REGULATING EGAMING IN BCNAGRA WEBINAR

March 17, 2011

TERMINOLOGY

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

LEGAL FRAMEWORK - BC

Legal Framework for Gaming in BC.

Criminal Code of Canada

Gaming Control Act (BC)

Gaming Control Regulations (BC)

LEGAL FRAMEWORK - BC

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.

OTHER CANADIAN JURISDICTIONS

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

REGULATORY FRAMEWORK - BC

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

REGISTRATION AND CERTIFICATION

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.

REGULATORY PROCESS

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.

REGULATORY PROCESS

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

REGULATORY PROCESS

Post-launch Activities Technical integrity verification. Audit and Compliance Plan

Implementation. Investigations into reports of criminal

activity.

EGAMING HISTORY - BC

November 2004 – eLottery Gaming System approved.

January 2006 – First generation interactive Games offered on site.

EGAMING HISTORY - BC

2006 – 2009 – Assortment of interactive games.

EGAMING HISTORY - BC

2006/2007 – Work started on Technical Standard for Internet Gaming

March 2009 – eBingo and Pacific Hold’em Poker (originally ePoker) Approved

EGAMING HISTORY - BC

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/

EGAMING CHALLENGES

Age Verification

Player Location

EGAMING CHALLENGES

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.

EGAMING CHALLENGES

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.

EGAMING CHALLENGES

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.

ECASINO

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

ECASINO

OpenBet (previously Orbis) Platform with package #19.

August launch had 28 casino style games (video poker, slots, arcade)

Current offerings – 39 casino/other games

ECASINO - CHALLENGES

Corporate Registration Offshore developer. Utilize 3rd party company developers for

some game software. Technical Requirements

Customization of the gaming platform to meet our technical standard.

Certification staff expertise.

EPOKER

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.

EPOKER

Data Centre located in Montreal, QC Customer support centre located in

Moncton NB Contracted Fraud and Collusion

Monitoring – St Minver (Gibraltar)

EPOKER

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

EPOKER CHALLENGES

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

EPOKER CHALLENGES

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

RECOMMENDATIONS FOR REGULATORS 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

WHAT’S NEXT

Mobile Gaming Social Media Networks Interactive TV Cloud Services

THANK YOU

Questions ?

Stephen Lefler, Director/Deputy Registrar Gaming Policy and Enforcement Branch, Province of BC.

Stephen.lefler@gov.bc.ca 250 356-6166