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NAGS CONFERENCE

NAGS CONFERENCE. “Beyond Smart Cards to Smart Technologies” Phillip Ryan Chief Executive Officer Responsible Gaming Networks Melbourne, Australia. RESPONSIBLE GAMING NETWORKS. Overview. Pre-commitment Global leadership in pre-commitment The constraints of the old technologies

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NAGS CONFERENCE

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  1. NAGS CONFERENCE “Beyond Smart Cards to Smart Technologies” Phillip Ryan Chief Executive Officer Responsible Gaming Networks Melbourne, Australia RESPONSIBLE GAMING NETWORKS

  2. Overview • Pre-commitment • Global leadership in pre-commitment • The constraints of the old technologies • The new technologies for pre-commitment • Australian developments in pre-commitment • Internet gambling application RESPONSIBLE GAMING NETWORKS

  3. Problem Gambling Focus • Phase 1: Focus on venues • Phase 2: Focus on machines functionality • Phase 3: Focus on machine density RESPONSIBLE GAMING NETWORKS

  4. Problem Gambling Focus • Phase 1: Focus on venues • Phase 2: Focus on machines functionality • Phase 3: Focus on machine density • The New Agenda: Player Pre-commitment RESPONSIBLE GAMING NETWORKS

  5. The New Public Policy Agenda • Pre-commitment • Focus on player pre-commitment limits • Player monetary loss limits – daily, weekly, monthly. • Machines must stop when limits reached • Players initially set their own limits voluntarily • Players set limits away from the machines • Players carry an ID device connected to their limits in order to play (e.g. plastic card, smart card or some other smart technology) • Machines only operate using an ID device. • Machines still use coins and notes as usual RESPONSIBLE GAMING NETWORKS

  6. Global Leadership • Nova Scotia, Canada • Responsible Gaming Device (RGD) trial mid-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 RESPONSIBLE GAMING NETWORKS

  7. Nova Scotia Trial Findings • Significant database of player activities • Extended player analysis now possible by independent researchers RESPONSIBLE GAMING NETWORKS

  8. Nova Scotia Trial Findings • Significant database of player activities • Extended player analysis now possible by independent researchers • 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 PG score RESPONSIBLE GAMING NETWORKS

  9. 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 proprietary standards Cards limited to a single gambling venue’s network Old Technologies RESPONSIBLE GAMING NETWORKS

  10. RESPONSIBLE GAMING NETWORKS

  11. 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 proprietary standards • Cards limited to a single gambling venue’s network • Smartcards use digital cash • Players lose connection with the use of real money • Increased risks for problem gamblers • KPMG Study for Australian Government • Problem Gambling – ATM/EFTPOS functions and capabilities 2002 RESPONSIBLE GAMING NETWORKS

  12. University of Nevada, Las Vegas • International Gaming Institute, University of Nevada • Commissioned to review Nova Scotia trial • February 2007 Report • Players “beat” the system – card sharing • Should pursue measures to address this specific problem RESPONSIBLE GAMING NETWORKS

  13. University of Nevada, Las Vegas • International Gaming Institute, University of Nevada • Commissioned to review Nova Scotia trial • February 2007 Report • Players “beat” the system – card sharing • Should pursue measures to address this problem • Biometric ID solution required (fingerprint, facial etc) for pre-commitment solutions RESPONSIBLE GAMING NETWORKS RESPONSIBLE GAMING NETWORKS

  14. 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 RESPONSIBLE GAMING NETWORKS

  15. Fingerprint Biometrics RESPONSIBLE GAMING NETWORKS

  16. Fingerprint Biometrics RESPONSIBLE GAMING NETWORKS

  17. Player Protection Key RESPONSIBLE GAMING NETWORKS

  18. 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 • Massive storage capacity (8 Gigabytes) • Coverage across all forms of gambling - gaming, lotteries, wagering, sports, spread betting. • Coverage across all channels of distribution – EGMs, Internet, Interactive TV, Kiosks. • Coverage across multiple gambling companies RESPONSIBLE GAMING NETWORKS

  19. Player Protection Key • Players set personal dollar loss limits • Encouraged to set affordable limits • Limits set outside gaming room • No central storage of biometrics • EGMs only operate with key used by its owner • Extensive player database for researchers • No cost to player RESPONSIBLE GAMING NETWORKS

  20. RESPONSIBLE GAMING NETWORKS

  21. 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. RESPONSIBLE GAMING NETWORKS

  22. Responsible Gaming Networks • Socially-responsible Australian company • Focused on eliminating problem gambling from: • Wide area gaming machines • Internet gaming • Using latest technology and Safety Net system to provide: • Reliable identity access for all players using biometrics • Safe play using player pre-commitment protection • Consortium of USA, European and Australian technology partners RESPONSIBLE GAMING NETWORKS

  23. Australian Context • Australian Ministerial Council on Gambling • GRA Research Program on Pre-commitment • Analysis of Gambler Pre-Commitment Behaviour, June 2006 • Player Support for Pre-Commitment • 77% of Victorians support compulsory pre-commitment limits • 88% support voluntary pre-commitment limits • Stage 2 GRA Tender has been issued with a focus on: • Gaming machine designs which support/undermine pre-commitment RESPONSIBLE GAMING NETWORKS

  24. Australian Context • South Australia • Concerned about lack of national progress on pre-commitment • Ministerial Working Party established November 2006 • Reporting later this year on how to implement pre-commitment • Victoria • Current Gaming Industry Structure Review • Kirby Report October 2006 • “Support for exploiting the monitoring system to develop harm minimization measures” • “a universal system of pre-commitment will possibly be more effective than a range of other proposals for enhancing responsible gaming” RESPONSIBLE GAMING NETWORKS

  25. Internet Gambling Industry • Globally: • 700 million internet users globally • 2,500 internet gambling sites • $16 billion of player gambling losses last year RESPONSIBLE GAMING NETWORKS

  26. It’s big… Source: Nielsen//NetRatings NetView Home & Work data (ES, CH, JAP & BR home data only), September 2004-2005

  27. …and its driven by high speed access RESPONSIBLE GAMING NETWORKS

  28. Internet Gambling Models • Old Internet Model: • Ban onshore internet casinos • Allow offshore internet casinos • Risks with casino authenticity, lack of regulatory controls, consumer protection, underage gambling & problem gambling. • New Internet Model: • Provide a safe regulated local market with full range of player protection safeguards. • Eliminates the risks • Allows for government taxation. RESPONSIBLE GAMING NETWORKS

  29. New Internet Model CASINO A CASINO B RGN INTERNET PORTAL CASINO C USBPlayer Protection Key CASINO D CASINO E RESPONSIBLE GAMING NETWORKS

  30. New Internet Model CASINO A CASINO B RGN INTERNET PORTAL CASINO C USBPlayer Protection Key CASINO D CASINO E Player Pre-Commitment and Authentication Government Taxation Casino Authentication & Regulatory Supervision RESPONSIBLE GAMING NETWORKS

  31. Internet Gaming Invitation • Academics/Researchers on the journey • Australian Internet Gaming trial in 2008 • Pre- and post- evaluation • Impact on attitudes and behaviours • Tracking over time • Player Panel • Database evaluation & reporting. RESPONSIBLE GAMING NETWORKS

  32. Questions • Contact • Phillip Ryan • Chief Executive Officer • Responsible Gaming Networks • Melbourne, Victoria • p_ryan@responsible.com.au • Mobile 0417 313 726 RESPONSIBLE GAMING NETWORKS

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