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Internet Gambling

Internet Gambling. Carolyn Abercrombie. Facts and statistics Is gambling legal in the US?  Confusion Pros and cons? Is gambling legal abroad? What sites are available? What is happening now?. Facts and statistics. Internet gambling has nearly doubled every year since 1997

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Internet Gambling

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  1. Internet Gambling Carolyn Abercrombie

  2. Facts and statistics • Is gambling legal in the US?  • Confusion • Pros and cons? • Is gambling legal abroad? • What sites are available? • What is happening now?

  3. Facts and statistics • Internet gambling has nearly doubled every year since 1997 • Worldwide revenue estimated at $16billion • United States accounts for approx half • Since the mid-1990s, Internet gambling operators have established approximately 1,800 e-gaming Web sites in locations outside the United States

  4. Legal? • Good question!!!

  5. Legal? –state law • Generally regulated at state level • 5 states, including Oregon, have laws specifically prohibiting certain aspects • Other states’ general gambling laws assumed to apply to internet gambling as well • No state issuing online gaming licences

  6. Legal?- Federal law • Hazy at best • Many difficult to understand laws

  7. The Illegal Gambling Business Act • makes it a crime to operate an illegal gambling business, which is defined as any gambling business that meets three conditions: • it violates a law of the state where it takes place • Illegal in most states • it involves at least five people at all times during a 30-day period • The five people can be any employees, even if not involved in gambling • it operates for the most part continuously for longer than 30 days or takes in gross revenues of $2,000 in a single day. • Gambling websites usually up 24/7

  8. Wire Act • Passed in 1961 • “Whoever being engaged in the business of betting or wagering knowingly uses a wire communication facility for the transmission in interstate or foreign commerce of bets or wagers or information assisting in the placing of bets or wagers on any sporting event or contest, or for the transmission of a wire communication which entitles the recipient to receive money or credit as a result of bets or wagers, or for information assisting in the placing of bets or wagers, shall be fined under this title or imprisoned not more than two years, or both.” • Department of Justice thinks it means all online gambling is illegal. • U.S. Courts have ruled to the contrary. • Many interpret "in the business of" as meaning only businesses are affected. • Some argue that the law only covers sports betting, and not other forms of gambling such as poker.

  9. Unlawful Internet Gambling Enforcement Act of 2006 • Designed to eliminate ambiguity in internet gambling laws • Failed? • Bars U.S. banks from accepting payments from credit cards, checks or wire transfers to settle online wagers. • Nothing said about Wire Act • scheduled to take effect Dec. 1, 2009 • granted a six-month delay citing efforts to draft new legislation. • The Obama administration is officially neutral on the issue.

  10. Confusion about legality • Do laws apply to individuals, businesses or even the banks? • Who is really in charge? • Which types of gambling are really illegal? • Is poker different because • it is a skill game? • Players only wager against eachother?

  11. Pros and Cons • Reasons to make it illegal • Money laundering • Higher rate of addiction in internet gamblers due to ease of access • Reasons to legalize • Tax revenue • Major casinos are divided on whether online gambling is a threat or an opportunity.

  12. Legal abroad? • Internet gambling has been legalized in over 50 countries and jurisdictions, mostly in Europe, the Caribbean, and the Australia/Pacific region • A few countries and jurisdictions have prohibited it, but an exact number was hard to find. • Doesn’t matter if it is prohibited some places, as long as it’s legal somewhere. • You will not find an internet gambling site with it’s home in the US.

  13. Sites • Casinos • Rushmore Casino • Located in Nicosia, Cyprus • Q. Do you accept US players? • A. We welcome players from all countries and recommend that you check the law in your own jurisdiction. There are different laws in each state, we don't check up on players but consider it your responsibility to check the laws in your area and make an educated decision. • Many “review websites” to direct you to the best online gambling locations • http://www.gamblingsites.org • http://www.gamblingphd.com

  14. Sites cont. • Poker Sites • Tons out there • Pokerstars.net and pokerstars.com • .Net is the one advertised during televised Poker tournaments • Free gambling • .Com includes free and real money gambling. • “about us” section reads: • “PokerStars is a licensed and registered legal business located on the Isle of Man in the British Isles, and abides by all laws and regulations where it does business. PokerStars is not an online casino. You never play against the house at PokerStars, and instead play against other real poker players like you from around the world. PokerStars receives compensation for hosting poker games between players by collecting a rake from each real money pot. There is absolutely no charge to participate in play money poker games. In fact, you are encouraged to try our play money games - especially if you are new to poker”

  15. What is happening now? • Many American credit card companies have implemented policies prohibiting customers from using their cards to pay for internet gambling because of • The unclear legal status of internet gambling • The high level of credit risk associated with the gambling industry • Results in cards being denied on the websites • Some gambling sites attempt to disguise their transactions to keep from being blocked • Credit card companies in foreign jurisdictions where internet gambling is legal continue to authorize the websites as merchants • Online payment providers can be used to get by credit card blocks • Some fund-transfer sites have stopped service for US Residents • FirePay, Neteller, Moneybookers • E-cash is up-and-coming and could make it easier for Americans to get around the blocks

  16. What is Happening now? • Poker Players Alliance, funded by The Interactive Gaming Council are lobbying for legalizing internet gambling • John Pappas, the poker group's executive director: • "I think there's a growing realization in Washington that prohibition probably isn't going to work, just like prohibitions throughout history have not worked. There needs to be a more common-sense approach, because it's not going away.“ • Success of efforts uncertain in these economic times • Some say failure is imminent due to other things on people’s minds • Some say that the increased tax revenue will be enough to tempt people into legalizing

  17. References • http://www.gao.gov/new.items/d0389.pdf • http://www.washingtonpost.com/wp-dyn/content/article/2010/02/06/AR2010020602190.html • http://www.gamblingandthelaw.com/internet.html • http://www.safeandsecureig.org/ • http://www.playwinningpoker.com/online/poker/legal/ • http://www.pressofatlanticcity.com/news/breaking/article_8a288b86-04b0-11df-8663-001cc4c002e0.html • http://www.overcominggambling.com/facts.html • http://archives.cnn.com/2002/HEALTH/conditions/03/17/internet.gambling/index.html • http://www.ncpa.org/sub/dpd/index.php?Article_ID=12210 • http://en.wikipedia.org/wiki/Online_gambling • http://www.gamblingphd.com/

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