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Recent Global Developments In Player Pre-Commitment Policies To Reduce Problem Gambling

Recent Global Developments In Player Pre-Commitment Policies To Reduce Problem Gambling. Phillip Ryan CEO & Chairman Responsible Gaming Networks Pty Ltd Melbourne, Australia 8 th European Conference on Gambling Studies and Policy Issues. Vienna 14 – 17th September 2010. Topics.

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Recent Global Developments In Player Pre-Commitment Policies To Reduce Problem Gambling

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  1. Recent Global DevelopmentsIn Player Pre-Commitment PoliciesTo Reduce Problem Gambling Phillip Ryan CEO & Chairman Responsible Gaming Networks Pty Ltd Melbourne, Australia 8th European Conference on Gambling Studies and Policy Issues. Vienna 14 – 17th September 2010

  2. Topics • What 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-Commitment • The application of Pre-Commitment to online gambling • The new public policy drivers within the USA RESPONSIBLE GAMING NETWORKS

  3. 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

  4. 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 gambling • Professor Mark Dickerson et al. • Players set money and time limits PRIOR to gambling RESPONSIBLE GAMING NETWORKS

  5. 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 gambling • Professor 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

  6. The Rules of Pre-Commitment • Player Pre-Commitment: • Players set limits away from the gambling environment. RESPONSIBLE GAMING NETWORKS

  7. The Rules of Pre-Commitment • Player 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

  8. The Rules of Pre-Commitment • Player 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

  9. The Rules of Pre-Commitment • Player 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

  10. The Rules of Pre-Commitment • Player 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

  11. The Rules of Pre-Commitment • Player 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

  12. The Access Device RESPONSIBLE GAMING NETWORKS

  13. Evolution of Pre-Commitment • Crown 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

  14. Evolution of Pre-Commitment • Crown 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

  15. Evolution of Pre-Commitment • Crown 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

  16. Today’s Developments • Singapore 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

  17. Today’s Developments • Singapore 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

  18. Today’s Developments • Singapore 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

  19. Today’s Developments • Singapore 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

  20. Marina Bay Sands RESPONSIBLE GAMING NETWORKS

  21. Marina Bay Sands RESPONSIBLE GAMING NETWORKS

  22. Resort World Sentosa RESPONSIBLE GAMING NETWORKS

  23. Resort World Sentosa RESPONSIBLE GAMING NETWORKS

  24. Today’s Developments • Norway : • 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

  25. Today’s Developments • Norway : • 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

  26. Today’s Developments • Norway : • 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

  27. Today’s Developments • Australia: • 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 2006 Gambler 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

  28. Today’s Developments • Australia: • 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

  29. Today’s Developments • Australia: • 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

  30. Today’s Developments • State 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

  31. Today’s Developments • State 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 • State 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

  32. Tomorrow’s Developments • Canada: • All Canadian Operators investigating pre-commitment • Recent Canadian Operator Study on Global Pre-Commitment released • Atlantic Lottery Corporation: • Its four jurisdictions watching Nova Scotia developments • Ontario 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

  33. Tomorrow’s Developments • USA: • Internet Gambling legalisation passed by Congress Committee • Safeguards require pre-commitment, self-exclusion & identitychecking (age and state residency) • Australia: • Prime Minister announced all 200,000 gaming machines tohave “Full” Pre-commitment technology commencing 2012. • Signed agreement to stay in power until August 2012. RESPONSIBLE GAMING NETWORKS

  34. Pre-Commitment Technologies • Plastic cards • Smart cards • USB Keys RESPONSIBLE GAMING NETWORKS

  35. 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 different proprietary standards Cards limited to a single gambling network Old Technologies RESPONSIBLE GAMING NETWORKS

  36. Old Technologies • Smart cards with PIN • Player 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

  37. Nova Scotia Trial Findings • International 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

  38. Nova Scotia Trial Findings • International 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

  39. 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

  40. Fingerprint Biometrics RESPONSIBLE GAMING NETWORKS

  41. Fingerprint Biometrics RESPONSIBLE GAMING NETWORKS

  42. USB “Player Protection Key” RESPONSIBLE GAMING NETWORKS

  43. 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

  44. 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

  45. 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 system RESPONSIBLE GAMING NETWORKS

  46. 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

  47. USB & Biometric Gaming Standards • Regulators - Nevada Gaming Commission • Biometric technical standards established for gambling • “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 slot machines globally. RESPONSIBLE GAMING NETWORKS

  48. Multi-Channel Capability • Already internet compliant • USB connectivity for all computers • Universal connectivity standard RESPONSIBLE GAMING NETWORKS

  49. 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

  50. Internet Gambling Models • Old Internet Models: • Ban access to all local internet casinos • Allow open access to all internet casinos globally RESPONSIBLE GAMING NETWORKS

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