Understanding RNG and Its Importance in the Lottery Ecosystem

RNG meaning - What what does RNG mean?

As the term suggests, RNG is basically a method of choosing a number or combination of numbers - by chance (randomly), from a set of numbers. This could be either a hardware device or a software algorithm that creates the final output. It does not follow any specific pattern leading to absolute 'unpredictability'. As a matter of fact, randomness is the heart of the lottery & gaming ecosystem. In a game of chance, players rely on luck, or randomness, to determine the outcome.

What does RNG do in gaming

RNG, or Random Number Generator, is a critical component of modern gaming. RNG acts as the foundation of lottery, casino gamers, slot machines, poker, sports, table games and many casual games. As you can't predict what will happen next, it adds honesty and fairness to the game, which subsequently adds to engagement of the players. For iGaming platform providers like Skilrock, ensuring the integrity and randomness of their RNG system is crucial in order to maintain player trust and satisfaction, and ultimately, the success of their platform.

In gaming, RNG ensures that the outcomes of games are truly random and not biased towards any particular player or group of players. This means that every player has an equal chance of winning or losing, and the outcome of each game is not predetermined or influenced by any external factors.

It is time to move on and break it down into two major components. They share one purpose: making a sequence of random numbers, but their approach is quite different from each other.

Types of Random Number Generator (RNG)

1. True Random Number Generator (TRNG) or Hardware Random Number Generator

   It is mostly used in land-based businesses. It is not difficult to understand it as it utilises an easy  ‘physical process’ to determine the outcome. There is no algorithm working to generate random combinations. It usually has a transducer, an amplifier, numbered Lottery balls, mechanical drawing machines, analogue-to-digital converter, etc.

   We would like to add an interesting point. The public memory is still fond of the classic lottery-ball tumbler (as seen in the image given below). As a matter of fact, many players still feel comfortable playing the classic lottery draw as visible drawing methods are more fun and confidence-inspiring.

   Features of Hardware Random Number Generator:
   • The old-school charm allures many players
   • Difficult to rig
   • A familiar and trusted medium
   • Allows players to see “chance” happening
2. Pseudorandom Number Generator (PRNG) or Online Random Generation

   Most online lottery websites use a pseudorandom number generator. It is a refined program that uses mathematical algorithms to generate random outcomes. It is entirely independent of any rigging and uses chance as the most important criterion. This also rules out any probability of errors. They are efficient, cost-effective - and most importantly, they are extremely secure.

   This segment has grown in recent years owing to multiple favourable factors like smartphone penetration, high-speed internet, increasing disposable incomes and rising interest and uptake among players. The adoption of online mediums is expected to rise in the years to come. Hence, operators should understand the importance of PRNG in a changing world.

   The lottery & gaming industry changed drastically after the pandemic. This left a huge impact on the player's behaviour which ultimately acted as the catalyst for 'digital transformation' all over the world. With an efficient online channel, you can conveniently build a competitive advantage and meet changing business and market requirements.

   There are many advantages of PRNG/online draw systems. Let's have a look at some of them:
   • Better control over the gaming environment
   • More engaging
   • Easy to access & play (smartphone proliferation is quite high)
   • Anonymity (can be played at home)

Challenges and Risks Of Generating Random Numbers

In the present era, the proliferation of connected devices and the evolving nature of attacks, breaches, and malware make the need for security in products and ecosystems more important than ever.

Hence, operators should ensure that the software and hardware modules are working properly and that there are no errors. The proactive measures also involve appropriate association with a trustworthy gaming technology provider. This will protect operations from a cyberattack or manipulations from within. In many jurisdictions, a gaming site can only obtain a license when it has either purchased an RNG from a licensed supplier or created its own system that is approved by the authorities. So, this point is crucial.

To sum it up, these are some of the security concerns:

• Hacking attacks on the website targeting results.
• Attacks on the game code.
• Attacking the hardware components.
• Software bugs
• Configuration errors
• Outdated support system
• Insider frauds

RNG Certification - The Prerequisite to Manage Risks

RNG certification has a huge role in the lottery software business. In many jurisdictions, a gaming site can only obtain a license when it has either purchased an RNG from a licensed supplier or created its own system that is approved by the authorities.

Many prestigious companies provide a range of RNG certification support services for technology providers such as iTechLabs, GLI, BMM Testlabs, eCogra (eCommerce Online Gaming Regulation and Assurance), etc. It should be noted that these audits follow stringent inspection methods and conduct periodic tests to ensure transparency and consistency in terms of quality controls. Some of these parameters are code reviews, mathematical consistency, functionality, current licensing requirements, diehard tests, outcome distribution tests, etc.

Lottery operators must seek technology providers with the right set of certifications. This would also help them increase user transparency, build better products, strengthen their brand, and gain a competitive advantage in the competitive landscape. These certifications also ensure that operators are investing their money in a trustworthy technology provider.

We, Skilrock Technologies, are proud to have Gaming Laboratories International (GLI®) and iTech Lab certification. This feat was achieved after a careful & thorough process which includes software verification, source code review, and data analysis, among many others.

It empowers us to focus on maintaining our lead in developing innovative products and maximising operators' growth potential, knowing we're supported by GLI's and iTech's advanced compliance.

Conclusion

This post provides a profound insight into the RNG process and its importance in the lottery & gaming business. Random number generation is the essence of any modern lottery operation. You must understand what platform to use and how to handle random numbers securely in their land-based and online channels. It is also important for operators to consider the challenges as discussed above in the blog.

We are counted among the leaders in developing world-class gaming products. Our expertise is founded on four decades of engaging with key players all over the world. To know more about our Gaming Platform, contact us. Our lottery & gaming experts will be happy to assist you.