Protecting ChildrenLeon ThomasHead of Regulatory Compliance, PartyGaming EGBA Chair of Compliance and Responsible Gaming Committee

04/18/23 2006 PartyGaming - Internal and Confidential 2

Contents

• What Causes Youth Gambling?

• Our Position on Responsibility

• Remote Gambling Law and Best Practice

• Age Verification Solutions

04/18/23 2006 PartyGaming - Internal and Confidential 3

Youth Gambling

• Limited data on scale of problem.• Operator experience suggests it’s a very rare phenomenon given age

verification systems already in place• A study in 2000 found that the primary motivations behind youth

gambling were:

1. To make money (22.1%) 2. For the fun or enjoyment associated with gambling (18.4%) 3. For social reasons, as interaction with friends or family (13.3%) 4. For the excitement of casino gambling (9.8%), 5. To occupy time or relieve boredom (7.9%).

• (Neighbors, C., Lostutter, T., Cronce, J., & Larimer, M. (2002). “Exploring college student gambling motivation.” Journal of Gambling Studies

04/18/23 2006 PartyGaming - Internal and Confidential 4

Our Position on Responsibility

PartyGaming's position on responsible gaming is clear:

we want everyone who gambles at one of our online sites to be an adult and to be there for the right reason - to have fun

04/18/23 2006 PartyGaming - Internal and Confidential 5

For a small proportion of players gambling assumes too great a role in their life

KYC systems make it difficult for u18s to gamble online However given the large numbers playing this needs to be kept in

context

It is a myth that online gambling companies encourage

problem and underage gambling

Problem and underage gamblers are not good for business: They are a damaging PR story for the company Growth comes from long-term sustainable customer relationships Transactions by minors are voidable

This is why PartyGaming has dedicated social responsibility and age verification tools on all of its sites to help our customers

Problem and Underage gambling

04/18/23 2006 PartyGaming - Internal and Confidential 6

Putting this into practice

Total TransparencyEvery click can be registered and monitored because we

employ state of the art tools to verify our customers’- Identity- Geographical location- Computer- Financial information- Game Play

Access to player information is logged and secure

PartyGaming is scrutinised by GamCare, eCogra, GoodCorporation as well as our Regulators

Perfect audit trail of all transactions

04/18/23 2006 PartyGaming - Internal and Confidential 7

eGambling Regulation Requirements

• A designated manager is responsible for implementing responsible gaming policies

• Any transaction effected by a minor is unlawful and any funds deposited from an underage transaction must be returned minus winnings.

• Actively discourage players NOT to gamble if they are underage

• Employ an age verification solution where appropriate and within a reasonable period of time verify every customers age

• Make available an internet filtering service

eGaming regulation protects minors

04/18/23 2006 PartyGaming - Internal and Confidential 8

Going further

PartyGaming is constantly looking at ways to improve upon industry best practice and our own high standards. Some current examples of this include:

Improving coverage of support services in each country from which we take customers

Improving coverage of age verification tools by proactively testing solutions

Staff training on Responsible Gaming policies

Engaging with academic experts

Educating policy makers on prevention measures and the importance of parental responsibility

04/18/23 2006 PartyGaming - Internal and Confidential 9

Online ID verification: a concrete example

Martin

Hervé

JJ/MM/AAM / F

Less than a second...

Result

Registration

Risk assessment

ID verification process

Electronic Age Verification

04/18/23 2006 PartyGaming - Internal and Confidential 10

Electronic Age Verification

ElectoralRoll

(Over 18)

ElectoralRoll

(Over 18)

Credit Data(Over 18)

Credit Data(Over 18)

Customer isRegistered in Party Cashier

Customer isRegistered in Party Cashier

Level 2 URUPlayer Submits Driving

Licence or Passport Number

Level 2 URUPlayer Submits Driving

Licence or Passport Number

Level 3 ManualCustomer is

not registeredand is requested To submit copy of

Govt issuedID

Level 3 ManualCustomer is

not registeredand is requested To submit copy of

Govt issuedID

UK Player Submits NameAddress, date of Birth,

Telephone number

UK Player Submits NameAddress, date of Birth,

Telephone number

Directory Enquiries(Over 18)

Directory Enquiries(Over 18)

Level 1 URU Cross Checks a number of data sources to find a match

Level 1 URU Cross Checks a number of data sources to find a match

MortalityData

MortalityData

Yes

No

04/18/23 2006 PartyGaming - Internal and Confidential 11

Going Further: Other Age Verification Aids

Establishing the customer exists by verifying telephone number and other non-biographical information magnifies the identity footprint of a customer

04/18/23 2006 PartyGaming - Internal and Confidential 12

• Restrictive Governmental data protection practices

• Limited number of quality automated third party verification solutions – limited by resource constraints

• Control of personal information

• We seek solutions to verify customers but parents must also monitor their children’s access through ISP parental controls devices such as Cyberpatrol (http://www.cyberpatrol.com)

• Banks do not share data outside of their industry

• Banks supply Visa, Electron and Solo cards to 11 yr olds. There are believed to be 2 million such cards in Europe

KYC challenges – real time verification

04/18/23 2006 PartyGaming - Internal and Confidential 13

Conclusion

• Preventing underage gambling is a priority for the industry

• eGaming companies are at the forefront of age verification

• Underage prevention is an ecommerce issue not just an eGaming one

• Access to public data sources is imperative to achieve this