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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 “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 • The new technologies for pre-commitment • Australian developments in pre-commitment • Internet gambling application RESPONSIBLE GAMING NETWORKS
Problem Gambling Focus • Phase 1: Focus on venues • Phase 2: Focus on machines functionality • Phase 3: Focus on machine density RESPONSIBLE GAMING NETWORKS
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
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
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
Nova Scotia Trial Findings • Significant database of player activities • Extended player analysis now possible by independent researchers RESPONSIBLE GAMING NETWORKS
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
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
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
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
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
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
Fingerprint Biometrics RESPONSIBLE GAMING NETWORKS
Fingerprint Biometrics RESPONSIBLE GAMING NETWORKS
Player Protection Key RESPONSIBLE GAMING NETWORKS
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
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
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
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
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
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
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
It’s big… Source: Nielsen//NetRatings NetView Home & Work data (ES, CH, JAP & BR home data only), September 2004-2005
…and its driven by high speed access RESPONSIBLE GAMING NETWORKS
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
New Internet Model CASINO A CASINO B RGN INTERNET PORTAL CASINO C USBPlayer Protection Key CASINO D CASINO E RESPONSIBLE GAMING NETWORKS
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
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
Questions • Contact • Phillip Ryan • Chief Executive Officer • Responsible Gaming Networks • Melbourne, Victoria • p_ryan@responsible.com.au • Mobile 0417 313 726 RESPONSIBLE GAMING NETWORKS