August 2007

eCOGRA Supports U.K. Commission’s Remote Gaming Testing Strategy

Thursday, 23 August, 2007

The U.K. Gambling Commission’s newly published approach to testing online gambling software – which heavily accents “outcome-based” testing in its strategies - may not sit well with everybody involved in the online casino industry.

But it has definitely earned the support of a major player in the online casino security business: independent testing agency eCOGRA (eCommerce and Online Gaming Regulation and Assurance),

The noted player protection and standards body has applauded the Commission’s new strategy plan, and in particular praised its recognition of the validity of outcome-based testing principles and methodology.

“It is encouraging to see that the Commission,” eCOGRA CEO Andrew Beveridge said, “has officially adopted outcome-based testing to assess compliance with their remote gambling technical standards.

“This is the sort of thing we have been applying since eCOGRA started operations almost five years ago, and we know from experience that the principles and methodology is effective,”

In addition to the outcome based testing, both eCOGRA and the Commission require verification the development, implementation and maintenance of the gambling software is representative of best practice standards.

“It’s worth noting too that eCOGRA goes significantly further than these excellent guidelines in that our RNG (Random Number Generator) testing incorporates every single live gaming transaction on an ongoing basis,” Beveridge added.

Beveridge also said the Commission’s decision on remote gambling testing was definitely a positive event for the industry, saying he has little doubt the test regime prescribed by the Commission will have a positive influence on the testing methodologies accepted by other credible licensing jurisdictions.

“Hopefully the source code vs. outcome-based testing debate is now finally put to rest!” he added.

Online Casinos Outside of European Economic Area Face U.K. Ad Ban

Tuesday, 14 August, 2007

Malta is in. Gibraltar is in. So is the Isle of Man.

But offshore gaming hot spots the Netherlands Antilles, Costa Rica and Belize are out, according to the U.K. government, who announced last week that as of September 1 online gaming companies registered in jurisdictions outside of the European Economic Area will not be allowed to advertise in the U.K.

The reasoning: their regulations aren’t stringent enough to meet U.K. requirements for consumer safeguards, particularly with regards to the protection of children, fair gaming and crime prevention.

What it boils down to: about 1,000 online casinos and poker rooms are currently left out in the cold, including some of the industry’s most recognizable brands, such as Bodog.com and Titan Poker.
There does seem to be a couple of glimmers of hope, however, for those not currently under the EEA umbrella.

U.K. Secretary of State for Culture, Media and Sport, James Purnell, has indicated there is a so-called “white list” for jurisdictions exempted from the ad ban, only considered after an application and a rigorous assessment of their regulatory standards.

So far, Alderney and the Isle of Man are the only two that have been white-listed.

Purnell also said applications from Alexander (Canadian Reservation), the Netherlands Antilles and Tasmania have been rejected to this point, with appeals from Kahnawake and Antigua still under consideration.

“I make no apology for banning adverts for Web sites operating from places that don’t meet our strict standards. Protection is my number one priority,” said Purnell.

“The fact that only Alderney and the Isle of Man have been able to meet the high standards demanded by our white listing criteria shows how tough the Gambling Act is. Indeed, white listing has actually helped drive up regulatory standards in some countries.”

Any jurisdiction that has not been white listed will automatically be banned from advertising in the U.K. across the board from September 1. The ban includes all forms of advertising media, from newspapers and television to taxis, buses and the internet.

Another option that has emerged as a possibility: Companies can re-register in acceptable jurisdictions, such as Gibraltar and Malta, prior to the deadline. Prominent online gaming firms such as Intercasino and Betfred, who currently fall outside of the required jurisdictions, are reportedly considering those licensing alternatives.

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