Contents

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

2. Contents • What Causes Youth Gambling? • Our Position on Responsibility • Remote Gambling Law and Best Practice • Age Verification Solutions 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 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 2006 PartyGaming - Internal and Confidential

5. Problem and Underage gambling • 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 2006 PartyGaming - Internal and Confidential

6. Putting this into practice • Total Transparency • Every 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 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 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 2006 PartyGaming - Internal and Confidential

9. Online ID verification: a concrete example Result Martin Hervé Registration JJ/MM/AA M / F Less than a second... Electronic Age Verification ID verification process Risk assessment 2006 PartyGaming - Internal and Confidential

10. Electronic Age Verification UK Player Submits Name Address, date of Birth, Telephone number Level 3 Manual Customer is not registered and is requested To submit copy of Govt issued ID No Level 1 URU Cross Checks a number of data sources to find a match Customer is Registered in Party Cashier Mortality Data Electoral Roll (Over 18) Directory Enquiries (Over 18) Credit Data (Over 18) Yes Level 2 URU Player Submits Driving Licence or Passport Number 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 2006 PartyGaming - Internal and Confidential

12. KYC challenges – real time verification • 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 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 2006 PartyGaming - Internal and Confidential