Inside Asian Gaming

INSIDE ASIAN GAMING | October 2008 28 Compliance This potential clean slate advantage of newly developing gaming jurisdictions is also evident on technical compliance issues such as standards for an emerging technology like server-based gaming. “As a compliance organisationwe cannot predict what a particular jurisdiction may do with development of standards for server- based technology,” explains Ms Thomson. Given that server-based technology is still being developed, individual operators may seek to apply different versions of the technology on a market-by-market or even property-by-property basis. So-called ‘thin’ server-based systems will typically have a random number generator (RNG) located remotely and feeding game data to individual game cabinets. ‘Thick’ systems may involve an RNG function being retained at the level of the individual game cabinet. It will then be up to jurisdictions to decide how they want to regulate those preferred technological solutions. “Server-based gaming systems offer fresh compliance challenges compared to traditional casino management systems,” states Ms Thomson. “Management systems don’t always have defined standards, but then they’re not generating the outcome of an event, whereas server-based gaming is,” she says. “With the introduction of new technologies such as server-based gaming and other specialised systems, plus the arrival of new manufacturers in the markets, interoperability will become more and more integrated into the strategic thinking of operators and suppliers and more and more interwoven with the function of technical compliance.” New Regime Macau’s much-anticipated regulatory framework for gaming technology will focus attention on the work of BMM and other players in the compliance sector Macau is expected to issue its own gaming compliance regulations within the next year to 18 months. Until then, the DICJ, the territory’s gaming regulator, has taken the common-sense approach of using the best regulation and practice from other markets as a default standard. Broadly speaking, if a gaming machine has been passed in a Tier 1 gaming jurisdiction such as Nevada in the United States or New South Wales in Australia, then it will be accepted in Macau. As with any generalisation, there are exceptions. The Macau authorities reserve the right to make observations or request adjustments to equipment as they see fit. Many commentators have assumed that when Macau eventually issues its regulations, they will reflect best practice in Tier 1 markets, but be ‘tweaked’ for the needs of the local community and local market. A similar approach is expected of Singapore. Both these Asian jurisdictions have reportedly sent officials to Nevada to observe the work of the Nevada Gaming Commission. Asia’s Las Vegas? A market view that Macau and Singapore’s regulatory systems are essentially going to be either clones of western systems or an amalgam of them is a persuasive narrative, particularly for Westerners with knowledge of mature gaming markets. This is because it makes sense to benefit from the hard-earned experience of those jurisdictions. There’s also a tendency in the West to view Asians as copiers rather than creators. This applies especially to the design and content portions of a number of industries, ranging from fashion to consumer durables. The phrase ‘Asia’s Las Vegas’, as trademarked by US operator Las Vegas Sands Corporation for its Macau operations, could arguably be seen as reinforcing this view. There is, though, an important area of gaming operations where Asian jurisdictions are just as likely to be setting international standards as following those of others. “All jurisdictions will need to think about standards for server based gaming, but it’s certainly possible that jurisdictions such as Macau and Singapore will take as important a role in developing standards as more established markets,” comments Jenny Thomson of BMM Compliance.