eCogra Addresses GFed Casinos Malware Issus

Published: Monday, March 07, 2005 Online-Casinos.com

eCogra Addresses Gambling Federation Malware Issus

Industry must be more forthright in defending players' interests

Andrew Beveridge, Chief Executive of the international regulatory body eCOGRA spoke out today on the recent discovery that the Gambling Federation Group software download had for some months included a covert element of malicious software (malware) designed to block users from the sites of competitors.

"eCOGRA believes it is the responsibility of every organisation that represents the interests of the online gaming industry and its players to send a strong signal that the use of this sort of tactic is unethical, dishonest and totally unacceptable to any responsible business." he said.

"Including malware in a download to a player's computer without his knowledge goes far beyond the routine inclusion of harmless advertisement tracking or log on recognition "cookies" and must be discouraged in the strongest possible terms in both the interests of the players and the poor perceptions of the industry that it creates.

"Trade organisations have been rightly criticised by the player community for their lack of action resulting from the GFED debacle. At eCOGRA, we're already vigilant in ensuring that this sort of practice does not happen at any of our sealed casinos".

Beveridge emphasised that in the case of an eCOGRA Seal casino, there is little likelihood of this kind of situation arising due to enforced policies on management and financial probity verification, in-depth inspection of all operational aspects of an applicant, subsequent ongoing monitoring and review and detailed and specific regulations with which eCOGRA Seal casinos are required to comply.

"In the event that an operator is found to be in contravention of any of the eGAP requirements, this is reported to the compliance committee." Beveridge revealed. "If there are no relevant mitigating circumstances, the committee should not hesitate to withdraw the Seal. eCOGRA's structure, staffing and policies and procedures has been very carefully constituted to provide for effective self-regulation. Any member or approved operator that does not comply with the organisation's detailed standards effectively undermines the core values and purpose of the initiative, and simply cannot be tolerated," he said.

"It is to be regretted that silence and apparent lack of action from industry representative bodies on this issue could result in all being labelled as ineffectual by both outsiders and the playing community. If industry codes and rules already in place are not enforced and supported, it seriously damages the credibility of the organisations concerned," he concluded.

STOP PRESS:

As we went to press this week, the IGC came through with the right decision in this truly shocking breach of ethics and responsible conduct. The trade association has made the appropriate decisions regarding the Gambling Federation debacle - the company has been expelled, and Flaviano Fogli, the CEO has departed the IGC Board.

IGC Terminates Membership of Gambling Federation

VANCOUVER, British Columbia, March 10, 2005

The Interactive Gaming Council today accepted the resignation of Flaviano Fogli from its Board of Directors. The IGC Board has also terminated, by unanimous vote, the membership of the Gambling Federation, a Canadian company for which Fogli serves as chief executive officer.

The Gambling Federation provides services to online casinos, primarily acting as an affiliate network. According to published reports, the company had installed malware (malicious software) in Gambling Federation's software that players downloaded to enable play at certain casino sites. When installed, the malware prevented the players from accessing three specific casinos that had been involved in an earlier dispute with Gambling Federation.

Fogli said the malicious code was designed to block access to the three casinos that were involved with a former Gambling Federation employee who Fogli alleged had stolen the email addresses of players at Gambling Federation casinos. The affair was discussed on several message boards devoted to online gambling, and Fogli issued an apology in a posting on a forum at CasinoMeister.com. Fogli exhibited remorse for the retributive action taken, something he conceded was inappropriate.

After an investigation of the situation and an interview of Mr. Fogli, the IGC took the step to terminate Gambling Federation's membership and accept Mr. Fogli's resignation. It was the determination of the IGC that the actions of Gambling Federation were contrary to the letter and spirit of the IGC's Code of Conduct and contrary to the best interests of the interactive gaming public and industry.

In a letter to Fogli after the IGC Board of Directors met on March 9, Mark Stone, the IGC's chair, thanked Fogli for his "openness and candor" at the board's meeting. Stone told Fogli that, "the Board understands your outrage at the conduct of your competitor. The theft and conversion of property, be it software or email lists, is reprehensible and should not be practiced or condoned by any reputable business. But there are also appropriate means by which to deal with such actions. It is felt that the action by Gambling Federation in this case is not one of those appropriate means."

Stone added that the actions of Gambling Federation "jeopardized the integrity of the entire industry. The act hasn't just prevented a competitor from getting a few visitors; rather it has shown the general public one more example of how vulnerable each individual's computer and personal data are to attack and interception."

Rick Smith, executive director of the IGC, said the organisation had to take an unequivocal stance when confronted with an action such as that of the Gambling Federation. "Causing someone to download intrusive software onto his or her personal computer is totally unacceptable by anyone, under any conditions" Smith said. "I am saddened that this was done by an IGC member, and I apologize to our many upstanding members and to the online gaming public."

The Gambling Federation had been a member of the IGC since March 15, 2004. The termination of its membership is effective immediately.