1. March 17, 2011

2.  Terminology used during presentation.  BCLC, GPEB, TST, CGI  eGaming, eCasino, ePoker,  Playnow.com  Gaming supplies (equipment)  Lottery Scheme  ATF

3.  Legal Framework for Gaming in BC.  Criminal Code of Canada  Gaming Control Act (BC)  Gaming Control Regulations (BC)

4.  BC Lottery Corporation – conducts and manages all commercial gaming as the agent for the province.  Contracts with service providers who provide facilities.  BCLC owns and maintains all gaming supplies used in the province.  BCLC is the operator for all eGaming conducted in the province.

5.  Each Canadian Province is delegated with the authority to conduct and manage gaming within their boundaries.  Interprovincial Agreements.  ILC – Interprovincial Lottery Corporation.  WCLC – Western Canada Lottery Corporation

6.  GPEB – Gaming Policy and Enforcement Branch  ADM (General Manager) Office  Policy, Responsible Gambling and Business Services  Licensing and Grants  Registration and Certification  Horse Racing  Audit and Compliance  Investigations and Regional Operations  Internal Compliance and Risk Management

7.  Certification and Game Integrity  Responsible for certification of any new lottery schemes, gaming supplies, and table games.  Maintains Technical Standards for all gaming supplies including Internet Gaming Systems.  Conducts inspections to verify the integrity of gaming supplies.

8. Pre-Launch Activities  Ministerial approval required for new lottery schemes.  BCLC issues RFP for vendors.  Successful Vendors apply for Registration as Service Providers.  On successful registration BCLC enters into contract with the vendor.

9. Pre-Launch Activities  Game specifications provided to GPEB Certification.  Branch establishes a working group.  CGI documentation review.  CGI issues a CTI (Certificate of Technical Integrity) for the new game

10. Post-launch Activities  Technical integrity verification.  Audit and Compliance Plan Implementation.  Investigations into reports of criminal activity.

11.  November 2004 – eLottery Gaming System approved.  January 2006 – First generation interactive Games offered on site.

12.  2006 – 2009 – Assortment of interactive games.

13.  2006/2007 – Work started on Technical Standard for Internet Gaming  March 2009 – eBingo and Pacific Hold’em Poker (originally ePoker) Approved

14.  September 2009 – GPEB published British Columbia’s Technical Standard for Internet Gaming, the first in North America.  December 2009 – eKeno added to eLottery.  June – August 2010 – eCasino launch  February 2011 – ePoker and CPN launch. http://www.pssg.gov.bc.ca/gaming/legislation-policies/

15.  Age Verification  Player Location

16.  Technical Certification  New paradigm for certification process  Ongoing changes, bug fixes, game and platform modifications right up until launch.  Standards of signature verification don’t work for some aspects of the system (platform)  Time required to re-test by ATF.

17.  Investigations  Timely reporting to regulatory investigators by SP’s.  No access to databases and servers.  Data request delays.  Lack of technical (IT) expertise.  Jurisdictional issues.  Inability or desire by Law Enforcement to investigate.

18.  Audit & Compliance  IT Auditing knowledge base limited  No best practices to follow  FINTRAC – New channel to launder money  Risk Assessment of the online environment  Ability to verify that Problem Gambling programs are being delivered appropriately.

19.  Initial Launch – June 2010  Initial launch failure precipitated reviews by:  GPEB  OIPC (Office of the Information and Privacy Commissioner)  Deloitte and Touche LLP  Re-launch – August 2010

20.  OpenBet (previously Orbis) Platform with package #19.  August launch had 28 casino style games (video poker, slots, arcade)  Current offerings – 39 casino/other games

21.  Corporate Registration  Offshore developer.  Utilize 3 rd party company developers for some game software.  Technical Requirements  Customization of the gaming platform to meet our technical standard.  Certification staff expertise.

22.  Inter-Provincial Agreement with Province of Quebec.  BC Launched in February 2011. Known as CPN (Canadian Poker Network)  First ever multi-jurisdictional peer-to-peer Poker.  Boss Media (G2) was selected as the provider.

23.  Data Centre located in Montreal, QC  Customer support centre located in Moncton NB  Contracted Fraud and Collusion Monitoring – St Minver (Gibraltar)

24.  Launched with 8 poker variations.  Texas Hold’em  Omaha Hi, Omaha Hi/Lo  Soko  5 card stud  7 card stud  5 card draw  5 card draw 7-A

25.  Similar challenges to eCasino  Offshore service providers  Multi-jurisdictional challenges:  Co-location of data centre  Technical standards different for each location  All parties must agree with version upgrades/changes  Ensuring a secure website and data network

26.  Customization of the platform to ensure compliance with all RG requirements  Anti-Money Laundering requirements  Reporting regimes in place to ensure accurate and timely reporting to GPEB  Lack of poker expertise within Canada for the purposes of monitoring fraud and collusion activities

27.  Regulator must be flexible in the application of their technical standards.  Ensure good communication between the operator and regulator.  Engage all participants involved in the regulatory process in advance of launch.  Hire resources with the appropriate expertise

28.  Mobile Gaming  Social Media Networks  Interactive TV  Cloud Services

29. Questions ?  Stephen Lefler, Director/Deputy Registrar Gaming Policy and Enforcement Branch, Province of BC.  Stephen.lefler@gov.bc.ca Stephen.lefler@gov.bc.ca  250 356-6166