Compliance companies aim to help deliver a fun, efficient and above all fair gaming industry to the public, the operators and the regulators
A distinguishing feature of legal and well-regulated gaming markets is that consumers, operators, manufacturers and governments have confidence that the entertainment it provides is honest and efficient.
Every time a player spends a yuan, a pataca or a dollar, he or she wants to know that the odds of success are the same as for the next player. Likewise, operators want to know that the net take on that stake money is working as hard as possible for the business. Governments want to be sure consumers are protected from fraud and indeed that operators are protected from any rogue consumers trying to defraud the system. The government as licensing authority also wants to ensure a fair share of revenue for the public purse.
Keeping all the parties happy creates a virtuous circle. Confidence in the system means the legal gaming industry attracts new customers and new investors, allowing it to grow across the world and across the Asia Pacific region in particular. Industry growth in turn provides employment opportunities for many tens of thousands of people, directly in the industry, and in a host of service and support industries.
Key role
BMM Compliance, one of the global leaders in the gaming compliance field, plays a central role in building and maintaining that consumer confidence in legal gaming. BMM points out it offers a partnership with all the key industry groups—regulators, equipment and content suppliers and operators—so that all the parties can reach that common goal. BMM says its technical expertise enables the company to offer advice as well as a listening ear to the industry and to regulators.
Partnership and cooperation between the industry groups is vital, but ultimately the test of effective regulation is that such regulation is mandatory for all parties in the jurisdiction in question and across jurisdictions, and that it is enforceable if necessary.
Given the volumes of cash and virtual cash involved in gaming, in the form for example of gambling chips or ticketed access, there will always be someone attempting to manipulate the system in some way. It’s only through regulatory safeguards that the risk of these activities is minimised and where fraud is happening it can be quickly detected and dealt with.
Choices
One traditional route for monitoring and regulation was for governments and regulators to do it all ‘in house’ by having their own laboratories for equipment testing.
But unless the jurisdiction concerned is a huge market, it’s unlikely to be cost effective to maintain a dedicated lab with specialist personnel and equipment. The globalisation of trade also means operators are seeking to use more equipment from further afield than ever before. ‘In house’ labs could find themselves having to stock testing equipment or utilise testing methods for every known product on the market.
These are factors that make indispensible the role of a global compliance company with its experience of a wide range of equipment in a wide range of markets, says BMM.
Many governments and/or regulators that used to maintain their own test labs found the policy was not sustainable and consequently outsourced the function to commercial independent test labs, adds BMM. So what makes gaming test labs different to other test labs that operate in other industries?
High standards
BMM suggests it relates to the test lab licensing conditions, developed in partnership between the compliance sector and the regulators and gaming industry. These conditions emphasise: continuing probity and objectivity; the highest operating standards; thorough performance reviews as well as precision in defining the scope of work undertaken and the levels of technical expertise expected. BMM says when those conditions are combined, they provide a compelling offer that meets the needs of all participants in the industry.
By applying these agreed terms when going about its work, and by gaining experience of diverse markets, BMM and its test labs have built considerable expertise and knowledge about the technologies and systems that are used in gambling and gaming, says the company. This expertise can be called upon by interested parties for purposes other than compliance.
An example is that if an operator wants to do some in-house assurance testing on products it is interested in using on the casino floor, it can actually ‘outsource’ that testing to BMM Compliance. The potential benefits of such a strategy include increased quality of the in-house tests; a reduction in the time needed to bring the product to market; and a reduction in overall testing costs. BMM stresses that such outsourcing does not create a conflict of interest or compromise the final compliance process, because of its contractual commitment to probity and to the highest technical standards. That compact is with the regulator as well as the industry.
Outstanding offer
BMM says its ability to work with its customers in providing these additional services, distinguishes it from other test labs.
“We try to differentiate ourselves in the market with the services we provide,” says Peter Turner, Managing Director, Australia Asia Pacific for BMM Compliance. BMM adds that a number of what it describes as significant emerging gaming machine manufacturers in Asia are already taking advantage of BMM’s full range of services.
These include:
BMM Delta Report
If you have a gaming product that you want certified in a regulated market, BMM can perform an initial ‘gap review’ followed by a Delta Report. The term ‘gap’ refers to the difference between one jurisdiction’s requirements and another. For example, in the case where a product has already been certified or cleared for use in Jurisdiction A, there may still be some issues to clarify in Jurisdiction B. That difference is the ‘gap’. On the basis of that gap review, BMM provides a Delta Report, so named from the ancient Greek letter ‘Δ’ which in modern maths and physics is used to denote change or difference. The Delta Report outlines the potential issues that would need to be addressed for the product, system or component to become certified under one or more of the gaming standards used around the world.
BMM System Interoperability Testing
This can be done on-site or in BMM’s test labs. A considerable amount of interoperability testing may be required in those cases where discrete technologies and systems are required to interact on the casino floor or back of house.
This testing requires detailed knowledge of both the gaming machines and the systems, says BMM. The company stresses it has this necessary know-how, ensuring operators are not left with poorly performing equipment or systems. A key element in achieving this outcome is that interoperability testing is fair and transparent, ensuring the different participants are clear about their responsibilities, adds BMM. This avoids the sort of circular situation where a gaming machine manufacturer ends up blaming a systems provider, and the systems provider in turn points a finger at the manufacturer. In such a pass-the-parcel situation, the regulator and operator can easily end up losing confidence in the suppliers and therefore in the integrity of the technical structure they have created in that jurisdiction.
BMM General Testing Services
BMM’s general testing services include coverage of: slot machines and games; electronic table games; slot management systems (SMS); casino management systems (CMS); jackpot systems; wagering systems, lottery and keno systems, and loyalty systems.
BMM says it can perform full pre-compliance, assurance and user acceptance testing services on any commercial product. These services can cover the full testing phase or be a supplement to the operator’s in-house testing team.
The company says many of its customers have benefited greatly from these services in cases where they have previously incurred high in-house testing costs. BMM’s general testing services can be combined with BMM’s compliance testing services to provide an especially robust analysis of the quality and suitability of gaming machines and systems.
BMM Compliance Testing and Certification Services
BMM says it offers this service under licence to the various regulated gaming jurisdictions around the world. These certifications are required for gaming machines or systems to be accepted by the various regulators for commercial sale in the various jurisdictions.
BMM Advice Services
BMM says it utilises its wide experience in different markets to offer advice services as a distinct product to regulators, manufacturers, suppliers and operators. These services relate to jurisdictional standards and testing processes, methodologies and metrics.
Overview
Gaming compliance covers a huge range of topics. BMM says the common factor is that effective compliance and testing is integral to the success of the industry at every stage of market maturity and within every function. In that sense compliance and testing can be viewed not as costs but as opportunities to support consumers, build margins for operators, maintain and enhance gaming’s contribution to society through taxation and ultimately to maintain confidence in the system. Without that confidence it’s hard, if not impossible, for the gaming industry to function and ultimately to prosper for the benefit of all.
