Evolving How We Assess Gaming Equipment and Systems November 30, - - PowerPoint PPT Presentation

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Evolving How We Assess Gaming Equipment and Systems

November 30, 2016

International Association of Gaming Regulators - Webinar Series

Today’s Discussion

1. The AGCO and its “Gaming Lab”. 2. How We Do Our Work 3. Stakeholder Engagement and Assessments 4. Assessing the Next Wave of Gaming Equipment Systems 5. Q’s and A’s

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A Quick Note on the AGCO

 Established in 1998, the Alcohol and Gaming Commission of Ontario (AGCO) is a provincial regulatory agency of the Government

• f Ontario in Canada.

 The agency is composed of approximately 630 staff, including approximately 150 members of the Ontario Provincial Police (OPP).  The agency’s structure includes branches that cover areas such as: policy, licensing, gaming registration, audit and compliance, investigations and enforcement, technical laboratory services, etc.  The AGCO is mandated to regulate the alcohol, gaming and horse racing sectors in accordance with the principles of honesty and integrity, and in the public interest.

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Our Clients

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GAMING 28,000

• 25 Casinos
• 60 Bingo Centres
• Lotteries
• Charitable

Gaming

ALCOHOL 19,000 HORSE RACING 18,000

Our Modern Regulatory Approach

 Since 2007, the AGCO has proactively been conducting its business through the lens of its three-themed modern regulatory approach.  This has included moving towards risk-based and standards-based regulation; and increased stakeholder engagement.

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Risk-Based

Based on the identification and mitigation of potential regulatory risks.

Outcomes-Based

Focus on the what rather than the how of product compliance.

Compliance-Focused

Proactively working with suppliers to ensure compliance of games and systems.

AGCO’s Technical Laboratory Services Branch

Vision: An Ontario where gaming technology has the highest levels

• f integrity, fairness and public confidence.

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Deputy Registrar’s Office

• Issues regulatory approvals

for games and gaming systems in Ontario.

• Develops the Registrar’s

Technical Standards.

• Consults with gaming

suppliers and operators.

AGCO Gaming Lab

• Performs risk-based technical

and regulatory assessments

• f games and gaming

systems.

• Provides technical expertise

and service to broader AGCO.

History of the AGCO Gaming Lab

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1993 to 2004 AGCO contracts with an external gaming lab 2011 AGCO’s Gaming Lab achieves accreditation to ISO 17025:2005 2004 AGCO brings Gaming Lab in-house

AGCO Gaming Lab: Current State

 State-of-the-art in-house Laboratory, equipped with over 150 EGMs and multiple SMS.  Approximately 1,000 approval requests per year, 30 day turnaround.  Cost recoverable, excellent ISO survey results  25 highly skilled and experienced staff members in the branch: engineers, computer scientists and mathematicians.

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AGCO Gaming Lab: Current State

We assess games and systems for all sectors in Ontario:  Casino  Lotteries  Internet Gaming  Charitable Gaming

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AGCO Gaming Lab: Centre of Technical Excellence

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Internal expertise of evolving technologies, game designs and risks

Risk-based technical assessments Expert advice for AGCO policy development Technical support of field

• perations

Development

• f inspection

tools and procedures Development

• f technical

standards Forensic examination of suspect equipment

Evolving Services

Technical Eligibility Assessments

Regulatory Philosophy and How We Do Our Work

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Gaming Regulations and Standards

Development of AGCO’s Technical Standards

• Perform research of global best practices in technical

standards.

• Consider Ontario’s gaming environment, regulatory

risks.

• Technical integrity
• Security
• Safety
• Accounting capability
• Public interest / player fairness
• Technical standards are aligned where possible, and

unique where necessary (e.g. public interest).

• Assess gaming technology risks against Ontario’s

regulatory objectives.

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AGCO’s Risk-Based Assessments

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Risk-based Regulatory and Technical Assessment (Engage legal and policy as necessary) Gaming, Lottery, Charitable Gaming Equipment & Systems Approvals Known Field Issues Supplier Quality and Testing Technical Integrity Risks Technical Standards Analysis of Live Game Performance Incident Response Technical / Forensic Examinations Game Fairness Security Risks Reliance

AGCO’s Risk-Based Assessments

Accommodates Innovation: Adaptable and Flexible!  Any new technology and/or gaming concept can be assessed using this approach  No need to for technical standards to be developed first, we conduct a risk assessment against the regulatory objectives  Suppliers are encouraged to engage with AGCO to discuss their ideas so we can work together Efficient and Fair to Suppliers  Target areas of highest regulatory and technical risk  Account for existing sources of assurance  High quality is rewarded with streamlined assessments

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Stakeholder Engagement and the Assessment Process

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Technical Standards Development

Embedding Engagement into our Work

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AGCO Gaming Lab Operators Suppliers

Operational Priorities Engagement Tools: Anonymous Surveys

(Including performance, quality, and cost considerations)

Open Communications Stakeholder Education New Technology Concept Reviews Status of Games and Systems Approval Request

Ahead for 2017

• Major revision to

minimum technical standards

• Consider pre-approvals

Ontario Slots Initiative Committee (OSIC)

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The purpose of OSIC is to facilitate a collaborative relationship between the OLG, Service Providers and the Regulator (Alcohol & Gaming Commission of Ontario – AGCO) in a manner that maximizes performance and contract success. Operating Principles include:

• Communicate and explore opportunities through collaborative

discussions;

• Develop and maintain high quality relationships;
• Work cooperatively to discuss relevant slot related initiatives and/or

concerns

OSIC Purpose

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Members of this committee will be comprised of :

• OLG – Chair
• One Standing Member (or designee) from each respective Service

Provider .

• One additional member (over and above the Service Provider

membership) will be added as the compliance representative for the committee.

• This individual will consult with OLG/OSIC on Ontario-wide

compliance matters with the AGCO.

• Service Delivery Management

OSIC Members

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Act as a single jurisdictional voice for the Ontario slot operators with the AGCO (“the Regulator”) and other stakeholders as necessary; Work with the Regulator to control the flow of gaming products submitted for approval and report on game issues and/or concerns; Provide recommendations and feedback to the AGCO on regulatory requirements when solicited and/or if necessary, escalate issues/concerns

OSIC Responsibilities

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OSIC and AGCO work collaboratively to ensure games and themes meet the Responsible Gaming and Social Responsibility mandate and are delivered consistently across the province while also meeting AGCO Standards. Vendors send list of monthly AGCO submitted games to OSIC.

OSIC Mandate

OSIC shall meet quarterly, or with such other frequency as may be

• therwise agreed to between the parties.

Attendee’s to include: Technical & Laboratory Services Branch (AGCO) Electronic Gaming Compliance ( AGCO ) All OSIC members Service Delivery Management

OSIC Meeting Schedule

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OSIC will address the following standing agenda items within each meeting, and additional items as required:

• Review of action items from previous meeting;
• AGCO concerns/Directives;
• OLG communications/concerns;
• Review and discussion of Summary Reports of Patrons complaints -

Responsible Gaming

• Review of Vendor compliance statistics in relation to the Directives;

and

• New Business

OSIC Meeting Agenda

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Assessing the Next Wave of Gaming Equipment and Systems

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Preparing for What is Ahead

 Investing in our people and transforming with industry  Engaging with industry stakeholders

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Past

• Games were simple: Mathematician /

statistician with spreadsheet knowledge was sufficient

• Games were generally standalone:

Networking knowledge not necessary

• Hardware played an important role, e.g.

coin mechs, hoppers, custom boards, that was a key risk area

• Prescriptive requirements were possible;

gaming technology was static

Present

• Games are more complicated: Imperative for

mathematician / statistician to have programming knowledge;

• Games are extensively networked, including
• n public networks such as the Internet:

Networking and security knowledge is critical

• Hardware is more standardized and off-the-

shelf, less risk

• Understanding of regulatory environment and

associated risks

• Ability to apply risk concepts to assess new

and changing technology and game designs

Research and Innovation

 Proactively dedicated to R & I (priority!)  Building skills for new technology  Proactively adapt with industry / technology

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Skill-Based Games

 Technical Standards to permit enhanced skill-based games developed in consultation with operators and suppliers  Themes of Ontario’s skill based gaming standards

• Allow pure skill games and hybrid skill/chance games
• Enhanced disclosure of skill, competition, enhancements to ensure players are

informed prior to deciding to wager

• Minimum payback (85%) must be met for both pure skill and hybrid
• Use of expected payback of all players instead of minimal ability
• Adaptive payback permitted to boost low performing games
• Permits differences in games for different players (“identifiers”)
• Permits features (enhancements) that provide an advantage to a player over others
• Auditability of skill based features: Encourage meters to track the performance of

the skill component of the game separately from the chance component

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Internet Gaming: Summary of Launch

• iGaming went live in Ontario in 2014 (www.playolg.ca)
• Focus on information security, KYC (age, identity, location, eligibility), RG

controls (loss, time, deposit limits, self-exclusion)

• Self-authentication of software: daily reports, with notifications sent to AGCO
• Dynamic threat environment:
• 24/7 incident response
• pre-approval for security patches
• processes for emergency fixes with appropriate oversight
• Data-rich systems for regulatory analytics
• Fraud and security monitoring supported by in-house Ontario police

investigators

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• Information security control effectiveness depends on complementary technical

and operational controls.

• Need for tight collaboration between technical assessments and
• perational compliance activities
• Product quality wasn’t as expected
• Game play compared to game rules
• Integration with external systems
• Different risk tolerance in iGaming jurisdictions
• Greater visibility online
• Ability to record, analyze and share experiences
• Social media

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Internet Gaming: Learnings

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Applying for an Authorization to Sell Beer and Wine in a Grocery Store

Questions?

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Additional questions can be sent to the AGCO at: connect@agco.ca www.agco.on.ca