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Phillip Ryan Chief Executive Officer Responsible Gaming Networks Melbourne, Australia.

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Presentation on theme: "Phillip Ryan Chief Executive Officer Responsible Gaming Networks Melbourne, Australia."— Presentation transcript:

1 Phillip Ryan Chief Executive Officer Responsible Gaming Networks Melbourne, Australia

2 Topics What is Pre-Commitment? What is its rationale? How is it evolving? What is the current state-of-play? What are the challenges for Pre-Commitment? The technologies of Pre-Commitment 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” (1). 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” (1). Based on academic research: Rational consumer purchasing decisions in gambling Professor Mark Dickerson (Australia) a pioneer. 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” (1). Based on academic research: Rational consumer purchasing decisions in gambling Professor Mark Dickerson (Australia) a pioneer. Focuses on the player: Beyond the venue (hours of operation etc.) Beyond the machine (spin rate, max bet etc.) Beyond the ATM (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. Player time limits – daily, weekly, monthly. 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. Player time limits – daily, weekly, monthly. 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. Player time limits – daily, weekly, monthly. Gambling must stop when limits reached. Players set their own limits voluntarily. 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. Player time limits – daily, weekly, monthly. Gambling must stop when limits reached. Players set their own limits voluntarily. Players have a mandatory ID 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. Player time limits – daily, weekly, monthly. Gambling must stop when limits reached. Players set their own limits voluntarily. Players have a mandatory ID 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 ID. RESPONSIBLE GAMING NETWORKS

12 Evolution of Pre-Commitment Crown Casino, Melbourne, Australia : Introduced player-pre-commitment money limits on their 2,500 poker machines (first casino in the world). However, play did not stop when limits reached. Players did not have to carry ID to play. RESPONSIBLE GAMING NETWORKS

13 Evolution of Pre-Commitment Crown Casino, Melbourne, Australia : Introduced player-pre-commitment money limits on their 2,500 poker machines (first casino in the world). However, play did not stop when limits reached. Players did not have to carry ID to play. Nova Scotia, Canada : Player ID registration required. Trialled pre-commitment money and time limits on VLTs in two jurisdictions. Rolling out across all of Nova Scotia next year. RESPONSIBLE GAMING NETWORKS

14 Today’s Developments Singapore Casinos Marina Bay – Las Vegas Sands ($5 billion) Sentosa Island – Genting International ($5 billion). Pre-Commitment mandated by Government of Singapore. Will apply across all forms of gambling – slots, tables etc. Will apply to residents and tourists. Entrance fees for locals (s$100/visit, s$2000/year). Strict self exclusion and third party exclusions Welfare recipients & bankrupts Family exclusion 28,000 people identified so far – expect 55,000. Will my limits apply across both casinos? RESPONSIBLE GAMING NETWORKS

15 Marina Bay - November 2008

16 Marina Bay – Final Model

17 Resort World Sentosa-Final Model

18 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: ($88/day (K400); $488/month (K2200); cooling off period after 1 hour continuous play ). 20 out of 6,500 machines returned to date. RESPONSIBLE GAMING NETWORKS

19 Today’s Developments Victoria all new machines with pre-commitment. Abolished role of private operators in the industry value chain. Pre-Commitment specifications to be released in Australian Ministerial Council on Gambling Pre-Commitment one of key strategies RESPONSIBLE GAMING NETWORKS

20 Today’s Developments Queensland Trial of Pre-Commitment Two venues (RSL clubs) - Redcliffe and Sandgate. Players not required to have ID to play = leakage. ID card loaded with digital cash = problematic. Registration for $10,000 + players. 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

21 Pre-Commitment Technologies Plastic cards Smart cards USB Keys RESPONSIBLE GAMING NETWORKS

22 Old Technologies 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 RESPONSIBLE GAMING NETWORKS

23 Old Technologies

24 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 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 KPMG Study for Australian Government RESPONSIBLE GAMING NETWORKS

25 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 CPGI score (i.e. PGs shared the most). RESPONSIBLE GAMING NETWORKS

26 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 CPGI 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

27 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

28 Fingerprint Biometrics RESPONSIBLE GAMING NETWORKS

29 Fingerprint Biometrics RESPONSIBLE GAMING NETWORKS

30 Player Protection Key RESPONSIBLE GAMING NETWORKS

31 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

32 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

33 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 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. RESPONSIBLE GAMING NETWORKS

34 Player Protection Key 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

35 Player Protection Key Already internet compliant USB connectivity for all computers Universal connectivity standard RESPONSIBLE GAMING NETWORKS

36 INTERNET PORTAL CASINO B CASINO A CASINO C CASINO D CASINO E USB Player Protection Key RESPONSIBLE GAMING NETWORKS Internet Pre-Commitment Model Player Pre-Commitment and Authentication Government Taxation Casino Authentication & Regulatory Supervision

37 Internet Pre-Commitment Model Player Benefits: One registration process for the player One set of pre-commitment limits across all operators Single self-exclusion system Consumer protection from locally regulated operators RESPONSIBLE GAMING NETWORKS

38 Internet Pre-Commitment Model Player Benefits: One registration process for the player. One set of pre-commitment limits across all operators. One self-exclusion registration. Consumer protection from locally regulated operators. Government Benefits: No risks of under-age gambling. Reduces risks of increased problem gambling. Place-of-residence player identification. Allows for better regulation & taxation of the industry. RESPONSIBLE GAMING NETWORKS

39 Questions? Contact Phillip Ryan Chief Executive Officer Responsible Gaming Networks Melbourne, Victoria. Australia Mobile RESPONSIBLE GAMING NETWORKS


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