Evolving How We Assess Gaming Equipment and Systems Webinar... · Gaming Lab in-house. AGCO Gaming...
Transcript of Evolving How We Assess Gaming Equipment and Systems Webinar... · Gaming Lab in-house. AGCO Gaming...
1
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
2
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
of 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.
3
Our Clients
4
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.
5
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
of integrity, fairness and public confidence.
6
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 of games and gaming systems.
• Provides technical expertise and service to broader AGCO.
History of the AGCO Gaming Lab
7
1993 to 2004
AGCO contracts
with an external
gaming lab
2011
AGCO’s Gaming Lab
achieves accreditation to
ISO 17025:20052004
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.
8
AGCO Gaming Lab: Current State
We assess games and systems for
all sectors in Ontario:
Casino
Lotteries
Internet Gaming
Charitable Gaming
9
AGCO Gaming Lab: Centre of Technical Excellence
10
Internal
expertise of evolving
technologies, game
designs and risks
Risk-based
technical
assessments
Expert advice
for AGCO policy
development
Technical
support of field
operations
Development
of inspection
tools and
procedures
Development
of technical
standards
Forensic
examination of
suspect
equipment
Evolving
Services
Technical
Eligibility
Assessments
Regulatory Philosophy and
How We Do Our Work
11
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.
12
AGCO’s Risk-Based Assessments
13
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
14
Stakeholder Engagement
and the Assessment Process
15
Technical
Standards
Development
Embedding Engagement into our Work
16
AGCO
Gaming Lab
Operators Suppliers
Operational
Priorities
Engagement Tools:
Anonymous Surveys
(Including performance, quality, and
cost considerations)
Open Communications
Stakeholder EducationNew 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)
17
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
18
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
19
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
20
21
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
otherwise 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
22
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
24
Assessing the Next Wave of Gaming
Equipment and Systems
24
Preparing for What is Ahead
Investing in our people and transforming with industry
Engaging with industry stakeholders
25
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
on 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
26
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
27
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
28
• Information security control effectiveness depends on complementary technical
and operational controls.
Need for tight collaboration between technical assessments and
operational 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
29
Internet Gaming: Learnings
30
Applying for an
Authorization
to Sell Beer and
Wine in a
Grocery Store
Questions?