GAMING REGULATORS AFRICA FORUM 2017 Regulators Evaluation of

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GAMING REGULATORS AFRICA FORUM 2017 Regulators Evaluation of Technology Presenter: Thiran Marimuthu

GAMING REGULATORS AFRICA FORUM 2017 Regulators Evaluation of Technology Presenter: Thiran Marimuthu

INTRODUCTION Regulations exist to protect citizens and businesses, correct market failures, and make many

INTRODUCTION Regulations exist to protect citizens and businesses, correct market failures, and make many aspects of our lives easier. In recent years, the persistence and scale of technology-induced change have led many to doubt the value and practicality of government regulation. GRAF - 2017 2

Introduction cont. Without sufficient regulation and controls, there is no way to assure: §

Introduction cont. Without sufficient regulation and controls, there is no way to assure: § Markets are safe for players § Gambling is fair § Player authentication § Governments get tax revenue § Control of problem gaming GRAF - 2017 3

Technology Trends to consider The exponential pace of technological change Moore’s Law posits that

Technology Trends to consider The exponential pace of technological change Moore’s Law posits that computer processing power will double every two years The emergence of new business models The “sharing economy”—an economic system, enabled by communications technologies such as mobile and the Internet, that is built around the sharing of human and physical resources (Eg: Uber, Air. Bn. B, Lyft) GRAF - 2017 4

Technology Trends continued. The “ignore until large” phenomenon: New product/technology is introduced with a

Technology Trends continued. The “ignore until large” phenomenon: New product/technology is introduced with a conscious decision to avoid engaging the regulator. Regulator: Tempted to wait before engaging with provider to see if they are viable in the market Consider Airbnb: In 2008, when Air. Bn. B first started, it seemed like a niche community of people willing to rent a room to strangers. Fast-forward to today: Airbnb has booked over 30 million nights and is valued at $20 billion. GRAF - 2017 5

Technology Trends in Gaming l e. Sports: The Coming Collision a lawful contingency? Integrity

Technology Trends in Gaming l e. Sports: The Coming Collision a lawful contingency? Integrity in the offering? Is the contingency regulated? l Gaming Evolution geographic and psychographic differences in player preferences. Does geographic location matter? What did we intend when we spoke about designated gaming area? l Cryptocurrencies (eg. Bitcoin) easy and fast withdrawal, verified and tracked payments Is it acceptable currency? Can it be tracked? GRAF - 2017 6

Technology Trends in Gaming GRAF - 2017 7

Technology Trends in Gaming GRAF - 2017 7

Technology Trends in Gaming GRAF - 2017 8

Technology Trends in Gaming GRAF - 2017 8

It’s not technology but what about “MILLENIALS”? Does a changing population matter? GRAF -

It’s not technology but what about “MILLENIALS”? Does a changing population matter? GRAF - 2017 9

Gambling Legislation and new technology l l l National Gambling Act, Provincial Gambling Act,

Gambling Legislation and new technology l l l National Gambling Act, Provincial Gambling Act, National Gambling Regulations Provincial Gambling Regulations and Rules ICP’s Published Technical Standards What about coinciding legislation? l National Lotteries Act l Financial Intelligence Centre l Relevant Tax laws l Others? GRAF - 2017 10

SANS Standards Introduction “It is not the intention of this part of SANS 1718

SANS Standards Introduction “It is not the intention of this part of SANS 1718 to unreasonably a) mandate a single solution or method of realizing an objective, b) limit technology application of software, c) limit creativity and variety of choice, d) limit marketability, or e) advantage any supplier or manufacturer of software. Alternative implementations to the requirements contained in this part of SANS 1718 will be considered on a case-by-case basis by the provincial licensing authority (PLA). Situations or considerations that arise from evaluation of systems, which have not been addressed in this document (e. g. owing to omissions or the use of new technology), will be resolved at the sole discretion of the PLA as part of the approval process. ” GRAF - 2017 11

Gambling Legislation and new technology § Types of licences issued (Most common) l Casino

Gambling Legislation and new technology § Types of licences issued (Most common) l Casino l Bingo l Route Operator/Site Operator (LPM) l Totalizator l Bookmaker l Gaming equipment manufacturer and distributor WHY DO WE ISSUE DIFFERENT LICENCES? WHAT DID THE LAW INTEND? WHEN EVALUATING NEW PRODUCTS FOR WHICH MARKET/LICENSEE IS IT INTENDED? GRAF - 2017 12

What to consider? l Understand the emerging technologies. Regulators need to understand the potential

What to consider? l Understand the emerging technologies. Regulators need to understand the potential regulatory implications of those innovations l Advise through guidelines. Guidelines can help both public and industry navigate a rapidly changing technology environment l Give the market and consumers a “heads up. ” Regulators should issue statements that provide the public with their latest thinking on an emerging issue GRAF - 2017 13

GRAF - 2017 14

GRAF - 2017 14

Regulators have the opportunity to become the regulator of tomorrow. THANK YOU GRAF -

Regulators have the opportunity to become the regulator of tomorrow. THANK YOU GRAF - 2017 15