dictao traceability solution for i gaming operators in spain and newly regulated markets

DICTAO

152, avenue Malakoff

75116 PARIS, France

+33 1 73 00 26 00

www.dictao.com

Traceability Solution for iGaming operators on newly regulated European markets

Asensi Abogados - Business Breakfast Workshop

Madrid ! September 8th, 2011

Copyright Dictao 2011

1

Agenda

Regulation and traceability

Impact of traceability requirements on technical architecture

!"#$%&'( offering

Case: Spain

! Technical requirements

! Gaming system architecture

! Central Gaming Unit

! Internal Control Unit

! Dictao offering & requirements coverage

Pricing principles

Benefits

Company presentation

Copyright Dictao 2011 2

European markets introduce traceability as they

regulate Regulators see transaction traceability as key to

achieve

! Tax control

! Anti money laundering

! Fight against fraud

A core constraint in current EU markets

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(2011 M est.)

Expected in the next EU markets

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Q (I) AAMS: Amministrazione autonoma dei monopoli di Stato

Q (II) ARJEL: Autorité de Régulation des Jeux en Ligne

Q (III) DGA: Danish Gaming Authority

Q (IV) CNJ: Commission Nacional del Juego

Q (V) GSCC: Games of Chance Supervision and Control Commission

Traceability requirements are complex, and increase costs and

time

4

Each jurisdiction requires distinct and

specific :

! Data formats

! Server location

! Backup location

! Certifications

! Secure storage

! Data retention policies

! Language

! P

This wide diversity

! Increases go-to-market and running costs

! Slows down new regulated market projects

! Mobilizes resources


Capteur

.FR

Core Gaming Platforms

Proxy

.GR .DK

.ES

Capturador

Traceability made simple

A single partner for every

regulation

! For all jurisdictions that do not

impose a central system

! For all games

Focus on gameplay rather than

traceability

! We are regulation and traceability

experts

! Only extract your data

! We manage traceability data

storage and download by the local

regulator


Operator platform

Dictao

DGA ARJEL GSCC CNJ

Casino Sports book

Poker

Spain: Technical requirements

Implement a monitoring and supervision system (Internal Control System)

Gaming events and transactions must be stored in real-time in a vault on

Spanish soil

The regulator CNJ must have real-time access to the vault

Software, Hardware and Organization used to perform gaming activities

must be audited by an approved third-party test lab

Specific security audit on the most critical modules

! Player personal information, RNG and system computing game outcomes

Player « blacklists »: Compulsive players by CNJ, and operator-managed

list

Responsible Gaming


Gaming system architecture


Central Game Unit CNJ

Game Platform (Player management, Payment

"#"$%&"'()**%""(+,-"'./

Player Info

Game software (Sportsbook'(0,1%2'(345-,'./

Random number generator

Internal Control

System

Capturador

Secure

Vault Supervision

Central Gaming Unit (CGU 1/4)

Can be located outside of Spain

Disaster recovery plan to recover all data

Secondary site to ensure business continuity

CNJ access to the Central Gaming Unit: remote and on-site

Strong authentication

Traceability of all access and configuration changes

Intrusion detection

Physical security of the premises


Player registration and authentication (CGU 2/4)

.ES website

Geolocalization of players. Spanish IP addresses must be redirected to .ES

website

Registration using

! Electronic National ID (DNIe)

! Electronic certificate

! Physical documents onsite or via fax/email

« Blacklists »

! CNJ system for age verification and banned player list (RGIAJ)

! Operator-managed listing owners, executives, spousesNP

Authentication with login and secure password

Privacy and data protection


Gameplay (CGU 3/4)

Spending limits (daily, weekly, monthly)

! Deposits

! Bets

! Increases effective after 7 days, limited to 50%

Interface showing at all times:

! Clock and timer indicating duration of play

! Account balance

! Total amount wagered

! Winnings of previous game

Information on game rules, prizes and theoretical chances of winning in Spanish

Temporary self-exclusion

Link to CNJ website to register as compulsive player

Robots OK to fill multiplayer tables if clearly identified as such to other players

Access to game history


Random number generator (CGU 4/4)

Hardware based

Software based

Statistical audits

Scaling and mapping


Gaming system architecture


Central Game Unit CNJ

Game Platform (Player management, Payment

"#"$%&"'()**%""(+,-"'./

Player Info

Game software (Sportsbook'(0,1%2'(345-,'./

Random number generator

Internal Control

System

Capturador

Secure

Vault Supervision

Internal Control System (ICS 1/5)

Equipment to capture and store all gaming operations and economic

transactions between a Spanish player (on Spanish soil or Spanish

account)

Operator can accept stakes only if ICS is available

For all sales channels

Standardized file format and structure

ICS redundancy: Main and backup system both on Spanish soil

Remote and on-site access by CNJ

Time synchronized with Spanish official time


Standardized file format (ICS 2/5)

Player records (« DP »)

! RegistroJugador

Session records (« SE »)

! RegistroSesiones

Movement records (« MO »)

! RegistroMovimientos

Balance records (« SA »)

! RegistroSaldos

Totals records (« TO »)

! RegistroTotalesJugadoresCenso

! RegistroTotalesCuentasResumen

! RegistroTotalesCuentasDetalle


Game records (« JU »)

! RegistroJuegoPoker

! Cash

! Tournament

! RegistroJuegoApuestas

! Fixed Odds Sports

! Fixed Odds Horses

! Pool Sports

! Pool Horses

! Pool other

! RegistroJuegoBlackJack

! RegistroJuegoRuleta

! RegistroJuegoBingo

! RegistroJuegoConcurso

Periodicity (ICS 3/5)

File generation as events happen

! Player records (« DP »)

! Session records (« SE »)

! Movement records (« MO »)

! Game records (« JU »)

File generation on request and periodic

! Balance records (« SA »)

! Totals records (« TO »)


Movement types (ICS 4/5)

Movement records trace all financial transactions between following

account types:

! Deposits

! Operator

! Player

! Game

! Other operators

Each financial movement must be traced with an « MO » record


Record storage in secure vault (ICS 5/5)

Main site and backup site located on Spanish soil

Digital signature to seal the records (XAdES BES 1.3.2)

Timestamp using approved TSA (RFC3161)

Encrypt the records (AES256)

Ensure regulator real-time access via secure channel

Backup data for 6 years


64*$),7" offering

18 Copyright Dictao 2011

Vault

! Located on Spanish soil

! Sign the records

! Timestamp using approved TSA

! Encrypt the records

! Generate aggregated reports

! Ensure regulator real-time access

! Backup data for 6 years

! Batch records

API

! Format records

! Store game history

Operator platform

Dictao

CNJ

Time-stamp

records

Sign records

Format records

Player Info

Sign. verification

Other game

Sportsbook

CRM

Geoloc.

Decryption

SFTP access

Replay game

Encrypt records

Publish records

Store game

history

Generate

reports

Backup data

Poker

Optional Regulatory helpdesk

In addition to the vault service, !"#$%&'(

compliance offering includes a

regulatory helpdesk

The helpdesk provides:

! A workshop to walk through the technical

regulation requirements

! A checklist to measure coverage of the

technical requirements

! Answers to your compliance questions with

guaranteed turn-around time

! Advice regarding technical architecture


Timeline


Bu

ild &

Te

st

September November October December January 2012

Kick-off

Lic

en

se

P

rod

uctio

n

de

plo

ym

en

t

Certification

Hardware sourcing Installation &

configuration

Licence request Licence grant

Go-live

Load tests

Capturador design & development

Co

mm

erc

ial

LOI Negotiation

Contract

Dictao integration

Technical project file

Compliance service pricing principles


First

ye

ar Fixed service subscription

fee to access the compliance service for a market

Use fee based on operator forecast of volumes and most suitable package

Fo

llow

ing

ye

ars

Measure previous year actual volumes

Select appropriate package

Aligned with &F67%$&7'( metrics: based on volumes

Service subscription and country packages

We reward long-term and broad relationships with our customers

! Discounts for multi-year commitments

! Discounts for multi-jurisdiction commitments

Benefits (1/3) Guaranteed compliance

We keep close relationships with local regulators

Compliance with current regulations

! Our solution was the first one approved by ARJEL (French regulator)

! We offer a Denmark-compliant vault today

Continuous compliance with future regulations

! Our solution will adapt to comply with future local regulation requirements

! Our solution will implement modifications of the current regulations


http://www.skat.dk/SKAT.aspx?oId=398

Benefits (2/3) Flexibility

Business model flexibility

! Software license: operator integrates and operates the service

! Software as a Service (SaaS): Dictao hosts and operates the service on behalf of the

operator

! Managed service: Dictao operates the service hosted in &F67%$&7'(,premises

Integration flexibility

! Standard Webservices API

! Managed test environment

! Connection link

! over the internet

! over dedicated leased line

Technical flexibility

! Scalable : from a few to several thousands of events per second

! Reliable: high availability (>99.99%) and multiple sites


Benefits (3/3) Cost-effectiveness

Low investment costs

! The solution is based of existing in-house products

! The development costs are spread across multiple customers

! The SaaS platform shares infrastructure

Low recurring costs

! One dedicated compliance team operates the vaults of several customers

! Evolutions in regulation included


Dictao, the trust architect

Dictao is a software company since 2000 and employs 100 people

Dictao is specialized in 3 areas:

! Data traceability

! Strong authentication

! Electronic signatures

Dictao products power mission-critical applications across multiple sectors

! Gaming, banking, industry, defense, government, P

Dictao products are certified EAL3+ by the French Network and Information Security Agency (ANSSI), by Visa and MasterCard and are approved in Germany by the Bundesnetzagentur

25

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For more information, please contact :

Gregory Kuhlmey

[email protected]

+33 1 73 00 26 00

+33 6 42 15 62 49 (mobile)

www.dictao.com

http://www.dictao.com/en/solutions/jeux-en-ligne

dictao traceability solution for i gaming operators in spain and newly regulated markets

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