Recent Global Developments in Pre-Commitment Public Policies

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Recent Global Developmentsin Pre-Commitment
Public Policies

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

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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
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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
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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
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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
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The Rules of Pre-Commitment

• Player Pre-Commitment
• Players set limits away from the gambling
  environment.

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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
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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
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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
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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
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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.

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Evolution of Pre-Commitment

• Crown Casino, Melbourne, Australia - 2002
• 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.

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Evolution of Pre-Commitment

• Crown Casino, Melbourne, Australia - 2002
• 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 - 2006
• 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.

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Todays Developments

• Singapore Casinos - 2008
• 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 (s100/visit,
  s2000/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?

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Marina Bay - November 2008
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Marina Bay Final Model
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Resort World Sentosa-Final Model
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Todays Developments

• Norway - 2008
• 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.

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Todays Developments

• Victoria - 2008
• 2010 all new machines with pre-commitment.
• Abolished role of private operators in the
  industry value chain.
• Pre-Commitment specifications to be released in
  2009.
• Australian Ministerial Council on Gambling - 2008
• Pre-Commitment one of key strategies

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Todays Developments

• Queensland Trial of Pre-Commitment - 2008
• 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 - 2008
• 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.

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Pre-Commitment Technologies

• Plastic cards
• Smart cards
• USB Keys

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Old Technologies

• Limitations of plastic cards with PIN
• Cards have very low storage capacity (lt1k)
• 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

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Old Technologies
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Old Technologies

• 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

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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).

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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

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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 1920s
• Recognized and accepted globally
• Lowest cost biometric
• New technologies have digitized fingerprint
  biometrics

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Fingerprint Biometrics
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Fingerprint Biometrics
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Player Protection Key
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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

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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

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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.

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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

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Player Protection Key

• Already internet compliant
• USB connectivity for all computers
• Universal connectivity standard

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Internet Pre-Commitment Model
CASINO A
CASINO B
INTERNET PORTAL
CASINO C
USBPlayer Protection Key
CASINO D
CASINO E
Player Pre-Commitment and Authentication
Government Taxation
Casino Authentication Regulatory Supervision
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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

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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.

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Questions?

• Contact
• Phillip Ryan
• Chief Executive Officer
• Responsible Gaming Networks
• Melbourne, Victoria. Australia
• p_ryan_at_responsible.com.au
• Mobile [phone]

RESPONSIBLE GAMING NETWORKS