phillip ryan ceo & chairman responsible gaming networks pty ltd melbourne, australia 8 th...

Phillip RyanCEO & Chairman

Responsible Gaming Networks Pty LtdMelbourne, Australia

8th European Conference on Gambling Studies and Policy Issues. Vienna 14 – 17th September 2010

TopicsWhat is Pre-Commitment?What is its rationale?How is it evolving?What is the current state-of-play around the

world?What are the challenges for Pre-Commitment?The technologies of Pre-CommitmentThe application of Pre-Commitment to online

gamblingThe new public policy drivers within the USA

RESPONSIBLE GAMING NETWORKS

What is Pre-Commitment?Addresses the definition of problem

gambling: “problem gambling is characterized by difficulties in

limiting money and/or time spent on gambling which leads to adverse consequences for the gambler, others, and for the community” .


What is Pre-Commitment?Addresses the definition of problem

gambling: “problem gambling is characterized by difficulties in

limiting money and/or time spent on gambling which leads to adverse consequences for the gambler, others, and for the community” .

Based on academic research:Rational consumer purchasing decisions in

gamblingProfessor Mark Dickerson et al.Players set money and time limits PRIOR to

gamblingRESPONSIBLE GAMING NETWORKS

What is Pre-Commitment?Addresses the definition of problem gambling

“problem gambling is characterized by difficulties in limiting money and/or time spent on gambling which leads to adverse consequences for the gambler, others, and for the community” .

Based on academic research:Rational consumer purchasing decisions in gamblingProfessor Mark Dickerson et al.Players set money and time limits PRIOR to gambling

Focus on the player:Beyond the venues (hours of operation etc.), machines

(spin rate, max bet etc.) and ATMs (cash withdrawals etc.)


The Rules of Pre-CommitmentPlayer Pre-Commitment:

Players set limits away from the gambling environment.


The Rules of Pre-CommitmentPlayer Pre-Commitment


Pre-commitment limits: Player monetary loss limits – daily, weekly, monthly,

annual. Player time limits – daily, weekly, monthly, annual.






Gambling must stop when limits reached.






Gambling must stop when limits reached.Players set their own limits voluntarily with cooling-

off period.







off period.Players have a mandatory ID access device

connected to their limits in order to play (e.g. plastic card, smart card or some other smart technology).







off period.Players have a mandatory ID access 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 access device.


Evolution of Pre-CommitmentCrown Casino, Melbourne, Australia - 2002:

Introduced player pre-commitment money limits on their 2,500 gaming machines (first casino in world to introduce).




However, play did not stop when limits reached.Players did not have to carry ID card to play.




However, play did not stop when limits reached.Players did not have to carry ID card to play.

Nova Scotia, Canada - 2006:Player ID registration and card required to play.Pre-commitment money and time limit trial on VLTs

in two towns. Play stopped when limits reached.Rolling out across Nova Scotia in 2010.


Today’s DevelopmentsSingapore Casinos :

Marina Bay – Las Vegas Sands ($5 billion +) – Opened April 2010. Sentosa Island – Genting International ($5 billion +) – Opened Feb 14

2010. Pre-Commitment limits mandated by Government of Singapore.Limits will apply across all forms of gambling – slots, tables etc.Limits will apply to residents and tourists.Will my personal limits apply across both casinos?



Marina Bay – Las Vegas Sands ($5 billion +) – Opened April 2010. Sentosa Island – Genting International ($5 billion +) – Opened Feb

14 2010. Pre-Commitment limits mandated by Government of Singapore. Limits will apply across all forms of gambling – slots, tables etc. Limits will apply to residents and tourists. Will my personal limits apply across both casinos?




2010. Pre-Commitment limits mandated by Government of Singapore. Limits will apply across all forms of gambling – slots, tables etc. Limits will apply to residents and tourists. Will my personal limits apply across both casinos? Entrance fees for locals (s$100 = us$70/visit , s$2000 =

us$1400/year). Strict self exclusion and third party exclusions

Welfare recipients & bankrupts Family exclusion 28,000 people identified so far – expect 55,000.

Convergence of Pre-Commitment, Exclusion and Access systems.RESPONSIBLE GAMING NETWORKS



2010. Pre-Commitment limits mandated by Government of Singapore. Limits will apply across all forms of gambling – slots, tables etc. Limits will apply to residents and tourists. Will my personal limits apply across both casinos? Entrance fees for locals (s$100 = us$70/visit , s$2000 =

us$1400/year). Strict self exclusion and third party exclusions

Welfare recipients & bankrupts Family exclusion 28,000 people identified so far – expect 55,000.

Convergence of Pre-Commitment, Self-Exclusion & Access systems.Cergenc Pre-Commitment, Exclusion and Access systems.RESPONSIBLE GAMING NETWORKS

Marina Bay Sands


Resort World Sentosa


Today’s DevelopmentsNorway :

VLTs removed due to concerns with problem gambling.

All private owned machines taken over by state-owned Norsk Tipping.

Player ID registration introduced.Machines returning with player pre-commitment.Plus Government pre-commitment limits:

(us$75/day (K400); us$342/month (K2200); cooling off period after 1 hour continuous play ).

1,600 out of 6,500 machines returned to date.


Today’s DevelopmentsNorway :

VLTs removed due to concerns with problem gambling.

All private owned machines taken over by state-owned Norsk Tipping.

Player ID registration introduced.Machines returning with player pre-commitment.Plus Government pre-commitment limits:

(€30/day (K400); €170/month (K2200); cooling off period after 1 hour continuous play ).


Today’s DevelopmentsAustralia:

State Government of Victoria: From Dec 2010 new machines must have pre-commitment & all

machines by 2013. Abolished role of private operators in the industry value chain

(TABCORP and Tattersall’s). Pre-Commitment specifications being prepared.

Australian Ministerial Council on Gambling:“Pre-commitment a priority area to reduce harm from gambling”

Analysis of Gambler Pre-Commitment Behaviour, June 2006Gambler Support for Pre-Commitment

7 out of 10 slot players support compulsory pre-commitment limits

8+ out of 10 slot players support voluntary pre-commitment limits




machines by 2013 Abolished role of private operators in the industry value chain


Australian Ministerial Council on Gambling: “Pre-commitment a priority area to reduce harm from gambling”




machines by 2013 Abolished role of private operators in the industry value chain


Australian Ministerial Council on Gambling: “Pre-commitment a priority area to reduce harm from gambling”

Productivity Commission Report Pre-Commitment for gaming machines across all states by 2016 Pre-Commitment for on-line gambling


Today’s DevelopmentsState of Queensland Trial of Pre-Commitment :

Two venues (clubs) - Redcliffe and Sandgate.Players not required to have ID to play = leakage.ID card loaded with digital cash = problematic.Player losses reduced by $25/day, possible state-

wide rollout


Today’s DevelopmentsState of Queensland Trial of Pre-Commitment:

Two venues (clubs) - Redcliffe and Sandgate.Players not required to have ID to play = leakage.ID card loaded with digital cash = problematic.Player losses reduced by $25/day, possible state-

wide rolloutState of South Australian Trial of Pre-

Commitment:Four venues (hotels).Re-configuration of J Card loyalty system.Players not required to have ID to play = leakage.Play does not stop when limits reached = no

control.Industry attempting to re-position pre-

commitment.


Tomorrow’s DevelopmentsCanada:

All Canadian Operators investigating pre-commitment Recent Canadian Operator Study on Global Pre-Commitment

released Atlantic Lottery Corporation:

Its four jurisdictions watching Nova Scotia developmentsOntario Lottery & Gaming Corporation

Biometric facial self-exclusion under consideration in response to recent problem gambler class actions

Lotto Quebec Reviewing pre-commitment for next generation machines.


Tomorrow’s DevelopmentsUSA:

Internet Gambling legalisation passed by Congress Committee Safeguards require pre-commitment, self-exclusion & identity

checking (age and state residency)

Australia: Prime Minister announced all 200,000 gaming machines to

have “Full” Pre-commitment technology commencing 2012. Signed agreement to stay in power until August 2012.


Pre-Commitment TechnologiesPlastic cards

Smart cards

USB Keys


Old TechnologiesLimitations 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 TechnologiesSmart cards with PINPlayer loyalty systems with convenience expenditure

Cards have minimal storage capacity (32k) Cards & PINs can still 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 (Aust .Govt.

KPMG Report on Problem Gambling 2002) Professor Mark Griffiths “Suspension of Judgment”


Nova Scotia Trial FindingsInternational Gaming Institute, University of

Nevada:Players “beat” the system – via card sharing

37% of panelists shared cards. Card sharing occurred for periods up to one week at a

time. Card sharing correlated to PGSI score (i.e. PGs shared the

most).


Nova Scotia Trial FindingsInternational Gaming Institute, University of

Nevada:Players “beat” the system – via card sharing

37% of panelists shared cards. Card sharing occurred for periods up to one week at a

time. Card sharing correlated to PGSI score (i.e. PGs shared

the most).“Should pursue measures to address this specific

problem” Biometric ID solution required (fingerprint, facial etc)

for pre-commitment solutions


New Technology SolutionsBiometrics

Unique characteristics of every human being.Eyes, fingers, voice, handwriting etcCannot be easily exchanged between humans

Most developed biometric is fingerprintsDeveloped by FBI in 1920’sRecognized and accepted globallyLowest cost biometricNew technologies have digitized fingerprint

biometrics


Fingerprint Biometrics


USB “Player Protection Key”


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

Eliminates sharing of ID amongst players On-board fingerprint scanner & storage No central storage of player 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 (256 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. Read/Write 100 times faster than a smartcard

systemRESPONSIBLE GAMING NETWORKS

USB “Player Protection Key” Players at venues still use real cash in

machines No cost to player for device

Provided by Government or operator(s) Ideal self-exclusion mechanism Extensive player database for researchers

and regulators


USB & Biometric Gaming StandardsRegulators - Nevada Gaming Commission

Biometric technical standards established for gambling

“Mobile Gaming System Policies”May 2006Two Factor authentication (device & biometrics) for

player IDEstablished standards for:

Cryptographic protocols Encryption algorithms

Machine Manufacturers - Gaming Standards AssociationUSB now adopted as Gaming Device Standard – GDS –

for all slot machines globally.


Multi-Channel Capability Already internet compliant USB connectivity for all computers Universal connectivity standard


Internet Gambling Industry Globally:

700 million internet users globally 2,500 internet gambling sites $16 billion of player gambling losses last year 50% of loss attributed to US residents


Internet Gambling ModelsOld 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.




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 ModelPlayer Benefits:

One registration process for the player across all operators.

One set of pre-commitment limits across all operators.

One self-exclusion registration across all operators.Consumer protection from locally regulated

operators.


New Internet ModelPlayer Benefits:

One registration process for the player across all operators.

One set of pre-commitment limits across all operators.One self-exclusion registration across all operators.Consumer protection from locally regulated operators.

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


New USA Public Policy DriverPresident Obama has promised tax-cuts to middle

America.USA in a recession with declining taxation revenues.$1.5 trillion federal deficit (before tax cuts) in 2009.Democrats control both Houses and Presidency.Corporate tax hikes and new taxes on the agenda.


New USA Public Policy DriverPresident Obama has promised tax-cuts to middle America.USA in a recession with declining taxation revenues.$1.5 trillion federal deficit likely (before tax cuts) in 2009.Democrats control Congress.Corporate tax hikes and new taxes on the agenda.Most Democrats support internet gambling.Internet Gambling is a major source of new taxation revenues.Regulated internet gambling is coming with built-in protections:

Underage gambling controls.Problem gambling controls.With strict controls to eliminate the mediocre internet operators

Only 1 in 3 internet operators conform to standards – NAGS December 2008

Potential for US Government Problem Gambling funding


New USA Public Policy DriverPresident Obama has promised tax-cuts to middle America.USA in a recession with declining taxation revenues.$1.5 trillion federal deficit likely (before tax cuts) in 2009.Democrats control Congress.Corporate tax hikes and new taxes on the agenda.Most Democrats support internet gambling. Internet Gambling is a major source of new taxation revenues.Regulated internet gambling is coming with built-in protections:

HR 2267 “Internet Gambling Regulation, Consumer Protection and Enforcement Act” + HR 2268 Gambling Regulation and Tax Enforcement Act. Underage gambling controls. Problem gambling controls such as pre-commitment.


Pre-CommitmentRapid Diffusion into Public Policy over last 12

months.



months.New global installations will drive increased

adoption.




adoption.New technologies will aid adoption.




adoption.New technologies will aid adoption.New technologies will converge access, exclusion

and pre-commitment systems.





and pre-commitment systems.These new technologies will be applied on-line &

off-line.






off-line.Governments will re-structure industry value

chains to protect their gambling revenues as it is introduced.RESPONSIBLE GAMING NETWORKS





off-line.Governments will re-structure industry value

chains to protect their gambling revenues as it is introduced.

USA has the potential to take global leadership in on-line gambling protection mechanisms.


Questions?Contact

Phillip Ryan CEO & Chairman Responsible Gaming Networks Pty Ltd Melbourne, Victoria. Australia [email protected] Mobile + 61 417 313 726


phillip ryan ceo & chairman responsible gaming networks pty ltd melbourne, australia 8 th...

Documents

precommitment limits

player time limits

gambling environment

player monetary loss

gambling studies

money andor time

adverse consequences

rational consumer