7 th european conference on gambling studies and policy issues “beyond smart cards to smart...

7th European Conference on Gambling Studies

and Policy Issues

“Beyond Smart Cards to Smart Technologies”

Phillip RyanChief Executive Officer

Responsible Gaming NetworksMelbourne, Australia

RESPONSIBLE GAMING NETWORKS

Overview

Player Pre-commitment as the new frontier Global leadership in Pre-commitment The constraints of the old technologies The new technologies for pre-commitment International Pre-commitment developments Internet gambling application


Problem Gambling Policy Focus

Phase 1: Focus on venues Phase 2: Focus on machines functionality Phase 3: Focus on machine density


Problem Gambling Policy Focus

Phase 1: Focus on venues Phase 2: Focus on machines functionality Phase 3: Focus on machine density The New Agenda: Player Pre-commitment


The New Public Policy Agenda Player Pre-commitment

Players set limits away from the gambling environment Focus on players setting pre-commitment limits

Player monetary loss limits – daily, weekly, monthly. Player time limits – daily, weekly, monthly.

Gambling must stop when limits reached Players initially set their own limits voluntarily Players carry an ID device connected to their limits in order

to play (e.g. plastic card, smart card or some other smart technology)

Gambling can only take place using an ID device.


Initial Global Leadership

Nova Scotia, Canada Responsible Gaming Device (RGD) trial in 2006 Plastic Card with ‘voluntary’ capability to set limits Trialled across two towns – Windsor & Mount Uniacke Players required to use a card to play machines Initiated by the Nova Scotia Gaming Corporation


Nova Scotia Trial Findings

Significant database of player activities Extended player analysis now possible by independent

researchers over time



Significant database of player activities Extended player analysis now possible by independent

researchers over time

Unfortunately some players ‘beat’ the system: Plastic cards shared amongst players 37% of players shared their card with someone else Sharing of cards extended for up to a week Card sharing increased with increased PGSI score


Old Technologies

Limitations of plastic cards with PIN Cards have very low storage capacity (<1k) Cards & PINs can be swapped between

gamblers Cards can be easily copied/skimmed Cards require an additional card reader Cards operate on different proprietary

standards Cards limited to a single gambling network



Old Technologies

Old Technologies

Smart cards with PIN Player loyalty systems with convenience expenditure

Cards have minimal storage capacity (32k) Cards & PINs can be swapped between gamblers Cards require an additional expensive card reader Cards operate on different proprietary smartcard

standards Cards limited to a single gambling network Smartcards use problematic digital cash

Players lose connection with the use of real money Increased risks for problem gamblers

KPMG Study for Australian Government



International Gaming Institute, University of Nevada, 2007 Report: Players “beat” the system – card sharing Should pursue measures to address this specific problem



International Gaming Institute, University of Nevada, 2007 Report: Players “beat” the system – card sharing Should pursue measures to address this specific problem

Biometric ID solution required (fingerprint, facial etc) for pre-commitment solutions


New Technology Solutions

Biometrics Unique characteristics of every human being. Eyes, fingers, voice, handwriting etc Cannot be easily exchanged between humans

Most developed biometric is fingerprints Developed by FBI in 1920’s Recognized and accepted globally Lowest cost biometric New technologies have digitized fingerprint biometrics


Fingerprint Biometrics


Player Protection Key


Player Protection Key Electronic Key – unique for each player Biometric identification of owner

Eliminates sharing of ID amongst players On-board fingerprint scanner On-board storage of biometrics




Plug-and-Play Device – no batteries Connects directly into all USB outlets Eliminates need for a card reader On board microprocessor = multi-venue




Plug-and-Play Device – no batteries Connects directly into all USB outlets Eliminates need for a card reader On board microprocessor = multi-venue Massive storage capacity (8 Gigabytes)

Coverage across multiple gambling operators Coverage across all channels of distribution:

Off line venues, Internet, Kiosks, TV Coverage across all forms of gambling - gaming,

lotteries, wagering, sports, spread betting.


Player Protection Key Players voluntarily set personal limits Encouraged to set affordable limits Limits set outside gambling environment Ideal self-exclusion mechanism No central storage of player biometrics No cost to player for device Extensive player database for researchers


Player Protection Key Internet compliant USB connectivity to all computers


Biometric Gaming Standards

Regulators - Nevada Gaming Commission Biometric technical standards established “Mobile Gaming System Policies” May 2006 Two Factor authentication (device & biometrics) for player ID Established standards for:

Cryptographic protocols Encryption algorithms

Machine Manufacturers - Gaming Standards Association USB now adopted as Gaming Device Standard – GDS – for all

EGMs globally.


Nova Scotia Today

November 2007 announcement: “Informed Player Choice System” to be introduced:

Across the entire province of Nova Scotia Across all machines Player’s to have the capability to establish loss and time pre-

commitment limits across all machines Implementation within 18 months Cost of CAD$3 - $4 million per annum But haven’t addressed the key card sharing issue.


Recent Global Developments

Australia – April 2008 Government has announced player pre-commitment on

27,500 machines Funded by gambling industry value chain re-structure

Norway – July 2008 Player pre-commitment Universal government pre-commitment

Singapore Player pre-commitment in two new casinos Across all forms of gambling – slots, cards, roulette. Self exclusion, family exclusion, government exclusion

Responsible Gaming Networks

Socially-responsible Australian-based consortium Focused on eliminating problem gambling from:

Wide area gaming machines Internet gaming

Using Player Protection Key and Safety Net system to provide:

1. Reliable identity access for all players using biometrics

2. Safe play using player pre-commitment protection

Consortium of USA, European and Australian technology partners


Internet Gambling Industry Globally:

700 million internet users globally 2,500 internet gambling sites $16 billion of player gambling losses last year ‘10 times’ the prevalence of off-line problem gambling

New Zealand: 75% of NZ population use the internet 50% of NZ children use the internet daily

12-17 year olds in NZ use the internet as often as the heaviest adult users

NZD$2 billion spent on terrestrial gambling Will result in an emerging digital problem


Internet Gambling Models

Old Internet Models:1. Ban access to all local internet casinos

2. Allow open access to all internet casinos globally Both regulatory models increase player risks around:

casino authenticity lack of financial regulatory controls consumer protection underage gambling problem gambling.


Internet Gambling Models

Old Internet Models:1. Ban access to all local internet casinos

2. Allow open access to all internet casinos globally Both regulatory models increase player risks around:

casino authenticity lack of financial regulatory controls consumer protection underage gambling problem gambling.

New Internet Model Allow access to approved list of casinos


INTERNET PORTAL

CASINO B

CASINO A

CASINO C

CASINO D

CASINO E

USBPlayer Protection Key


New Internet Model

INTERNET PORTAL

CASINO B

CASINO A

CASINO C

CASINO D

CASINO E

USBPlayer Protection Key


New Internet Model

Player Pre-Commitment and Authentication

Government Taxation

Casino Authentication & Regulatory Supervision

New Internet Model

Player Benefits: One registration process for the player One set of pre-commitment limits across all operators Consumer protection through regulated operators

Government Benefits: No risks of under-age gambling Reduces risks of increased problem gambling Place-of-residence player identification Allows for better regulation & taxation of the industry


Questions

Contact Phillip Ryan

Chief Executive Officer Responsible Gaming Networks Melbourne, Victoria. Australia [email protected] Mobile + 61417 313 726


7 th european conference on gambling studies and policy issues “beyond smart cards to smart...

Documents

player time limits

overview player precommitment

gambling environment

smart cards

new technologies

gambling studies

smart technology gambling

venues phase