August 2006 eCOGRA NEWS



eCOGRA News Articles Table of Content for August 2006

  1. eCOGRA Achieves 100 Online Target Months Ahead of Schedule
  2. First Half 2006 Online Casino Disputes Report Released
  3. eCOGRA Compliance Committee Report on Jackpot Factory Search Engine Issue

eCOGRA ACHIEVES 100 ONLINE

TARGET MONTHS AHEAD OF SCHEDULE


Monday, August 14, 2006

LONDON, AUGUST 14, 2006 - The online gambling standards and player protection body, eCommerce and Online Gaming Regulation and Assurance (eCOGRA.org), today announced it achieved its target of accrediting 100 online casinos and poker rooms before December 2006.

eCOGRA launched its 100 Seals campaign in May this year with 76 accredited sites. In just more than three months the organization has exceeded its goal, with 107 “Play It Safe” seals awarded to tier-one online casinos and poker rooms. These operators use a variety of different software platforms which includes major international providers 888 Holdings, Ongame and Microgaming.

Achieving the target within a matter of months is a reflection of increasing demand from players for the seal, and to the commitment of growing numbers of online gambling operators who want to commit to higher standards of player protection, service and operational efficiency.

`Not only is this a major milestone for eCOGRA, these 107 seals signify a major change in the industry in which players are consistently seeking out the “Play It Safe” seal, and there is a real desire and ability for the industry to self-regulate,” said eCOGRA CEO Andrew Beveridge. `To all online operators, if you`re ready to meet the 21st century challenges facing the industry, we invite you to commit to our standards and join the ranks of some of the most successful online gambling sites in the world.`

The latest `Play It Safe` seals were awarded today to the following sites:
Online casinos:
vegas splendido
aztec riches casino
blackjack ballroom
captain cooks casino
casino classic
casino kingdom
golden tiger casino
lucky emperor casino
phoenician casino
strike it lucky casino
virtual city casino
yukon gold casino
zodiac casino

Online poker rooms:
roxy poker
aztec riches poker
captain cooks poker
golden tiger poker
pokerrewards
virtual city poker

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FIRST HALF 2006 ONLINE

CASINO DISPUTES REPORT RELEASED


Friday, August 11, 2006

The Fair Gaming Advocate in the London offices of eCommerce and Online Gaming Regulation and Assurance (www.eCOGRA.org) reported this week on complaints received by the non-profit player protection body during the first six months of 2006.

Tex Rees says a total of 265 submissions were made to eCOGRA`s online facility, of which 83 (31 percent) concerned online casinos and poker rooms that are not accredited to eCOGRA and are therefore outside the FGA`s authority. A further 35 submissions (14 percent) were non-specific rants and statements that could not be followed up.

The remaining 147 disputes were investigated and resolved, 31 percent in favour of the player. The areas of dispute were as follows:
` Cash-in disputes : 75 (51 percent) up from 38 percent in the same period last year.
` Bonus disputes : 41 (28 percent) down from 32 percent last year
` Account disputes: 23 (16 percent) no change from last year
` Miscellaneous : 8 (5 percent) down from 14 percent last year

The FGA received an average of 10 disputes per week, a slight increase over the same period last year. The average number of disputes per `Play It Safe` seal site per month was 0.3 percent, down from 0.7 percent last year.

`Given the major increase in the number of `Play It Safe` sites since last year - there are now 88 sites accredited by eCOGRA - the level of disputes coming in to my office remains remarkably low,` Rees says in her report.

`These are all very large online gambling casinos and poker rooms, dealing with high levels of player transactions on a wide variety of games. In 31 percent of cases I found for the player, which represents a very small fault margin in terms of operational activity.`

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eCOGRA COMPLIANCE COMMITTEE REPORT

ON JACKPOT FACTORY SEARCH ENGINE ISSUE


Monday, August 07, 2006

On 28 July 2006 the Compliance Committee of eCommerce and Online Gaming Regulation and Assurance, made up of Mr. W. Galston OBE (Chairman) , Mr. F. Catania and Mr. M.Hirst OBE, all independent directors of the organization, considered all the facts regarding an incident in which complaints were received concerning search engine optimisation practices being conducted by the Jackpot Factory group.

The Committee received a report of an independent and on-site investigation which had been carried out by external auditors. This covered the circumstances surrounding the issue, its causes and effects and the remedial actions taken by the company.

The Committee findings are that:
1) The nature and tenor of the Jackpot Factory search engine optimisation project was totally unacceptable because of the fictitious and misleading scenarios it portrayed. This had resulted in widespread public disapproval of the campaign.

2) However, there was no evidence to show that any individual or group of individuals were harmed or persuaded to indulge in potentially harmful behaviour by the campaign, which represented an important mitigating factor.

3) Similarly, there is no evidence to suggest that Jackpot Factory management had any deliberate intention to encourage vulnerable persons to participate in gambling activities at group casinos

4) The investigating team report indicates that it is satisfied that the Jackpot Factory claim to have outsourced the project initially is correct. However, the report finds, and Jackpot Factory management conceded that the company`s supervision of the project was inadequate.

5) The report confirms that internal disciplinary action taken by the company against those responsible was appropriate.

6) The Committee also considered the more positive aspects of the case and in particular the actions of Jackpot Factory in the immediate aftermath of the issue coming to public attention. On two occasions the company admitted fault in the matter and offered public apologies.

Management backed this up by re-directing company resources and mounting a committed and energetic exercise to track down every element of the campaign that could be found in order to remove it, at the same time urging the public to report any elements discovered so that these could be addressed.

7) Jackpot Factory management cooperated fully with the independent investigation team, presenting verbal and documentary evidence without reserve to assist in its investigations.

8) Jackpot Factory management has since deployed control improvements in its systems as suggested by the investigation team, which will guard against any repetition of this unfortunate incident. Processes are now in place to ensure that any further material that may surface as a result of this campaign is dealt with on a timely basis.

9) Evidence was produced showing that the damage to business and reputation suffered by Jackpot Factory was substantial, as a consequence of public disapproval and the suspension of the Play It Safe seal.

10) Before the incident, Jackpot Factory had a solid reputation for compliance with all eCOGRA standards and requirements.

Having considered all of the above, the Compliance Committee has made the following ruling:

The suspension of the `Play It Safe` seal is lifted, but Jackpot Factory will be subjected to increased eCOGRA monitoring to ensure compliance with the new content code of practice. This is to ensure that all remaining traces of the campaign are removed wherever this is possible. The Compliance Committee is aware of the existence of inactive search engine links, but is satisfied that these do not provide access to any offensive material. The removal of this type of link is solely under the control of the search engines.

The Committee wishes to thank all those representing players` interests for their comments during the initial complaints and throughout the investigation. It also notes that the investigation team received the full cooperation of the Jackpot Factory management and is satisfied that they have shown their determination that this should not happen again.

The goal of eCOGRA in incidents such as this is to remove the immediate cause and potential for harm as quickly as possible, and then through fair and factual investigation isolate the reasons and ensure that systems are in place to guard against any repetition. These objectives have, in the opinion of this Committee, been met.

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