PGRI INTERVIEWS How has (or hasn’t) the pandemic changed the future of recreational gaming? Ian Hughes, Chief Commercial Officer, GLI (Gaming Laboratories International)

PGRI Introduction: 2021 is shaping up to be a landmark as prudent shepherds of limited resources, year for regulatory and policy changes impacting the gaming everyone wants to maximize ROI. They industry. States budgets are stretched, and funding for good need to understand how the life-cycles of technology are evolving. Where will causes is needed more than ever. State lottery operators have advancements come from; what areas of performed well in this time of crisis, fulfilling their obligations the IT infrastructure are less likely to be to generate funds to support good causes that serve society. replaced by new inventions and technologi- Lotteries have the tools, the trusted brand, the highest cal innovation? Conversely, what areas are standards for Responsible Gaming, the distribution network, poised for change that will render the and the operational infrastructure and expertise along with the current technologies obsolete before their ROI time-lines have reached maturity? real-world experience to be the operator of choice as policy- How do we manage the whole investment makers assess the different pathways to regulate games-of- process to meet short-term needs and also be chance. And consumers continue to want safety, convenience, flexible to evolve with the times? These are and more ways to engage. the issues that preoccupy us at GLI. Since 1989, GLI has been the industry’s trusted advisor in There are no easy answers to these questions. all forms of gaming technology, including iLottery, iGaming, GLI has built its business and its reputa- tion on the foundational principle that it is and sports betting. GLI assists regulators, manufacturers, about merging the needs of the real-world suppliers, and operators to successfully navigate the exciting market-place with the science. We have world of land-based and online gaming and all its spaces – from the beginning been immersed in the iGaming, sports betting, iLottery, Esports, proxy gaming, live business of understanding in granular detail dealer gaming, social gaming, casino gaming, and more. how the technology of games and gaming IT platforms work. Our clients asked us to leverage this special vantage to provide a Paul Jason: GLI has always expanded in our current services and operations. GLI’s comprehensive range of consultative support a conservative way, ensuring that they original business focused on testing and services and so that is what we have done. are always best at whatever service ensuring that equipment and technology The core of our philosophy is that every they rendered for clients. How are GLI’s performed as intended, and as specifica- service we provide be a core-competency. capabilities being leveraged to help its tions claimed it does and as regulators and Each product, capability, and service is clients prepare for a future that is not only contracts require them to. Over the years, integrated into the GLI portfolio with the uncertain, but rushing at us in warp- though, the range of technical and security same attention to excellence as testing and speed? issues surrounding the operation of electron- forensic auditing was more than thirty years Ian Hughes: The GLI culture, engendered ic gaming machines and the IT platforms ago. We must all work together to preserve from the very beginning by co-founder and that support the whole gaming ecosystem the integrity and security of this industry, CEO James Maida, has always been about have expanded. The need to integrate best- and modernize its IT infrastructure for the the science and delivering superlative service in-class solutions from multiple service and next generation of players. The healthy to our clients and excellence at everything hardware suppliers increased the complexity long-term sustainability of the gaming we do. That is much more important than of the challenge to future-proof the business. industry depends on it. expansion and financial growth. To that Operators want to invest in the technology How have the technical issues and the end, we always want to make sure that the that will support their operations into the requests for guidance from changed over addition of new business units complements future, that ensure security and reliability the last nine months? and augments, and does not distract from, and meet the needs of their customers. And

28 PUBLIC GAMING INTERNATIONAL • JANUARY/FEBRUARY 2021 I. Hughes: I don’t know if anyone thought procedures that support the implementation COVID19 would last as long as it has, and of the new technology tools that address of course we are still dealing with it. Th e these next generation issues. And in addition short-term need was for contactless transac- to testing new products and solutions, GLI tions and guidelines and tools to enable functions as an information hub to support players and operators to continue to interact the entire industry and accelerate develop- in social environments. GLI was tasked with ment of technological solutions. NAVIGATING fi guring out how to create the testing tools Th e industry was perplexed last March about THE FUTURE and systems that will keep players and staff how much should be invested in solutions OF GAMING safe while engaging in recreational gaming. that address what we hoped would be a Th e business of sanitizing everything on short-term problem. Now, while we do not a regular basis would seem to be rather While having long been know how priorities might change when the the standard-bearer of the low-tech. Technical solutions, though, can concern over the pandemic is mitigated, we help to fl ag the frequency of machine play gaming industry’s testing and expect much of these changes to be seen for certifi cation services, Gaming or when a player leaves a specifi c game and what they are – improvements and enhance- the timing for when the equipment should Laboratories International ments that will stay in place and contribute ® be cleaned. Digital wallets, ePayments and (GLI ) offers a comprehensive to the long-term sustainable growth of the range of services and IT tools other digital tools enable us to get away from gaming industry. the unsanitary currency of cash. Many of for regulators, suppliers and these trends were in place already. But what You point out that much of the technologi- operators, including … cal solutions brought to bear over the last may have taken three or four years to reach Q Forensics: Precise forensics mass-market acceptance is now getting there ten months were already in the pipeline and ready to launch. But wasn’t there a to protect the operator, in three or four months. Fintech (Financial regulator, and the player. Technology) has burst onto the scene as a bottle-neck when it came to the testing whole new sector poised for radical innova- and vetting of these next gen’ products and Q Responsible Gaming: tion and rapid penetration of the market solutions? RG initiatives are essential for fi nancial management and transactions. I. Hughes: GLI works with manufactur- to maintaining public trust Th is rapid adoption of new technology and ers and regulators on an ongoing basis, and the cornerstone to the tools does create a pressing need for testing to typically in the development phase and continued success of the ensure all systems are performing as desired defi nitely in the beta stages of readying a gaming industry. and intended. GLI is investing heavily in the product for the market. It’s true that the Q GLI University: Helping business of testing these new products and work-load has been more intense over the regulators keep as up-to- helping everyone understand how to integrate last year, but it’s not as if we were starting date as possible in new them into existing IT and gaming infra- from ground zero. iGaming, iLottery, technologies. structures. We are also helping regulators sports betting, mobile-centric gaming understand the implications of innovation and initiatives that appear to be new have Q iGaming: Pioneers in in Fintech for anti-money-laundering and been on the front-burner for years now. interactive gaming testing Responsible Gaming objectives. Further So while we did not predict anything like and consultancy. to that, GLI is assisting the community of the COVID19, we were ready. Along with commercial manufacturers and suppliers manufacturers and commercial technology Q Professional Services: in their quest to develop the products and providers, GLI responded quickly to deliver Your global resource for services that prevent fraud and criminality, solutions that met the short-term needs complete and thorough and protect the players from harmful behav- caused by the pandemic. And many of business solutions. iours. We are advising gaming operators in those solutions are making us better as an Q Field Inspection: Identify the building of process and internal control industry. Continued on page 49 threats and reduce risk before it's too late.

The willingness and ability of the Q Consulting: Services for consumer to experiment with other existing and emerging brands will make the cost of new player jurisdictions worldwide. Q Research & Development: acquisition go down. But it will also Helping you identify opportunities for growth and make it more challenging than ever to enhanced quality. retain repeat player-ship. Visit gaminglabs.com

PUBLIC GAMING INTERNATIONAL • JANUARY/FEBRUARY 2021 29 Ian Hughes, continued from page 29

One aspect of this picture is that modern the future, we are always doing everything and such to be easily ported over from technology is agile technology which is we can to prepare ourselves and our clients personal identification tokens or digital provisioned with the functionality to be for whatever may come. It is our business wallets. Of course, there are strict rules like compatible with industry-wide standards. to understand not only where the recre- the BSA (Bank Secrecy Act) that protect the Much of the existing infrastructure, and ational gaming industry is heading, but confidentiality of personal information. the products and component parts of where the entertainment and all consumer- So it is not a matter of giving up a measure that infrastructure, continues to deliver facing industries are going, and the way of security in order to enable more efficiency. the functionality required by the modern technology is evolving to enable progress Instead, it is a matter of finding technologi- player and market-place. The challenge is wherever that may be. How exactly will the cal solutions that allow you to preserve the to integrate new technology, new products, explosion of streaming services be applied highest level of security while also making new technological solutions, into a system to the gaming industry? What will be the it more efficient and easy for the user that is based on legacy platforms and tech- technological and security inflexion points? experience. Amazon and others may lead nology. GLI’s more recent focus is not so A few years ago, manufacturers were the way and then it is up to us to transfer much on the individual technology pieces as moving away from creating all their own the technological and process solutions and on how those pieces fit together to produce gaming machines and instead using third apply additional standards appropriate for a fully integrated operational platform and a party game engine developers who in turn the games-of-chance industry. seamless, friction-free player experience. were innovating with new concepts like What are some other issues that GLI and For instance, player identification is a subscription games. How does that work and what will the regulatory issues be like? operators that are new to iLottery will be key component to Loyalty Programs and facing over the coming months? Players Clubs. The technological tools and Manufacturers and regulators also bring standards that ensure security and integrity ideas and trends to our attention so we can I. Hughes: I think we are starting to see for Loyalty Programs are not the same as get a jump on the whole process of research- an expansion in the number of game those required for cashless transactions that ing, testing, identifying the issues, and content and service and platform providers involve not just loyalty reward points but engaging in the multiple iterations involved supporting the iLottery industry. More actual funds. New technological tools needed to launch a product into the market. companies that occupy space in the supply needed to be integrated into the existing player-account systems to enhance player There used to be a handful of identification and transaction security. That is no small task that required the col- recreational gaming options – mainly laboration of operator and multiple manu- facturers and technology providers along lottery and casinos. Now there are new with the assistance of GLI. We harvested games and channels of distribution testing best-practices and methods from other industries, including cross-pollina- and devices that deliver access to new tion from multiple sectors of the games- of-chance industry; and we facilitated the game categories popping up every day. regulators’ inspections which had always been done in the field and were now being conducted in video-conferenced sessions. At the same time, we are all stretching to Is there a trade-off between the number chain between the lottery operator and make the process of player identification of steps and the length of time of it takes the customer means more complexity, and more automated. Reducing the number of for the player to register and the level of a widening diversity of integration and steps and increasing the portability of data security that you’re able to preserve? security issues that in turn create more regulatory compliance issues. There are across multiple devices and even platforms, I. Hughes: It is well-known that every extra state laws, there are federal laws, and there creates an easier, faster, and more convenient step to the registration process can lose 30% player experience. are the higher standards that state lottery or more of your new registrations. They operators want abide because they know Every operator has its own unique way of simply won’t take the time to go the extra it is important to preserve the reputation integrating its technology partners into its step and just leave the website. That is why for integrity and security. GLI can help to enterprise-wide IT management system. Amazon’s one-click ordering and attention navigate this hierarchy of priorities, integrate So, operators all have different pathways to to making the consumer experience as easy the multiple pieces that ensure security and meet the functionality standards required by as possible is so essential to its success as an integrity, and advise on how to install the regulators. There is no universal system of online vendor. Additional steps do enable technological infrastructure that delivers an internal controls and methods to audit the an increase in security. But that does not efficient and effective solution. process. GLI assists operators in applying mean that fewer steps are necessarily less the most efficient and effective way to meet secure. Operators and technology providers What inflection points should operators the new regulatory requirements. are working together to enable personal and manufacturers be thinking about going information like drivers’ license numbers forward? Since we do not have a crystal ball to predict Continued on next page PUBLIC GAMING INTERNATIONAL • JANUARY/FEBRUARY 2021 49 I. Hughes: Most of the basic corner- space is that digital connectivity creates brand and your games, they are still going stones to success in this industry are not additional layers of vulnerability and the to try other brands. The willingness and changing. For instance, the determination methods of cyber-crime are constantly ability of the consumer to experiment with of who operates the games and how they changing. That makes preservation of other brands will make the cost of new are regulated has always had a critical security and integrity a dynamic and never- player acquisition go down. But it will bearing on the success of the operator’s ending initiative. also make it more challenging than ever to business model. In the realm of things Fundamental to success has always been retain repeat player-ship. we can’t necessarily control but need to and continues to be to create the best Amplifying that challenge will be the understand are regulatory issues that can player experience. Content is king but further fragmentation of the recre- make or break huge swaths of the gaming the new inflexion point that operators are ational gaming market. There used to be market-place for the operator. GLI’s core thinking about is how the overall player a handful of network TV stations. Now competency has always been to assist experience functions as an ecosystem that there are hundreds of channels the average regulators and manufacturers in their includes more than the game itself. The consumer can tune into. Likewise, there efforts to ensure compliance and deliver whole experience from when you first used to be a handful of recreational gaming a gaming experience aligned with public enter the ecosystem, maybe by seeing an options – mainly lottery and casinos. policy objectives as defined by legislative ad’ somewhere or a link on social media, Now there are new games and channels of and regulatory statutes. To that end, we to logging on and accessing the games to distribution and devices that deliver access make it our business to understand the checking your account, to the responsible to new game categories popping up every legislative process, the values and priorities gaming and marcomm’ messages you day. The key success-driver going forward of shapers of public policy, and the ways receive … if everything is fun, easy, will be continuous ongoing improvement those are being translated into new laws convenient, intuitive, then you will want to to retain player-ship. Delivering the best that define our industry. come back and play again. And that brings games within the most positive overall Security and integrity have always been us to another forward-leaning challenge: player experience will be more mission- mission-critical. Without that, you have brand loyalty is much more fleeting than critical than ever. Q no players. The new inflexion point in this ever. Even when the consumer loves your

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