eCOGRA eGAPs Revised to Meet Common Regulatory Trends

New requirements meet nine key European criteria for operators

The independent player protection and standards body eCOGRA has published a revised version of its widely respected Generally Accepted Practices (eGAPs) at www.ecogra.com/egap in a move that positions the organisation’s accredited operators at the forefront of European regulatory development.

The eGAPs provide a professional framework for safe, fair, efficient and responsible business activity and provide guidance for the 153 tier one online gambling sites accredited by the London-based organisation.

Andrew Beveridge, the chief executive of eCOGRA, says that the revisions have been undertaken mainly to ensure that eCOGRA’s requirements encompass the CEN Responsible Remote Gambling Measures, but that the eGAPs are also a comprehensive and valuable guide that will meet the appropriate requirements of most regulatory authorities.

"The regulatory landscape now evolving in Europe has seen a growing number of nations opting for a competitive but strictly regulated online gambling market, and decisions are likely to be increasingly informed by the required measures of the CEN Workshop Agreement which were framed earlier this year," Beveridge explains.

"By aligning our eGAPs with these recommendations, which cover nine key areas of activity, we not only provide a relevant and current roadmap to our accredited sites, but offer an expert framework useful to other operators committed to meeting requirements that are largely common to most regulatory initiatives," he added.

"Operators who have achieved eCOGRA seal status should comply with the latest developments for CEN Responsible Remote Gambling Measures."

CEN is the European Committee for Standardisation, one of three European Standardisation Organisations officially recognised by the European Union (http://www.cen.eu/). CEN inter alia draws up voluntary technical specifications, such as a CEN workshop agreement, to help facilitate a single market for European industry and consumers across its members in 31 European countries.

The 9 areas covered by the CEN Workshop Measures are:

• 1. The protection of vulnerable customers
• 2. The prevention of underage gambling
• 3. Combating fraud
• 4. Protection of privacy
• 5. Fair gaming
• 6. Accurate customer payments
• 7. Responsible marketing
• 8. Customer satisfaction
• 9. Safe operating environment

Some 134 detailed requirements under these headings are included in the recommendations and have been enshrined in the revised eCOGRA document.

The recommendations were developed through consensus across a wide range of remote gambling stakeholders – from experts on problem gambling and players to industry representatives and addiction and criminology academics – illustrating a real desire to work together to ensure that consumer protection issues are fully addressed as important EU developments unfold.

About eCOGRA

eCommerce and Online Gaming Regulation and Assurance (eCOGRA), an independent UK based organisation, is the leading supplier of compliance and advisory services in the areas of player protection, fair gaming and responsible operator behaviour to stakeholders in the remote gambling industry.

In 2011 alone eCOGRA will conduct almost 100 operator and software supplier compliance reviews against eCOGRA’s eGAP Requirements, the European Gaming and Betting Association (EGBA) Standards and various jurisdictional regulations. Monthly payout percentage and randomness reviews will be performed for over 300 remote gambling sites.

These services are provided to many of the industry’s leading operators, including 888, bwin, PartyGaming, The Palace Group, Ladbrokes, Unibet, Fortune Lounge, 32Red, Partouche, Expekt and BetClic.

About CEN

The European Committee for Standardization (CEN) is a business catalyst in Europe, removing trade barriers for European stakeholders such as industry, public administration, service providers, consumers and other stakeholders. Its mission is to foster the European economy in global trading, the welfare of European citizens, and the environment. Through its services CEN provides a platform for the development of European Standards and other specifications.

CEN’s 31 National Members work together to develop voluntary European Standards (ENs) in various sectors to build a European Internal Market for goods and services and to position Europe in the global economy. By supporting research, and helping disseminate innovation, standards are a powerful tool for economic growth. More than 60,000 technical experts as well as business federations, consumer and other societal interest organizations are involved in the CEN network that reaches over 480 million people.

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The London-based player protection and standards body eCOGRA has undergone a change in ownership following a successful management buy-out (MBO) initiative led by chief executive Andrew Beveridge.

The organisation announced this week that the original Founding Members of eCOGRA, three major and competing online gambling groups, had agreed to the change. In future the new ownership structure of eCOGRA would not include software or other service providers or operators enabling it to be truly independent in the discharge of its audit, advisory, compliance and seal awarding activities.

The Founding Members note that the company had established itself as a credible and respected industry player with major business connections since its launch in 2003, and that it is now appropriate that the founding ties be severed, allowing eCOGRA to make its own way in the world of online gambling.

Staffed by IT, responsible gambling and audit specialists, eCOGRA offers a wide range of professional business services to internet gambling companies, and enjoys business relationships with major trade associations and several international licensing jurisdictions.

The company’s Safe and Fair seal of accreditation has become a reliable indicator of operators committed to high standards of commercial conduct, customer respect and fair gaming, and is held by 150 websites, belonging to some of the most successful tier one companies in the industry.

"The industry is maturing, and eCOGRA must be part of that evolving process," Beveridge said this week. "The trend toward national or state regulatory regimes around the world is just one of the areas in which our professional services are increasingly in demand by companies and jurisdictions committed to ensuring that they are well prepared in all respects to meet the highest international standards."

Beveridge revealed that eCOGRA’s services and operational structure would remain largely unchanged.

"We will continue to offer unbiased player dispute mediation through our Fair Gaming Advocate, and our TGTR outcomes-based software monitoring system is proving increasingly popular with non-accredited entities and will if anything be expanded," he said.

"Our policy of independently assessing operators for the award of the Safe and Fair seal, and subsequent review and monitoring activity, will remain in place, and the provision of professional business services and advisory consulting remains a key element in our commercial offering and will become an increasing important part of the services offered.

"Importantly, our strong commitment to responsible gambling will continue, specifically in our operator training initiatives and the requirements enshrined in our standards."

"Going forward eCOGRA intends to become a major force in helping shape new gaming regulations, offering specialised advice and assistance to existing and emerging jurisdictions and be at the forefront of establishing industry standards".

The MBO has scored an important coup in bringing eCOGRA’s former Independent Directors onto the new Board.

"Our chairman will be Michael Hirst OBE, supported by a directorate that includes Bill Henbrey, Bill Galston OBE, Frank Catania and myself," said Beveridge, adding that biographies were available on the eCOGRA website at http://www.ecogra.org

"We are very fortunate that these highly experienced and respected figures in the industry will continue to make their considerable knowledge and business expertise available to us," he said.

Michael Hirst said that the original mandate of the eCOGRA Independent Directors had been to continually improve the credibility of the industry, ensure players were properly protected and develop appropriate standards and regulations.

"Those basic principles will remain our goal in addition to increased competitive commercial activity," he said.

Tex Rees, the Fair Gaming Advocate at the independent player protection and standards body eCOGRA, has released statistics for the year 2010 on disputes involving online gambling sites accredited by the London-based company.

The report reveals that certain complaints submitted to the FGA came from a player syndicate fraudulently manipulating bonuses, which an in-depth investigation uncovered.

"Security considerations prevent the disclosure of the location and modus operandi adopted by the swindlers, who were all subsequently discovered and blocked," Rees recounts.

A total of 846 disputes (2009: 826 complaints) were submitted online to eCOGRA throughout 2010, an increase of 10 percent over 2009. 67 of these concerned companies not accredited through eCOGRA and therefore outside the ambit of the FGA’s authority.

A further 125 were found to be invalid, being fraudulent, non-specific or abusive and anonymous in nature.

The remaining, or valid, 654 disputes (2009: 628 complaints) concerned cash-in problems (44 percent); Bonus issues (25 percent); and Locked accounts (19 percent).

12 percent were categorised as ‘other’ and involved software fairness, responsible gambling and spamming allegations.

Over the 12 months, an average of 43 percent of disputes was resolved in favour of the player.

"The small decrease in the percentage of disputes resolved in favour of the player, and a corresponding increase in allegations of unjust bonus disqualification have been proved through detailed investigation to be connected," Rees reports.

"A fraudulent player syndicate was caught out by sophisticated security systems, resulting in its members submitting allegations which subsequently proved to be false, but had to be painstakingly followed up."

The free eCOGRA disputes resolution service has been in operation since 2004, and has handled a total of almost 4 500 disputes over that period. Almost 49 percent of these were resolved in favour of the player.

The level of disputes per accredited eCOGRA site was again remarkably low for the volumes of business transacted, with a typical accredited site delivering only 0.38 disputes on average per month throughout the year (2009: 0.37).

In her responsible gambling reportage to eCOGRA’s Independent Directors this month, Fair Gaming Advocate Tex Rees reveals that last year the player protection organisation carried out responsible gambling training at operator bases instead of at its London head office.

Eight international operator and software provider bases were visited by the eCOGRA team for the full day sessions, which trained a total of 268 employees, Rees reported.

Typical training sessions included:

"We used to host the training at a single location with a small number of delegates attending from a number of different operators," Rees notes. "The delegates were then tasked with training their staff when they returned to their companies.

"We now provide this important training at operators’ sites as a far more cost effective way to reach more employees directly and properly train those who are on the front line and are most likely to initially deal with problem gamblers.

"This also allows staff to discuss problems they have experienced in specific circumstances and receive professional feedback. The training is designed particularly for staff who interact with customers, such as call centre representatives and VIP department employees, but is also of value to staff in the marketing, retention, fraud & risk departments," she said.

"Delivering the training at the operator’s premises additionally helps us to customise the training to the operator’s brands and to meet any specific needs that have been noted at that level."

Taking the initiative to the front line has been a popular move, according to a number of complimentary assessments from operators. A typical report from a Betclic employee attending the course assessed the course as being informative and interesting.

"It definitely deepened my understanding of spotting the triggers for problem gambling and confirmed the importance of making available a range of responsible gambling tools for vulnerable players," the delegate wrote.

Andrew Beveridge, chief executive officer of eCOGRA, said that training staff to deal professionally and sensitively with responsible gambling issues was a critical element in any gambling environment, and was regarded as a priority in the eCOGRA standards for best operational practice.

"The percentage of gamblers who develop a problem may be relatively small – around 2 percent – but these are vulnerable members of society and they deserve appropriate and sympathetic but firm treatment by properly trained staff," he said. "These training initiatives have proved increasingly popular, and we expect to extend our coverage in this area further in the future."