Stopping remote gambling

EGBA’s Responsible Gaming Day

BrusselsFebruary 17, 2009

Let’s stop people gambling• Tell them not to• Tell the remote sites to stop

advertising• Tell the Internet Service Providers

to stop allowing the sites into the country

• Tell the financial institutions: “DON’T!!”

Strangle the sites• Banks: do not process transactions• Customers are not allowed to

deposit money or accept winnings• If the bank allows transactions it is

liable• What should the bank DO?• Carry out its legal obligations

Financial transactions

Deposit €100Bank transfer

Customer

Merchant

Issuer (Bank)

Deposit €100Credit/Debit card

Deposit €100eWallet

Customer’s bank

Electronic Funds TransferHow does bank know merchant =

gambling site?Government tells it – how and how does

government know?Bank finds match but that is the startCost – manual intervention – VERY costly

Deposit €100Bank transfer

Customer

Merchant

What can be done

Gambling transactions (7995)

1. Deposit €100Credit card

Payment ServiceProvider (PSP)Merchant Acquirer

(Bank)

Customer Merchant

2. Customer wants

to deposit €100

by credit card (7995)

3. My merchant (7995) wants

€100 from customer

4. Refused

5. Sorry, refused6. Sorry, refused

Issuer (Bank)

and it is a CNP

transaction

How to thwart it

Gambling transactions (not 7995)

1. Deposit €100Credit card

Payment ServiceProvider (PSP) /Merchant Acquirer

(Bank)

Customer Merchant

2. Customer wants

to deposit €100

by credit card

3. My merchant (NOT 7995)

wants €100 from customer

4. OK (Customer has credit)

5. Got the money6. Account + €100

Issuer (Bank)

What can be done• 7995 transactions rejected means:

Is it 7995?

Is it CNP?

Merchant ID = nn?

• Requires extra processing by issuer

Yes

No

No

Yes

Accept

Reject

Yes

No

PrePaid, eWallets etc.• Can be used for many purposes so

cannot stop transactions to them.• Only they know how the money is

spent.• They transfer money back to me.

How to thwart iteWallet transactions (6012)

eWallet’s bank

Customer

eWallet

3. Give OLPkr €75for customer x

4. Done

5. €75 in account

OLPkr’s bank

1. I want to useeWallet to deposit€75

€75 customer xOLPkr

OLPkr

2. Transfer €75to OLPkr

Result• Companies will alter codes• People will use other methods of

payment• People will be driven to less

scrupulous companies/jurisdictions• Jurisdictions will fight

“discrimination”

Result• Suspicions• Hostility• Regulate• Bring pressure to bear to raise

standards• Customers see benefits of

regulation

The End

Robert.dias@iigc.co.uk+44 (0)7968 854016