East. Then I was doing penetration testing on military installations, working with IT

groups to see if I could steal data from outside. It was the beginning preparation for

technological warfare.

How did you transition from the military to making millions?

I got recruited as a Microsoft contractor straight out of CIA. I was consulting with multiple

companies, then my brother and I started one of the first commercial websites focused on

financial markets. In 1999, we sold our dotcoms for tens of millions of dollars.

After 9/11, how did you start working for the CIA again?

I offered to simulate Las Vegas getting hit with a dirty bomb and how rescuers could lock down

the city. We were using a game engine by the company that did Tom Clancy's Ghost Recon,

where we dropped these bad guys into Las Vegas and started [pursuing] them. We thought that

was more fun than the simulation business, and our heart was aching to move toward commercial

video game development, so we steered the company in that direction.

Your reality has been so intense, what drew you to virtual world?

I fell in love with the concept of interactive entertainment, allowing people to make their own

story. The analyst side of me loves that it's like watching ants from above. You get to see how

people are experiencing a story, reacting to stimuli you put in place. In intelligence, looking at

human patterns, I was fascinated by social hacking, using a person's belief systems to get what

you want. The real question with video games is that suspension of disbelief -- can I fool an

audience that thinks they're in control when they're really not?

Do you see any way the story of your own life has come full circle?

I was an intelligent, rebellious youth, but my grades and attendance records weren't the sole

indicators for my potential contribution to society. Ultimately, society suffers when we're that

myopic. When you look a little deeper, as people did with me, you're able to get kids focused on

their potential. A huge part of my company is focusing on teen mentoring for troubled youth.

That's something I owe to the people who helped me.

Entrepreneur Spotlight

Name: James Kosta

Company: 3G Studios Inc.

Age: 37

Location: Reno, Nev.

Founded: 2006

Employees: 47

2012 Projected Revenue: $10.5 million

Website: http://www.3gstudios.com/pages/home/


Posted: 11:27 a.m. Thursday, July 12, 2012

Summer school class offers professional

advice to young video game designers

RENO -- Sixteen WCSD students who are taking a video game design class this summer will

receive professional guidance from an expert game designer during their class on Thursday, July

12. The students range from fourth- to seventh-grades and are attending summer Community

Education classes at Hunsberger Elementary School this summer.

Ryan Cullins, chief creative officer at 3G Studios, will meet with the class and critique the video

games they have created during the course. The skills these students are learning can take them

far beyond mere computer games.

“Skills like these can help them create simulation programs used by companies to train their

employees,” said Susan Hernandez, who teaches the class. “They can also create games and

programs that help hospitalized children gain more confidence by, for example, ‘winning battles’

against serious diseases in the virtual world using their immune system avatars.”

WCSD students have a wide variety of classes from which to choose this summer. They may

also sign up for courses in acting, volleyball, drawing, art, and one-day “Kids in the Kitchen”

cooking classes.

Local students make a game of summer school Reported by: Ashley Cullins

Published: 7/12 5:55 pm

RENO, Nev. (KRNV & MyNews4.com) --

Having to take a class during the summer

might seem like punishment for some kids,

but one group of students is making a game

out of summer school.

"I've always gone into summer like 'yay it's

going to be summer I don't have any more

school', but the moment I step into

summer I get instant boredom," said 13-

year-old Cameron Levezu.

But not this summer. Cameron is one of 16

students studying video game design at

Hunsburger Elementary School.

"They learn how to create a game that they've come up with a concept for," said Susan Hernandez who

teaches the class.

"It's like the coolest thing I've ever done," said 9-year-old Evan Achtabowski.

"These kids are having the time of their lives building games, doing what they love to do," said Ryan

Cullins, chief creative officer for 3G Studios.

Kids love playing video games, so learning about them is more fun than your typical summer school

class, but these kids are also learning about all of the hard work that goes into making these games.

"I really just went into playing video games just for fun, but now I've really seen almost the opposite side

of it like the whole design process and how it's really, really time consuming," Cameron said.

"It's really complicated to build like a really long game," Evan said. "We have to go through all these

levels and all these steps of building."

Today the class got to talk to Cullins, a real-life game designer.

"It's a dream come true for me because I get to teach the kids about things that I've learned in the past

15-20 years of my life developing games, and things I wish I knew when I was their age," Cullins said.

And Cullins says getting them interested in technology is vital.

"Their careers are dependent on learning technology at a young age," Cullins said. "Right now this will

change the course of the way they view technology and the potential careers that they have."

"It's really cool to know what goes into them, and it's really awesome to build your own," Evan said.

The kids love the class.

"I told my mom I want to do this again next summer," Evan said.

Cullins is excited to see it develop, and he might even be a bit jealous.

"Getting these kids involved in our industry is really really difficult typically because we don't have

classes like this," Cullins said. "This is really unique and I wish we had this when I was a kid."

Posted: Thu 5:15 PM, Jul 12, 2012

Class Teaches Students to Make Video Games RENO, NV - A room of students is playing video games at Hunsberger Elementary, but don't worry it's in

the name of education. In fact, the students aren't just playing the games, they are creating them. The

Washoe County School District offers a summer class in video game design.

"I love playing video games I love drawing, designing them it's just fun," Jack Christensen, who

is going into the sixth grade, said.

Students learn what elements are needed to

create games. They even share their finished

games online.

The students pick out the background, the music

and come up with the objective.

"(The game character) has to go through a city

avoiding the paparazzi," Christensen said.

The students received some game-creation advice from an expert on Thursday. Ryan Cullins,

chief creative officer at 3G Studios in Reno, paid a visit. Cullins offered tutelage, but said he was

also interested in the kids' ideas.

"Even today I see things I wouldn't have ever thought of in my wildest dreams like there's really

cool ideas coming out of the schools," Cullins said.

The skills learned in the class are aplicable to creating simulations in the business world.

Additionally, some students said they have a career interest in creating video games.

"Not only would you make money but you could be doing something that's fun," Alex Oggerino,

a student going into eighth grade, said.

http://www.kolotv.com/home/headlines/Class_Teaches_Students_to_Make_Video_Games_162293376.html





2012 3G Studios Media Placements

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