Provisioning gaming services in france with continent 8 technologies white paper

Don’t let the regulatory challenges put you off

your game

Provisioning Gaming Services in France

with Continent 8 Technologies

Isle of Man | London | France | Malta | Singapore | Kahnawake

2010

Continent 8 Technologies provides state-of-the-art co-location and managed hosting services to the online gaming industry. Our customers benefi t from our continued investment in advanced data centres, high quality networks and online technologies. Continent 8 has multiple centres of excellence around the world including Isle of Man, France, Malta, Singapore and Kahnawake and provides truly global service capability to our clients regardless of geography.

Overview

This white paper discusses the recent regulation of online gaming in France and its implications for gaming operators. As a leading provider of managed hosting and associated services to the global gaming industry, Continent 8 Technologies delivers best-in-class hosting solutions across multiple geographies to support the ever-increasing regulatory challenges as our industry matures.

Having already established several gaming provider environments in France for our customers, Continent 8 can provide your organisation with a viable and timely entry into the gaming market in France.

New French Gaming Legislation came into force in April 2010

The law legalising online gambling in France was introduced in April 2010, as result the French Agency for Online Gaming Regulation, l’Autorité de régulation des jeux en ligne (ARJEL), was formed in order to ensure compliance and to oversee the industry. The opening up of the French online gaming industry has led to a surge of gaming service providers preparing to enter the market in order to achieve fi rst mover success in what is estimated to be a €1.2 Billion market. France is imposing stringent regulations for providers by introducing complex gaming compliance requirements (regulated by ARJEL) that will help it not only monitor and protect end customers, but also introduce controls that aid the taxation of gaming.

For gaming operators, the regulatory framework managed by ARJEL represents a huge challenge, not only in terms of implementation and management but also for speed to market. It is no secret that being a fi rst mover in this and subsequent new markets is of immense value to those providers who achieve it.

It is likely that late arrivals to the market will face increased

costs in terms of marketing and customer acquisition as they compete with providers already established in the marketplace

The benefi ts of entering the French market early include:

Taking part in a new market that carries with it fi rst • mover advantage

Establishing loyal customer bases due to the newly • introduced extensive compliance and regulatory framework

Capitalising on the wave of publicity associated with • the introduction of ARJEL

Gaining early expertise and the ability to move • quickly with respect to other markets which introduce frameworks similar to ARJEL

For more information about ARJEL and the French e-gaming legislation please visit:

www.arjel.fr

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What are the requirements set out by ARJEL?

In essence, the new regulations comprise a number of aspects that providers or operators will need to comply with in order to receive and maintain a license for their chosen game verticals e.g. Poker, Horse Racing and Sports Betting. Some of these elements are shown below in Fig 1.

Outline of ARJEL’S Role and Mission

The ARJEL is the Independent Administrative Authority (IAA) set up as part of the French Online Gaming regulation No. 2010-476 of 12 May 2010.

Taking into account the European Union’s directive on online gaming and the individual countries interpretation, France has opted for a new type of regulation in Europe with the formation of a legislative system which seeks to ensure:

protection of players and vulnerable section of the • population

safety and fairness of the gaming sites through the • supervision of gaming activities and the recognition to operate benefi ting organisers of sporting events

prevention of fraud (illegal sites in particular) and • money laundering

preservation of tax resources: levy on bets • redistributed, in part, to horse racing and sporting events

The online gaming market which opened to competition concerns three distinct sectors:

horse race betting•

sports betting•

games of skill (poker)•

The ARJEL is central to the regulation designed to serve the objectives of the government in terms of gaming laws and regulations.

ARJEL’S Mission

The ARJEL’s mission is to:

issue licenses and ensure compliance by operators•

protect vulnerable populations, fi ght against • addiction

ensure the safety and fairness of the gaming • operations

fi ght against illegal sites•

fi ght against fraud and money laundering•

(Translated from the ARJEL website - http://www.arjel.fr/-Role-et-missions-.html)

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Gaming OperatorRequirement

ARJEL Governance Role

Implication for Operators

Obtain and maintain licenseLicense Operators in the French

JurisdictionFulfi ll all the criteria set out in

the gaming laws

Separate licenses required for each game vertical

Monitor and capture activities of providers and end users

Maintain each license as per the requirement

Must operate .fr from within jurisdiction

Control and audit usage to ensure compliance

Establish .fr and front end in France

Implement controls and suitable compliance technology

Protect and serve best interest of citizens and gov

Implement required digital authentication, capture and data archiving technology

Fig 1. Requirements set out by ARJEL

As an operator, what are your options?

The key to entering and expanding your presence in highly regulated jurisdictions is all about the ability to adapt and manage your portfolio to suit the various trends and requirements within each market. As an example, in the case of France and ARJEL, operators will be expected to implement advanced technological and organisational controls that will allow ARJEL to audit, monitor and control all gaming activity within France. Furthermore, once ARJEL has granted a license (multiple licenses may be required depending on gaming portfolio), the burden and cost of ongoing compliance will rest solely with the operator. This ongoing burden and expenditure raises other important issues for operators, such as how do you, as an operator, manage and quantify the potential risk versus the expected return.

Putting aside the questions of market sizing and risk reward, there are a number of approaches that can help operators establish jurisdictional compliance as follows:

Investing in new technologies and expanding 1. organisational footprints in order to manage the additional compliance requirements for the new markets

Partnering with multiple service providers in each 2. jurisdiction offering distinct solutions that serve that target market along with any regulatory requirements

Alternatively Partner with a global partner such as Continent 8, who has established regional capabilities in multiple global jurisdictions that can serve both global and local providers alike in their chosen target markets

By establishing the ability to operate effi ciently in terms of technology management and organisational fl exibility, operators can retain the competitive edge while reducing complexities associated with rapid growth and over-burdening of resources. In the case of ARJEL type environments, providers will need to be able to handle multiple markets, each having their own requirements going forward. It is therefore essential that you choose a hosting partner who can deliver solutions created specifi cally for your industry across multiple jurisdictions. Today Continent 8 is the only global hosting partner with over ten years experience working exclusively within the gaming sector.

“We are thrilled by this strategic partnership as we aim at becoming the number 1 data centre for online gaming operators in France. Continent 8’s extensive knowledge of the online gaming

market and its technical expertise of online gaming hosting combined with our connectivity, security and business continuity

expertise, makes our partnership one of the best options for online gaming operators wishing to enter the French market.”

Gilles PecqueronCommunication and Marketing Manager

Telehouse France

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Continent 8 Technologies’ capabilities in the French market

In order to meet the challenge faced by operators entering the French market, Continent 8 has established a strategic and exclusive partnership with Telehouse France allowing us to offer a turnkey solution to address all technological requirements as set out by ARJEL. In addition to our existing global centres of excellence, this newly formed partnership has allowed Continent 8 to add a hosting facility in Paris to our global portfolio. In order to meet the requirements of the new gaming regulations, we have also established informal relationships with coffre forte (vault) solution providers which allows Continent 8 to provide a unique one stop capability to both existing and new customers. Continent 8 can provide the hosting solution regardless of which coffre forte provider you decide to work with. The success of our offering in Telehouse Magny has been attested to by the operator and network base already installed in this data centre. In addition this partnership extends the Continent 8 sales, marketing and administration capabilities through the creation of a close and effective working model.

The core of our strategy is based on providing our customers with the following:

Assistance in moving quickly into the French market • by providing physical location supported by the capability to provide a turnkey coffre forte (Vault) solution in conjunction with our partners

Access to our global private network that delivers • low latency connectivity through several Tier 1 IP transit options regardless of where your back-end infrastructure resides

Complete portfolio of co-location and managed • services to support gaming environments delivered on both local and global bases

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Network & Connectivity

Managed Services

Service Management

Knowledge & Resources

Facilities & Presence Coffre Forte

Fig 2. Capability Matrix

Multiple Options

.anywhere could be hosted in another licensed jurisdiction in Europe, including Continent 8’s established data centres in the

Isle of Man and Malta

Managed Services

Continent 8 provides an integrated suite of Managed Services that can meet the mission critical requirements of your online business. Customers can select from our complete portfolio of Managed Services including:

• Network Management• System Management

• Database Management• Monitoring• Backup Management

In addition, Continent 8 can offer services such as Distributed Denial of Service mitigation, Disaster Recovery and Content Delivery to help providers meet further requirements set out under the new online gaming laws in France.

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Professional Services

Global infrastructureand network

Fully Managed InfrastructureFull OS Management• System Performance Monitoring• System Patch Management•

Hosting and Network ManagementStrategically Situated Data Centres• Private Global Network• Bandwidth Management•

Application Services

Content Delivery Network• Application Performance Monitoring• Service Monitoring•

Data Base Management• Cluster Management• Storage Management•

Disaster Recovery

Backup & Recovery• System fail over• Tape & Media Management•

Co-location services• Contingency Services• Compliance Management•

Security

DDoS Protection Services• Managed Firewall•

Antivirus & Malware Protection• Intrusion Detection Services•

Infrastructure Deployment Services• Security Consulting and Reviews• Technology Migration Services• Solutions Architecture and Design•

Regulation Compliance Consulting• Contingency Planning Services• Compliance Management•

Co-locationPower• Redundant IP connectivity• Technical support•

Full or half rack•

Professional Services

Digital VaultAuthen�cate

CaptureMaintain

Archive

.fr Front EndHighly Available

Secured & ProtectedLocated in France

.fr Gaming CustomerLocated in France

.anywhere Front & Back End Gaming Provider

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2 3

4

59

7 8

Simplifi ed view of the Coffre Forte (vault) requirement

Fig 3. Coffre forte illustrated

Fig 4. Hosting Services Framework

Continent 8 Technologies’ Co-Location Facility in Telehouse 3

Overview. Telehouse France is the longest established provider of reliable and secure data centre facilities in France. The combination of over 18 years experience, fi nancial stability and ongoing investment in their facilities gives their clients ultimate reliability and business continuity. www.telehouse.net

The Telehouse 3 facility is a former European Aeronautic Defence and Space (EADS) military site located in Magny-les-Hameaux. It was originally constructed in the 1980s on a 65,000 square metres (16 acres) site and benefi ts from its legacy of providing outstanding physical security and rock solid construction. These attributes made it the perfect choice for the construction of Continent 8’s chosen data centre.

Location & Building. The site itself is located in the Île-de-France region, in the Chevreuse valley, 25 km to the South-West of central Paris. The site is located in a non-fl ood hazard area and is not located close to either nuclear facilities or airport fl ight path/approaches. Telehouse 3 consists of approximately 15,000 m² fl oor space (see diagram below) .

Rack Space. Continent 8 operates its own private suite facility within Telehouse 3 facility with additional capacity planned based on Continent 8’s requirements going forward. Up to 5 kVA per rack is available within the suite.

Power & Electricity. Power is supplied to site by two dedicated 15 MW lines originating from two separate EDF substations. In the case of a grid based power outage the site houses 6 generators of 2 MVA each (tested monthly). All the electrical equipment is a minimum of N+1 confi guration.

Communications & Connectivity. The Continent 8 facility in Telehouse 3 is fully interconnected back into our global network backbone (see “Fig. 6 – Continent 8 Network” on page 8). Continent 8 has dual redundant Gig-E paths between this facility and Telehouse 2 in central Paris and takes connectivity from a large number of Tier 1 and other carriers.

Environment & Fire. Fire safety system; Category-A fi re detection system with an automatic nitrogen extinguishing system.Air conditioning; 8 x 1,150 kW cooling units (N+1) and 105 kW air conditioning cabinets (N+1).

Security. Permanent multi-stage security protocols are implemented on site providing distinct levels of access dependant on role and requirement. Access is granted using both photo badge and biometric recognition systems. The complete facility is also monitored using 24 hour CCTV systems which include infrared capability.

Certifi cations. ISO 9001, ISO 27001 and ISO 14001

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Fig 5. Telehouse Magny Facility

Conclusion

Continent 8’s compliance management service provides your business with the ability to move quickly into new markets (such as France) by providing a compliance foundation from which to quickly adopt and utilise. Continent 8’s approach as a service and delivery partner ensures that you achieve early mover advantage and reliable hosting solutions as new markets open up.

Our goal is to build long term partnerships that provide our customers with the capability to compete in the online gaming industry’s highly competitive and regulated environments both now and in the future. Continent 8’s global network of data centres has been strategically located to serve our gaming industry partners. As an infl uential presence in the industry we continuously work to share our experience and knowledge as part of the services we deliver which truly differentiates us from our more generic competitors.

Call Continent 8 Technologies today to learn more and to fi nd out how we can keep you at the top of your game!

Contact Information

For further information or to contact our sales team please email:

[email protected]

Fig 6. Continent 8 Network

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Continent 8 Technologies global network

C8 Co-location Centre

C8 Peering Point

www.continent8.com

Continent 8 House | Pulrose Road | Douglas | IM2 1AL | Isle of ManTel. +44 1264 678 888 | Fax. +44 1624 679 888