Customs and Monopolies Agency 1. ------IND- 2016 0157 I-- EN- ------ 20160421 --- --- PROJET Ref. CUSTOMS AND MONOPOLIES AGENCY THE DEPUTY DIRECTOR OF THE AGENCY Having regard to Legislative Decree No 496 of 14 April 1948 as amended on the regulation of gaming activities; Having regard to Legislative Decree No 504 of 23 December 1998 as amended on the restructuring of a flat rate tax on pools and lotteries related to sporting events and on the bets described in Article 1(2) of Law No 288 of 3 August 1998; Having regard to Article 16 of Law 133 of 13 May 1999, as amended; Having regard to Legislative Decree No 300 of 30 July 1999 as amended, reforming the Government organisation; Having regard to Legislative Decree No 173 of 3 July 2003 setting out rules on the reorganisation of the Ministry for the Economy and Finance and Tax Authorities; Having regard to the regulation enforced by Presidential Decree No 33 of 24 January 2002, implementing Article 12 of Law 383 of 18 October 2001, giving jurisdiction regarding gaming and betting to the Autonomous Administration of State Monopolies; Having regard to Article 4 of Legislative Decree No 138 of 8 July 2002, amended by Law No 178 of 8 August 2002, uniting competences in the field of gaming; Having regard to the Decree of the Ministry for the Economy and Finance No 111 of 1 March 2006 laying down standards for the regulation of fixed-odds betting on events other than horse racing and on non-sporting events, adopted according to Article 1(286) of Law No 311 of 30 December 2004; Having regard to Directorial Decree No 47010/Giochi/SCO of 28 December 2009 regulating system games with reference to fixed-odds betting on sporting events other than horse racing; Having regard to Law No 296 of 27 December 2006 setting out provisions for the preparation of the annual and multi-year State Budget (2007 Financial Law) and, in particular, Article 1(50), setting out provisions to fight the illegal telematic offer of games, bets or pools with cash winnings and paragraph Customs and Monopolies Agency 88, which establishes that the Ministry for the Economy and Finance - Independent Administration of State Monopolies regulates fixed-odds bets and totaliser bets on event simulations; Having regard to Decree-Law No 39 of 28 April 2009, converted into Law No 77 of 24 June 2009, setting out urgent interventions in favour of the populations struck by seismic events in the region of Abruzzo in April 2009 and further urgent civil guard interventions and, in particular, Article 12(1)(h), which specifies that the tax rate on fixed-odds betting on event simulations shall be 20 % of the takings, net of amounts returned as winnings to the consumer, and fixes the unitary amount at play as one euro; Having regard to Article 24(11) to (26) of Law No 88 of 7 July 2009, which, amongst other matters, regulates the exercise and remote collection of fixed-odds and totaliser bets on sporting events, including simulated events, and those relating to horse racing and other events; Having regard to the Decree of the Director General of the Independent Administration of State Monopolies No 2011/190/CGV of 8 February 2011, published in the Official Journal of the Italian Republic No 56 of 9 March 2011; Having regard to the Decree of the Deputy Director of the Customs and Monopolies Agency No 2012/60215/giochi/SCO of 28 December 2012; Having regard to the Decree of the Deputy Director of the Customs and Monopolies Agency of 12 February 2013 whereby, in an experimental fashion, fixed-odds betting was launched on simulated events; Having regard to the Decree of the Deputy Director of the Customs and Monopolies Agency No 2013/5269/Giochi/SCO of 22 November 2013, whereby, in the experimental phase, the opening of the national totaliser was fixed from 06:00 to 24.00; Considering that the period that has passed from the start-up of the experimental phase has allowed for fixed-odds betting on simulated events to be assessed as a potentially successful tool in the fight against illegal gaming and that, therefore, the “experimental phase” can be considered as over; Considering, however, that in order to increase the fight against the illegal offer of this type of gaming, changes need to be made to the offer of games, bringing it into line with the offer of sports bets with fixed odds; Having regard to the European Parliament and Council Directive No (EU) 2015/1535 of 9 September 2015, which establishes an informational procedure in the area of technical standards and regulations; 2 Customs and Monopolies Agency Considering that the European Union notification obligations, already fulfilled by procedure No 2012/0030/I of 16 January 2012, for the Decree of the Deputy Director of the Customs and Monopolies Agency of 12 February 2013, are absolved by procedure No _________________ of __________________, which was followed by the suspension period envisaged by the European Union procedures, without observations; Having regard to Resolution No 273 of 18 June 2015 of the Agency Management Committee whereby Alessandro Aronica was appointed as Deputy Director of the Monopolies Area according to Article 19, paragraph 6 of Legislative Decree No 165 of 30 March 2001; ADOPTS THE FOLLOWING DETERMINATION Article 1 - Purpose 1. This provision has the following aim: a. the definition of the minimum requirements, technical characteristics and operating method of the virtual gaming platforms for fixed-odds betting on event simulations, of the telematic network that connects the virtual gaming platform, the concession-holder’s gaming acceptance system and the national totaliser, including the necessary communication protocols; b. the complete start-up of virtual gaming systems comprising the virtual gaming platform and the gaming acceptance system connected with the national totaliser via the telematic network; c. the definition of the methods for verifying and testing virtual gaming systems and the dialogue between the national totaliser by the Customs and Monopolies Agency (hereinafter also the “ADM”) through the technological partner. 2. A later provision by ADM may lay down regulations for totaliser bets on virtual events. 3. The technical specifications and the communication protocol for fixed-odds betting on event simulations (PSV) are attached to this provision as Annexes 1 and 2. 4. Subsequent changes to the technical specifications envisaged in annex 1 and the communication protocol according to Annex 2, of which the parties concerned will need to be promptly informed, will be made available by the ADM on the institutional website www.agenziadoganemonopoli.gov.it. 5. Changes to the Protocol for bets on simulated events according to Annex 2 (PSV) shall take effect no earlier than 60 days after publication on the ADM institutional website. 3 Customs and Monopolies Agency Article 2 - Definitions 1. Purely for the purposes of this Decree, the following definitions shall apply: a. ADM, the “Agenzia delle dogane e dei monopoli” or “Customs and Monopolies Agency”; b. concession-holder(s), subject selected by the ADM on the basis of a public tender, for the award of the public functions and activities concerned by the concession; c. concession, the institute through which the ADM entrusts public activities and functions for the marketing of fixed-odds bets and totaliser bets; d. framework, sporting or non-sporting category in which virtual events are grouped, based on the same mathematical operating algorithms and the same animated graphics; e. foreseeable outcome, one of the possible outcomes contemplated by a given type of betting on which bets can be placed; f. winning outcome, the result of the virtual event generated by the virtual gaming platform and verified by the ADM after betting; g. virtual or simulated event, the event on which bets are placed and shown by means of animated graphics or a real event that was previously recorded; h. connectivity service supplier, each subject meeting the requirements laid down to supply the information transmission and connection service between the gaming acceptance system and the national totaliser; i. responsible, legal, safe gaming, measures adopted by the concession-holder in relation to games with cash prizes, based on ADM provisions, designed to guarantee the protection of interests of both individual players and the public; j. multi-event, set of several simultaneous virtual events of the same framework on which bets can be accepted on the aggregated results of the set of events; k. virtual gaming platform, the technological platform that enables virtual events and their outcomes to be generated and displayed; l. unit stake, the amount paid by the bettor for each bet; m. odds, a whole number followed by two decimal places which, when multiplied by the unit stake, determines the amount to be returned to the bettor in the event of a win; 4 Customs and Monopolies Agency n. participation receipt, proof that guarantees that the bet has been registered with the national totaliser and which constitutes, in the event of a win, the only valid document enabling the bearer to collect. For remote gaming, the registration of fixed-odds bets and the outcome on the national totaliser, immediately booked to the gaming account, constitutes the participation receipt for all intents and purposes; o. RNG, the Random Number Generator that resides in the national totaliser and provides the random combinations to determine the winning outcomes on the virtual event; p. fixed-odds bet, a bet for which the amount to be collected, in the event of a win, is agreed in advance between the participant and the bet concession-holder; q. e-bet, a fixed-stake bet made "remotely", or rather via landline or mobile telephone, internet or interactive TV; r. system bet, set of fixed-odds bets generated by combining several foreseeable outcomes that are validated at the same time in a single participation receipt; s. gaming acceptance system or processing system, the system, activated by the concessionholder, connected by means of the telematic network to the national totaliser, including by means of a connectivity service supplier; t. virtual gaming system, together, the virtual gaming platform and the gaming acceptance system; u. bonus winnings system, increase of the winnings applied to the amount of the whole ticket and transmitted complete with all relevant information to the national totaliser at the time of the win; v. technical and functional specifications of the virtual gaming system, the document, presented by the concession-holder, which describes, on the basis of the minimum requirements laid down in this provision, the functions and technical characteristics of all components of the virtual gaming system; w. bet type, a set of possible foreseeable outcomes for the same event; x. single-elimination tournament, type of tournament in which if a participant loses a match, he/she is immediately eliminated from the competition; y. national totaliser, the processing system used to allow the ADM to manage and control all information and all data relating to the bets. 5 Customs and Monopolies Agency Article 3 - Authorisation to collect 1. The collection of bets regulated by this provision is made by concession-holders authorised to collect through the physical network of sports and horse racing bets and by concession-holders authorised to make the remote collection of fixed-odds and totaliser bets, on sporting events, including horse racing bets and simulated events, as well as on other events according to Article 24 of Law No 88 of 7 July 2009. 2. The ADM authorises collection by means of the virtual gaming system following the successful completion of testing according to Article 4 below. Article 4 - Testing 1. Each virtual gaming platform undergoes a conformity testing process. At the end of conformity testing, the platform, together with the gaming acceptance system, is subjected to integration tests and final testing performed by the ADM through and/or with the help of its technological partner. 2. For conformity verification of the virtual gaming platform with respect to that laid down in this provision and the connected ADM provisions, the conformity testing guidelines are published. 3. The conformity testing process of the virtual gaming platform is started by the submission of an application with the attached technical and functional specifications. 4. In any case, conformity testing regards the verification of the technical and functional specifications and the verification of the correctness and function of the mathematical algorithms present on the virtual gaming platform. 5. Virtual gaming systems that have passed the integration tests and whose virtual gaming system has successfully passed the conformity test are admitted for final testing. 6. Final testing of the virtual gaming system is carried out on the basis of rules and methods defined in the testing manual available on the ADM institutional website. 7. Testing of the virtual gaming system ascertains that the virtual gaming platform, installed in a suitably-arranged environment, produces the same outcomes seen with the conformity test, including the methods by which the virtual gaming system dialogues with the national totaliser. 8. Following the passing of the test by the virtual gaming system, in order to obtain authorisation to collect bets on simulated events, each concession-holder must successfully pass functional tests 6 Customs and Monopolies Agency run in an operating environment, also with reference to its integration with the concession-holder’s telematic network. 9. Each change to a virtual gaming system that has already been successfully tested entails the need for a new conformity test process, integration test and final testing. 10. Through the technological partner, the ADM reserves the right to perform simplified conformity tests and integration tests. 11. Any changes to the virtual gaming system that are not a result of the need to correct operating anomalies may be proposed but no more frequently than 60 days after the date on which the authorisation according to Article 3(2) was given. The ADM reserves the right to reject any requests according to the sentence above received before expiry of said terms. Article 5 - Technical characteristics 1. The virtual gaming system guarantees: a. real-time dialogue between all its components and with the national totaliser; b. the viewing of all phases of the virtual event that affect the determination of the final result, on the distribution channels enabled on concessions taking part in the game; c. the generation of odds that clearly inform the bettor of the probability of winning on the relevant outcome; d. the real-time generation of the winning outcome by means of the random combinations generated by the RNG; e. the correct display of the betting odds for at least 30 seconds before closing acceptance of the play on the virtual event; f. the correct display of the winning outcomes of all bets linked to the virtual event for at least 30 seconds after the end of the event; g. the opening of bets on each individual virtual event for a maximum of eight hours. 2. The national totaliser: a. accepts and registers fixed-odds bet in real time, assigning each a unique identification code; 7 Customs and Monopolies Agency b. holds the RNG, which, through the communication protocol, provides the random combinations to determine the winning outcomes; c. guarantees the effective closure of bet acceptance before the random combinations are generated by the RNG; d. verifies the correctness of the winning outcome generated by the virtual gaming system so as to authorise payment of winning tickets. 3. The time of reference, for betting, is that of the national totaliser. 4. Further details on the function of the virtual gaming system are given in Annex 1 of this provision. Article 6 - Official programme and programming schedule 1. The national totaliser collects bets on virtual events from 07:00 to 03:00. 2. Each concession-holder prepares and publishes an official programme of virtual, sporting and nonsporting events on which bets can be placed. 3. The official programme consists of one or more programming schedules that each contain virtual events of the same framework. 4. For each virtual event, the following information is given: a. the framework; b. the bet types accepted. 5. Each programming schedule shall last for one day, or the events contained can only be opened within the same day. 6. Programming schedules may be shared by two or more concession-holders. 7. The official programme according to paragraph 2, even if it contains shared programming schedules, cannot provide for more than three thousand virtual events per day. 8. By means of its own provision published on the institutional website www.agenziadoganemonopoli.gov.it, the ADM can alter the times at which bets will be accepted and vary the number of events per day. 8 Customs and Monopolies Agency Article 7 - Object of bets 1. Bets are placed on virtual events contained in the official programme. Article 8 - Categories of bets permitted and their characteristics 1. The following categories of fixed-odds bets are permitted: a. individual, i.e. referring to the outcome of just one virtual event; b. different, i.e. referring to more than one outcome of a single virtual event; c. multiple, i.e. referring to the outcomes of more than one virtual event; d. system bet, i.e. a set of bets generated by combining several foreseeable outcomes of events of the same framework that are validated at the same time in a single participation receipt. 2. The virtual gaming platform can offer simultaneous virtual events. 3. The virtual gaming platform cannot offer virtual events at the request of the bettor. 4. The virtual gaming platform cannot offer numerical type virtual events and events linked to games of skill. Official programmes also exclude virtual events that graphically reproduce all card games and slot machines. 5. Bets cannot be accepted on virtual events in the cases indicated in the technical annex. 6. Bets on the virtual gaming platform must in no way discriminate between bettors. No mechanisms can be offered whereby a player finds himself in a more favourable position than others. 7. The virtual events offered must not be immoral or damaging to personal dignity. 8. The virtual events offered must not violate the current legislation governing copyright, trademarks and patents. 9. The platform cannot offer bets whose foreseeable outcomes are equally probable. 9 Customs and Monopolies Agency Article 9 - System betting 1. The following system bets are permitted: a. full system: system betting comprising, in relation to a single event, multiple foreseeable outcomes, including in conflict with each other, envisaging the development of individual or multiple bets comprising all events selected; b. correction system: the system bet that, given a selection of “n” foreseeable events, includes all bets deriving from the combinations of said “n” events taken at “k” to “k”, where “k” is the number of winning events for which the system must ensure at least one win; c. full correction system: similar to the correction system according to letter b above, but can envisage, in relation to the same event, multiple foreseeable outcomes, which may also be in conflict with each other. 2. In system betting, different bet types can be combined between the events comprising it. The maximum number of events comprising a system bet is 10. 3. In a system bet, the maximum number of foreseeable outcomes, even potentially in conflict with each other, is 100. 4. A system bet cannot develop more than 512 combinations. 5. In a system bet, virtual events of different frameworks cannot be combined. Article 10 - Cancellation of bets 1. Fixed-odds bets and/or system bets on virtual events can be cancelled within one hundred and 20 seconds of validation by the national totaliser, even if other bets have been accepted by the same terminal; this applies as long as acceptance of bets on virtual events by the national totaliser is still open. 2. E-bets cannot be cancelled. 10 Customs and Monopolies Agency Article 11 - Participation receipt 1. The participation receipt for bets on virtual events is emitted by the gaming terminal only once the bet has been accepted and registered by the national totaliser. 2. The participation receipt contains at least the following information: a. name of the concession-holder; b. identification code of the sales point and issuing gaming terminal; c. category of bet: i. “QF” for single or different fixed-odds bets, i.e. referring to a single virtual event; ii. “QFMUL” for multiple fixed-odds bets, i.e. referring to several, combined virtual events; iii. “QFSIS” for fixed-odds system bets; d. date and time, expressed in hours, minutes and seconds, assigned to the bet by the national totaliser; e. unique identification assigned to the bet by the national totaliser; f. price of the bet; g. amount of payment of any winnings, including the amount bet and any bonus winnings; h. identification or characteristic data of any bonus winnings applied; i. if the participation receipt should contain a system bet, the identification and number of combinations developed by the system bet must be specified; j. for each virtual event contained in the bet, at least: i. unique identification of the virtual event, comprising the programming schedule code and event code; ii. description of the bet type; iii. code or description of the outcome; iv. odds assigned to the outcome of the bet; v. in the event of a system bet, a value that indicates if the virtual event is fixed, in which case the event must be included in all bets generated by the systems. 11 Customs and Monopolies Agency Article 12 - Unit stake 1. The unit stake for bets on virtual events is established as EUR 0.50 with the exception of system bets, for which it shall be EUR 0.05. 2. The minimum amount of each participation receipt can be no less than one euro. The cost of the system bet is equal to the sum of the amounts wagered on each of the bets comprising it. Any changes to the unit stake are made by ADM provision. Article 13 - Recognition percentages and maximum winnings 1. It is not permitted to take bets with potential winnings which exceed the amount specified in Article 12.4 of the Decree of the Ministry for the Economy and Finance No 111 of 1 March 2006, as amended. 2. The total amount of system bet winnings is equal to the sum of the winnings of all winning bets. The total amount of winnings cannot in any case exceed the amount established by Article 4 of Directorial Decree No 47010/giochi/sco of 28 December 2009. 3. The odds offered by the concession-holder shall remain unaltered throughout the acceptance period of gaming on a given virtual event. 4. The odds offered shall be no less than or equal to the entirety. 5. Each outcome, in relation to an individual bet, generated by the gaming platform, must be associated with a theoretical percentage return of the amount bet that shall range between 80 per cent and 90 per cent. 6. Each combination, in relation to a different bet, generated by the gaming platform, must be associated with a theoretical percentage return of the amount bet that shall range between 60 per cent and 90 per cent. 7. Each multiple play must be associated with a theoretical percentage return of the amount bet that shall not exceed 90 per cent. This theoretical percentage return is calculated after application of any bonus winnings systems and must be assured even in the event of reimbursement. 8. The odds offered by the concession-holder respect the limits of the percentage specified in paragraphs 5, 6 and 7. 12 Customs and Monopolies Agency Article 14 - Bonus winnings systems 1. Without prejudice to Article 13(1) and (2), the concession-holder shall have the right to envisage bonus winnings systems for multiple bets, from those previously authorised by the ADM and disclosed promptly to participants by means of publication in the programming schedule. 2. Bonus winnings are calculated and applied to the amount of the whole ticket and transmitted complete with all relevant information to the national totaliser at the time of the win. Article 15 - Refunds 1. The technical cancellation by a concession-holder of a virtual event that, at the time of a severe malfunction of the virtual gaming system is still open, entails the full refund of all bets placed on that event and all related bets. 2. If the technical cancellation should regard all events comprising the bet, the amount played is reimbursed. 3. If the technical cancellation should only regard events comprising the multiple bet, these events shall not go towards determining any winnings and calculating their bonuses. Article 16 - Tax and prescribed tickets 1. The single tax rate on play relating to virtual events, as envisaged by Decree-Law No 39 of 28 April 2009, converted into Law No 77 of 24 June 2009, is 20 per cent of the sum collected, net of the amounts returned to consumers as winnings. 2. The concession-holder shall pay the amounts due, by way of single tax and the winnings and reimbursements not collected according to Article 18(2), as established by the Decree of the President of the Republic No 66 of 8 March 2002. 13 Customs and Monopolies Agency Article 17 - Payment of winnings and refunds 1. Winnings and refunds are only paid after registration by the national totaliser of the outcomes of the virtual events subject to betting, disclosed by the concession-holder. 2. The amounts relating to the winnings and refunds can be collected from the concession-holder’s sales network. 3. The amounts relating to the winnings and refunds, for bets collected through the remote gaming channel, are credited in the ways envisaged by current legislation. Article 18 - Terms of forfeiture 1. Participants shall forfeit the right to collect winnings and the right to request refunds from the places of sale if their payment is not requested within 90 calendar days of the date on which the bet was sold. 2. Any refunds that are not requested and winnings that are not collected within the terms laid down in paragraph 1 shall be acquired by the tax authority. Article 19 - Information obligations 1. The concession-holder makes available: a. information regarding the offer of play and instructions for taking part in the gaming; b. the winning outcomes of virtual events as hard copies or in electronic format, for at least 3 days at the places of sale, whereas for remote gaming, for at least 7 days through the channels used for the remote collection of bets and, in any case, at any time, at the request of the bettor; c. the terms and conditions of paying out winnings; d. information relating to refunds; e. information on safe, legal and responsible gaming, as well as any communications established by the ADM. 14 Customs and Monopolies Agency Article 20 - Monitoring, controls and inspections 1. The ADM shall exercise powers of monitoring and control over the concession-holder, including through technical controls, tests and inspections on its computer systems and the software source code used, in all places where the concession-holder makes its structures available, with specific reference to the exercise of all activities and functions of gaming practice. 2. The concession-holder is obliged to disclose the places where its structures are located in a timely manner, along with any changes to such as may be made on a later date. Article 21 - Suspension and revocation of authorisation to collect bets 1. Without prejudice to the agreements stipulated for the assignment under concession of the exercise of public gaming, the authorisation according to Article 3(2) is subject: a. to forfeiture, in the event of forfeiture of the requirements for authorisation, according to this provision; b. to revocation, if serious and/or repeated violations are committed in the collection of bets, of the provisions laid down herein and those of reference legislation. 3. In cases that can be sanctioned with the annulment or revocation of authorisation described in Article 3(2), and in any case following the need for the ascertainment of facts or for protection of the rights and interests of the ADM and of players, the ADM may order the precautionary suspension of authorisation, with justifying provisions, until the conclusion of administrative proceedings and the issue of a definitive ruling regarding the adoption of annulment or revocation proceedings. The suspension shall take effect as from the date on which it is notified to the concession-holder. The concession-holder shall be entitled to no reimbursement, indemnification or compensation whatsoever, even where revocation or forfeiture proceedings are not adopted. Article 22 - Player protection 1. The concession-holder promotes responsible gaming, also through the use of visible messages to the public and takes all suitable steps to avoid violating the ban on children playing. 2. The concession-holder shall exclude staff of its organisation or who collaborate with it, from participating in play. 15 Customs and Monopolies Agency 3. The ADM website provides a list of concession-holders authorised to collect bets according to this provision. Article 23 - Entry into force 1. The provisions herein shall apply as from the seventh day following its publication on the institutional website of the Customs and Monopolies Agency, which shall take place in lieu of publication of the provision in the Official Journal of the Italian Republic according to Article 1(361) of Law No 244 of 24 December 2007. 2. As from the date on which this provision comes into force, the Decree of the Deputy Director of the Customs and Monopolies Agency of 12 February 2013, is abrogated. Rome, THE DEPUTY DIRECTOR OF THE AGENCY Alessandro Aronica 16 Customs and Monopolies Agency Technical Annex for bets on simulated events Version 2.0 TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 2 OF 45 CONTENTS INTRODUCTION 3 1. VIRTUAL GAMING SYSTEM 5 2. VIRTUAL GAMING PLATFORM 7 2.1 DATABASE ARCHIVES OF COMPETITORS AND TEAMS 13 2.2 EVENTS GENERATOR 14 2.2.1 BETS ON INDIVIDUAL EVENTS 17 2.2.2 MANAGEMENT OF BETS ON AGGREGATED RESULTS OF MORE THAN ONE EVENT18 2.2.3 MANAGEMENT OF BETS ON SINGLE-ELIMINATION TOURNAMENTS 21 2.3 ODDS GENERATOR 29 2.3.1 RTP OF INDIVIDUAL AND DIFFERENT BETS 30 2.3.2 RTP OF MULTIPLE BETS 31 2.4 WINNING OUTCOMES GENERATOR 32 2.4.1 REPORTING OF BETS ON AGGREGATED RESULTS OF MORE THAN ONE EVENT 34 2.4.2 REPORTING OF TOURNAMENT BETS 2.5 COMMUNICATION INTERFACE WITH THE CONCESSION-HOLDER’S GAMING 36 ACCEPTANCE SYSTEM 39 2.6 EVENT VIEWING 40 2.6.1 PRESENTATION 40 2.6.2 PERFORMANCE 41 2.6.3 DISPLAY OF THE WINNING OUTCOMES 41 3. GAMING DATA 43 4. MALFUNCTIONS 44 TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 3 OF 45 INTRODUCTION This document supplements the managerial provision regulating bets on simulated events in Italy. More specifically, it investigates the technical aspects relative to the virtual gaming platform and its integration with the concession-holder’s gaming acceptance system. All aspects relating to the communication methods between the concessionholder's gaming acceptance system and the national totaliser are detailed in the communication protocol for bets on simulated events PSV. Bets on simulated events are placed on simulated events displayed by means of animated graphics created on a computer or by means of graphics taken from a real event that was previously recorded. Amongst others, the offer includes events on football, horse racing and dog racing. A virtual event is the visual representation of the weighed extraction of a random number. The odds of the different competitors (horses, dogs, teams, etc.) are created in such a way that the competitors with a higher probability of being extracted have lower odds and vice versa. The random numbers necessary to determining the winning outcomes are obtained by means of a random number generator (RNG). The random numbers generated respect the properties of randomness, statistical independence, equal probability, non-reproducibility, unpredictability and non-deductibility of the seed. The national totaliser holds the random number generator and can determine the results of the virtual event through knowledge of the algorithms used by each virtual gaming platform. Therefore, the national totaliser provides the random numbers and each virtual gaming platform independently generates the result. During conformity testing of the virtual gaming platform, for each virtual gaming platform, full documentation is provided of the methods used to generate the TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 4 OF 45 winning outcomes. The algorithms are tested in terms of their reliability and strength and subsequently implemented in the national totaliser. During testing, the implementations of the national totaliser and virtual gaming platform are compared over a very large number of events, verifying uniform behaviour. The algorithms are used to verify the winning outcomes supplied by the virtual gaming platform. The presence of the random number generator in the national totaliser guarantees the effective closure of sales before knowledge of the result and the centralised control of winning bets. TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 5 OF 45 1. VIRTUAL GAMING SYSTEM The gaming system for the sale of fixed-odds bets on virtual events consists of the virtual gaming platform and the concession-holder’s gaming acceptance system. The national totaliser shows its functions, in a dialogue with the concessionholder’s gaming acceptance system. Figure 1 - General architecture Totalizzatore nazionale Generatore di numeri Pseudo casuali Front end Concessionario Piattaforma di Gioco Virtuale Visualizzatore Eventi Sistema accettazione del gioco National totaliser Random number generator Front-end Concession-holder Virtual gaming platform Events visualiser Gaming acceptance system All components of the virtual gaming system must be synchronised by means of a single time source. TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 6 OF 45 All components of the virtual gaming system must be located in the structures that the concession-holder is obliged to disclose promptly. The concession-holder must describe the whole of the virtual gaming system in the technical and functional specifications of the virtual gaming system that must be approved by the CUSTOMS AND MONOPOLIES AGENCY. TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 7 OF 45 2. VIRTUAL GAMING PLATFORM The virtual gaming platform consists of a central system, i.e. a hardware and software system that deals with the creation and programming of virtual events, the calculation of odds and the determination of the winning outcomes. In operative management, the virtual gaming platform must guarantee the possibility of inspection, at the request of the CUSTOMS AND MONOPOLIES AGENCY, of any part of the virtual gaming platform source code, where necessary with the assistance of specialised technical staff. The virtual gaming platform also includes an events visualiser, i.e. a hardware or software sub-system that generates the graphics and displays the virtual events. The central system consists of at least the following modules/sub-systems: database archives of competitors/teams; events generator; odds generator; winning outcomes generator; communication interface with the gaming acceptance system. The central system may also include an animated graphics archive created on a computer or graphics taken from real events recorded previously. The events visualiser consists at least of the following: event graphics generator; event audio generator. The events visualiser may include a hardware or software encoding module/subsystem to adapt the audio/video flow to broadcasting or internet streaming. TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 8 OF 45 The events visualiser may include a video card for the virtual events visualisation on one or more monitors. If virtual events use animated graphics archives created on a computer or graphics extracted from real events recorded previously, the events visualiser will simply start the file, directing it towards the correct video output. The topology of the virtual gaming platform, depending on the distribution channel of the virtual events, may be broadcast type, local generation, internet streaming on physical channel or internet streaming on telematic channel. BROADCAST DISTRIBUTION Figure 2 - Broadcast distribution Concessionario Piattaforma di Gioco Virtuale Sistema Centrale Visualizzatore Eventi Uplink Concession-holder Virtual gaming platform Central System Events visualiser Uplink TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 9 OF 45 Encoder Sistema Accettazione Gioco Punto Vendita Monitor Parabola Decoder Satellite Encoder Game Acceptance System Sales Point Monitor Dish Decoder Satellite The images and audio of virtual events are generated by the events visualiser. The audio and video flow is sent to the equipment used to broadcast on a satellite channel. Virtual events are received and displayed in the sales points through a satellite decoder. LOCAL GENERATION Figure 3 - Local generation Concessionario Piattaforma di Gioco Virtuale Concession-holder Virtual gaming platform TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 10 OF 45 Sistema Centrale Sistema Accettazione Gioco Punto Vendita Monitor Visualizzatore Eventi Wan Central System Game Acceptance System Sales Point Monitor Events visualiser Wan The events visualiser is situated at the concession-holder’s sales point and, by means of a communication protocol, receives commands through which it generates the animation of the virtual events. INTERNET STREAMING TELEMATIC CHANNEL Figure 4 - Internet streaming Concessionario Piattaforma di Gioco Virtuale Sistema Centrale Visualizzatore Eventi Streaming encoder Web server Sistema Accettazione Gioco Concession-holder Virtual gaming platform Central System Events visualiser Streaming encoder Web server Game acceptance system TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 11 OF 45 Clienti Internet Clients Internet The images and audio of virtual events are generated by the events visualiser. The audio and video flow is sent to the equipment used to encode and compress for streaming. For the telematic channel, streaming images are uploaded to the concessionholder’s website whilst in physical sales points, the images are displayed on monitors. INTERNET STREAMING PHYSICAL CHANNEL Figure 5 - Internet streaming on physical sales points Concessionario Piattaforma di Gioco Virtuale Sistema Centrale Visualizzatore Eventi Streaming encoder Concession-holder Virtual gaming platform Central System Events visualiser Streaming encoder TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 12 OF 45 Sistema Accettazione Gioco Punto vendita Monitor Streaming decoder Internet Game acceptance system Sales point Monitor Streaming decoder Internet The images and audio of virtual events are generated by the events visualiser. The audio and video flow is sent to the equipment used to encode and compress for streaming. Streamed images are displayed on monitors in the physical sales points. TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 13 OF 45 2.1 DATABASE ARCHIVES OF COMPETITORS AND TEAMS The virtual gaming platform must have a data archive in which the records of competitors and teams are saved. More specifically, at least the following information must be saved: description of all competitors and/or teams and, where possible, the related codes; any abilities of competitors and/or teams used to calculate probability. The description and/or code of competitors and/or teams must be unique within a single framework. TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 14 OF 45 2.2 EVENTS GENERATOR The events generator is an application that enables virtual events to be created and allows for their related scheduling over time. The offer of games is created starting from the information contained in the database archives of competitors and teams. Each virtual event must be identified uniquely by means of two numerical codes: the programming schedule code and the event code, both of which are assigned by the national totaliser. The virtual event must have at least the following attributes: programming schedule code; event code; description; start date and time; relevant framework, identified by means of a numerical code and specific description for the virtual gaming platform; information on status (open, closed, reported from official results, cancelled); bet types accepted on the event, identified by means of a description and specific numerical code for the virtual gaming platform. The virtual gaming system must be able to inform the national totaliser of any status changes in an event. More specifically, the opening, closure, reporting following official results and any technical cancellation, must be notified. TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 15 OF 45 The figure below shows the status transitions of a virtual event: Figure 6 - Virtual event status Accettazione delle giocate aperta Accettazione delle giocate chiusa Refertato da Risultato ufficiale visualizzato e comunicato, pagamenti abilitati Evento annullato rimborsi abilitati Acceptance of bets open Acceptance of bets closed Reports from Official result displayed and reported, payments enabled Event cancelled, refunds enabled The programming schedule code is assigned by the national totaliser against a request by a virtual gaming system. The request must at least contain: the list of concession-holders sharing the programming schedule; the framework; the virtual gaming platform used; the programming schedule date. When the virtual gaming system opens play on a virtual event, it informs the national totaliser of the details that enable a unique code to be supplied for the virtual event and bets to be accepted. The request for opening a virtual event must at least contain: the programming schedule on which the virtual event is to be opened; TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 16 OF 45 a description of the virtual event; the time and date at which the virtual event starts; the types of fixed-odds bets accepted on the virtual event; the number of foreseeable outcomes participating in the virtual event; the probability assigned by the virtual gaming platform to each foreseeable outcome for the determination of winning outcomes, only for pivot bets; the odds offered for each foreseeable outcome; the variables and values used by the virtual gaming platform in the algorithm to determine the winning outcome; the foreseeable outcomes and related probabilities according to that emerged and declared during the conformity test process; the virtual gaming platform used. Communication of the opening of an event coincides with the start of acceptance of bets on it. TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 17 OF 45 The figure below shows the data exchange in relation to the programming schedule request and that of event opening: Figure 7 - Data exchange between the national totaliser and the virtual gaming system Totalizzatore Sistema di gioco virtuale Richiesta palinsesto Assegna codice palinsesto Apertura evento Assegna codice evento Totaliser Virtual gaming system Programming schedule request Programming schedule code assignment Event opening Event code assignment 2.2.1 BETS ON INDIVIDUAL EVENTS All bet types that can be placed on the virtual event must be uniquely identifiable by means of a numerical code and a description. The numerical code of each bet is unique on the platform. Bets based on different mathematical algorithm are identified by a single numerical code. TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 18 OF 45 All the foreseeable outcomes on bet types envisaging the selection of a single outcome from a list, i.e. individual, must be encoded by means of a numerical code and a description. Bet types involving the selection of more than one outcome from a list, i.e. different, use codes already assigned to them. 2.2.2 MANAGEMENT OF BETS ON AGGREGATED RESULTS OF MORE THAN ONE EVENT A multi-event is a set of several simultaneous virtual events of the same framework on which bets can be accepted on the aggregated results of the related events. A multi-event consists of up to 10 virtual events. A multi-event belongs to the same programming schedule and framework as the virtual events comprising it. Individual virtual events comprising a multi-event have bets on which bets can be placed as described in paragraph 2.2.1 and are identified by the event code assigned by the national totaliser at the time of opening. A single virtual event cannot be associated with more than one multi-event. All bet types that can be placed on the aggregated results of more than one event must be uniquely identifiable by means of a numerical code and a description. The numerical code of each bet on the aggregated results of more than one event is unique within the platform, also with respect to the codes of the bets on the individual virtual events and tournaments. When the virtual gaming system opens play on a multi-event, it informs the national totaliser of the details that enable the national totaliser to supply a unique code for this set of virtual events and bets to be accepted. TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 19 OF 45 The request for opening a multi-event must at least contain: the programming schedule within which the multi-event is to be opened; a description of the multi-event; the codes of the virtual events comprising it; the types of fixed-odds bets accepted on the multi-event; the code of the foreseeable outcomes for all bets of the multi-event; the probability assigned by the virtual gaming platform to each foreseeable outcome for the determination of winning outcomes; the odds offered for each foreseeable outcome; the virtual gaming platform used. Acceptance of bets on the aggregated results of the events comprising the multievent is closed upon receipt of the first request to extract the random numbers of one of the virtual events comprising it. In addition to in individual bets, multi-events can also be played on multiple bets comprising exclusively different multi-events. TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 20 OF 45 The figure below shows the sequence of messages between the national totaliser and the virtual gaming system that results in the opening of a multi-event: Figure 8 - opening of a multi-event Totalizzatore Totaliser Sistema di gioco virtuale Virtual gaming system richiesta palinsesto programming schedule request assegna codice palinsesto programming schedule code assignment apertura evento #1 opening of event #1 assegna codice evento #1 assignment of code to event #1 assegna codice evento #10 assignment of code to event #10 apertura multi-evento #1 (Ev1, 2; Ev2, ... opening of multi-event #1 (Ev1, 2; Ev2, ... Ev10 – Bet1, Bet2 ... Betn) Ev10 – Bet1, Bet2 ... Betn) assegna codice multi-evento #1 assignment of code to multi-event #1 TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 21 OF 45 2.2.3 MANAGEMENT OF BETS ON SINGLE-ELIMINATION TOURNAMENTS Single-elimination tournaments, the only category of tournament admitted, is that where if a participant loses a match, he/she is immediately eliminated from the competition. It consists of various rounds according to the initial number of participants (whether athletes or teams): upon completion of each round, a given number of participants is eliminated until the only participant remaining is judged the final winner. Single-elimination tournaments, hereinafter also referred to simply as tournaments, can consist of: 15 virtual events, i.e. four rounds including the final, and therefore 16 participants with an initial round of 8 virtual events; 7 virtual events, i.e. three rounds including the final, and therefore 8 participants with an initial round of 4 virtual events; 3 virtual events, i.e. two rounds including the final, and therefore 4 participants with an initial round of 2 virtual events. TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 22 OF 45 Figure 9 - Framework of the single-elimination tournament - maximum dimension Evento Event TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 23 OF 45 Squadra Turno Ottavi Turno Quarti Turno Semifinali Turno Finale Torneo Team Eighth round Quarter finals Semi-finals Finals Tournament Individual virtual events comprising a tournament have bets on which bets can be placed as described in paragraph 2.2.1 and are identified by the event code assigned by the national totaliser at the time of opening. Virtual events participating in a round of the tournament can be grouped together within a multi-event, therefore respecting that described in paragraph 2.2.2, but cannot participate in other tournaments. A tournament belongs to the same programming schedule and framework as the virtual events comprising it. In addition to in individual bets, tournaments can also be played on multiple bets comprising exclusively different tournaments. All bet types that can be placed on thetournament must be uniquely identifiable by means of a numerical code and a description. The numerical code of each bet on thetournament is unique within the platform, also with respect to the codes of the bets on the individual virtual events and multievents. When the virtual gaming system opens play on a tournament, it informs the national totaliser of the details that enable the national totaliser to supply a unique code for this set of virtual events and bets to be accepted. Betting odds cannot change when accepting play; it therefore follows that all bet types on the outcome of the tournament shall have a different bet for each round that opens and closes with it. Each of these effectively expresses different probabilities of winning for teams moving forward in the tournament, depending on the round. TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 24 OF 45 By way of example, in a tournament with 16 teams, with 4 rounds including the finals, there may be: Winner of the eighth Winner of the quarter finals Winner of the semi-finals Each of these bets will be opened and closed in the relevant round of the tournament. The codes of the outcomes of the bets on the tournament that identify the teams are encoded as shown in figure 8, i.e. the position in the tournament opening round. Given that it is impossible to know from the outset, which participants will make up the virtual events of the subsequent rounds of the tournament, this is managed through two different scenarios: A first opening phase of the tournament, during which the virtual events comprising the first round are declared and bets accepted on this round (e.g. winner of the eighths). The subsequent phases, for which to an existing tournament, virtual events are added and bets relating to a specific round (e.g. winner of the quarter finals of the tournament). The method for the inclusion of virtual events and bets is identical up until the finals. The move to a next round in the tournament can only take place when all virtual events comprising the next round have been recorded. Acceptance of bets on the tournament of a given round is closed upon receipt of the first request to extract the random numbers of one of the virtual events comprising the round. TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 25 OF 45 Opening of a tournament The request for opening a tournament must at least contain: the programming schedule within which the tournament is to be opened; a description of the tournament; the codes of the virtual events comprising the first round of the tournament and their position in the score table, as per Figure 8; the types of fixed-odds bets accepted on the tournament in this round; the code of the foreseeable outcomes for each bet of the tournament; the probability assigned by the virtual gaming platform to each foreseeable outcome for the determination of winning outcomes; the odds offered for each foreseeable outcome; the virtual gaming platform used. TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 26 OF 45 Figure 10 - Opening of a tournament with 16 teams / eight events Totalizzatore Sistema di gioco virtuale richiesta palinsesto assegna codice palinsesto apertura evento #1 assegna codice evento #1 apertura torneo #1 (1:EV1, 2:E2, ... 8:EV8 – Bet1, Bet2 ... Betn) assegna codice torneo #1 Totaliser Virtual gaming system programming schedule request programming schedule code assignment opening of event #1 assignment of code to event #1 opening of tournament #1 (1:EV1, 2:E2, ... 8:EV8 – Bet1, Bet2 ... Betn) assignment of code to tournament #1 Insertion of events in an open tournament The request for including virtual events in a tournament must at least contain: the programming schedule and code of the tournament into which the events are to be inserted; TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 27 OF 45 the codes of the virtual events comprising the round of the tournament and their position in the score table, as per Figure 8; the types of fixed-odds bets accepted on the tournament in this round; the code of the foreseeable outcomes for each bet of the tournament; the probability assigned by the virtual gaming platform to each foreseeable outcome for the determination of winning outcomes; the odds offered for each foreseeable outcome; the virtual gaming platform used. The insertion of new events and bets on the tournament can only take place when all bets on the virtual events comprising the round have been reported. TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 28 OF 45 Figure 11 - Insertion of events and bets in the quarter finals of a tournament Totalizzatore apertura evento #9 assegna codice evento #9 apertura evento #10 inserisci eventi + scommesse torneo #1 (9:Ev9, 10:Ev10, 11:Ev11, 12:Ev12 – Bet1, Bet2 ... Betn) conferma inserimento Totaliser opening of event #9 assignment of code to event #9 opening of event #10 insertion of events + bets tournament #1 (9:Ev9, 10:Ev10, 11:Ev11, 12:Ev12 – Bet1, Bet2 ... Betn) confirmation of insertion TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 29 OF 45 2.3 ODDS GENERATOR The mathematical algorithms that implement the bets offered by a virtual gaming platform enable them to be divided up between pivot bets and derivative bets. Pivot bets: bets for which the report is generated through the extraction of random numbers or, more generally, bets that guide the reports of other bets. For example, the winning bet on a horse race. Derivative bets: bets for which the report is generated starting from the report of a pivot bet. For example, if for football the bet “is exact”, it is a pivot bet, vice versa, the bet “final result 1X2” is a derivative bet insofar as once the exact result is determined, the report of the “final result 1X2” or “Under-over” can be determined automatically, without needing to extract any more random numbers. In the dialogue with the national totaliser, derivative bets do not contain details of outcomes but are only declared in terms of accepting play. Some virtual gaming platforms may not have the pivot/derivative bets concept and calculate the probability of outcomes and respective betting reports using alternative methods. All foreseeable outcomes of bets on simulated events must be associated with a probability of winning. The probability of winning cannot be the same for all outcomes of a bet. The probability of outcomes of pivot bets and the variables used by the virtual gaming platform to calculate the odds must be the same as disclosed by means of the PSV communication protocol. The sum of the probability and all the foreseeable outcomes relating to a pivot bet type of a virtual event must be 1. The sum of the probability of the foreseeable outcomes for derivative bets does not necessarily need to be 1. The probability is TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 30 OF 45 calculated starting from the data in the database archive on the competitors and teams, through an algorithm that enables the reproduction, at any time, using the same initial data, of the probabilities calculated. The odds relating to a given foreseeable outcome are calculated starting from the probability of winning associated with it and are fixed and unchanging once gaming opens on the virtual event. All odds reported to the national totaliser, both when opening the virtual event and during bet acceptance, must be calculated by the virtual event and not by the concession-holder’s gaming acceptance system. 2.3.1 RTP OF INDIVIDUAL AND DIFFERENT BETS The virtual gaming platform must enable the setting of a theoretical margin of return for the player, which respect with the regulatory limits. The odds offered, following statistical analysis of the algorithm used to generate the winning outcomes and an analysis of the source code, must satisfy this margin. Clearly, the margin is linked to a given virtual event and if, within the same virtual gaming platform, two concession-holders should establish different margins, the virtual gaming platform creates different virtual events for the two concessionholders. The theoretical expected return, or the RTP, must be calculated as follows: Qi = Ideal odds, i.e. the odds offered with no margin. Qi = 1/Probability Qr = Actual odds, i.e. the odds offered to the bettor including the margin. Qr = 1/Probability×(1-margin) RTP = 1- Margin TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 31 OF 45 From which: RTP = Qr x Probability 2.3.2 RTP OF MULTIPLE BETS The national totaliser controls that for each participation receipt with bonus winnings, the following condition is met: (1) RTPMUL × IB ≤ 0.90 where: RTPMUL = RTP1 × RTP2 × ... × RTPi × ... × RTPN with RTPi = RTP of the i-the individual bet and N = number of multiple bets; IB = Bonus winnings (as described in the communication protocol for the specific type of bonus applied). If the above condition is not met, the sale of multiple bets is refused. In the event of a refund of 1 or N individual bets played in a multiple session, the national totaliser checks that the condition is still met, where RTP MUL is calculated only using the RTPs of the valid bets. If the condition is not met, the new percentage increase of the winnings will be calculated as follows: IB = 0.90/RTPMUL This value, rounded down to the sixth decimal place, multiplied by the total odds of the multiple and the amount bet, provides the new amount of the winnings. TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 32 OF 45 2.4 WINNING OUTCOMES GENERATOR Winning outcomes must be generated by means of an algorithm that uses at least the following in its variables: the random numbers generated by the RNG; the probability of winning outcomes. In order to determine the winning outcomes of the virtual event, the virtual gaming platform is prepared to receive random numbers supplied by the national totaliser by means of the gaming acceptance system. The random numbers supplied by the national totaliser are 32 bit signed integers, which the virtual gaming platform can sample in the range of interest, as long as the characteristics of randomness, statistical independence and equal probability are unchanged. The result of sampling of a random number supplied by the national totaliser must be rounded off to the sixth decimal place (rounded up if the part discarded is greater than or equal to 0.5, or otherwise down). Where probability is equal of the foreseeable outcome and the random numbers used are also equal, the determination of the winning outcomes does not change. The request for random numbers by which to generate the winning outcomes, made to the national totaliser, shall coincide with the closure of acceptance of bets on the virtual event. No more than eight hours must pass between the request for opening and the request for extraction of random numbers. The request for random numbers must at least contain: the virtual gaming platform used; the programming schedule; the virtual event; TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 33 OF 45 any fixed-odds bets accepted on the virtual event for which random numbers need to be generated. The national totaliser generates random numbers and the virtual gaming platform uses these to generate the winning outcomes and animation of the virtual event, in line with the result calculated. After displaying the virtual event, the virtual gaming platform reports the official results to the national totaliser. No more than 10 minutes must pass between the request for closure and the notification of the official result. The notification of official results must contain at least: the virtual gaming platform used; the programming schedule; the virtual event; the fixed-odds bets accepted for the virtual event; the winning outcomes. After having received the official results, the national totaliser authorises payment of winning tickets on the virtual event. Although the winning outcomes are generated on the virtual gaming platform, the national totaliser can independently reproduce the results obtained by the virtual gaming platform. TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 34 OF 45 The figure below shows the data exchange in relation to the request for extraction of random numbers and official results: Figure 12 - Data exchange between the national totaliser and the virtual gaming system Totalizzatore Sistema di gioco virtuale Chiusura del gioco Richiesta estrazione Numeri pseudo casuali Comunica risultati ufficiali Conferma ricezione Calcola gli esiti vincenti e genera l’animazione Totaliser Virtual gaming system Game closure Request for extraction Random numbers Report of official results Confirmation of receipt Calculation of winning outcomes and generation of animation 2.4.1 REPORTING OF BETS ON AGGREGATED RESULTS OF MORE THAN ONE EVENT Reports of bets on the aggregated results of more than one event are calculated directly from the reports of bets open on the individual virtual events comprising the multi-event, without any need to extract further random numbers. All bets on the aggregated results of more than one event are reported after the reporting of all virtual events comprising the multi-event. TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 35 OF 45 Totalizzatore Sistema di gioco virtuale richiesta palinsesto codice palinsesto = 200 apertura in sequenza eventi (pal = 200) #1 #2 #3 #4 #5 #6 #7 #8 codice eventi 1, 2, 3, 4, 5, 6, 7, 8 apertura multi-evento 8 eventi (Ev1 = 2001, Ev2 = 200-2 ...)(Bet1, Bet2, Bet3) assegna codice multi-evento 300 Totaliser Virtual gaming system programming schedule request programming schedule code = 200 sequential opening of events (prog. schedule = 200) #1 #2 #3 #4 #5 #6 #7 #8 code of events 1, 2, 3, 4, 5, 6, 7, 8 opening of multi-event 8 events (Ev1 = 2001, Ev2 = 200-2 ...)(Bet1, Bet2, Bet3) assignment of code to multi-event 300 TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 36 OF 45 richiesta numeri random evento 200-1 numeri random per evento 200-1 Chiusura evento 200-1 Chiusura sommesse multi-evento 200-300 (Bet1, Bet2) richiesta in sequenza numeri ramdom evento 200-2, 200-3 ... 200-8 numeri random per eventi 200-2 ... 200-8 referti in sequenza per eventi 200-1 ... 2008 referti accettati referti multi-evento (200-300) (Bet1, Bet2, Bet3) referti inseriti request for random numbers event 200-1 random numbers for event 200-1 Closure of event 200-1 Closure of bets on multi-event 200-300 (Bet1, Bet2) request in sequence of random numbers for event 200-2, 200-3 ... 200-8 random numbers for events 200-2 ... 200-8 reports in sequence for events 200-1 ... 200-8 reports accepted reports for multi-event (200-300) (Bet1, Bet2, Bet3) reports entered 2.4.2 REPORTING OF TOURNAMENT BETS Reports of bets opened on the tournament are calculated directly from the reports of bets open on the individual virtual events comprising the tournament, without any need to extract further random numbers. All bets on the tournament are reported at its end, once all events comprising it have been reported. As described in the paragraph on the management of bets on the tournament, this takes place in several rounds and for each of these, the correct management of the individual events and bets comprising them, is required. It is worth noting the key aspects of the entire sequence that results in the determination of the winning outcomes of a tournament. TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 37 OF 45 TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 38 OF 45 Figure 13 - total management of a tournament with seven events Totalizzatore Sistema di gioco virtuale richiesta palinsesto codice palinsesto = 100 apertura in sequenza eventi (pal = 100) #1 #2 #3 #4 codice eventi 1, 2, 3, 4 apertura torneo 7 eventi (Ev1 = 100-1, Ev2 = 100-2, Ev3 = 100-3, Ev4 = 100-4)(Bet1, Bet2) assegna codice torneo 500 richiesta numeri random evento 100-1 numeri random per evento 100-1 Chiusura evento 100-1 Chiusura sommesse torneo 100-500 (Bet1, Bet2) richiesta in sequenza numeri random evento 100-2, 100-3, 100-4 numeri random per eventi 100-2, 100-3, 200-4 referti in sequenza per eventi 100-1, 100-2, 100-3, 200-4 referti accettati Inserimento eventi e scommesse torneo (100-500) (Bet3, Bet4) eventi e scommesse inserite Stessa sequenza fino a referti evento #7 referti torneo (100-500) (Bet1, Bet2, Bet3, Bet4) referti inseriti Totaliser Virtual gaming system programming schedule request programming schedule code = 100 sequential opening of events (prog. schedule = 100) #1 #2 #3 #4 code of events 1, 2, 3, 4 opening of a tournament with 7 events (Ev1 = 100-1, Ev2 = 100-2, Ev3 = 100-3, Ev4 = 100-4)(Bet1, Bet2) assignment of code to tournament 500 request for random numbers event 100-1 random numbers for event 100-1 Closure of event 100-1 Closure of bets on tournament 100-500 (Bet1, Bet2) request in sequence of random numbers for event 100-2, 100-3, 100-4 random numbers for event 100-2, 100-3, 200-4 reports in sequence for events 100-1, 1002, 100-3, 200-4 reports accepted Insertion of events and bets for tournament (100-500) (Bet3, Bet4) events and bets inserted Same sequence until reports for event #7 reports for tournament (100-500) (Bet1, Bet2, Bet3, Bet4) reports entered TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 39 OF 45 2.5 COMMUNICATION INTERFACE WITH THE CONCESSION-HOLDER’S GAMING ACCEPTANCE SYSTEM In the exchange of data with the concession-holder’s gaming acceptance system and between the components comprising it, the virtual gaming platform must guarantee: real-time dialogue; mechanism for encrypting the data exchanged so as to prevent any unauthorised access and interception or alteration of the data exchanged; receipt and distribution in real time of the numbers generated by the RNG. In the technical and functional specifications of the virtual gaming system, which must be approved by the CUSTOMS AND MONOPOLIES AGENCY, the concession-holder describes the solutions adopted with regards to the encryption and security mechanisms of the communication network. TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 40 OF 45 2.6 EVENT VIEWING All virtual events must be displayed to the bettor. The viewing of a virtual event, a multi-event or a tournament, must be divided up into three parts: an initial presentation; the real implementation of the virtual event, the multi-event or the tournament; the display of the winning outcomes of all bets enabled. 2.6.1 PRESENTATION The initial presentation displays all information useful to the bettor to make his/her play: during this stage, acceptance of bets on the virtual event, the multi-event or tournament, must be open. The presentation must contain at least the following information: programming schedule code; code of the virtual event, the multi-event or the tournament; description of the virtual event, the multi-event or the tournament; the codes and/or names of participants; the bet types proposed on the virtual event, multi-event or tournament; the odds offered for each foreseeable betting outcome. For bet types for which there is a large number of foreseeable outcomes, for example different bets, it shall suffice to view a sub-set of the best and worst odds; a time indicator showing the time left for bets to be placed. TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 41 OF 45 2.6.2 PERFORMANCE During the performance of the virtual event or virtual events comprising a multievent or tournament, acceptance of play is closed and the virtual gaming platform has elaborated the winning outcomes. During performance,, at least the following information must be displayed: programming schedule code; code of the virtual event, the multi-event or the tournament; description of the virtual event, the multi-event or the tournament; in virtual events in which the winning outcomes are determined by an order of arrival, the foreseeable outcomes must be clearly identified, as defined in the initial presentation; the remaining types of virtual events must show all times that affect the determination of the reports of the bets enabled. It therefore follows that: In a multi-event or tournament, all times must be shown that affect the determination of the foreseeable outcomes of bets on each individual event comprising it. 2.6.3 DISPLAY OF THE WINNING OUTCOMES The display phase of the winning outcomes of the virtual event, multi-event or tournament must contain at least the following information: programming schedule code; code of the virtual event, the multi-event or the tournament; description of the virtual event, the multi-event or the tournament; TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 42 OF 45 the code and/or description of the winning outcomes according to the bet type able to be made; the odds of the winning outcomes according to the bet type able to be made. The requirements for the display of the virtual event set out above apply both to the physical channel and telematic channel. TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 43 OF 45 3. GAMING DATA The virtual gaming system must have archives in which all gaming data relating to the virtual events held, is saved; these archives must contain at least the following for each virtual event: programming schedule code and code of the virtual event; code of the virtual event, the multi-event or the tournament; description of the virtual event, the multi-event or the tournament; the time and date at which the virtual event starts; the time and date at which the virtual event opened; the time and date at which the virtual event closed; the time and date of notification of the official results; bet types enabled on the virtual event; foreseeable outcomes of bets with the related odds and probabilities; random numbers received necessary to calculate the winning outcomes; winning outcomes. The virtual gaming system must keep the data relating to a virtual event on-line for at least 90 calendar days from when it took place. After this period, the data in question can be logged and archived on other computer systems. TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 44 OF 45 4. MALFUNCTIONS Any hardware/software malfunctions of the virtual gaming system shall have a different effect depending on the status at which the virtual event is at the time the failure occurs: all virtual events open at the time of the malfunction must be cancelled by the gaming acceptance system. The technical cancellation of a virtual event shall entail the full refund of all bets placed on the event. Multiple bets placed on the event shall remain valid but the related odds will not go towards determining any amount of winnings of the participation receipts containing them. All virtual events that were closed at the time of the malfunction cannot be cancelled. During this phase, in fact, the random numbers used to determine the winning outcome have already been sent by the national totaliser to the gaming acceptance system, hence the virtual event must be concluded upon solving the malfunction, even without the display of the performance. The official results must always be sent to the national totaliser. All multi-events containing one or more virtual events concerned by the technical cancellation are automatically cancelled, resulting in the refund of all bets placed on it. Multiple bets placed on the multi-event shall remain valid but the related odds will not go towards determining any amount of winnings of the participation receipts containing them. All tournaments containing one or more virtual events concerned by the technical cancellation are automatically cancelled, resulting in the refund of all bets placed on it. Multiple bets placed on these tournaments shall remain valid but the related odds will not go towards determining any amount of winnings of the participation receipts containing them. No further virtual events can be included in a tournament once one or more virtual events comprising it have been cancelled. TECHNICAL ANNEX FOR BETS ON SIMULATED EVENTS VERSION 2.0 PAGE 45 OF 45 The virtual gaming platform must resume management of the virtual events scheduled once the system starts up again, rejecting all those not managed during the malfunction. The communication protocol with the national totaliser, PSV, provides the tools by which to recover any information that may have been lost during the malfunction and report on the virtual events, multi-events and tournaments concerned. Acceptance of play is suspended in sales points where the equipment necessary to displaying the virtual events is malfunctioning. Such local malfunctions do not affect the management of virtual events. Violations that may result in the adoption of provisions according to Article 21 of the Decree to which this document is attached include, merely by way of example, with reference to a given time frame, in any case of no less than seven days: a number of technical cancellations that exceeds 2 % of virtual events opened by the concession-holder; a number of delays in communication of official results with respect to the closing time of events in excess of 10 minutes, for more than 2 % of the virtual events opened by the concession-holder; the number of times where the opening of a virtual event exceeds the duration of 8 hours, for more than 2 % of the virtual events opened by the concession-holder.
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