Fair game – the importance of test labs
An industry that must be spotless
Fairness is the number one priority for casino games. Casinos must be above reproach or suspicion when it comes to providing a fair and genuine gaming experience for their customers. What’s more they need to be seen to be above reproach or suspicion. Additionally, they need to prove to regulators that they operate a fit and proper business.
How do they do this?
This is where test labs come in. And in the UK the test lab needs to be approved by the Gambling Commission (UKGC). Two of the most commonly used testing laboratories used internationally today are Gaming Laboratory International (GLI) and BMM. However, some regions utilise a specific gaming lab from their jurisdiction.
With millions of people enjoying the excitement of casino games, it’s crucial that each game is not only fair, but also random and free of any possible manipulation – such as providing the casino with any kind of advantage. Therefore, independent test labs work to ensure games are not rigged, meaning players can play with confidence while industry integrity remains high.
Today, we are going to look at iGaming test labs, find out more about the benefits they provide, some historical cases involving unethical behaviour, how the labs operate and more.
Historical cases of fraud by casinos
It’s probably no surprise that there is a history of scandals in the world of gambling. One of the most famous cases involved Ultimate Bet and Russ Hamilton, a once distinguished American poker player, who cheated thousands of players out of over $50 million.
Investigators from the Kahnawake Gaming Commission in Canada discovered a “God Mode” feature, in which Hamilton and other insiders could view the hole cards of opponents. This was big news at the time, as Ultimate Bet dominated the online poker market during the early 2000s. This resulted in a $500,000 fine for Ultimate Bet, as well as a two-year "probationary" period of increased supervision under the eye of the commission.
A 2007 internal audit identified seven accounts that had cheated over a 40-day period, with the site agreeing to refund $1.6 million to the cheated players. Further investigations found fraud on a much greater level than first thought. Ultimately, the Kahnawake Gaming Commission issued a $1.5 million fine to Ultimate Bet and ordered the refund of $22 million to those affected.
Unfortunately, this is just one of several cases of illegal and unethical behaviour by casinos. The AffPower Network, which operated several online casinos, was found to be using pirated software and rigging games. Countless allegations were made towards the legitimacy of various operations, leading to an investigation.
Since 2016, all casinos linked to AffPower have been blacklisted by regulatory authorities worldwide, with operations halted.
Cases such as these illustrate why testing labs are required. Without the rigorous testing and certification of gaming software undertaken by these independent organisations, player security and the gambling industry as a whole is at risk.
Providing integrity in gaming – Testing labs benefits
For the gambling industry to flourish, integrity is paramount. As the American Gaming Association states so succinctly, “dedication to gaming integrity is what [our] customers expect and deserve.” This sentiment is shared internationally, with robust regulations being managed carefully by testing labs.
As we have seen, testing labs ensure players get to enjoy a fair gaming experience every time, whether in a physical or online casino environment. Part of this process includes extensive background checks on the gaming industry’s employees, including casino owners, board members and managers.
Extensive testing on gaming machines takes place before they reach the casino, ensuring each one operates as designed and is free from any tampering. This verification process helps maintain player confidence while enhancing credibility and trustworthiness.
The process is overseen by third-party, independent regulators who ensure compliance with all regulatory standards. The fact that these labs are independent furthers trust, as they are not affiliated in any way with casinos or game developers and manufacturers.
The use of testing labs – with their transparency and fairness – is an effective reminder of how the industry essentially polices and audits itself. Without this robust regulation, the gaming industry might struggle to sustain confidence among players and industry observers.
It’s not only physical casinos that pose risks to players. Unlicensed slot sites can be a threat to both players and the industry as a whole. Discover more about these risks in our blog post, Risks and implications of betting with unlicensed slot sites.
How test labs work
Test labs assess numerous elements of gambling products, such as hardware, software, and online platforms – confirming compliance with regulatory standards along the way. For instance, Gaming Laboratories International (GLI) protect players through delivering the following services:
- Test Automation
- Software Quality Assurance (QA) and Testing
- Functional Testing
- Source Code Review
- Load and Performance Testing
- Security Testing
- Governance, Risk & Compliance
- IT Security Audit and Consulting
- IT Process Improvement
- Internal Audit and Enterprise Risk Assessment
- Payment Card Industry PCI:DSS
- Source Code Security Audit
How often tests are conducted tends to vary. This is due to various factors, including:
- Regulatory requirements – Different jurisdictions may have different requirements; some may require annual testing, whereas others may administer testing on a more frequent basis.
- New products – Updated software and hardware need to be tested before being deployed to casino floors or online. From here, an initial certification can be rewarded.
- Random testing – In some jurisdictions, random testing may be rolled-out to ensure ongoing compliance.
Gambling Commission / UKAS partnership
The Gambling Commission (UKGC) has partnered with the United Kingdom Accreditation Service (UKAS) to develop a “Test House Framework” to ensure all “Test Houses are operating consistently to the same high standards.”
Audits are undertaken to evaluate how a casino’s security has been implemented against industry best practice and standards. This may entail penetration testing, network vulnerability scans, internal infrastructure testing, and application security testing among several measures.
These audits provide reporting that would highlight possible vulnerabilities and threats – all classed by their risk level. If any risks or unethical practices are discovered during the audit, they will typically be addressed via remediation assistance.
ISO/IEC 27001 certificates
ISO/IEC 27001 is an international standard identifying and minimising risks related to information security in gambling business operations. ISO/IEC 27001 certification is becoming increasingly important within online gambling, as regulators in various jurisdictions are beginning to either mandate or strongly recommend this certification for licence holders and their service providers.
If the business’ information security management systems (ISMS) meet all required standards, they will be issued with a ISO/IEC 27001 certification by the testing agency. This certification serves as evidence of the organisation’s commitment to information security. From here, the certificate can be presented to regulators and other stakeholders as required.
Testing labs – some drawbacks
Whilst testing labs are crucial to ensuring the integrity and fairness of online and physical casinos, there are some drawbacks to consider. For instance, testing and certification can be costly, proving expensive for casino operators. This can have a knock-on effect on costs, and, ultimately player experience.
The process of testing can also be time-consuming. As games, particularly new games, require rigorous checks before being launched, delays are often inevitable. Moreover, different jurisdictions have varying game testing standards, leading to inconsistencies and complications for casinos that operate across several regions.
For online casinos, testing complex software algorithms can be challenging, resulting in technical limitations. There are also security concerns, with new threats continually emerging. Therefore, with risks which are ongoing requiring more frequent testing, there can be an impact on overall operations.
Testing labs can’t detect everything and some possibility of fraudulent activity will always be a threat. Even with this detailed level of testing, players may remain sceptical about the fairness of online casino games. Being able to build and maintain trust can be an ongoing challenge, something casinos and testing labs will have to continue to contend with.
We discussed the pros and cons of increased regulations in a previous blog post. Regulations are an absolute necessity in the gambling industry, but, as Paul Clare discusses, their application can have an adverse effect on business operations.
Final thoughts
Independent testing labs are at the heart of the gambling industry. Without these regulators, the industry would face heightened risks in security, game integrity and player trust. While independent labs offer comprehensive, state-of-the-art technology, expert support, and risk management, internal testing can still be prone to inefficiencies. That being said, game fairness and player confidence can be bolstered through unbiased, in depth testing, and oversight via the important work of testing labs.