eCOGRA Release Findings On Jackpot Factory
Published: Saturday, August 05, 2006 Online-Casinos.com
ECOGRA COMPLIANCE EXECS RELEASE FINDINGS ON JACKPOT FACTORY
Three man committee considered report from an independent investigating team
The Jackpot Factory group search engine optimisation campaign which backfired so badly for the formerly reputable online casino group (see previous Online-Casinos.com and InfoPowa reports) was front-and-centre again this week with the release of a compliance committee's findings.
Chaired by Bill Galston OBE, a former high ranking UK gambling industry enforcement and inspection official, the compliance committee was convened by eCommerce and Online Gaming Regulation and Assurance (eCOGRA). The other two members of the committee were noted American gambling law expert Frank Catania and Michael Hirst OBE, a former senior executive with the Hilton group.
The committee considered a detailed report on the incident from an independent investigation team dispatched to the Jackpot Factory headquarters some weeks ago.
In a list of 10 findings the committee starts off with the statement: "The nature and tenor of the Jackpot Factory search engine optimisation project was totally unacceptable because of the fictitious and misleading scenarios it portrayed. This resulted in widespread public disapproval of the campaign."
Point (2) makes the important note that there was no evidence to show that any individual or group of individuals were harmed or persuaded to indulge in potentially harmful behaviour by the campaign, which represented an important mitigating factor, and (3) finds that there was no "malice aforethought" intention to encourage vulnerable persons to gamble.
The JF claim that the initial creation of the campaign was outsourced is confirmed by the investigation, which studied documentary and other evidence concerning this, and notes that despite this, Jackpot Factory management conceded "...that the company's supervision of the project was inadequate." This apparently led to those concerned at JF being disciplined for the failure of marketing control systems that should have ensured the campaign never saw the light of day.
Turning to "the more positive" aspects of the case, point (6) deals with Jackpot Factory's actions in the immediate aftermath of the SEO debacle, commenting that the company had on two occasions publicly apologised for the lapse and admitted fault. The investigation found that the company urged the public to report any signs of the campaign, and deployed staff itself to ensure as much of the campaign as possible was taken down.
Finding 7 notes that JF management cooperated fully in the investigation and presented both verbal and documentary evidence without reserve.
Finding (8) makes the important finding that the faulty systems have been replaced with more effective measures suggested by the investigation team to prevent a reoccurrence, and to ensure that any further material that may resurface going forward is dealt with quickly.
Finding (9) is especially interesting, because it indicates that evidence was produced showing that the damage to business and reputation suffered by Jackpot Factory was substantial as a consequence of public disapproval and the suspension of the Play It Safe seal. The following finding was that prior to the incident the company had enjoyed a generally clean record.
Taking all of the findings into consideration, the committee ruled that the suspension of Jackpot Factory's "Play It Safe" seals should be lifted, but that increased third party monitoring of Jackpot Factory would be introduced until further notice.
Galston closes the proceedings with a note of thanks to players for their assistance and comments, and the observation that Jackpot Factory cooperated fully in bringing the issue to a close.
He also draws attention to eCOGRA's objective in cases such as this, saying it is: "....to remove the immediate cause and potential for harm as quickly as possible, and then through fair and factual investigation isolate the reasons and ensure that systems are in place to guard against any repetition. These objectives have, in the opinion of this Committee, been met."
