Quote:
Originally Posted by Sirbustalotz
I contacted itech labs about the rng testing they do and you might be suprised what they told me in there email at least I was. They told me they cannot confirm whether global even uses the rng they tested that it was there "responsibility" to keep using the rng that itech labs tested. Is this normal procedure? I was hoping to get a certificate they would be checking the rng randomly and frequently? If anyones interested I can pot the full email response I got from them.
Of course this is a normal procedure - iTech Labs is a widely recognized certifying body, a laboratory, it is not a regulator - none of the labs that are testing games are inspecting whether their approved algorithm is actually in place, it is not their job or mandate.
MGA, GP's regulator, has a list of internationally recognized labs that they recognize as well and requires any algorithms used by a service provider to be stress tested and certified by one of those labs. The certifying lab also hashes the algorithm so the regulator knows that when a service provider applies for a license this is the algorithm that they will use in their games, without it, an operator cannot get the license approved. Interactions between MGA and a service provider are constant, any game that is added to the service under license needs to be inspected by them - for example, want to add Surge, have to submit it for approval from MGA first with all encompassing changes, want to add a new slot game, have to submit it for approval from MGA with all encompassing changes. And there are audits that are usually yearly or more frequent, there might be complaints from customers to which service provider has to respond to, submit explanations and documents, there might be new directions that all service providers need to adhere to and implement -- i.e., conversation is on almost on any given day. On top of that, EU customer protection laws apply to all service providers under MGA, which are much stricter than almost anywhere else in the world. Breaches of license agreements even relatively minor have significant costs to the business - not just explicit, but not using the RNG that the regulator approved to use under license agreement could result in a loss license, financial fines to the service provider and very likely legal liability to the management. In the business world, this is a risk that one just does not take because they also have investors who do not engage in day-to-day activities of the business and assumed the risk as stated in the business plan, so they have expectations that the management will run operations as declared and not endanger their investments and expected returns, agency costs are high enough as they are - in case management will decide that they do not feel like running product promos or launches on schedule, not to mention institutional investors who have zero tolerance to any increased risk.
As a result, RNG algorithm is something that companies implement and do not touch until there is another product launch that requires approval or audit that is because, contrary to regulars' opinion, RNG does not make or break companies -- marketing efforts and product development for economies of scale pay the bills or do not -- without constant growth of the business, i.e. new customers, the business becomes no longer financially viable and losses investors before it starts losing its market share, because investors always have opportunity costs among others to consider, and that is much greater concern, therefore there are always tens or hundreds of projects for product teams to work on and figure out what to prioritize and when.