Regulator & Industry Collaboration: Changing the Dynamicby Susan Hensel,President, IAGR & Director <strong>of</strong> Licensing, Pennsylvania <strong>Gaming</strong> Control BoardSusan Hensel,n October, my second term asIPresident <strong>of</strong> the <strong>International</strong>Association <strong>of</strong> <strong>Gaming</strong> Regulators(IAGR) will expire and Lau PeetMeng, Chief Executive, SingaporeCasino Regulatory Authority will take over the helm.In my time as President, thanks to the work <strong>of</strong>a dedicated Board <strong>of</strong> Trustees, IAGR has madesignificant progress in establishing itself as the premierinternational regulators association in the world. Incoming years, the association will continue to play animportant role in the future <strong>of</strong> gaming as the industryand regulators increasingly recognize the importance <strong>of</strong>communication between the regulator and the regulated.Driving this recognition are factors such asglobalization and technological change that haveput the gaming industry in an accelerated state <strong>of</strong>evolution. There is no longer the luxury <strong>of</strong> time toresolve emerging <strong>issue</strong>s. The advent <strong>of</strong> mobile phones,tablets, and social media is raising new questions.Today those questions are moving to the forefront <strong>of</strong>regulator responsibility and industry opportunity.While we all recognize that we are operating in avery different gaming environment than even a fewyears ago, the question is how can regulators andthe industry move beyond the long talked aboutneed for collaboration to actual collaboration? Howcan we advance industry and regulatory initiativesindependently underway to achieve results?While there may not be ready answers to thesequestions, there are factors at play in the industry todaythat set the stage for exploring new approaches.With more <strong>of</strong> the same companies operating inmultiple gambling jurisdictions, there are morechances for regulators to work together in theirinvestigation and evaluation <strong>of</strong> gaming companies.Informally through pr<strong>of</strong>essional relationshipsdeveloped as a result <strong>of</strong> organizations such as IAGRand formally through memoranda <strong>of</strong> understanding,regulators are able to share information with oneanother and cut down on duplication <strong>of</strong> effort. Wewill see more occasions for cooperation as the concept<strong>of</strong> inter-jurisdictional gambling compacts growsand participants gain experience in how to regulateefficiently multi-jurisdictional relationships.Also helping to drive smarter regulation is thevery technology that is bringing about change. Theseadvances have given us tools that simply were notavailable before. Thanks to technology, we are betterable to develop targeted, risk-based regulation thatprovides public protection assurances while savingtime and money. Today, we can see what we couldn’tsee. We can control what we couldn’t control. Wecan send data around the world with a speed that isnear instantaneous. And we can communicate acrosscontinents as if we were sitting next to one another.These abilities are transformative.Compare a jackpot dispute in the days <strong>of</strong> crude slotmachines with one that occurs today. Then, it was amatter <strong>of</strong> player versus operator – a “he said, she said.”Today, there is a digital audit trail <strong>of</strong> all machineactivity that puts an end to any dispute.Then regulatory staff was mandated to oversee theslot count; today central control computer systemskeep track <strong>of</strong> every penny, eliminating the necessityfor regulators in the slot count room. Then there wasfear that online and mobile capability would be aloophole for underage gamers, but now fingerprinttechnology and other biometrics <strong>of</strong>fer the prospect<strong>of</strong> immediate verification that the player is who theplayer says he is and is not an underage gamer. Theseassurances ease regulator worries and help open newmarkets. Then casino staff memorized thousands <strong>of</strong>faces on exclusion lists with the hope <strong>of</strong> being able tospot an intruder. Today facial recognition s<strong>of</strong>twareis being explored. And then, investigators had noalternative but to travel in order to ensure applicantsuitability. Today some jurisdictions are experimentingwith video conferencing to reduce the time and travelexpense <strong>of</strong> some background investigations.IAGR has set a goal for itself to be a thought leaderin improving gaming regulation and has undertakennew initiatives as we work to accomplish that goal.We are launching a pilot program <strong>of</strong> our multijurisdictionalbusiness form so that operators canuse the same material for applications in differentmember jurisdictions and can simultaneously updatethe information when necessary. We are exploringopportunities for making remote gaming test resultstransferable across jurisdictions, reducing cost andtime to market for new games. We are also consideringwhat can be done to develop standards in the nonremotesphere. Within our portal we are developingan IAGR knowledge module so regulators can share30 | European <strong>Gaming</strong> <strong>Law</strong>yer | Autumn Issue | 2013
est practices, discuss emerging <strong>issue</strong>sand collaborate on solutions. And we areundertaking creation <strong>of</strong> a statistical databaseproviding a knowledge asset available toregulators and those advising the industry.Finally, we are recognizing the importantrole IAGR can play in acting as a focalpoint for industry bodies such as the<strong>Gaming</strong> Standards Association and theAmerican <strong>Gaming</strong> Association (AGA) andfor regional bodies such as the regionalgambling regulator associations like <strong>Gaming</strong>Regulators European Forum (GREF)and North American <strong>Gaming</strong> RegulatorsAssociation (NAGRA). By establishingthese relationships, we are putting interestedpeople or organizations in touch with thepeople who can help make things happen.But IAGR, just like the industry, can onlydo so much by itself to achieve a smarterregulatory environment. In order to trulymake a difference, we need to be workingtogether. There are very real difficultiesin getting a sustained effort underway toimprove the way in which we work. Part is thereality <strong>of</strong> pressing job demands that providelittle opportunity for abstract thinkingabout how to accomplish long talked aboutobjectives. Part is that despite good intentions,it is just plain hard work to deliver on l<strong>of</strong>tygoals <strong>of</strong> cooperation and collaboration thatare made from conference podiums.The challenge for the regulator andindustry is to find and exploit opportunitiesto think differently about how we interactwith one another, to find a way to changethe dynamic. We need, for instance, to betalking to one another about how we canpromote discussion between conferences.It sounds good, but how do we actually setabout making those conversations a reality?We also need to think differently abouthow we use technology. How can we leveragethe exploding technological options to dothings better? Can we, for instance, leveragewebinars, blogs, and social media sites toefficiently share information and learn withouthaving to book a flight or leave our <strong>of</strong>fices?Instead <strong>of</strong> our primary focus being onknowledge sharing from our colleagues,whether regulator or industry, can we tapinto one another across classifications? Canorganizations like <strong>International</strong> <strong>Masters</strong><strong>of</strong> <strong>Gaming</strong> <strong>Law</strong> (IMGL), <strong>International</strong>Association <strong>of</strong> <strong>Gaming</strong> Advisors (IAGA),and AGA share information withassociations like IAGR, GREF, and NAGRA?Can we, for instance, establish knowledgebanks across organizations rather than justwithin associations? And if so, how exactlydo we set about making that work?As I prepare to end my term as IAGR’sPresident and transition to an IAGR trustee,I leave you with these questions. IAGR looksforward to working collaboratively on theanswers that will lead both industry andregulator to a place <strong>of</strong> better regulation inthe future.SUSAN HENSEL, President, IAGR &Director <strong>of</strong> Licensing, Pennsylvania<strong>Gaming</strong> Control Board. Email:shenseljar@state.pa.usA REPORT FROM i<strong>Gaming</strong>BusinessThe Changing Face<strong>of</strong> PaymentsA Market Overview and Global TrendsKey Features■ Comprehensive overview <strong>of</strong> theglobal payments ecosystem■ Review <strong>of</strong> geographical processand behaviour surroundingpayments, as well as looking atlocal licensing across WesternEurope, and emerging and growingmarkets in Eastern Europe, LatinAmerica and Asia■ An analysis <strong>of</strong> how theavailability <strong>of</strong> more convenientoptions are creating newopportunities for alternative andnon traditional payment■ Learn about different paymentmethods: credit and debit cards,mobile, NFC, Ukash, PayPal■ Review <strong>of</strong> regulation and recentchanges made by SEPA (SingleEuropean Payments Area) and PSD(Payment Services Directive)■ Future trends in local and globalmarkets, ensuring that operatorswill be up to speed in thelandscape as it exists today and inthe future.Ask for your free executive summary today quote 13IPayments2and email reports@i<strong>Gaming</strong>Business.comCall +44 (0) 207 954 3489 to order your copy <strong>of</strong>iGB Payments report todaywww.i<strong>Gaming</strong>Business.comEuropean <strong>Gaming</strong> <strong>Law</strong>yer | Autumn Issue | 2013 | 31