stress that gambling goes on regardless, only outside of the District, depriving the city of revenue. In opposition, a woman vocalized others’ concerns asking “how do we know where the money will go?”
Online gambling also means no casinos blighting the nation’s capital’s cityscape. Theoretically, a SCIL could be in a gas station or a gym (gamble while you’re on the treadmill!).
Buddy Roogow, executive director of the D.C. is not alone. government and DC09, with DC09
responsible for implementation and operating costs. But it may not be a done deal, although it was part of D.C.’s Budget Support Act passed in late 2010. Instead, people can gamble in the privacy of their own homes or in “Secure Commercial iGaming Locations (SCILs),” located in existing commercial establishments, such as hotels, coffee shops, bars and restaurants. Lottery Board says “It’s here, it’s happening.”
And who would benefit from the iGaming revenues? Opponents aren’t convinced it would be social programs. Some who oppose iGaming are appalled at the legislative process creating the online gambling law.
But is the “Lottery Modernization” law really just a way for D.C. David Umansky in the office of D.C.’s
Chief Financial Officer said that means D.C. A woman with parents in their 70s who drive outside of Delaware to gamble and don’t return until five in the morning, would rather have them iGaming at home.
If you live in Washington, D.C., this may not just be an “iDream” and you could soon be living in the first jurisdiction in the country to allow iGaming. In order to iGame, you have to be at least 19 years of age and be within city limits. and fixed odd games.” That includes the very chancy virtual E-scratch. Gambling, a blog to educate D.C.
What’s your iGame — Texas Hold’em Poker, Black Jack, Bingo? Or maybe it’s E-Scratch, a virtual way to scrape your way to winnings. . The iGaming provision was the brainchild of D.C. to get an online seat at the gambling table? Desperate for revenue, many states are exploring iGaming as a budget-booster, so D.C. will be splitting an estimated $26 million over
four years with DC09, with Intralot paying all program expenses.
Others see bringing iGaming into trendy commercial areas like Adams Morgan as dangerous, with the potential of mixing alcohol and gambling, a fear Councilmember Brown rebuffs because there is no cash involved. According to opponents, it was slipped into the D.C. budget bill at the end of last year without public hearings. Brown disputes that as well claiming in a “Dear Colleague” letter that “the iGaming provision was properly vetted through Council procedures …” Since being enacted, D.C. Some local community bodies are also calling for repeal.
Generally, supporters of iGaming in D.C.
So what exactly is iGaming? Very simply, it’s internet gambling. Council members Tommy Wells and Phil Mendelson have sponsored repeal legislation while other local officials have backed off from their support of the law as passed. But how much is the take for the vendors, which, in D.C.’s case, is “DC09 LLC,” a joint venture between Intralot, an integrated gaming supplier based in Greece (currently the world’s most notorious debtor nation) and the D.C.-based Veterans Services Corporation (VSC).
According to Gabrielle Barry, Chief of Marketing & New Products for the D.C.
“Anything that brings revenue into the city is a good thing,” said a man at a recent evening public meeting, one of the last in a series being held in the District’s eight wards. Councilmember At-Large Michael A. Meanwhile, local iGaming advocates believe online gambling revenue will fix the schools, create jobs and help human services programs, even though the gambling funds go into D.C.’s general fund, and are not dedicated to education or social programs. Lottery Commission, which would oversee D.C.’s iGaming, the internet is used to “wager money on games of skill or chance… As a result, activists created Stop D.C. Lottery, net
iGaming revenue is split 50/50 between the D.C. residents about the law’s flaws. In other words, to get a license, a business has to already be in operation. According to the D.C. Brown, as a budget enhancer he projects will bring in $13 million over the first four years.
Viewed by iGaming proponents as a possible revenue-raiser for a city with struggling schools and social services, the law has met with vociferous opposition over questions of who the internet gambling revenue will actually benefit, local authority over the location of online gaming sites, and challenges over the process of enacting the iGaming measure, the “Lottery Modernization Amendment Act of 2010,” into law
Software development costs are the biggest expense for Internet gambling firms. Bengtsson, a 30-year-old ex-blackjack dealer in banker’s clothes, runs Boss Casinos, which is one of the biggest online gambling operations here. JOHN’S, Antigua (IDG) — Here among the storefronts made of plywood
and painted ice-pop colors, there grows a strain of electronic commerce
that faces obstacles even Amazon.com couldn’t imagine. servers, one for each of the gambling sites he runs for other companies. (Boss Casinos charges maintenance fees and takes an additional cut of the revenue from each client.)
And Amazon.com doesn’t have to worry about how to pay out $50,000 jackpots.
Managing risks — financial, legal and security — is what the business is all about. It’s almost a bank.”
Last year, Starnet’s casinos group saw 6 million hits daily; the average spent per bettor visit was $200, he said.
Webposted at 8:08 am EDT
by Kim S.
ST. Moreover, the U.S.
“We gotta be fast.
They also must support many languages besides English to attract players in Europe and Asia, where online betting isn’t so legally iffy. “We’re not typical bookies. Nash
“You play my game, and it’s a real live transaction taking place,” he said. “We tried to recruit from locals but they don’t have the skills,” Bengtsson said. We’re the future. police say online gambling is illegal under a 38-year-old law — and they’re starting to prosecute. in San Diego, which runs three online casinos, like to point out that they’re publicly traded firms that must report detailed company data. Congress is expected to outlaw Internet casinos outright.
Cost of doing business
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February 8, 1999
Study says gambling starts early, linked to risky behavior
August 3, 1998
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Boss Casinos moved into a snow-white, five-story building — one of the tallest in this capital city — after Hurricane Georges blew the roof off its former quarters in September.
“Gambling provides revenue to the country but also employment and indirect economic benefits,” said Vere Murphy, commissioner of the Free Trade and Processing Zone, which licenses and regulates Internet gambling companies here. Operations were down for more than two days. Kitts, has spent $20 million in the past three years to set up its GalaxiWorld online casino, said Larry Weltman, chief financial officer at the company in Gibraltar, U.K.
Two Compaq Computer Corp. Wire transfers, credit cards, bank drafts, personal checks, electronic currency, even cash: They all are forms of payment acceptable at one gambling site or another. In fact, Antigua invites it.
Murphy says he sees himself as something of a cybercop, enforcing licensing laws and chasing away lawbreakers. All staff is cleared by Interpol,” he said.
“We don’t sit here drinking umbrella drinks,” said Peter Bengtsson, managing director of Boss Casinos Ltd. So far, he’s collected $6 million to $7 million in license fees from the 32 online casinos and sports-betting sites he has sanctioned.
Terry Bowering has paid his $100,000 annual license fee to Antigua and scoffs at the idea that online casino executives run a crooked business, hide from the law or fleece naive Internet users. Gun-toting local police also watch the premises 12 hours a day.
More than 1,200 registered players placed $3.1 million worth of wagers in GalaxiWorld’s first month in action. Her E-mail address is firstname.lastname@example.org.
For example, some companies have hired Big 5 accounting firms to sign off on their business plans and certify, as best they can, that the software is fair to players.
Playing by the rules
But as usual, the house is raking in the cash. We’re sticking to a marketing strategy and a business plan,” said Bowering, a 38-year-old former stock broker and financial consultant. The company, which has headquarters in Sweden, employs 30 people locally, mostly in telephone support and risk analysis. Inland isn’t profitable yet. The credit card, passport and other data requested of players “never leaves this building. servers running Microsoft Corp.’s Windows NT process bettor payments.
Even so, Starnet, which is based in Vancouver, B.C., is careful to do all bet-processing and money transactions on servers here to guard against Canadian and U.S.
“We’re pioneers. There are too many other choices out there for players,” he said.
“Security we take quite seriously,” Bengtsson said. GLC Ltd., which does business on the nearby island of St. We’re MBAs.”
Each of the 14 gambling executives interviewed by Computerworld claimed to be bringing a businessman’s order to the largely untested world of Internet wagering.
Starnet, for example, posted $1.8 million in sales for its most recent quarter and showed $248,000 in profit.
In the new locale, Bengtsson plans to set up a locked and guarded server room in which to house six Sun Microsystems Inc. “We deal with other people’s money and must have backup procedures and a fire-safe area and strict rules.
Hiring programmers well-versed in Sun’s Java language is expensive but worth it, according to Weltman, 37. Antigua is one of just a few countries to legalize online gambling. Instead of having to download fat software files before playing, users spend one to three minutes installing various Java applets, he said. Page hits totaled 3.2 million.
The four information technology people at Boss Casinos all are transplanted Swedes. English Harbour Casino Ltd., on the southern tip of the island, uses Deloitte & Touche LLP, while Boss Casinos employs PricewaterhouseCoopers.
There’s just one problem: U.S. An estimated 200 Web sites currently lure surfers to virtual slot machines, craps and other Las Vegas-style games.
For Bowering, vice president of offshore operations at Starnet Communications International Inc., Internet gambling is a legitimate form of electronic commerce that lawmakers just don’t understand. Online gambling is a $535 million industry worldwide that’s expected to grow to $10 billion in three years, according to Datamonitor PLC, a market researcher in London.
So gambling entrepreneurs from the U.S., Canada, the U.K., Israel and other countries have set down roots on Caribbean islands, particularly this one. police action.
Nash is a Computerworld senior editor.
Starnet wouldn’t mind being a takeover candidate for land-based casinos: “Once the smoke clears, they will look at a company like us to get them online,” Bowering said. That’s different from Amazon.com, where “one customer buys two books, and it may [take] two or three weeks to deliver,” added Weltman, a former lottery company manager. Internet gambling
operators must gird their sites for multiple simultaneous users who pound
through rounds of blackjack and online roulette — at 40, 50 and 60 clicks
Perhaps most nettlesome are the financial transactions.
Hitting the jackpot
Meanwhile, Starnet and rival Inland Entertainment Corp
Rubio came in a distant second at 9-2, followed by Cruz at 25-1.
“I am betting against Trump getting the nomination at these odds but only because I think there is a 30 percent chance the GOP elite somehow successfully blocks him at the convention,” said a post from a forum member with the username matthewcooley.
There has not been a brokered U.S. It was independently created by the Reuters editorial staff. Senator Marco Rubio of Florida. SAP had no editorial involvement in its creation or production.
Ted Cruz’s Super Tuesday victories in his home state of Texas and neighboring Oklahoma strengthened his odds for the Republican presidential nomination on online betting sites but he still trails far behind Donald Trump.
(Reporting by Dan Burns in Washington and Anjali Athavaley in New York; Editing by Peter Cooney and Bill Trott). PredictIt had Trump’s odds of winning the nomination at 76 percent early on Wednesday, down 4 points from Monday’s record high of 80 percent.
Betting volumes on both Trump and Cruz hit records for the candidates on Tuesday and Rubio’s volume was his second highest ever.
On PredictIt.com, operated by Victoria University in Wellington, New Zealand, the predicted chances of the Texas senator winning the nomination for the Nov. 8 election rose to 10 percent as results from Super Tuesday voting continued to be tallied.
Ladbrokes PLC said on Wednesday morning that Trump’s odds of securing the nomination were 1-5. Ireland’s PaddyPower put Trump as a 1-to-7 favorite, with Rubio following at 5-1 and Cruz at 12-1.
Message boards associated with PredictIt featured growing discussion of a possible brokered convention, which can occur when no candidate has won a clear majority of delegates before the start of the party’s nominating convention.
Cruz has gained 4 percentage points in the past two days and his predicted chances stood at the highest level on the site since he tumbled to a record low after a weak showing in the South Carolina primary on Feb 20.
Rubio, who scored his first win in a nominating contest on Tuesday with the Minnesota Republican caucuses, dropped 1 point to 10 percent, a record low for him.
But Trump, who rolled to wins in at least seven states on Super Tuesday, was outdistancing both Cruz and his other top rival, U.S. major-party convention since 1952 when the Democrats nominated Illinois Governor Adlai Stevenson on the third ballot.
This article was funded in part by SAP. Other online betting venues also gave Trump, a New York billionaire businessman, the strongest odds of winning the nomination
But over the last several months, at least some traditional casinos have pursued the time-honored strategy of joining an Internet gambling trend that they can’t beat. “Since there are no controls at present regarding Internet wagering, I would urge investors to shun these firms at present,” he says. “Ultimately, Internet gambling operators are selling a product. “Federal legislation will make it difficult but not impossible for Internet gamblers in the U.S. In the ’70s, Atlantic City legalized casino gambling; in the ensuing decades, state lotteries, Indian casinos, gaming ships, offtrack betting parlors and card clubs have sprouted across the landscape. A Ninemsn spokesperson says that the site does not now offer online gambling and would not comment on future plans.
Similarly, the Las Vegas-based public company American Wagering, owner of Leroy’s Horse and Sports Place in Nevada, also operates a sports gambling site located in Canberra called MegaSports (www.megasports.com.au). At one point, Interactive Gaming looked like it could be an industry leader.
But the growing acceptance of online betting and the Internet’s inherent ability to shatter jurisdictions bring the inconsistencies of American gaming law to a boil. If, on the other hand, an activity is in the physical world – betting on horses, or casino betting with Indian tribes – it becomes subject to federal criminal sanction when it occurs in cyberspace. The minimum amount to begin an account varies. Legislation tied to a particular technology may quickly become obsolete and require further amendment. “I use the service because it’s convenient and I have access to it when I want,” says one online gambler.
You might think that the prospect of competing against the likes of Microsoft would terrify a $20 million company like Inland. That may suggest that, as some legal observers have argued, the 1961 federal Wire Act is too old and too loosely written to prohibit online gambling. Kyl introduced a revised version earlier this year, removing some of the more onerous and hard-to-enforce provisions. college and professional sports. The amount spent on Internet gambling is harder to calculate. In 1997, published reports put the total number of operating online casinos at 15. For decades, Vegas was about the only legal option for gamblers. The Standard obtained a Department of Justice analysis of the bill S. Bets generally range from $1 to as much as $300. In 1998, the Senate passed, by a large margin, an amendment prohibiting Internet gambling, but that bill died before becoming law. attorney’s case involved the casinos’ sportsbooks. The Internet is presently unregulated and we support a federal law regulating Internet gambling.”
The office of U.S. His equal partner is Australian tycoon Kerry Packer of the Crown Casino in Victoria.
The original version of Kyl’s bill failed most of these tests. But as more and more traditional firms become involved, the consumer will look for the brand name. As Timothy L. Estimates range from $650 million to $1 billion a year, worldwide – a tiny fraction of the amount spent on more traditional formats. Even the precise number of online casinos is hard to calculate. Blackjack players can very easily count cards, or even consult odds charts; the Kennyrogerscasino.com site actually has a printable chart showing the best strategy for every possible hand of blackjack. The vast majority of customers will satisfy their demand for commercial gambling through less onerous and risky alternatives, such as lotteries, bingo, pari-mutuels and casinos.”
Is Microsoft betting too?
The potential action is too compelling for even the largest tech tycoons to resist. Casino games are available on a site or via downloadable software.
If such gamblers are not satisfied by options available to U.S. “We get daily reports, and you’ll see these people who spend a couple of hours gambling, and the total amount they bet is like $1.81,” says Thomas Holmes, Inland’s head of technology. But following a 1997 indictment, the state of Missouri settled a suit against the company and its president, Michael Simone, for about $35,000. Failure to account for that specificity in legislation could stifle the Internet’s growth or chill its use as a communications tool. Says Opel, “Bringing in the big names and established companies only adds credibility and visibility to what we’re already doing.”
Is it legal?
A few hurdles have to be cleared before such ventures can take off – beginning with the federal government.
Gambling is as at least as old as Christianity (that is, if Ben Hur can be trusted). Says Sinclair of Christiansen/Cummings: “You are going to feel more comfortable wagering with a Hilton than you will with Joe’s Casino.” . In November 1998, for example, a division of Hilton Hotels acquired the company that runs Centrebet, a Web and telephone sports-wagering system based in Australia (www.centrebet.com.au). attorney’s office theoretically operate out of the Caribbean. to gain access to offshore sites,” says Sebastian Sinclair of Christiansen/Cummings. And for sports bettors – who make up a majority of online gamblers, according to industry insiders – the ease of using cyberbookies can’t be beat.
Internet Gambling Worldwide, Past and Future
Finally, the DoJ believes that any federal law must recognize that the Internet is different from other communications media: It’s a multifaceted communications medium that allows for both point-to-point transmission between two parties (like the telephone), as well as the widespread dissemination of information to a vast audience (like a newspaper). Passed during the term of crime-fighter Attorney General Robert Kennedy, the law was intended to outlaw betting over telephone lines. Almost all online gambling sites work the same. But the travails associated with fending off lawsuits have essentially put the company out of business. Nor would it prohibit online fantasy sports leagues, online lotteries in states where they are legal, or online betting on any live horse race where it would otherwise be lawful to wager.
So how is it that these companies appear to operate legally, but a dozen Caribbean cowboys found themselves under felony indictment?
Take Interactive Gaming and Communications, another publicly traded company, located in Blue Bell, Pa. Even the firms that have enjoyed some stock-price popularity – such as Youbet.com – have shaky fundamentals. They almost always include slots, blackjack and video poker, but many sites carry more exotic games, from baccarat to pai gow. According to an analysis by Sue Schieder of Rolling Good Times, the online gambling magazine, the new legislation would not punish the casual bettor. But according to Inland CEO Don Speer, elusive profits need not be one of them. Aruba, for one, is refusing to extradite any indicted individuals to the U.S., and thus far the U.S.
Nonetheless, some experts think the case could be made to stick. citizens, it will be increasingly tempting for them to turn to locations abroad. That makes for an Internet gambling environment too porous for U.S law enforcement to plug. Like the Communications Act passed in the 1930s, technology has now leapfrogged the law. 474, introduced into the Senate by Arizona’s John Kyl in 1997 as the Internet Gambling Prohibition Act. “I wager on football games and usually bet in the neighborhood of $1,000 every weekend. One Australian state, Queensland, is already awarding licenses for online gambling, and others may follow soon.
It’s not because they operate in any fundamentally different way. O’Brien observes in Bad Bet, his comprehensive account of America’s gambling industry, “Judging by dollars spent, gambling is now more popular in America than baseball, the movies and Disneyland combined.”
But even if Congress comes up with the best-crafted legislation in history, there are significant factors beyond its control. “Think about what would happen to Wal-Mart (WMT), General Motors or Microsoft if these companies had to continue to dodge federal roadblocks to access their customers,” says Sebastian Sinclair, senior associate at Christiansen/Cummings Associates, a management consulting firm. Packer is a man with a voracious gambling appetite. … Tony Cabot, an attorney specializing in gaming issues, says flatly, “When you see Kerry Packer get together with Microsoft, you have to believe there is a future for this type of wagering.”
Although it uses a CryptoLogic template similar to several other online casinos, Kennyrogerscasino.com may be unique in letting bettors wager as little as a penny at a time. In January, MegaSports began taking Internet bets from Australians; it expects soon to allow global gambling on sporting events. In most cases, this means operating out of Australia. Anyone over the age of 18 can set up an account with Centrebet and place money on a variety of worldwide sporting events, including U.S. Attorney White has proceeded slowly and quietly. Their case is based on the 1961 Wire Act.
More than a year later, however, no cases have come to trial, and nine defendants have accepted plea bargains for state misdemeanor charges with no jail time. (The company’s Indian casino and Web-development divisions make more.) “This is the really exciting point, because I know where it goes from here,” Speer said in an interview. That figure exaggerates the size of the Internet gambling sector, since some companies operate more than one online betting parlor. (However, an HBO sports program attempted to locate one of these ventures in Aruba, and ultimately found that the genuine server was in a residential neighborhood in Bethlehem, Pa.) And the Caribbean nations would like to keep their haven status. Justice believes that any legislation addressing criminal misuse of computers or computer systems (including the Internet) should have three vital characteristics. White’s hesitancy suggests that the law may not be as solid as she thought when she indicted. has had little cooperation from any other nation. The defendants, many of whom live abroad, were threatened with up to five years in prison and $250,000 fines. I’ve not had problems being paid.”
The prosecutors’ focus on sports bets appears to stem from legal precedent in the law they relied on.
But a hard-core base will continue to turn to Internet betting for its clear advantages. The Justice Department doesn’t think that online casinos (including those that offer gambling on sports events) can legally conduct business in the United States, even if they are based in places where gambling is legal. The American Gaming Association, a trade group of gaming firms, maintains this view regarding online wagering: “The industry has been state-regulated and we think it should remain that way.
All the sites indicted by the U.S. One of Microsoft (MSFT)’s less-publicized adventures is Ninemsn, an Australia-based Internet service to which Bill Gates has pledged tens of millions of dollars. Legislators have considered enlisting Internet service providers to patrol for undesirable sites, although Internet gambling insiders consider that proposal dead on arrival. Today, a roster on one “gambling portal” site lists well over 200.
Prosecutors focus on sports betting
Intriguingly, though, all the bets that make up the U.S. About 2,000 years later, Bugsy Siegel took the concept a step further and built the Flamingo Hotel in the desert town of Las Vegas. Inland, for example, operates two Web sites in addition to the one bearing Kenny Rogers’ likeness: Casinoaustralia.com and Goodluckclub.com. attorney for the Southern District of New York, indicted 14 managers of six Internet companies for offering gambling on their sites. In a highly publicized March 1998 “raid,” Mary Jo White, the U.S. For one thing, gambling from one’s home allows for a variety of techniques that would get one tossed out of a regular casino. (The company did not respond to repeated requests for an interview.)
Group calls for regulation of Net gambling
For years, another barrier to the growth of Internet gambling has been strong opposition from those most threatened by gambling sites: legal American casinos. “The telephone is being used to facilitate these wagers and I believe the government has a solid case,” explains Tony Cabot, a Las Vegas-based gaming lawyer and author of a book on Internet gaming. Why should it be legal to bet online on a horse race in another state, but not legal to bet on a basketball game in one’s own state? If Native American tribes can establish new, legal, physical places where adults can gamble, why shouldn’t someone be able to do the same in cyberspace?
First, legislation should treat physical activity and cyberactivity in the same way.
Today, Americans spend some $600 billion a year on legal gambling, making it by far the favored national pastime. But they say the more bettors, the better. Her higher-ups in the Justice Department appear to agree.
One major barrier to profitability is the law.
That partnership leads many observers to believe that an online casino – using Microsoft platforms, of course – is in the works. “And it is possible that records could be subpoenaed of various banks where these companies maintain accounts.”
Second, legislation should be technology-neutral. FBI agents placed bets on games – uniformly National Football League matches, although many other options are available – and followed up, whether they won or lost. Would-be wagerers open an account with a credit card, although some sites also accept cash and cashier’s checks. He claims Inland’s Internet gambling business went slightly into the black in March, on annualized revenues of about $1 million.
Does the seeming invincibility of online gambling make it an enticing business? Jason Ader of Bear Stearns, urges caution. If an activity is prohibited in the physical world but not on the Internet, the Internet becomes a safe haven for that criminal activity. Together, these sites have about 4,300 registered customers in 96 countries around the world. The Wire Act obviously has no mention of wagering over the Internet.
Running an online casino carries all the usual challenges of Internet businesses, from low click-through rates to servers that fail
A few occurrences of winning good amounts of money is enough to lure him into risking more. A majority of children and youngsters are attracted to online gambling.
? The Interstate Wire Act of 1961 is a federal law of the United States that prohibits the operation of certain kinds of betting practices in the country. Losing big money results in heavy financial losses, which can in turn lead to frustration.
? In 2004, Google and Yahoo! declared the removal of online gambling advertisements from their websites.
One of the major Internet gambling problems is its detrimental effect on society. Lacking regulation, these sites are vulnerable to attacks by network hackers. With one’s money involved, there is also a risk of one’s financial or account information being hacked.
Internet gambling, as most of us know, is any form of gambling that makes use of the Internet. And it results in a splurge of money that can rather be utilized for better reasons.
? The Internet gambling industry is one of the most profitable ones today. For more on this, you must read about the impact of Internet gambling. The lack of regulation makes online gambling a prey to network hackers. The Fifth Circuit Court of Appeals of the United States has proclaimed that the Federal Wire Act applies only to sports betting.
? Gambling activities that involve online money transactions are a greater risk. But one cannot get lucky every time. However, there is no evidence to prove this, as casinos and race tracks are a more common and prominent reason behind the rise in money laundering.
The problems with Internet gambling mainly include the risk of addiction and that of the emergence and spread of illegal practices in society.. It can lead to addiction among youngsters. Your favorite game is just a few clicks away.
For professional gamblers, it is their major source of income.
Casual social gamblers engage in gambling activities for the purpose of entertainment.
Serious social gamblers involve in gambling with great sincerity and may end up spending huge amounts on it.
? Some gamblers engage in gambling activities for escaping from the stress in their life. ? It is commonly believed that there are higher chances of people getting addicted to Internet gambling than to other forms of it. One instance of winning money is sufficient to tempt a user to bet more. Users can sign up to their websites and bet money through electronic transactions. In an attempt to win more and more money, one continues staking it, even thoughtlessly at times. However, if one is to think about the waste of productive time that online gambling results in, and the other problems that it can lead to, it becomes clear why one should stay away from online gambling or at least restrict the time spent on it.
? In most members of the European Union and the nations that surround the Caribbean Sea, different forms of Internet gambling are legalized.
? Gamblers seen around the world can be classified under a few basic categories.
? Internet gambling lacks a centralized regulation. As no government authority regulates online gambling, it can lead to the spread of several illegal practices. In this case, it can lead them to compulsive gambling wherein a person feels compelled to engage in gambling activities for which he/she sacrifices his family and career.
? It is said that money-laundering activities are common in case of online gambling. Once lured by the money that can be made through such activities, it’s not unnatural for a user to get addicted to this form of gambling. There are various Internet gambling companies that offer users the option to play games and gamble online. Hackers gain easy access to confidential information of the users.
? An excessive exposure to Internet gambling activities can lead to addiction. One of the most important advantages of Internet gambling is that it does not require you to leave your home. It leads to a waste of resources (time and money). Online casinos, online poker, online sports betting, among others, are some of the common forms of Internet gambling. People who have never gained any exposure to land-based casinos or local bookies find online gambling enjoyable
This is especially true given service providers’ unrestrained access to overseas Internet sites in jurisdictions without online gambling restrictions.
The current prohibitionist law is really a protectionist measure designed to support specific domestic operators, such as the websites run by the horse betting industry. Many of these sites were established in small nations with little or no regulatory oversight.
Patrick Basham is a Cato Institute adjunct scholar. As other jurisdictions identify the demand for online gambling, they have supplied this service to consumers.
Second, consumer demand for online gambling and the government’s demand for tax revenues will create enormous pressure for legalization in any jurisdiction, such as the U.S., that currently operates a domestic ban.
The Internet has revealed the potential of technology not only to dramatically increase existing gambling opportunities but also to introduce new ones.
Federal prosecutors just dealt consumer freedom a terrible hand, shutting down the gambling website Bodog.com and indicting four company executives, including founder Calvin Ayre, for alleged illegal gambling that actually generated $100 million in customer winnings. Many federal and state-level politicians want to legalize online gambling, which Congress made illegal in 2006.
This form of gambling also encourages private sector businesses to develop network capacity and commerce. First, online technology renders prohibition futile. Increased competition results in a more efficient allocation of resources, as gambling providers attempt to maintain and attract new customers.
In recent years, it’s become clear to a growing number of policymakers, including Senate Majority Leader Harry Reid, that the ban on online gambling is a failure. The ill-advised indictments handed down against Calvin Ayre and his Bodog colleagues cannot alter that fact. Including unlicensed sites, the total rose to 6,000. Along with the inefficient use of resources caused by prohibition, there’s the danger of unintentionally increasing the criminal element.
. The necessity of maintaining a strong customer base would motivate legal American service providers to offer legitimate, reputable gambling sites.
Another major benefit of allowing online gambling is that competition will be introduced into a highly regulated marketplace dominated by licensed providers who monopolize the gaming market. As an international network, the Internet provides an instant detour around domestic prohibition.
In 2008, the global online gambling market was valued at $20 billion annually, with 50 percent of that demand coming from the U.S.. If the domestic marketplace demands online gambling, which it clearly does, it will be supplied with or without government consent. With legal online gambling, competition among operators would increase to such an extent that they will be forced by the marketplace, rather than by governments, to offer a reduced house advantage.
Banning online gambling in the domestic American market simply results in the establishment of Internet gaming sites overseas. Not only will this increased competition result in a wider range of gambling activities, it will reduce cost to consumers. In addition, the technological and human capital required to locate offenders is substantial, as are the costs of prosecution and incarceration. The principal benefit of regulation to online players is the personal and legal security of funds, whereas currently players in unregulated environments have no legal recourse over matters such as suspected cheating and frozen assets.
Gambling is one of the great successes of online commerce. He coauthored (with John Luik) the Democracy Institute book, Gambling: A Healthy Bet.
Two additional factors contribute to the inevitable failure of prohibition. The online gambling industry is merely another form of commerce where prohibition is the wrong option.
For example, in 2009 there were 2,381 sites run by 493 companies licensed in 50 jurisdictions worldwide. Ironically the anti-Bodog crackdown comes as the push for sensible regulation of the online gambling industry is gathering serious political momentum.
Online gambling can be regulated effectively and without excessive cost, to standards that will provide strong protections for consumers and vulnerable players. As such, the Internet offers potential consumers convenient and inexpensive access to their favorite gambling sites, introducing competition into an industry once dominated by highly restrictive licensing practices.
A great degree of surveillance is required to detect online illegality, and there are significant difficulties in locating, investigating, and prosecuting online offenders. Stopping American online gambling is truly mission impossible, with a vast number of insurmountable challenges facing governments that endeavor to criminalize online gambling.
Prohibitionists appear to ignore the fact that most gambling sites, like any reputable business, rely on customer loyalty to remain profitable