Player protection initiative yielding results
The online gambling self-regulation initiative eCOGRA has been remarkably active
since it first began inspecting and accrediting online casinos a year ago, with
a variety of recruitment, regulatory updates and marketing projects in full
swing.
In a largely unregulated industry, the private initiative operates across geographical
and political boundaries, intent on protecting the player through genuine and
sensible regulation of the casinos that have committed to its authority.
Forty four casinos have now been awarded the organisation's seal, among them
some of the most established and respected brands on the Internet casino scene.
More are currently undergoing the stringent independent inspection process required
for acceptance.
Poker next....
The pace is likely to increase beyond casino applications. The worldwide poker
craze has triggered the framing of new eCOGRA regulations due for public release
soon, and negotiations are in progress with a number of leading poker rooms
that are interested in committing to serious compliance with a practical regulation
regime in the largely unregulated online gambling industry.
eCOGRA followed its usual practice of consulting widely in the formulation of
the new poker eGAPs.
Fast resolutions on disputes
Fair Gaming Advocate Tex Rees issues reports on the relatively few disputes
with eCOGRA Seal casinos that have been filed online and sorted out - the majority
within benchmark-setting timeframes for the industry of less than forty eight
hours.
In the current report, the Advocate notes a total of 88 complaints had been
received over the past year, although 14 of these were in respect of non-eCOGRA
casinos.
Of the remaining 74, most have been lodged over the past three months, perhaps
an indication of the growing profile of the organisation and the generous coverage
of its activities by leading online gambling portals.
"Of the 74 disputes that we received for approved casinos, 80 percent are
made up of bonus and cash-in queries, " she reports. "On the cash-in
side most were concerns regarding what the player felt was slow payouts, but
on investigation mainly turned out to be associated with slow response to requests
for ID verification which were easily resolved."
"There were 25 complaints on bonus issues, and many of these could be attributed
to misunderstandings by either players or Support agents that were quickly ironed
out. In the sixteen percent of cases where the casino was at fault the issues
were immediately redressed, and follow-up action suggests that remedial measures
were also introduced to avoid recurrences.
"Seal casinos are reporting increases in activity, and bearing in mind
the massive volume of business transacted each month by these very popular casinos,
the remarkably low level of problems seems to indicate that the eGAPs are being
conscientiously applied."
The success of the mediations is often reflected in some very positive player
comments on public message boards.
The Advocate has a few words of advice for players and operators alike.
"Based on my experience in these mediations to date, my advice to players
is to read the T&C's very carefully for each and every casino that they
play at, as these can vary greatly from one to another. Players should also
appreciate that the requests for verification documents are for their protection
as well as the casino's and that this is one of the FATF's Recommendations to
help combat money laundering, not a ploy by legitimate casinos to slow payments.
Players should also check their email filters, where there is a possibility
that some responses from casinos are being trapped"
Turning to operators, she said, "It is essential that operators take great
care to ensure that information about new promotions and/or changes to their
T&C's have been thoroughly communicated to CSR's and the players. Simply
by improving in this area, most complaints could be obviated."
The eCOGRA website at www.ecogra.org now sports a more personal look, additional
information and new facilities. Taking on board comments and suggestions from
the playing community and operators alike, this important facility is now friendlier
and more useful to the players, and to casinos and software providers who need
further information on the initiative.
Money, fair gaming and T&C regulations updated
Ongoing player and leading industry webmaster input has resulted in updates
and new requirements being introduced to the Generally Accepted Practices or
eGAP to offer better protection in line with emerging industry trends.
Terms and conditions applicable to promotional activities must now be clearly
displayed and shall not be unreasonably altered subsequent to the wagering activity.
To meet international demands for tighter controls the section on anti-money
laundering has been revised to include requirements for preventative and detection
controls addressing money laundering and fraud risks to be documented and implemented,
and where appropriate for controls to be according to the relevant points in
the Financial Action Task Force (FATF) guidelines. This has been addressed in
order to accommodate the FATF's Forty Recommendations.
Under "Fair Gaming", the Total Gaming Transaction Review requirements
have been amended to incorporate additional tests that are being performed by
eCOGRA's audit panel members including independent inspection authority PricewaterhouseCoopers.
One example of this change is that wagering activity, including wins, should
be distributed amongst an acceptable population of players. This test includes
PwC verifying beyond question that a significant sample of the winning players
does in fact exist, providing further assurance of data integrity.
Another noteworthy revision is that eCOGRA now requires all games and slots
to have a combined average theoretical / estimated statistical return to players
of at least (the minimum) 92%. This compares favourably to land-based jurisdictions,
such as New Jersey, that requires a return of 83% on slots.
Elsewhere new addendums have been added which detail the requirements to be
met when operators who have already been approved add new, or transferred foreign
language and foreign currency casinos. These stipulate that seal holding casinos
cannot simply add a new casino brand and legitimately display the eCOGRA seal
- such changes or additions must go through a comprehensive compliance review
by eCOGRA's independent inspection contractor.
eCOGRA CEO Andrew Beveridge urges that players and operators alike communicate
with him on suggestions or problems, "We remain very keen to establish
a two way flow of ideas and suggestions, which make the organisation stronger
and more relevant," he says.
Apart from the initial inspections and ongoing statistical monitoring to ensure
fair gaming, seal casinos are required to undergo regular review inspections
to ensure that their systems are being maintained to the required standards.
This first review cycle is well under way and a number of casinos have already
had seal accreditations confirmed.
Improving operational capacity at no cost
eCOGRA operators have benefited beyond increased business from their involvement,
because they are now getting detailed professional input that would normally
cost tens of thousands of dollars...and it doesn't cost them a cent.
Internationally respected business group PricewaterhouseCoopers has been commissioned
to research and provide a series of policy papers covering the optimum professional
conduct of business in a variety of operational areas. Management material of
this detail and calibre is normally obtained through expensive individual contracts
with management consultancies.
"Our goal is to provide casinos that are affiliated with us with every
facility to help them achieve high levels of efficiency and thereby ensure the
best possible service to the player," says Beveridge.
"The first policy that has been tackled is the critically important topic
of security of information. This is designed to meet the eGAP objective "Information
security policies and procedures shall be implemented and maintained to ensure
the availability, integrity and confidentiality of gaming operations."
The impressive document deals in clear and professional detail with security
roles and responsibilities, control of security and other staff, access to information
and security systems, password safety, data back-up and recovery procedures,
general operational security particularly in regard to email and Internet safeguards,
asset classification and control and compliance procedures.
It cautions that information security is integrated in all aspects of a business
and as such the scope of the information security policy will impact all entities,
including: permanent employees, contractors, temporary employees, third party
and outsourced service providers.
"This is just the beginning," says Beveridge. "We will be issuing
a series of similarly considered and thorough policies on each critical aspect
of running a successful and safe business, all as an added value service to
eCOGRA casinos."
Marketing moves
Beveridge and his staff have also been very active in familiarising both players
and other interested parties in the industry on eCOGRA's role and goals. An
energetic speaker and personal contact program has seen Beveridge and the independent
directors interacting with all sectors of the industry at major industry events
in Las Vegas, Toronto, Montreal, London and Barcelona, and this will continue.
The active press release campaign to keep eCOGRA in the public eye by making
relevant progress reports and information available will continue. In addition,
requests for interviews with a diversity of traditional and online media have
been carried out in order to explain the eCOGRA concept and its application.
Close personal relationships have been forged with credible government licencing
jurisdictions, leading media personalities and portal opinion formers whose
voluntary advice continues to be respected and appreciated.
Towards the end of the year a strongly funded pilot marketing campaign across
a wide geographic and demographic range will be launched through a leading industry
consultancy, and work is well advanced on this project. The results will be
used to design and introduce a comprehensive and well funded marketing campaign
in 2005.
Anyone can join....but commitment to the ideals is required
eCOGRA is a non-profit, non-partisan body with a full time staff in London,
England. Founded in 2002, the organisation spent some time researching the concept
of regulation with experts throughout the world before constructing a working
set of requirements essential to fair and efficient gambling operations together
with an independent inspection and monitoring regime. The first online casinos
were accredited in early 2004, and since then a steady stream of online casinos
has committed to the eCOGRA ideals and achieved Seal status.
It functions by implementing its player-sensitive set of operating regulations
and casino probity requirements through independent inspection and monitoring
by internationally respected third parties. Online player dispute services are
also available for any player with a legitimate complaint against any eCOGRA
operation.
Casinos that have passed the rigorous inspections are identified by an eCOGRA
seal, with participation open to any software provider and casino that is prepared
to commit to eCOGRA principles of honest operation, fair gaming and efficient
financial and customer relationships.
All of the casinos displaying the eCOGRA seal do so only on the understanding
that:
(a) the management and the operating entities have to pass real and detailed
external probity checks, including financial status
(b) their systems may in some cases have to be reorganised to comply with the
eCOGRA requirements and regulations for efficiency and better player service
(c) they agree to be thoroughly inspected by PwC approval and compliance teams
that physically stay onsite for up to two weeks, and to address any system found
wanting such as Support, accounting, technical, management, staff training,
marketing.
(d) they agree to every transaction being monitored and analysed on an ongoing
basis by an external agency - the Total Gaming Transaction Review, and to further
physical inspections on a regular basis.
(e) they agree to continued adherence to the regulations (called eGAP) which
covers every aspect of operational and business conduct and imposes standards.
(f) they agree to promptly deal with any player dispute and if necessary to
abide by the (escalated) ruling of the eCOGRA Fair Gaming Advocate if a resolution
cannot be achieved at casino level.
It's not something to be entered on lightly and represents a serious commitment
to efficiency and fair treatment. All seal holders know that seals can be very
publicly revoked as well as awarded.
What does the casino operator get out of the deal?
Experience has shown that the professional review required before acceptance
not only involves assessing the software provider and operator levels of compliance,
but also provides invaluable consultative feedback from the audit firm on potential
internal control issues in areas such as security, anti-money laundering, data
protection etc.
The professional studies on highly relevant operational areas have been acclaimed
by seal casinos for their value and applicability.
eCOGRA has been involved in dedicated marketing and public relations activities
to ensure that industry stakeholders are familiar with the goals of the organisation
and the advantages of dealing with eCOGRA approved sites. A Google search of
'eCOGRA' will provide an indication of the type of coverage that is being achieved
on many online portals.
The strong funding underpinning these efforts is not drawn from seal casinos,
yet there will be obvious benefits flowing from these activities.
eCOGRA's software providers are committed to providing the ongoing funding of
the organisation's operational costs, and casino operators are required only
to cover the PwC review costs.
** Footnote:
The Board of Directors includes three very well known, and very independent,
integrity-driven executives from the broader industry - Michael Hirst, Frank
Catania and Bill Galston. These experienced and respected industry leaders control
the eCOGRA regulatory and seal award process, as well as its enforcement.