ESI Integrity Inc. Independent Monitoring of Wagering Systems

Transcription

1 ESI Integrity Inc. Independent Monitoring of Wagering Systems

2 ESI Integrity Inc. - Background ESI Integrity Inc. is the leading supplier of trusted software for the regulation of gaming Markets: Government Lotteries Pari-mutuel Wagering Regulation of Internet Wagering Monitoring of Sports Betting Online Account Monitoring Monitoring of Slots/VLT s Central Wagering Information Systems

3 ESI Integrity - Background ESI currently monitors upwards of $20 billion/year in wagering in real-time ESI supports customers worldwide in North and South America, Europe, Asia, and Africa ESI monitors >99% of all pari-mutuel wagering in Canada ESI monitors all pari-mutuel wagering in Florida, plus SGI s hubs, plus NYRA

4 Policing of Wagering Systems Fundamental Issue: Is the wagering system behaving the way it is supposed to? Does it follow the rules specified for the wagering activity? Does it refute fraudulent activity?

5 Policing of Wagering Systems How do you ensure that the wagering system is behaving the way it is supposed to? In general there are two approaches: Test and Freeze Continuous monitoring Most gaming uses some combination of the two approaches.

6 Test and Freeze Typically an independent agency tests the wagering system against a specification that stipulates what is correct behavior Once it has passed such tests, the version of the system is that was tested is frozen and cannot be changed or replaced without retesting Difficulties: Its hard to specify all correct behaviors at the outset Its hard to design a complete set of tests that will guarantee that the wagering system will behave correctly in all cases.

7 Continuous Monitoring Systems A continuous monitoring system will connect to a wagering system and monitor that is behaving correctly on an ongoing basis. Typically this works in real-time Alerts are raised if incorrect behavior is detected Monitoring system must be independent of the wagering system

8 What s a Monitoring System? Most forms of gaming require some form of Monitoring System: Lotteries: Independent Control System (ICS) Slot/VLT machines: Central Monitoring System Sports Betting Risk Management System Monitoring Systems are typically required by (and often operated by) the gaming regulator.

9 What does a Monitoring System do? The Monitoring System will: independently process all transactions that the gaming system processes independently check that game rules are respected independently determines winners, payout amounts, liabilities, etc. for comparison with the gaming system independently audit the wagering data for tax and take-out amounts maintain an independent data base of all wagering data for audit and investigative purposes

10 Pari-Mutuel Monitoring Systems First deployment: Canadian Pari-Mutuel Agency Initial Pilot Project at Hastings Park in 2000 Now in full operational use for all Canadian tote hubs (SG, United Tote, Amtote) Scientific Games Integrity licenses for all SG US Hubs purchased after 2002 Breeder s Cup Florida Division of Pari-Mutuel Wagering Contracted with ESI in early 2004; included 3 Monitoring Systems plus a Central database that consolidates all wagering information. Currently in full operation. United Tote for NYRA Initially deployed in Nov 2004; now being moved to NYRWB offices

11 Example: Florida Div. of Pari-Mutuel Wagering Tallahassee Office ` Tote Hub 3 Monitoring Systems + Central Data Base Tote Hub Tote Hub Miami Data Center

12 RCI Integrity Services: A National Monitoring Centre National Office with Compliance Officers West Data Center East Data Center

13 Partners Assoc. of Racing Commissioners Int l Representative of regulatory authorities ESI Integrity Inc. Leading supplier of continuous monitoring technology to gaming regulators MTI Monitor Technology Inc Leading technology for transactional pattern analysis and adaptive learning

14 Monitor at National Office Ticket Issuing Machines Self Serve Betting Terminal Guest Tote System Pool Participant Telephone Account Betting Racetracks or Theatres Monitoring System Tote Hub Host Tote System East Data Center

15 Ticket Issuing Machines Racetracks or Theatres Self Serve Betting Terminal A copy of each transaction is sent to the Monitoring System immediately after it is processed by the Tote System. Host Tote System All Transactions Guest Tote System Pool Participant Monitoring System is connected to Tote via a secure encrypted network link wager Monitoring System Telephone Account Betting Monitor at National Office

16 Bet! Ticket Issuing Machines Racetracks or Theatres Self Serve Betting Terminal Guest Tote System Pool Participant Telephone Account Betting Example: Place a wager at a TIM Bet Transaction Host Tote System Bet Transaction All Transactions Monitor at National Office Monitoring System

17 Import Ticket Issuing Machines Self Serve Betting Terminal Guest Tote System Pool Participant Telephone Account Betting Racetracks or Theatres Import Transaction Example: Import received from a Guest Tote Host Tote System Import Transaction All Transactions Monitor at National Office Monitoring System

18 Ticket Issuing Machines Close Betting Racetracks or Theatres Self Serve Betting Terminal Betting Closed Transaction Host Tote System All Transactions Guest Tote System Pool Participant Calculate Pay out Prices... Compare Results Monitoring System Telephone Account Betting Prices Confirmed! Monitor at National Office

19 Ticket Issuing Machines Race Results In... Racetracks or Theatres Self Serve Betting Terminal Race Results Transaction Host Tote System All Transactions Guest Tote System Pool Participant Final Payout Prices Confirmed Compare Results Monitoring System Telephone Account Betting Winning Ticket Selection Monitor at National Office

20 Bet Ticket Issuing Machines Racetracks or Theatres Self Serve Betting Terminal ALERT! Guest Tote System Telephone Account Betting Pool Participant Bet received after Betting Closed Example: Past-Posted Wager accepted by Tote. Bet Transaction Host Tote System Bet Transaction All Transactions Monitor at National Office Monitoring System

21 Ticket Issuing Machines Racetracks or Theatres Self Serve Betting Terminal Exception Reports Guest Tote System Pool Participant Telephone Account Betting Transaction Reports Monitoring System Provides a variety of tools and reports. Odds Progression Race/Daily Summaries Host Tote System Compare Results All Transactions Monitor at National Office Monitoring System Race Calculations Liabilities

22 Main Alert Screen Status of Tracks, Cards and Races being monitored Alert Window

23 Odds Monitor: Graph of Payout Price prior and after Betting Close Betting Closed

24 MTI technology Uncovering cases of wagering fraud and money laundering in a sea of transactional data is hard and labor intensive Detecting security risks has become an increasingly complex process in recent years. Threats to wagering security is a real and present danger. Automation to quickly and accurately detect wagering security risks are required in order to meet regulatory requirements.

25 MonitorPlus is an Overlay system on top of ESI Integrity Regulators and law enforcement MonitorPlus powered by Detect R technology ESI Integrity Human activity Heuristics, Pattern detection, Analytic software, Alerts Rights management, Security Database Totes Integration

26 RCI Integrity Services Inc. RCI Integrity Services Inc. is proposed to be an independent USregistered corporation focused on the provision of services to monitor the wagering activities of U.S. regulated pari-mutuel race tracks. The Mission of RCI Integrity Services: to provide services to the pari-mutuel racing industry to ensure the integrity of wagering activity in the USA.

27 The Mission To achieve this goal, RCI Integrity Services Inc. will: Operate as a third-party compliance organization stewarded by the US State Regulators of pari-mutuel wagering and recognized by track operators as a trusted independent regulatory service provider Provide real-time regulatory monitoring services for all wagering activities for the regulated U.S. pari-mutuel industry Provide an independent audit service for the proceeds of pari-mutuel wagering Working in concert with State Regulators, provide Compliance Officers who will recognize and provide a coordinated response to all wagering discrepancies detected Define and implement tracking and escalation procedures that ensure a coordinated response to wagering discrepancies

28 Customers Launch customers: Youbet Scientific Games Within 6 months, >50% of pari-mutuel wagering in the US will be continuously monitored Model Rules: require independent monitoring 03 Guiliani Report: recommends continuous monitoring

29 ESI Integrity Inc. Trusted Software for Gaming Thank you!