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eCogra Approved Casinos > MAY 2008 eCOGRA NEWS
MAY 2008 eCOGRA NEWS
28 May 2008
eCOGRA News Articles Table of Content for May 2008
Looks like the states in the EU is letting up on their stance on competition and online gambling, so eCOGNA is becoming more and more important.
A commentary by eCOGRA CEO Andrew Beveridge.
The year 2008 could prove a watershed for the online gambling industry, as pressure from leading betting companies prepared to litigate against state monopolies, and the compliance efforts of the European Commission start to create a persuasive climate for liberalization.
The EU's compliance arm currently has investigations against 10 of the 27 member states in progress and appears prepared to take recalcitrant governments to the European Court of Justice if required, where case precedents suggest an outcome may be favourable to the concept of free movement of goods and services between member nations.
Now, more than ever before it is important that eCOGRA accredited operators adhere to the eGAPs that have taken so much international expert input and effort to construct, providing a set of best practice standards across the operational spectrum that will meet the scrutiny of the most discerning jurisdictions.
The regular FGA quarterly dispute reports indicate strongly that the eGAPs are effective, with the average number of disputes per venue per month at very low levels unheard of elsewhere.
There is cause for optimism as the liberalisation of European markets unfolds.
Last year the Italian government executed a brisk about-turn on its anti-online gambling policies, instead introducing a draft licensing and regulatory system that is being steadily refined as both land and online possibilities are realised. Spain followed towards the end of the year, allowing its autonomous provinces to introduce individual licensing regimes.
This year we have seen firm indications from the French political leadership that the bad old days of PMU and Francaise des Jeux exclusivity may be numbered as prime minister Francois Fillon's office studies a detailed report compiled by former MP Bruno Durieux, and mulls over ways to bring the country into compliance with European Commission requirements. Three possibilities exist: issuing licenses limiting online betting to sporting events; permitting betting on card games or licensing all games except lotteries.
The new rules will open the market, and Patrick Partouche, head of the Partouche land casino group, welcomed the possibility last month. His company already has an interactive gambling division.
Although the German states remain recalcitrant, bwin has triumphed in important litigation, and given the changes in train by other leading EU members and the threat of European Court of Justice appearances, there is room for reconsideration there, too.
Taking most industry people by surprise, one German state - Lower Saxony - will soon have an online casino operation up and running in partnership with Chartwell Technology, a significant breakthrough. Spielbanken Niedersachsen GmbH (SNG), the exclusive Lower Saxony state licensed and regulated casino operator, has already signed up for an online gaming system from Chartwell.
Finland and Norway are proving equally resistant to change, but neighbouring Denmark has in recent weeks signalled a radical rethink, with minister of taxation Kristian Jensen studying a regulatory regime that will likely moderate the aggressive and lucrative monopoly for so long held by Danske Spil.
Minister Jensen is quoted as saying: ”That’s (licensing and regulation) a possible situation, if the foreign bookmakers can live up to the strict regulations we have (in mind) for those who want to offer legal gambling in Denmark. I do not wish any Wild West situation. I want a regulated market."
In Poland the Deputy Minister of Finance, Marek Kapica has made a public statement that his country plans to regulate and license online gambling as early as the second half of 2008. Minister Kapica told Polish media that the government was being pragmatic on the issue, saying: "We cannot control this process anyway and it is better that the budget at least derives some revenues from it."
Kapica's ministry is apparently drafting legislation to introduce a regulatory regime, and this will be sent to the European Commission to ensure that it meets EU requirements for the free passage of goods and services between EU member states as required in the trading bloc's treaty.
In the Netherlands the fight goes on between De Lotto and large betting companies that have challenged its state monopoly over Dutch gambling. Whilst the local courts have thus far favoured the monopoly, the Dutch are clearly feeling EC pressure, and the Senate refused to grant an exclusive online license to the state-owned Holland Casino earlier this year.
The Dutch are proving to be especially obdurate in hanging on to the lucrative monopoly concept, and recent news is that the government is actively considering an UIGEA-like intervention aimed at halting financial transactions with online gambling companies.
The latest court ruling is the 17th occasion on which Dutch judges have ruled against EU companies seeking to access the Dutch online gambling market, but the court acknowledged that the state is at odds with EU law on the issue and could find itself in a higher court.
In Greece, the OPAP monopoly has signalled its preparedness to enter discussions with the European Commission, an early but positive move that could lead to a more EU-compliant dispensation.
In South Africa the pace toward legalisation of online gambling continues to be agonisingly slow, but progress is being made, and a licensing and regulatory regime could be in place by 2009. Victor Chandler, bwin and other online gambling groups have already expressed an interest, according to media reports.
Across the pond, the American situation remains mired in a hodge podge of confusing federal and state laws and exceptions for certain types of online gambling that are clearly being protected (horseracing and state lotteries, for example). It is unlikely that online gambling will see true liberalisation there anytime soon, but despite that there have been encouraging moves to regulate and license.
Congressman Frank and 47 other members of Congress are pushing the IGREA which if eventually accepted would effectively overturn the UIGEA by introducing a licensing and regulatory system.
The UIGEA itself, still without supporting regulations some 18 months since being enacted, has been subjected to heavy media and congressional hearing attacks for its ambiguities and the impractical nature of expecting the financial services industry to enforce it for the government. Federal officials have admitted to difficulties in drafting the regulations, and last month Congressmen Frank and Paul launched HR 5767, which seeks to halt federal officials from further drafting.
Meanwhile, Florida Representative Wexler has a proposal seeking to exempt poker from the UIGEA on skill grounds, and Nevada Representative Shelley Berkely has called for an independent enquiry to study all the implications of online gambling, a concept the American Gaming Association has supported. And in California, another proposal going through state legislative processes is aimed at a state-wide study on legalising poker.
One question testing the minds of industry observers is how the drastic economic slowdown in the United States will influence both political and business thinking. When the UIGEA was signed into law, the US business was conservatively estimated at around $7 billion a year - a tempting source of extra revenues for American land businesses now feeling the pinch, and for possible tax generation for increasingly cash-strapped individual states. Only time will tell.
What is certain, though is that the global regulatory landscape is in a dynamic phase where some significant changes are likely, especially in Europe. The indications are sufficiently strong to warrant serious consideration by online gambling operators of their positioning in the industry, particularly with regard to superior and integrity driven operational standards and a commitment to professionalism, player protection and responsible gambling.
eCOGRA's eGAP standards have been carefully crafted and continuously reviewed to achieve exactly that, and we believe that "Safe and Fair" seal operators who comply with eCOGRA's requirements can meet most licensing conditions and inspections with confidence.
A. Beveridge
CEO. eCOGRA.
Any site that has the eCOGRA seal, you can be assured they are safe and fair! So always look for their seal on sites you play on!
Now eCOGRA is making sure the Safe and Fair ranks are extended to Mobile and Poker. They are joined by more operators, to carry out this extension of coverage.
Mobile and poker venues join the "Safe and Fair" professional ranks
eCOGRA's Compliance Team has been exceptionally busy this year, carrying out intensive probity and systems testing on new applicants for the "Safe and Fair" seal, and conducting extensive on-site annual reviews for operators due to renew their accreditations.
Among the new seal holders is Zero 36, a Spin3 powered mobile gambling operation owned by the Palace Group which has already built up a significant player base. Joining the mobile site as eCOGRA's newest seal-holders are three poker rooms, Interwetten Poker, Aspinalls Poker and Poker Room LA.
The name Aspinalls is famous in both land and online gambling circles and the online poker room that bears this respected name is managed by Vegas Poker Lounge and powered by Microgaming. Malta-licensed and EGBA member Interwetten Poker is a member of the Ongame Network and has a long history in the betting industry, whilst Poker Room LA is part of the well established and successful Vegas Partner Lounge group.
eCOGRA CEO Andrew Beveridge congratulated the new seal holders and applauded their commitment to professionalism, good business practice and player protection in devoting the time and energy required to obtain seal status. "You join a remarkable roll of tier one operators in adhering to the highest standards of operational conduct and integrity, and we are proud to award the seal to your websites," he said.
The Compliance Team has recently reviewed and renewed the "Safe and Fair" seals of 1 mobile, 10 poker and 55 casino operations including major groups like 888.com. A full list of the renewed seals is available at www.ecogra.org/approved.
Beveridge said that in general the Compliance Team had reported a high level of eGAP compliance at all reviewed operations. "It is pleasing to see that eCOGRA accredited operators are adhering to eGAPs that cover such a wide range of financial and operational practice, and that operators are ensuring that their reviews are carried out timeously," he said.
You are assured any site you play on with the eCOGRA seal is a safe site to play on. They review and double check each and every site with their seal.
Here is a list of sites that eCOGRA has suspended their seal on. It is sad that some sites have their seal removed. But this is necessary for the players safety.
Tusk incident regrettable but necessary to preserve player trust
eCOGRA officials had the sad but necessary duty of suspending the "Safe and Fair" seals on six online casinos in the Casino Action / Tusk group early in the first quarter, when a review team conducting a routine onsite inspection discovered critical non-compliances with eGAPs pertaining to financial requirements.
After careful consideration, the independent directors took the decision to issue a public statement announcing the suspensions; to do otherwise would have seriously detracted from the commitment of the organisation and its seal casinos to provide superior player protection and integrity-driven operational conduct.
Shortly thereafter, Tusk told its software provider that it was to seek liquidation, vindicating the eCOGRA action. The software licensing was suspended, and Tusk made good on its word and is currently in liquidation.
The six online casinos involved have subsequently been acquired by the Casino Rewards group and are:
Challenge
Golden Reef
iBig Casino
Music Hall
Nostalgia
UK Casino Club
eCOGRA CEO Andrew Beveridge said that whilst the suspensions had been essential under the circumstances, it was sad that the company had been unable to survive its financial shortcomings. The incident had also highlighted the need for careful adherence to the financial eGAPs by operators, and to ensuring that reviews were not delayed or postponed.
"We recommend that preparing for routine reviews and inspections by eCOGRA audit teams should be an integral part of management planning and the corporate diary," Beveridge said. "Delays in receiving these important independent visits designed to safeguard both player and operator should only be requested in the most unusual circumstances, and preferably not at all," he added.
"Our central objective is to ensure that operations at "Safe and Fair" seal venues are just that - in other words player protection and maximum operator business efficiency."
eCOGRA’s objective is players trust! That is the most important thing to a player, to know the site they are on is safe and fair!!
In this world today especially in the Gambling world, it is important to take into consideration, the addicts and the underage group of players. eCOGRA is very aware of these facts and do their best to see to this issue.
Staff training essential in striving to exclude addictive and underage online gamblers
Addictive and underage gamblers, despite their relatively low 1 - 2 percent prevalence in the gambling industry overall, remain a major management responsibility for both ethical and business reasons.
Ethical, because this psychological disorder has the potential to impact physically and in a financial sense on both sufferers and those associated with them; moral because the young are more likely to become problem gamblers over time, and in a business sense because taking a laissez faire approach to this critical element reflects badly on both companies and the industry as a whole.
Former UK Gambling Board inspector, Gamcare vice president and eCOGRA independent director Bill Galston OBE perhaps best summed up this imperative when he said recently: "For both humanitarian and ethical reasons - and to correct adverse misperceptions by some - a comprehensive responsible gambling policy is a critical investment for any online gambling operation."
We all know that the underage and potentially addictive gambler has to be excluded, but the industry needs to do more in terms of staff training to achieve this, and in commissioning research from an online gambling perspective into the phenomenon.
Responsible gambling experts repeatedly point out that we do not yet know enough about this disorder, and how best to recognise and prevent it, although operators are now far more cognisant of the problem than was the case even three years ago.
eCOGRA has been very active in the responsible gambling area, and we have not only funded research, but organised three intensive international training courses for operational managers, the last in March this year.
Those operators who supported the course by sending relevant managers to be trained are to be congratulated, and for the first time we welcomed delegates from operators belonging to the European Gaming and Betting Association, with which eCOGRA has built a strong relationship.
We have consulted with experts like Gamcare and liaised with remote gaming associations to draw up a Code of Responsible Gaming Practice, and our best operational practice requirements for "Safe and Fair" accredited online casinos and poker rooms include detailed guidance on responsible gambling content and self diagnostic facilities on every online gambling website we accredit.
After a thorough review of the eCOGRA requirements, Andrew Poole, managing director of GamCare’s Trade Services Limited described these as both comprehensive and practical.
"It's incredibly important that operators have a set of best practice standards in responsible gambling," he said, stressing the need for training and making responsible gambling a part of the corporate culture.
Some companies - the Vienna-listed bwin Interactive Entertainment springs to mind with its substantial funding of a Harvard University study and the effective implementation of responsible gambling measures - do more than others, and continued focus and commitment by operators everywhere is strongly encouraged.
Kudos, too to Swedish online betting group Betsson, which has stepped up to contribute to this real need for research into the impact and consequences of problem gambling in the industry.
The company has launched a scholarship for problem gambling research in its native Sweden. The scholarships, each amounting to 15 000 SEK, will be awarded twice a year by a panel of experts knowledgeable in the field of gambling, from a list of candidates pre-selected by the respective student faculty.
The American Gaming Association and JCM Global has also celebrated a decade-long partnership for responsible gaming at the 10th annual JCM/AGA Golf Classic held at Cascata in Boulder City, Nevada on April 28. The Golf Classic is a fundraiser for the National Center for Responsible Gaming (NCRG) and since its inception has raised more than $500 000 for the NCRG, including $75 000 last year.
And over in Canada last month the importance of effective responsible gambling policies and advice was again underlined by the announcement that Canadian provincial government authorities are hiring 9 responsible gambling information officers to educate casino staff and patrons on problem gambling.
One of GamCare’s online services has been flagged as a valuable follow-on from training. The organization offers an e-learning training aid ideal for refreshing or "topping up" staff training, and it has proved very successful with quick and easy access from the Gamcare website.
It makes all of us players feel better when there is someone out there training to help stop the underage gambling and the addicts. Big thumbs up to eGOGRA!!
European Gaming and Betting Association (EGBA) would like more cooperation in promoting and helping with responsible gambling. It is the duty of all online gambling sites to help take part in this endeavor!
Inaugural "Responsible Gambling Day" attended by academics, politicians and industry reps
Key stakeholders from across the online gaming industry spoke with one voice at the inaugural ‘Responsible Gaming Day’ event at the European Parliament last month, calling on the European Union for greater cooperation to ensure a safer and more secure online gaming environment for consumers.
The event, the first of its kind to be hosted at the European Parliament, saw a number of MEPs, the EU Slovenian Presidency, regulators and academics join industry representatives to exchange best practices and knowledge in the field of responsible gaming.
Norbert Teufelberger, Chairman of the European Gaming and Betting Association (EGBA) said: “No matter how much we do, no matter how many rules we put into place, and no matter how good we are – no solution will be optimal if it is not inclusive and based on the full cooperation and commitment of all stakeholders.”
Christofer Fjellner, MEP (EPP-ED, Sweden) added, “The key ticket to entering national markets is consumer protection. Using this as an argument to protect monopolies is simply letting consumers down.” Continuing the monopolies theme, it was argued that as state operators can be regulated, so can private operators, a point emphasised by Unibet’s Petter Nylander in his address on policy frameworks for the gaming industry.
Protection of minors was also a key focus of yesterday’s discussions. Andrew Poole, Managing Director, GamCare commented: “There needs to be shared responsibility to minimise underage gaming. Consistent regulation across jurisdictions and proper education are key in achieving an effective industry-wide response to underage gaming.”
This view was echoed by Leon Thomas, Head of Regulatory Compliance at PartyGaming who stated “We want governments to help us to help consumers.”
The event also featured academia specialised in gaming and betting behaviour research who emphasised the need to use scientific research rather than conjecture when talking about online problem gaming.
Richard LaBrie, Ed. D. Harvard Medical School commented: “The advantage of online gaming is that you can track data in real time rather than relying on self reports, which may lack reliability.”
I agree with this whole heartedly. If everyone would take part, then there would be no need to worry about enjoying yourself when you gamble online.
The code of conduct on gambling for sites is very important. Here is what eCOGRA is doing on this project. Code of conduct applies to anything we do, and gambling is no exception.
eCOGRA teams with other leading industry bodies in new Code of Conduct on responsible gaming
Following its introduction at the European Interactive Gaming Expo in October, the International Responsible Gambling Code of Conduct continues to gather pace as it receives support from key industry bodies such as the European Gaming and Betting Association (EGBA), eCOGRA and the Interactive Gaming Council (IGC) who have contributed to the Code’s development.
Online gambling is a dynamic and innovative sector, enjoyed by many millions of people around the world, and as with more traditional forms of gaming, the pastime needs to be undertaken responsibly. This landmark guidance establishes uniform international minimum standards and practical measures throughout the online gambling industry designed to protect players and promote responsible gambling.
The Code underlines the commitment of those bodies involved in online gambling to responsible practices, with initial work led by UK gambling support charity GamCare, the player protection and standards body eCommerce and Online Gaming Regulation and Assurance (eCOGRA) and trade association Remote Gaming Association (RGA).
Andrew Poole, GamCare Trade Services Managing Director, said: “We hope that the adoption of this Code will better enable the gambling public to make informed decisions with regards to their remote gambling participation, secure in the knowledge that operators are required by condition of license to protect the welfare and enjoyment of their customers.”
The comprehensive Code aims to protect customers and promote responsible play, and can be viewed in full at www.ecogra.org/RGCode. It focuses on key issues, with measures that include:
• Underage gambling.
• Strict use of age verification tools and prominent warnings/policies on underage gambling.
• Links to filtering programmes which enable players and parents to control access.
• Player protection measures.
• The ability for customers to self-exclude, set deposit limits and access up-to-date account balances.
• Links to player protection and responsible gaming sites.
• Customer communication.
• Signposts to sources of help for customers who may be experiencing difficulties.
• Policies on responsible online gambling clearly set out on websites.
• Staff training
• Social responsibility training provided for all staff who deals with customers.
• Refresher courses delivered to ensure that training is up-to-date and relevant.
• Advertising and promotion - particular care taken not to direct advertising messages to under 18s.
• Legal, decent, honest and truthful advertising.
Sigrid Ligne, EGBA secretary general, said: “EGBA has always pressed for the highest standards of social responsibility in the European online gaming and betting industry. We fully support and are proud to have contributed to the development of a code of conduct for responsible gaming and greater player protection at an international level.”
Clive Hawkswood, Chief Executive of the Remote Gaming Association, said: “The promotion of responsible gambling and the adoption of appropriate safeguards are fundamental to the long term success of the online gambling industry. As the industry develops, it will inevitably come to be regulated in more jurisdictions.
"In those places and others where regulation is already being developed, I would commend this Code to them. It is based on the best industry experience and practice and, more importantly, the expertise of GamCare."
eCOGRA CEO Andrew Beveridge, said: "Any way you look at it, the new Code is a landmark development taking the industry into a more caring, player-sensitive and responsible future by using practical and proven measures firmly based on experience and research-backed knowledge.
"With the right sort of unpartisan approach, its merits are clear and the potential for good is significant. The groundwork has been done; the challenge now is acceptance and a commitment to use the Code to provide the player protection it makes possible."
Industry bodies are now engaging with leading European licensing and regulatory jurisdictions with the aim of securing further support for the Code and its introduction to online operators everywhere. With the majority of international top-tier Internet gambling companies represented, the Responsible Gambling Code has global coverage and covers all aspects of responsible Internet gambling
If we all work together along with eCOGRA, we can help make a difference and enjoy our online games. Let’s do our part in this code of conduct!
If you are a site owner or co-owner, or work in advertising, be very careful how and what you advertise. There is right and wrong ways to advertise. Be sure to read the guidelines and follow them.
UK advertising standards authorities will act against questionable material
Recent Advertising Standards Authority rulings in the UK against online gambling companies which flighted questionable television advertisements, underlines the importance of close management supervision of creative proposals for advertising material.
Withdrawing adverts can be an expensive and embarrassing end to what might have originally been seen as an amusing or innovative approach to attracting the attention of the market.
In the current cases, the ASA frowned on ads that it felt had a sexual tone, suggesting that online gambling increased sexual prowess. The ads featured a man drinking champagne in a limousine, flanked by two women with some innuendo in the copy and a play on the word "short".
The company suggested that the promotion targeted a "very specific" audience who would understand its "whimsical" nature. The advert was specifically aimed at those who would have understood that the term "being short" referred to financial spread betting, the company claimed.
It didn't help, and the ads were withdrawn.
In another case, the use of dwarfs dressed as dice and playing cards was criticised. The ASA said the adverts would appeal to children and young people because they featured small characters wearing costumes and participating in gameshow-style activities.
They breached advertising rules because they depicted juvenile behaviour, it said.
The company maintained the humour was not intended to be juvenile and said the advertisements were designed to fit its "fun and relatively light-hearted" brand, but the ruling went against it, and the ads become the first to be banned under new laws that stop children being targeted.
"The slapstick humour was likely to appeal to children and young persons," the Advertising Standards Authority said.
eCOGRA accredited operators should note the ASA's statement that such adverts "...should not appeal to people under 18, or associate gambling with sexual success, increased popularity or as a solution to financial problems".
These guidelines are not that hard to understand or follow. There is no reason for anyone to misunderstand these. So advertise, but do it tastefully and with care. Players will be attracted to a site and play if these guidelines are followed.
Players do not send in false bonus complaints. You would not have to if you read all the bonus rules and regulations, before you sign up to play at a site. And sites make the rules for bonuses understandable for all your players.
Disappointing number of false bonus complaints
Player disputes filed online with eCOGRA in respect of "Safe & Fair" accredited online casinos and poker rooms were low for the first quarter of 2008, with an average of only 0.26 disputes per seal site per month being recorded, according to the player protection and standards organisation's Fair Gaming Advocate, Tex Rees.
A total of 171 dispute mediation requests were received during the quarter, well down on the average quarterly figure for 2007 of 195. Of the 2008 disputes lodged, 27 were in respect of websites that are not accredited by eCOGRA and were therefore declined. A further 17 'disputes' were classed as invalid due to insufficient contact information, abuse, falsehood or the lack of a specific complaint.
"Unfortunately, the quarter has been marred by a relatively large number of false bonus abuse complaints lodged by fraudulent players, which when investigated in depth were found to be invalid due to multiple accounts, bonus over-claiming and in a minority of cases out-and-out fraud," Rees revealed, adding that 34, or 27 percent, of disputes she handled were related to bonus issues.
Of the 127 valid disputes, 44 percent were resolved in favour of the player, Rees reported, saying she handled an average of 10.6 valid disputes per week over the quarter.
"The main cause for complaint was Cash In related matters, which generated 61 disputes, or 48 percent of the total valid disputes received," she commented. "Bonus issues constituted 27 percent of the disputes, followed by locked account issues at 17 percent and miscellaneous complaints at 8 percent."
Online players with a problem at any eCOGRA accredited venue who cannot obtain satisfaction at casino or poker room management level, can obtain a fair and impartial investigation by the FGA when a dispute is lodged at www.ecogra.org/disputes.
Like I said before you play at a site, read all the rules and regulations on bonuses and play through. If you will always do this there will be no need to send in false reports. If you do not understand a rule, then ask someone. There is always someone that can answer your questions.
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