A description of GPIC’s RFID business from its most recent 10-K:
Gaming Chips with RFID Microchips and Reading Equipment
Need for RFID
Gaming chips are the principal currency of each casino, and each casino has its own unique gaming chips or currency. A gaming chip that appears or feels or even sounds slightly different than the others can warrant review by the casino personnel. There are several possible security and anti-counterfeit features that can be incorporated into the chip material itself and/or in the chip appearance.
The most sophisticated anti-counterfeiting devices are the microchips or RFID, which can be embedded in gaming chips without modifying the other appearance or handling characteristics of the chips. These chips are not only high quality casino gaming chips, but they are also reliable carriers of the data needed by the casinos to efficiently and securely manage their table game operations.
A sophisticated RFID microchip transponder is embedded in each gaming chip. Read/write devices manufactured by us communicate quickly and accurately with a large number of these RFID embedded gaming chips without human contact. The authenticity and denomination of each chip is established, and then the data is transferred to the casino information systems.
The RFID embedded gaming chips can be read with 100% accuracy, either one at a time or in large quantities, with the same efficiency whether in stacks, boxes, trays, cabinets or on the tables. This increases the security of the chip production, transportation, and utilization.
Traditional jetons, plaques and casino chips could not easily and precisely be accounted for by the casinos and the games that call for them, thus they could not be managed by casinos as efficiently as slot systems. Casinos have a need for more streamlined and automated accounting transactions between the pit and cage operations, thus the RFID solution.
History of RFID
In the early 1990’s, Bourgogne & Grasset, now GPI-SAS, started making simple RFID microchips, to be read one at a time. Then in 1995, B&G started working with Philips, Mikohn (now Progressive Gaming International Corporation, or Progressive Gaming) and another company named SafeGames (owner of a patent on an automatic card shoe reader) to use a more sophisticated Philips RFID microchip and readers allowing reading of several chips at a time or “anti-collision.” Progressive Gaming concentrated on the development of players tracking software systems. GPI-SAS concentrated on the development of RFID chips and readers that meet the criteria required by casino managers and professional dealers.
GPI-SAS accumulated many years of development and manufacturing experience based on significant amounts of RFID embedded gaming chips sold to European casinos for the introduction of the Euro and to a growing number of casinos in the USA, Australia and Canada. All RFID embedded gaming chips made by GPI-SAS or GPI-USA carry a unique serial number and other information, such as the monetary denomination and casino name, programmed by GPIC and made irreversibly “read only.” These gaming chips can be automatically tracked and accounted for by various readers located throughout the casino. Readers made and sold by GPIC, include cashiers desk readers, chip bank readers, table top authenticators, chip tray readers, and vault cabinet readers otherwise known as “pigeon hole cabinets” which are able to read several thousands of chips in standard trays. The vault cabinet readers were presented for the first time at the
2004 ICE show in London.
No other RFID technology has been able to match Philips’ and GPIC’s technology in all the multidimensional requirements of various casino applications. This represents an unparalleled protection for the casinos against counterfeit or stolen chips. Thanks to GPIC’s RFID chips and readers connected to their computer system, casinos now have the ability to do “Casino-Currency-Control” in an even more efficient way than central banks control their countries’ money supplies.
GPIC makes gaming chips with embedded Philips RFID microchips under its three brand names: “SafeChipTM” under B&G, “SmartChipTM” under Bud Jones and “ChipSoftTM” under Paulson. Each brand corresponds to different types of gaming chips adapted to different casino needs and practices. GPIC is able to offer, for instance, the Paulson brand RFID embedded gaming chips to casinos in the United States, for less than $2.00 each, that can be read fast enough for all practical casino applications. Prices of readers depend on the size and shape of the antennas.
GPIC owns several patents for the embedding of RFID microchips in gaming chips and an exclusive license on patents now owned by Shuffle Master, Inc. for the utilization of RFID chips and readers in the United States for tracking and accounting for RFID embedded gaming chips. GPIC sells RFID chips and readers directly to the casinos for Casino-Currency-Control and components, such as reader boards and antennas, to licensed Original Equipment Manufacturers (OEM) companies making their own pieces of equipment, particularly for players tracking.
We have been informed that one of our competitors is currently marketing a gaming chip product that claims to have an embedded microchip and by doing so has allegedly challenged the validity of the patents now owned by Shuffle Master, Inc., as they relate to this competitor. Shuffle Master Inc. is currently investigating the possible infringement. Although we do not control Shuffle Master, Inc., and further, there can be no assurance that Shuffle Master Inc. will be successful in any effort, we believe that they will take all reasonable actions necessary to preserve all rights and remedies with regard to these patents.
RFID Equipment
Some of the data collection devices that we have developed based on the Hitag Vegas microchip technology include: pigeon hole cabinet (see above); table top authenticator; cage readers; blackjack and roulette float tray readers; chip bank readers; tip box readers; and evaluation kits. The table top authenticator is an electronic device that gives the dealers an easy way to authenticate the gaming chips at the table. The cage reader gives cashiers an easy and efficient tool to minimize human error for the gaming chip flow data. The blackjack and roulette float tray readers allow automatic and accurate accounting of the gaming chips and the value of the float online. The chip bank reader automatically authenticates trays of gaming chips from 100 to 400 chip tray holders. The automatic tip box reader automatically accounts for the number and value of the tip chips dropped in the tip box. The evaluation kit presents all of the major aspects of the GPI RFID system, such as allowing casino management information system specialists to rapidly understand and assess the functionalities of the GPI RFID system, and giving them the software specifications to be able to develop applications and integrate them into their existing systems.
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