Changing dynamics PwC Canada’s gaming practice www.pwc.com/ca/gaming

www.pwc.com/ca/gaming
Changing dynamics
PwC Canada’s gaming practice
PwC Canada’s Gaming Practice
Changing dynamics
Real-time communications, advanced technologies, social
networking—each of these are providing new avenues for
people to play, engage and interact. To remain relevant and
grow, the gaming industry needs to change. This means
finding ways to engage with the next generation of players
and offering a customer-centric approach that suits their
wants—mobile and social. Driving a customer‑centric
approach requires culture change and aligning
transformation initiatives.
What does this mean for gaming organizations? They need
to re-think how they conduct business.
Cyber
resilience
Customer/
digital
Risk and
compliance
Business
intelligence
Transformation
Changing the game
New technologies and more connected players are pushing the
gaming industry towards a one-stop entertainment experience for
the player. To get there, the gaming industry needs to modernize and
take an integrated approach to business transformation activities.
This includes the integration of four key operational pillars:
Operations:
Growth and
revenue expansion
requires operational
efficiency—both in
the front and the
back offices.
Risk: To
succeed in an
integrated and almost
boundary-less world,
made more complex by
regulation, you need robust
customer-centric processes
to manage risk and
compliance across
jurisdictions.
Technology:
A customer‑centric
approach requires
the right technologies to
support your operations—
from data management
to cyber security to risk
management.
People: People
are the most important
part of change; without
their support change won’t
stick. Effective change requires
a foundational cultural shift
through change management
and stakeholder engagement,
both within individual
organizations and
industry-wide.
Understand the players,
understand the game
The gaming industry is at a crossroads. While traditional
forms of gaming continue to dominate, new technologies,
social media and shifting regulatory and operational models
are driving innovative thinking and industry transformation.
Improving customer experience is the heart of this change,
and to do this, the industry requires:
•New technologies for seamless customer experience across
platforms—both in-person and online
•Standardized processes and operations to govern
everything from data collection to knowledge sharing
across providers
Changing for the better
Video link:
http://www.pwc.com/ca/gamingtransformation
Solving the cyber security challenge
Online gaming remains at the forefront of change
across the industry. But in a highly regulated
environment where legislation differs by
jurisdiction, the growth of online gaming presents
new opportunities, but also greater risks.
Challenges for operators
Regulatory
constraints
Generic
offerings
Multiple
identities
Marketing
deluge
Challenges for government
operators and regulators
•Monitoring for underage players
•Working across jurisdictions to
•Providing secure, safe and
create governance policies and
instantaneous monetary
processes
transactions
•Monitoring and regulating
•Implementing tools and
online and multi-platform
technology to enforce the
offerings
integrity of gaming offerings
•Ensuring offerings don’t
•Developing operational
undermine the integrity of the
standards and processes across
entire gaming system
jurisdictions
•Adhering to regulatory
reporting requirements across
jurisdictions
Lack of
continuity
Fraud
Explosion
in data
Turning information into predictions
Success comes from understanding the players and
using this information to guide future decision making.
To get it right, you’ll need:
Customer
trust
Customer
provided data
•Technology: Gathering information requires
advanced technology and processes for data collection
and analysis—a challenge for an industry whose
offerings are diverse and systems and processes are
outdated.
•Trust: Players can provide a wealth of information,
but to get it you need to win their trust. First it takes a
customer-centric approach and corporate transparency
to build that trust. Once established you’ll gain player
data and unparalleled business intelligence.
•Collaboration: With no centralized or data sharing
database between gaming retailers, no single industry
participant has the ability to manage business
intelligence beyond their sphere of influence. Industry
and government collaboration is required to gather the
most robust data possible.
Customer centric approach
Business
intelligence
Making bets based on risk
Regulatory fines, loss of stakeholder trust, falling revenues and the
inability to operate—these are but a few consequences of making the
wrong bet. Yet managing risks in a complex regulatory environment isn’t
easy. With diversified legal systems, legislation and report requirements
across jurisdictions, the risks only grow.
Operators
Government and regulators
Licensing and compliance with
regulators can be complex, with
each state, province and country
having their own requirements
that are not unified or harmonized
across jurisdictions. These
requirements are very costly for
operators as they try to navigate
the risk landscape and meet the
complexity of compliance.
A lack of cooperation, data
sharing and standards can
lead to increased costs and
complexity. Responsibility for
monitoring gaming operations
and the integrity of the
gaming environment means
developing a framework that
promotes compliance while
also encouraging growth and
expansion.
Creating compliance programs
using a risk‑based approach can
help create efficient processes that
identify and manage risks before
they become major problems.
How we can help
Our team can support you through your transformative journey, helping you
understand what needs to change, how to change it, and most importantly, how to get
your people to buy into the changes. We can help you:
Assurance and tax
Risk assurance services
Audit Services
Tax services
Financial statement audits
Outsourcing services
Outsourcing services
Governance
Regulatory compliance and
reporting
Co-sourcing services
Co-sourcing services
ERP controls implementation
Staff augmentation/secondments
Staff augmentation / secondments
Data quality
Sarbanes-Oxley compliance
Advisory services (methodology:
risk assessment, planning and
execution; resourcing models;
effectiveness and productivity
reviews)
Advisory services (methodology:
risk assessment, planning and
execution; resourcing models;
effectiveness and productivity
reviews)
Disaster recovery planning
Project assignments
(data management and analytics,
project assurance, assessing security
controls)
Project assignments (data
management and analytics, project
assurance, assessing security
controls)
IFRS reporting
Accounting standards for private
enterprises (ASPE)
Capital market transactions and
initial public offerings
Systems and process assurance
Risk management
Regulatory compliance
Fraud risk and controls
Business continuity
Compliance management (e.g. PCI) and
framework development
Domestic and cross-border
tax compliance
Domestic and international
corporate tax planning
Indirect tax/value added tax
Mergers and acquisitions,
transfer pricing
Expatriate tax planning and
compliance
Compensation and benefits
Tax risk minimization
Tax accounting
How we can help
Consulting and deals
Technology advisory
Cyber Resilience
Sourcing and
procurement
Technology strategy and
implementation
Security strategy and governance
Strategy
HR transformation
Corporate finance
Cyber security and crisis response
Readiness assessments
Change management
Infrastructure and project finance
Systems selection and optimization
Identity and access management
RFP services
Transaction services
IT projects and operations
Enterprise security architecture
Transition and transformation
Saratoga™ global benchmarking
services
Digital: cloud computing, mobile
payments, social enterprise
Enablement: security for mobility,
cloud computing and payments
Sourcing effectiveness
Enterprise architecture
Threat intelligence and vulnerability
Information management (e.g.
business intelligence, data analytics)
Negotiation support
Privacy and data leakage protection
Contracts value analysis
Information security
People and change
IT process efficiency (e.g. ITIL,
COBIT)
Emerging technologies (e.g. virtual
currencies, social gaming)
Games and game system testing
services
Vendor management
Organizational design
Talent management
Deals
Skills and capabilities assessment
Competency models
Valuation
Forensics
Disputes
Litigation
Union engagement
Mergers and acquisitions
Training development and delivery
Debt advisory
Corporate advisory and restructuring
How we can help
Our expertise ranges across
the gaming spectrum
Land-based gaming
Responsible gaming
Lottery
Regulatory trends
Charitable gaming
Risk and controls
Online games
Anti-money laundering
Casinos
Security
Social gaming
Testing
Mobile
Infrastructure assessments
Regulators
Global gaming markets
Operations
Technology
Canada
Provide audit and internal audit services for First Nation
entities, and have extensive experience working with
provincial lottery organizations.
Developed a technology and transformation strategy for a
provincial lottery organization
Created the digital customer strategies for operators within
two large provinces
Supported a Canadian regulator with the creation of
regulatory standards for new online gaming offering
Gaming experience also includes strategy and standards
development.
What makes
PwC different?
We are closely aligned with our
global PwC offices, consisting of a
number of professionals who have
experience working with regulators,
operators and suppliers across the
globe. This gives us the edge to
provide industry-leading thinking,
methodologies, toolsets and
guidance that are tried and tested.
US
Robust, full service national gaming practice with
longstanding industry experience serving some
of the largest and most successful corporations in
gaming today
Lead auditors for a number of large multinational
casino private operators
Provide strategic consulting services for a number
of state run lottery organizations
Regulatory professionals in Canada,
Malta, Alderney, and the UK
Gaming test labs in
Canada and Spain
UK
Ireland
Spain
Advised one of the world’s largest online
poker operators
Provide corporate and personal
tax compliance services for a large
multinational gaming companies and
suppliers
Leads testing for online products (core
systems and games) for a number of
regional government operators
Developed white paper on a variety of
taxation regimes
Valuation services in
Canada, the UK and
Singapore
Macau
Auditors of two of the largest
casinos in the region
Provided advice on casino
back‑office systems and operations
Singapore
Auditors to both of the country’s
casino operations, and provides
corporate and personal tax
compliance services for large
multinational companies and
gaming industry suppliers
South Africa
Australia
In addition to external and internal audit
services, we provide commercial and
financial due diligence to casino operators
Leading service provider for external
audits for casinos and gaming equipment
manufacturers and suppliers
Gaming centres of
excellence in Canada,
the US and the UK
Our team
For more information, please contact us or
visit our website www.pwc.com/ca/gaming
Darren Henderson, CA, CISA
Partner
National Gaming Practice Leader
416 941 8379
[email protected]
Gerry Guitor
Director
National Gaming Practice
514 205 3959
[email protected]
Arryn Blumberg
Director
National Gaming Practice
416 687 8014
[email protected]
Resources
Gaming in briefs
A closer look at the four key
issues challenging the gaming
industry today
Global gaming outlook
A study on revenue growth and
current and future trends in the
global casino gaming industry and
the online gaming sector.
The big bet: Gaming insights
This series provides key information
and PwC’s insights on today’s
gaming trends.
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PwC refers to the Canadian member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. 3956-01 0614