Phillip Ryan CEO & Chairman Responsible Gaming Networks Pty Ltd Melbourne, Australia 8 th European...
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Transcript of Phillip Ryan CEO & Chairman Responsible Gaming Networks Pty Ltd Melbourne, Australia 8 th European...
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” .
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” .
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.)
RESPONSIBLE GAMING NETWORKS
The Rules of Pre-CommitmentPlayer Pre-Commitment:
Players set limits away from the gambling environment.
RESPONSIBLE GAMING NETWORKS
The Rules of Pre-CommitmentPlayer Pre-Commitment
Players set limits away from the gambling environment.
Pre-commitment limits: Player monetary loss limits – daily, weekly, monthly,
annual. Player time limits – daily, weekly, monthly, annual.
RESPONSIBLE GAMING NETWORKS
The Rules of Pre-CommitmentPlayer Pre-Commitment
Players set limits away from the gambling environment.
Pre-commitment limits: Player monetary loss limits – daily, weekly, monthly,
annual. Player time limits – daily, weekly, monthly, annual.
Gambling must stop when limits reached.
RESPONSIBLE GAMING NETWORKS
The Rules of Pre-CommitmentPlayer Pre-Commitment
Players set limits away from the gambling environment.
Pre-commitment limits: Player monetary loss limits – daily, weekly, monthly,
annual. Player time limits – daily, weekly, monthly, annual.
Gambling must stop when limits reached.Players set their own limits voluntarily with cooling-
off period.
RESPONSIBLE GAMING NETWORKS
The Rules of Pre-CommitmentPlayer Pre-Commitment
Players set limits away from the gambling environment.
Pre-commitment limits: Player monetary loss limits – daily, weekly, monthly,
annual. Player time limits – daily, weekly, monthly, annual.
Gambling must stop when limits reached.Players set their own limits voluntarily with cooling-
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).
RESPONSIBLE GAMING NETWORKS
The Rules of Pre-CommitmentPlayer Pre-Commitment
Players set limits away from the gambling environment.
Pre-commitment limits: Player monetary loss limits – daily, weekly, monthly,
annual. Player time limits – daily, weekly, monthly, annual.
Gambling must stop when limits reached.Players set their own limits voluntarily with cooling-
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.
RESPONSIBLE GAMING NETWORKS
RESPONSIBLE GAMING NETWORKS
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).
RESPONSIBLE GAMING NETWORKS
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.
RESPONSIBLE GAMING NETWORKS
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.
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.
RESPONSIBLE GAMING NETWORKS
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?
RESPONSIBLE GAMING NETWORKS
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?
RESPONSIBLE GAMING NETWORKS
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? 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
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? 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
RESPONSIBLE GAMING NETWORKS
RESPONSIBLE GAMING NETWORKS
Resort World Sentosa
RESPONSIBLE GAMING NETWORKS
Resort World Sentosa
RESPONSIBLE GAMING NETWORKS
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.
RESPONSIBLE GAMING NETWORKS
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.
RESPONSIBLE GAMING NETWORKS
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 ).
RESPONSIBLE GAMING NETWORKS
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
RESPONSIBLE GAMING NETWORKS
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”
RESPONSIBLE GAMING NETWORKS
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”
Productivity Commission Report Pre-Commitment for gaming machines across all states by 2016 Pre-Commitment for on-line gambling
RESPONSIBLE GAMING NETWORKS
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
RESPONSIBLE GAMING NETWORKS
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.
RESPONSIBLE GAMING NETWORKS
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.
RESPONSIBLE GAMING NETWORKS
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.
RESPONSIBLE GAMING NETWORKS
Pre-Commitment TechnologiesPlastic cards
Smart cards
USB Keys
RESPONSIBLE GAMING NETWORKS
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
RESPONSIBLE GAMING NETWORKS
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”
RESPONSIBLE GAMING NETWORKS
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).
RESPONSIBLE GAMING NETWORKS
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
RESPONSIBLE GAMING NETWORKS
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
RESPONSIBLE GAMING NETWORKS
Fingerprint Biometrics
RESPONSIBLE GAMING NETWORKS
Fingerprint Biometrics
RESPONSIBLE GAMING NETWORKS
USB “Player Protection Key”
RESPONSIBLE GAMING NETWORKS
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
RESPONSIBLE GAMING NETWORKS
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
RESPONSIBLE GAMING NETWORKS
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 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
RESPONSIBLE GAMING NETWORKS
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.
RESPONSIBLE GAMING NETWORKS
Multi-Channel Capability Already internet compliant USB connectivity for all computers Universal connectivity standard
RESPONSIBLE GAMING NETWORKS
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
RESPONSIBLE GAMING NETWORKS
Internet Gambling ModelsOld Internet Models:
1. Ban access to all local internet casinos 2. Allow open access to all internet casinos globally
RESPONSIBLE GAMING NETWORKS
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.
RESPONSIBLE GAMING NETWORKS
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.
New Internet Model Allow access to approved list of casinos
RESPONSIBLE GAMING NETWORKS
INTERNET PORTAL
CASINO B
CASINO A
CASINO C
CASINO D
CASINO E
USBPlayer Protection
Key
RESPONSIBLE GAMING NETWORKS
New Internet Model
INTERNET PORTAL
CASINO B
CASINO A
CASINO C
CASINO D
CASINO E
USBPlayer Protection
Key
RESPONSIBLE GAMING NETWORKS
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.
RESPONSIBLE GAMING NETWORKS
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.
RESPONSIBLE GAMING NETWORKS
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.
RESPONSIBLE GAMING NETWORKS
RESPONSIBLE GAMING NETWORKS
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
RESPONSIBLE GAMING NETWORKS
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.
RESPONSIBLE GAMING NETWORKS
Pre-CommitmentRapid Diffusion into Public Policy over last 12
months.
RESPONSIBLE GAMING NETWORKS
Pre-CommitmentRapid Diffusion into Public Policy over last 12
months.New global installations will drive increased
adoption.
RESPONSIBLE GAMING NETWORKS
Pre-CommitmentRapid Diffusion into Public Policy over last 12
months.New global installations will drive increased
adoption.New technologies will aid adoption.
RESPONSIBLE GAMING NETWORKS
Pre-CommitmentRapid Diffusion into Public Policy over last 12
months.New global installations will drive increased
adoption.New technologies will aid adoption.New technologies will converge access, exclusion
and pre-commitment systems.
RESPONSIBLE GAMING NETWORKS
Pre-CommitmentRapid Diffusion into Public Policy over last 12
months.New global installations will drive increased
adoption.New technologies will aid adoption.New technologies will converge access, exclusion
and pre-commitment systems.These new technologies will be applied on-line &
off-line.
RESPONSIBLE GAMING NETWORKS
Pre-CommitmentRapid Diffusion into Public Policy over last 12
months.New global installations will drive increased
adoption.New technologies will aid adoption.New technologies will converge access, exclusion
and pre-commitment systems.These new technologies will be applied on-line &
off-line.Governments will re-structure industry value
chains to protect their gambling revenues as it is introduced.RESPONSIBLE GAMING NETWORKS
Pre-CommitmentRapid Diffusion into Public Policy over last 12
months.New global installations will drive increased
adoption.New technologies will aid adoption.New technologies will converge access, exclusion
and pre-commitment systems.These new technologies will be applied on-line &
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.
RESPONSIBLE GAMING NETWORKS
Questions?Contact
Phillip Ryan CEO & Chairman Responsible Gaming Networks Pty Ltd Melbourne, Victoria. Australia [email protected] Mobile + 61 417 313 726
RESPONSIBLE GAMING NETWORKS