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Provisioning gaming services in france with continent 8 technologies white paper


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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.

Continent 8 Technologies provides state-of-the-art co-location and managed hosting services to the online gaming industry.

Continent 8 customers benefit from its 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, Montreal, and provides truly global service capability to our clients regardless of geography.

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Provisioning gaming services in france with continent 8 technologies white paper

  1. 1. Isle of Man | London | France | Malta | Singapore | Kahnawake Don’t let the regulatory challenges put you off your game Provisioning Gaming Services in France with Continent 8 Technologies 2010
  2. 2. Continent 8 Technologies provides state-of-the-artco-location and managed hosting services to theonline gaming industry. Our customers benefit from ourcontinued investment in advanced data centres, highquality networks and online technologies. Continent8 has multiple centres of excellence around the worldincluding Isle of Man, France, Malta, Singapore andKahnawake and provides truly global service capabilityto our clients regardless of geography.
  3. 3. Overview costs in terms of marketing and customer acquisition as they compete with providers already established in the marketplaceThis white paper discusses the recent regulation ofonline gaming in France and its implications for gamingoperators. As a leading provider of managed hostingand associated services to the global gaming industry,Continent 8 Technologies delivers best-in-class hosting The benefits of entering the French market early include:solutions across multiple geographies to support the ever-increasing regulatory challenges as our industry matures. • Taking part in a new market that carries with it first mover advantageHaving already established several gaming providerenvironments in France for our customers, Continent 8 canprovide your organisation with a viable and timely entry • Establishing loyal customer bases due to the newlyinto the gaming market in France. introduced extensive compliance and regulatory frameworkNew French Gaming Legislation came into force inApril 2010 • Capitalising on the wave of publicity associated with the introduction of ARJELThe law legalising online gambling in France wasintroduced in April 2010, as result the French Agency for • Gaining early expertise and the ability to moveOnline Gaming Regulation, l’Autorité de régulation des quickly with respect to other markets whichjeux en ligne (ARJEL), was formed in order to ensure introduce frameworks similar to ARJELcompliance and to oversee the industry. The opening upof the French online gaming industry has led to a surge of For more information about ARJEL and the Frenchgaming service providers preparing to enter the market in e-gaming legislation please visit:order to achieve first mover success in what is estimatedto be a €1.2 Billion market. France is imposing stringent www.arjel.frregulations for providers by introducing complex gamingcompliance requirements (regulated by ARJEL) that willhelp it not only monitor and protect end customers, butalso introduce controls that aid the taxation of gaming.For gaming operators, the regulatory framework managedby ARJEL represents a huge challenge, not only in termsof implementation and management but also for speed tomarket. It is no secret that being a first mover in this andsubsequent new markets is of immense value to thoseproviders who achieve it.It is likely that late arrivals to the market will face increased 2
  4. 4. What are the requirements set out by ARJEL? The online gaming market which opened to competition concerns three distinct sectors:In essence, the new regulations comprise a number of • horse race bettingaspects that providers or operators will need to comply within order to receive and maintain a license for their chosen • sports bettinggame verticals e.g. Poker, Horse Racing and SportsBetting. Some of these elements are shown below in Fig 1. • games of skill (poker)Outline of ARJEL’S Role and Mission The ARJEL is central to the regulation designed to serve the objectives of the government in terms of gaming laws and regulations.The ARJEL is the Independent Administrative Authority(IAA) set up as part of the French Online Gamingregulation No. 2010-476 of 12 May 2010. ARJEL’S MissionTaking into account the European Union’s directive on The ARJEL’s mission is to:online gaming and the individual countries interpretation, • issue licenses and ensure compliance by operatorsFrance has opted for a new type of regulation in Europewith the formation of a legislative system which seeks to • protect vulnerable populations, fight againstensure: addiction • protection of players and vulnerable section of the • ensure the safety and fairness of the gaming population operations • safety and fairness of the gaming sites through the • fight against illegal sites supervision of gaming activities and the recognition to operate benefiting organisers of sporting events • fight against fraud and money laundering • prevention of fraud (illegal sites in particular) and (Translated from the ARJEL website - ) money laundering • preservation of tax resources: levy on bets redistributed, in part, to horse racing and sporting events Gaming Operator ARJEL Governance Implication for Requirement Role Operators License Operators in the French Fulfill all the criteria set out in Obtain and maintain license Jurisdiction the gaming laws Separate licenses required for Monitor and capture activities Maintain each license as per each game vertical of providers and end users the requirement Must operate .fr from within Control and audit usage to Establish .fr and front end in jurisdiction ensure compliance France Implement required digital Implement controls and suitable Protect and serve best interest authentication, capture and compliance technology of citizens and gov data archiving technology Fig 1. Requirements set out by ARJEL 3
  5. 5. As an operator, what are your options? Alternatively Partner with a global partner such as Continent 8, who has established regional capabilities in multiple global jurisdictions that can serve both globalThe key to entering and expanding your presence in highly and local providers alike in their chosen target marketsregulated jurisdictions is all about the ability to adaptand manage your portfolio to suit the various trends andrequirements within each market. As an example, in the By establishing the ability to operate efficiently in termscase of France and ARJEL, operators will be expected of technology management and organisational flexibility,to implement advanced technological and organisational operators can retain the competitive edge while reducingcontrols that will allow ARJEL to audit, monitor and control complexities associated with rapid growth and over-all gaming activity within France. Furthermore, once ARJEL burdening of resources. In the case of ARJEL typehas granted a license (multiple licenses may be required environments, providers will need to be able to handledepending on gaming portfolio), the burden and cost of multiple markets, each having their own requirementsongoing compliance will rest solely with the operator. This going forward. It is therefore essential that you chooseongoing burden and expenditure raises other important a hosting partner who can deliver solutions createdissues for operators, such as how do you, as an operator, specifically for your industry across multiple jurisdictions.manage and quantify the potential risk versus the expected Today Continent 8 is the only global hosting partner withreturn. over ten years experience working exclusively within the gaming sector.Putting aside the questions of market sizing and riskreward, there are a number of approaches that can helpoperators establish jurisdictional compliance as follows: 1. Investing in new technologies and expanding organisational footprints in order to manage the additional compliance requirements for the new markets 2. Partnering with multiple service providers in each jurisdiction offering distinct solutions that serve that target market along with any regulatory requirements “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 Pecqueron Communication and Marketing Manager Telehouse France 4
  6. 6. Continent 8 Technologies’ capabilities in the The core of our strategy is based on providing ourFrench market customers with the following:In order to meet the challenge faced by operators entering • Assistance in moving quickly into the French marketthe French market, Continent 8 has established a strategic by providing physical location supported by theand exclusive partnership with Telehouse France allowing capability to provide a turnkey coffre forte (Vault)us to offer a turnkey solution to address all technological solution in conjunction with our partnersrequirements as set out by ARJEL. In addition to ourexisting global centres of excellence, this newly formed • Access to our global private network that deliverspartnership has allowed Continent 8 to add a hosting low latency connectivity through several Tier 1 IPfacility in Paris to our global portfolio. In order to meet the transit options regardless of where your back-endrequirements of the new gaming regulations, we have also infrastructure residesestablished informal relationships with coffre forte (vault)solution providers which allows Continent 8 to provide • Complete portfolio of co-location and manageda unique one stop capability to both existing and new services to support gaming environments deliveredcustomers. Continent 8 can provide the hosting solution on both local and global basesregardless of which coffre forte provider you decideto work with. The success of our offering in TelehouseMagny has been attested to by the operator and networkbase already installed in this data centre. In addition thispartnership extends the Continent 8 sales, marketing andadministration capabilities through the creation of a closeand effective working model. Facilities & Network & Managed Service Knowledge & Coffre Forte Presence Connectivity Services Management Resources Multiple Options Fig 2. Capability Matrix 5
  7. 7. Simplified view of the Coffre Forte (vault) requirement .fr Gaming Customer .fr Front End .anywhere Located in France Highly Available Front & Back End Secured & Protected Gaming Provider Located in France 1 4 9 5 .anywhere could be hosted in another licensed jurisdiction in 3 7 2 8 Europe, including Continent 8’s established data centres in the Isle of Man and Malta Digital Vault Authen cate Capture Maintain Archive Fig 3. Coffre forte illustratedManaged Services • Database Management • Monitoring • Backup ManagementContinent 8 provides an integrated suite of ManagedServices that can meet the mission critical requirementsof your online business. Customers can select from our In addition, Continent 8 can offer services such ascomplete portfolio of Managed Services including: 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 • Network Management France. • System Management • Power • Full or half rack • Redundant IP connectivity Co-location • Technical support Fully Managed Infrastructure Hosting and Network Management Global infrastructure • Full OS Management • Strategically Situated Data Centres • System Performance Monitoring • Private Global Network and network • System Patch Management • Bandwidth Management • Content Delivery Network • Data Base Management • Application Performance Monitoring • Cluster Management Application Services • Service Monitoring • Storage Management • Backup & Recovery • Co-location services • System fail over • Contingency Services Disaster Recovery • Tape & Media Management • Compliance Management • DDoS Protection Services • Antivirus & Malware Protection • Managed Firewall • Intrusion Detection Services Security • Infrastructure Deployment Services • Regulation Compliance Consulting • Security Consulting and Reviews • Contingency Planning Services Professional Services • Professional Services Technology Migration Services • Compliance Management • Solutions Architecture and Design Fig 4. Hosting Services Framework 6
  8. 8. Continent 8 Technologies’ Co-Location Power & Electricity. Power is supplied to site by twoFacility in Telehouse 3 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 (testedOverview. Telehouse France is the longest established monthly). All the electrical equipment is a minimum of N+1provider of reliable and secure data centre facilities in configuration.France. The combination of over 18 years experience,financial stability and ongoing investment in their facilitiesgives their clients ultimate reliability and business Communications & Connectivity. The Continent 8 facilitycontinuity. 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 pathsThe Telehouse 3 facility is a former European Aeronautic between this facility and Telehouse 2 in central Paris andDefence and Space (EADS) military site located in Magny- takes connectivity from a large number of Tier 1 and otherles-Hameaux. It was originally constructed in the 1980s on carriers.a 65,000 square metres (16 acres) site and benefits fromits legacy of providing outstanding physical security androck solid construction. These attributes made it the perfect Environment & Fire.choice for the construction of Continent 8’s chosen data Fire safety system; Category-A fire detection systemcentre. 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).Location & Building. The site itself is located in the Île-de-France region, in the Chevreuse valley, 25 km to theSouth-West of central Paris. The site is located in a non- Security. Permanent multi-stage security protocols areflood hazard area and is not located close to either nuclear implemented on site providing distinct levels of accessfacilities or airport flight path/approaches. Telehouse 3 dependant on role and requirement. Access is grantedconsists of approximately 15,000 m² floor space (see using both photo badge and biometric recognition systems.diagram below) . The complete facility is also monitored using 24 hour CCTV systems which include infrared capability.Rack Space. Continent 8 operates its own private suitefacility within Telehouse 3 facility with additional capacity Certifications. ISO 9001, ISO 27001 and ISO 14001planned based on Continent 8’s requirements goingforward. Up to 5 kVA per rack is available within the suite. Fig 5. Telehouse Magny Facility 7
  9. 9. Continent 8 Technologies global network C8 Co-location Centre C8 Peering Point Fig 6. Continent 8 NetworkConclusion Call Continent 8 Technologies today to learn more and to find out how we can keep you at the top of your game!Continent 8’s compliance management service providesyour business with the ability to move quickly into new Contact Informationmarkets (such as France) by providing a compliancefoundation from which to quickly adopt and utilise. For further information or to contact our sales teamContinent 8’s approach as a service and delivery partner please email:ensures that you achieve early mover advantage andreliable hosting solutions as new markets open up. sales@continent8.comOur goal is to build long term partnerships that provideour customers with the capability to compete in theonline gaming industry’s highly competitive and regulatedenvironments both now and in the future. Continent 8’sglobal network of data centres has been strategicallylocated to serve our gaming industry partners. As aninfluential presence in the industry we continuously workto share our experience and knowledge as part of theservices we deliver which truly differentiates us from ourmore generic competitors. 8
  10. 10. Continent 8 House | Pulrose Road | Douglas | IM2 1AL | Isle of Man Tel. +44 1264 678 888 | Fax. +44 1624 679 888