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Social Responsibility in Online Gambling: Lessons from In Touch Games’ Suspension
The Gambling Commission of Great Britain is at the forefront of gambling regulation and compliance, ensuring the industry’s legitimacy. In September this year, they suspended In Touch Games’ three licences, which allowed the company to supply gambling products across 11 sites. The suspension was based on non-compliance with licensing conditions, unrealistic withdrawal deadlines, and social responsibility failures.
The case suggests a closer examination of the Commission’s regulations is needed to understand the broader implications for the online gambling industry. Let’s dive in and take a look.
The In Touch Games suspension – more details
The Gambling Commission rarely suspends operator licences. Usually, sanctions, like In Touch Games’ January fine for anti-money laundering failures, are the first point of call. If an operator continues to flout the rules, is a repeat offender, or the case warrants further investigation, the GC then looks to the more severe sanctions, like restricting or removing an operator’s licence.
In its decision, the GC said that In Touch Games may be “unsuitable” to operate in the UK based on a series of failures, including anti-money laundering, fair and transparent terms and practices, and reporting key events.
Interestingly, on September 5th, following the Gambling Commission’s announcement, In Touch surrendered its UK licences. Regardless, this hasn’t meant an end to the investigation, and the GC is still examining the case under section 116 of the Gambling Act 2005. This is not the first time the Commission has flagged In Touch Games, fining the company £2.2m in 2019 and £3.4m in 2021 for similar failings.
Anti-money laundering regulations and source of funds
One of the principal objectives of the GC is to ensure that the gambling industry in Great Britain is crime-free. By and large, this is regulated by financial conditions and mainly governed by anti-money laundering (AML) regulations.
In the case of In Touch Games, the regulator found that they did not have appropriate policies, procedures, and controls in place and did not sufficiently consider the Gambling Commission’s AML risk assessment or guidance.
Part of the Commission’s AML guidance and regulations include KYC checks for players and source of funds inquiries, especially for those people with links to high-risk geographical regions or politically exposed persons and their family members. Of all gambling regulations in the UK, these are some of the most important and enshrined in law outside of the Gambling Commision. All companies must know where the money they process comes from, monitor and assess for risk factors, and ensure it is not associated with crime and terrorism.
After previously fining In Touch for AML failures, the GC expected to see significant improvements. While the company made some progress, the Commission decided the changes weren’t robust enough. For example, they were not following their company guidelines of completing a source of funds check when customers deposited and lost more than £10,000 in 12 months.
As AML compliance is complex, most gambling operators use specialist third-party systems to ensure monitoring and compliance in this area and implement strict internal policies – this is best practice. Most salient, when found non-compliant, the subsequent improvements are substantial, usually overcompensating to ensure they meet the regulator’s expectations.
Fair and Transparent Terms and Practices
Another area highlighted by the In Touch Games case is the requirement for fair and transparent terms and practices. These rules apply to all areas of business practice, with the Commission emphasising the need for clear terms and conditions and outlining potential risks associated with gambling.
In cases where information may be unclear or confusing, operators should demonstrate the rules with clear examples, avoiding complex or confusing jargon. In particular, operators are asked to provide precise details about promotions, bonuses, and withdrawal policies to ensure players can make informed decisions.
While GC guidelines can often overlap, the need for transparency has remained a backbone of policy and was again stressed more recently by Commission Chief Andrew Rhodes when discussing the increased number of complaints received by the regulator regarding players not understanding why withdrawals are being delayed.
One area where fairness and T&Cs come under scrutiny is wagering requirements. These are of particular interest as many sites enforce high requirements that bind players to gamble large amounts of money in short periods to access a withdrawal in connection with a bonus. A way for players to mitigate against this scenario is to opt for a no wagering requirements casino. This type of bonus and site are also more favourable from a regulatory point of view as they tend to offer a player-centric approach, transparent terms, and focus on fairness.
Affordability and other social responsibility failures
When the Gambling Commission suspended In Touch Games’ licences, they cited other social responsibility failures, including problems with affordability checks. They found that it took seven weeks for the company to interact with one player flagged for “erratic and extended play.” In a second case, they accepted that a player earned £6,000 a month without undertaking any checks to verify the information.
The Gambling Commission currently encourages online casinos to keep an eye on affordability so that customers only gamble what they can afford, but there are no firm benchmarks. Operators are expected to use open-source data to assess customer affordability and follow guidelines regarding remote customer interactions when they suspect harm may occur, acting promptly.
As part of the Gambling Act Review, the GC is shoring up the rules by introducing formal affordability checks. The new regulations will set clear thresholds for when operators should undertake financial checks based on consumer spending habits. Another upcoming regulation aimed at affordability is slot stake limits. There is some controversy surrounding both measures as implementing affordability checks, and maximum slot stakes have been argued to be a potential incentive for driving players toward the illegal market, where such limits are absent.
In light of the upcoming regulatory changes and their potential effects, it has never been more critical for operators to ensure compliance and have appropriate systems for monitoring and checking players’ spending to ensure that it is sustainable, safe, and within their means.
Regarding wider social responsibility commitments, operators must act ethically, prioritising player safety and responsible gambling measures. This includes encouraging education about gambling, how to use responsible gambling tools, and providing effective self-exclusion.
Moving forward
The April 2023 Government White Paper on gambling aims to address ongoing challenges and concerns within the industry, including issues related to player protection, fairness and social responsibility. The suspension of In Touch Games’ licence serves as a reminder of the need for high levels of social responsibility in the online gambling industry.
The most important lesson from the In Touch Games case is that accidental failures are forgivable, although costly, but repeat cases where operators do not follow the rules and improve after sanctions result in the removal of permission to operate in the UK. Operators should approach all Gambling Commission guidance and operating rules from the point of over-compliance to ensure player safety first and foremost.
Sports Information Services (SIS), the leading multi-content supplier of 24/7 live betting services, and Premier Greyhound Racing (PGR), the media rights company supplier of greyhound racing to the betting industry and direct to viewers, have collaborated to offer a revised race time schedule starting from 20 May.
Designed to protect the long-term future of UK greyhound racing, the new schedule will see morning fixtures start slightly later – moving from 10.47 to 11.01 and 10.54 to 11.09. Additionally, there will also be a slightly later start time for some evening fixtures aimed at a retail audience, with the first evening fixture now starting at 18.08.
Commenting on the improved schedule, Terry Mahoney, Head of Business Development at ARC, said: “The new race times will help make it easier for customers to navigate busy racing schedules as well as improving operations trackside. We will continue to listen, monitor, and adapt schedules where and when needed as we move forward to deliver the best service possible for betting operators as well as punters.”
Paul Witten, Managing Director at SIS, added: “We are passionate about delivering a greyhound racing service that benefits all of the sport’s stakeholders. Together with Premier Greyhound Raxing, we have introduced a revised racing schedule that benefits operators and their customers.
“Our approach to greyhound racing is grounded in sustainability and flexibility. This collaboration with fellow service providers allows everyone to enjoy all the high-quality action produced on a daily basis from tracks across the UK and Ireland.”
SIS has long-term agreements in place with bet365, William Hill, Paddy Power and Betfred to deliver its greyhound content across UK and Irish retail and digital channels. SIS also promotes this content across dozens of leading international operators, as well as through SISRacing.tv.
PGR offers greyhound action, cards, video replays, results, news and info on greyhounds.attheraces.com, and regular live broadcasts on Sky Sports Racing. Premier Greyhound Racing is a joint venture between Arena Racing (ARC) and Entain, the global sports betting, gaming and interactive entertainment group. Between them, the two companies own nine of the 20 licensed British greyhound tracks and ARC manage the media rights for five independent tracks.
The post SIS and Premier Greyhound Racing reveal improved greyhound race time schedule appeared first on European Gaming Industry News.
By Lorenzo Nardini, Head of Technical Compliance and Maths Services
In the dynamic world of online gaming, data plays a pivotal role. Databases containing personal and financial information, often referred to as “Safe” databases, serve as the backbone of any gaming platform.
In this short article, I focus on control databases (CDBs) – that is how Safe databases are referred to in the Dutch landscape – and why it is important to ensure their completeness, accuracy, and consistency through continuous data quality review. In any case, the topics here covered apply to most regulated markets.
Control databases contain critical information related to player accounts, financial transactions, game rules, and security protocols. Essentially, they ensure the smooth functioning of the entire gaming ecosystem. It is no wonder that the Dutch regulator (KSA) enforces specific technical regulations on them and often perform audits on these systems that can result also in fines in cases errors are detected.
Data quality review checks
Data quality review checks play a pivotal role in maintaining the integrity of control databases, ensuring continuous compliance. Here are some key reasons why they are essential:
- Accuracy and Consistency: Control databases handle vast amounts of data, including player profiles, game logs, and financial records. Ensuring accurate and consistent data is crucial for fair gameplay, financial transparency, and regulatory compliance.
- Player Experience: Imagine a player losing progress due to a database glitch or loss of connectivity. Such incidents can lead to frustration and loss of trust. Data quality checks ensure that the control database is correctly functional, and the information therein contained can be used to handle such incomplete games, enhancing the overall player experience.
- Regulatory Compliance: Gaming companies must adhere to strict regulations regarding data privacy, security, and fairness. Regular reviews ensure compliance with industry standards and legal requirements.
Most importantly, regular reviews can help gaming companies reducing the risk of an unsuccessful audit that could typically lead to a fine and negative PR.
Ideally, data quality reviews should be ongoing. Real-time monitoring is crucial for identifying issues promptly. Additionally, scheduled audits—monthly or quarterly—help catch any long-term discrepancies or trends.
Key areas of data quality reviews
When performing checks on the quality of CDBs, the following are the main areas to consider:
- Data Completeness: Ensure that all necessary fields are populated correctly. Missing or incomplete data can lead to errors downstream.
- Data Accuracy: Cross-check data against reliable sources. For example, player balances should match financial records.
- Data Consistency: Verify consistency across different databases and systems. Inconsistencies can cause confusion and operational inefficiencies.
Starting from the specific Dutch case and then expanding to other markets, here at ComplianceOne Group we have developed a data quality review service using our experience in dealing with this form of analysis. Leveraging feedback obtained directly from regulators, we created a testing procedure that performs the following:
- Tests on triggering reports from staging environment. We access the client’s staging environment with test accounts and perform actions that are aimed at triggering specific reports in the control database. We then check that these have been correctly generated and that they contain all necessary information, checking their accuracy against the back-office.
- Data quality tests on production environment. We download a large number of reports directly from production and run a battery of tests that we have designed and that is tailored specifically at checking completeness and consistency of the information contained in the control database.
All findings are promptly reported to the client and, if needed, we can assist with solving any issues found.
Conclusion
When I started being exposed to control databases, I understood that for many this is a very technical area and that maintaining this environment functioning correctly can be quite cumbersome. Nevertheless, a commitment to data quality is a necessary for ensuring continuous compliance of gaming platforms. If you are interested in running regular data quality reviews, or even just a one-time overall check, contact me and I will be happy to assist!
The post The Importance of Data Quality Review Checks in the Gaming Industry appeared first on European Gaming Industry News.
7777 gaming, a leading provider of digital gaming solutions, has announced a significant strategic partnership with Scientific Games a global leader in retail and digital lottery games, technology, analytics and services, to deliver digital lottery games through the SG Content Hub Partner Program.
The SG Content Hub Partner Program is a unique platform and game content partnership program featuring an expanding, highly curated selection of iLottery games from best-in-class, game studios worldwide in a variety of play styles appealing to all player types in multiple languages, as well as access to select licensed properties from the largest licensed brands portfolio in the lottery industry. Scientific Games currently serves 150 lotteries in 50 countries.
Elena Shaterova, Chief Commercial Officer at 7777 gaming, expressed enthusiasm about the partnership: “Partnering with Scientific Games represents a significant milestone for 7777 gaming, solidifying our position as a global leader in digital lottery solutions. Through this collaboration, we are poised to deliver unparalleled gaming experiences to players worldwide, driving innovation and growth in the lottery industry.”
Steve Hickson, VP of Digital Games at Scientific Games commented: “We are delighted to welcome yet another top-class lottery game studio to the SG Content Hub Partner Program. The addition of 7777 gaming and their fantastic games aligns perfectly with our goal to make a variety of digital lottery content available to existing and new Scientific Games customers. Our SG Content Hub Partner Program is developing at pace as we continue to provide our customers with frictionless access to the very best content in the industry.”
The SG Content Hub Partner Program offers a one-stop solution for accessing multiple iLottery game studios, seamlessly integrating with a lottery’s existing gaming systems and iLottery technology. It streamlines operations, simplifies tech integrations, and enhances data analytics to drive game development and iLottery portfolio management.
7777 gaming is renowned for its ability to deliver high-quality iLottery games tailored to the unique requirements of different lotteries. The company ensures that its game content meets stringent government regulations and operators’ expectations for customization. With custom-made lottery concepts, 7777 gaming guarantees enhanced player satisfaction and fosters a deeper sense of connection and loyalty to the brand.
The post 7777 gaming signs a strategic iLottery content deal with Scientific Games appeared first on European Gaming Industry News.
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