1. Online Gaming Regulation Amidst the Ever-Changing Technological Environment
Devon Dalbock
General Manager
GLI Africa

2. A Short History of Gambling
Evidence of gambling dates back 2300BC
The Romans wrote about gambling
A loaded dice was found in the ruins of Pompei dating back to 79AD
The Kings of Norway & Sweden rolled a dice to determine how territory should be divided
Blackjack, Poker & Roulette developed in the 18th century
First slot machine developed in late 1800’s
On-line gambling starts in the Caribbean in 1994

3. Betting in Africa
According to a recently concluded study, 60 million Nigerians between the ages of are active sports bettors. They spend an average of 3000 Naira or $15 per day on sports bets.
South African government statistics show that over 50 percent of South African adults place sports bets on a regular basis.
According to a 2014 PWC report, the betting markets of Nigeria, Kenya, and South Africa will be worth $37 billion by 2018.
Gambian government to overturn the 2 year ban on gambling.

4. Reasons for the Rise of Sports Betting in Africa
High population of unemployed youth
200 Million people between the ages of 15 & 24
25% Unemployment
African people love Sport
Lack of adequate regulation
Rising popularity of Mobile Gaming
Mobile Payment Systems
M-Pesa, tcash, Airtel Money, etc.

5. On-Line Gambling Market Growth

6. Regulation and the Future…
Technology is fast introducing various and alternative platforms of gambling with 6.8 million consumers regularly participating in online gambling of some sort at any given time.
Despite this, many countries have in the past been reluctant to regulate online gambling, fearing that regulation will result in an increase in problem gambling or have a negative effect upon existing land-based operators.
However, in reality, a lack of regulation or a general prohibition can be more dangerous than permitting and supervising gambling. Prohibition and/or out of date laws can result in illegal circuits and ultimately less control for the authorities

7. Six Pillars of iGaming Regulation

8. Preventing Underage Gambling
Make it a criminal offense to allow persons under the desired age to participate in internet or mobile wagering
Conduct age verification checks at account opening stage
Birth date
ID / Social Security Number
Suspend account if age not verified, and request further information
Drivers license
Credit Card statements

9. Geolocation Accurately verify a player’s location
Cell Phone triangulation
Wi-Fi triangulation
IP Address
Internet Service Providers
Block Payment Systems

10. Network Security
Security is listed as the No. 1 concern for CIOs in almost all IT survey’s
2 billion records compromised in the last year
8350% increase in Ransomware usage
The average data breach costs $4 million, according to a 2016 IBM survey
Annual ISS Audits & Penetration Testing

11. How a Fish Tank Helped Hack a Casino
Fish tank connected to the WiFi
Accessed the network through the fish tank
10Gb of data sent to a remote server in Finland

12. Player Protection Player Funds Bank Guarantee Trust Fund
Client Account
7 Day Waiting Period on Limit Increases
Include a clock in game software
Ongoing Reviews
Advertising & Marketing
Policies

13. Game Fairness Independent Testing Source Code Review & Comparison
Software Functionality
RNG Testing
Math Analysis
Emulation
Event Handling
Metering & Reporting
Jurisdictional Requirements

14. Payment Processing Deposit & Withdrawal Limits Verification Procedures
Processing Time-frames
Pending Withdrawals vs Manual Flushing

16. Questions for Regulators
Competence / Requisite skills
Do we have necessary skills and/or competent personnel?
Is the relevant training easily accessible?
Resources
Do we have adequate budgets?
Do we have relevant tools?
Legislative requirements
Is our legislation comprehensive enough to accommodate the current and future technological changes?
The frequency or the time it takes to amend the legislation?
Technical Standards
Are the current standards adequate to cover a wide range of technological aspects?
The time it takes to review the technical
standards?

17. How can GLI help Regulators?
GLI University Training
Regulatory Framework
Technical Standards
Jurisdiction Comparison
Regulatory Workshops
Compliance Assistance
Regulatory Briefings
Advisory Role
On site Inspections
Forensic Evaluations

18. GLI Standards GLI 11 Gaming Devices in Casinos
GLI 12 Progressive Gaming Devices in Casinos
GLI 13 Online Monitoring & Control Systems
GLI 14 Finite Scratch Ticket & Pull-tab Systems
GLI 15 Electronic Bingo & Keno Systems
GLI 16 Cashless Systems in Casinos
GLI 17 Bonusing Systems in Casinos
GLI 18 Promotional Systems in Casinos
GLI 19 iGaming Testing
GLI 20 Redemption Kiosks
GLI 21 Client-server Systems
GLI 23 Video Lottery Terminals
GLI 24 Electronic Table Game Systems
GLI 25 Dealer-controlled Electronic Table Games
GLI 26 Wireless Gaming Systems
GLI 27 Network Security Best Practices
GLI 28 Player User Interface Systems
GLI 29 Card Shufflers and Dealer Shoes
GLI 31 Electronic Raffle Systems
GLI 33 Event Wagering

19. GLI Services Certification testing and auditing services
Specialize in geolocation and Know-Your-Customer (KYC) controls/audits to satisfy the needs of payment processors and/or regulators
Network security testing services
Internal and external infrastructure testing
ISMS audits
ISO audits
Vulnerability testing

20. General Manager – GLI Africa
Thank you!
Devon Dalbock
General Manager – GLI Africa