International Association of Gaming Regulators - Webinar Series Evolving How We Assess Gaming Equipment and Systems November 30, 2016 1
Today’s Discussion The AGCO and its “Gaming Lab”. 1. 2. How We Do Our Work 3. Stakeholder Engagement and Assessments 4. Assessing the Next Wave of Gaming Equipment Systems Q’s and A’s 5. 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 ALCOHOL 19,000 GAMING 28,000 • 25 Casinos • 60 Bingo Centres • Lotteries • Charitable HORSE Gaming RACING 18,000 4
Our Modern Regulatory Approach Outcomes-Based Compliance-Focused Risk-Based Based on the Focus on the what Proactively working identification and rather than the how of with suppliers to mitigation of potential product compliance. ensure compliance of regulatory risks. games and systems. 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
AGCO’s Technical Laboratory Services Branch Vision: An Ontario where gaming technology has the highest levels of integrity, fairness and public confidence. Deputy Registrar’s Office AGCO Gaming Lab • Issues regulatory approvals • Performs risk-based technical for games and gaming and regulatory assessments systems in Ontario. of games and gaming systems. • Develops the Registrar’s • Provides technical expertise Technical Standards. and service to broader • Consults with gaming AGCO. suppliers and operators. 6
History of the AGCO Gaming Lab 2011 AGCO’s Gaming Lab achieves accreditation to ISO 17025:2005 2004 AGCO brings Gaming Lab in-house 1993 to 2004 AGCO contracts with an external gaming lab 7
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 Evolving Technical Risk-based support of field Services technical operations assessments Internal Development expertise of evolving Expert advice of inspection technologies, game for AGCO policy tools and development designs and risks procedures Forensic Development examination of of technical Technical suspect standards Eligibility equipment Assessments 10
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 Technical Standards Technical Analysis of Live Integrity Risks Risk-based Game Performance Gaming, Regulatory Security Risks Lottery, and Technical Charitable Assessment Game Incident Response Fairness Gaming Equipment & (Engage legal Supplier Quality Systems and policy as Technical / Forensic and Testing Approvals necessary) Examinations Reliance Known Field Issues 13
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
Embedding Engagement into our Work Engagement Tools: Anonymous Surveys AGCO (Including performance, quality, and Gaming Lab cost considerations) Open Communications Stakeholder Education New Technology Operational Technical Concept Reviews Priorities Standards Development Status of Games Ahead for 2017 and Systems Approval Request • Major revision to minimum technical Suppliers Operators standards • Consider pre-approvals 16
Ontario Slots Initiative Committee (OSIC) 17
OSIC Purpose 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 18
OSIC Members 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 19
OSIC Responsibilities 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 20
OSIC Mandate 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. 21
OSIC Meeting Schedule 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 22
OSIC Meeting Agenda 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 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 Past Present Games were simple: Mathematician / Games are more complicated: Imperative for statistician with spreadsheet knowledge mathematician / statistician to have was sufficient programming knowledge; Games were generally standalone: Games are extensively networked, including Networking knowledge not necessary on public networks such as the Internet: Networking and security knowledge is critical Hardware played an important role, e.g. coin mechs, hoppers, custom boards, that Hardware is more standardized and off-the- was a key risk area shelf, less risk Prescriptive requirements were possible; Understanding of regulatory environment and gaming technology was static associated risks Ability to apply risk concepts to assess new and changing technology and game designs 25
Research and Innovation Proactively dedicated to R & I ( priority! ) Building skills for new technology Proactively adapt with industry / technology 26
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