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eCOGRA speaks up against Gambling Federation

March 11, 2005

The Gambling Federation malware issue is still the subject of heated discussion among online players after a gambler discovered blocking malware within a standard GFED casino software he had downloaded to his computer some three weeks ago. IT specialists in the player community assisted in isolating and identifying the malware, and other players warned by this found that their GFED downloads had also included the hostile element.

Leading gambling portals took up the issue and GFED issued a contrite admission through both its PR manager, and later its CEO Flaviano Fogli. Fogli issued a guide for the removal of the malware and publicly admitted that it had been an ill-advised practice.

For some weeks there have been calls for the trade associations to which GFED belongs to make a statement, but nothing has appeared.

This week, the regulator eCOGRA issued a public statement on the issue, which follows:

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 organization 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 organizations have been rightly criticized 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 emphasized 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 organization's detailed standards effectively undermines the core values and purpose of the initiative, and simply cannot be tolerated," he said.

As we went to press, iGGBA head Wes Himes said, "I have only just been made aware of this issue and it deeply concerns me. To reassure you, I have taken this issue to our Council and we shall be taking action on an agreed basis sometime soon. I can not speak more about this as it would preclude the options the Council may take, but rest assured we will be addressing this issue as soon as possible."

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