The Rise of Internet
Gambling
Over the centuries, gambling
has always been a source of making quick money for some, and losing savings for
others. In the United States alone, gambling rolls in an estimated amount of 40
billion dollars a year, more than the movie and music industries combined. With
the making of the world wide web, internet gambling, too, has become a slowly
rising sleeping giant. Although the internet gambling industry makes an
estimated 600-800 million dollars a year, experts predict that the gambling
turnover on the internet will soon surpass the billion dollar mark.
In the US, internet gambling is illegal, but due to the vast influx of online
gamblers, it has been impossible to enforce this law. Casino website operators
bypass the law by creating their websites via countries in which gambling is
legal, for example, the Caribbean. Thus, due to the global use of the internet,
any citizen with a dial-up connection can gamble away.
Authorities in the US attempt to combat the problem in several different ways.
One way is be trying to pass a law in Congress the enables legal action to be
taken not only against the online casino operators but also against the gamblers
themselves. The US Federal Justice Department announced that no such action will
be taken given that it stands in contradiction with the rights of the
Constitution.
Casino operators often have difficulties in collecting their earnings since
users are able to stop their credit card payments by claiming that the industry
is illegal to begin with.
Despite these obstacles, there is no doubt that internet gambling is on the
rise, and that the industry will continue to blossom.
Private Casino Gambling Not
Taking Off
LAS VEGAS – Nevada
legislators and regulators changed state laws and rules in 2001 and 2002 to
allow private casino gambling in "international gaming salons." More than six
months after opening, Nevada's first private casinos have attracted a
disappointing number of gamblers, as reported by the Nevada Gaming Control
Board.
Through April 30, the Las Vegas Strip's three international gambling salons at
MGM Grand, Caesars Palace and Mandalay Bay have won only $3.5 million from
gamblers, said Control Board member Scott Scherer. Those winnings came from
about five visits to the three rooms, said Keith Copher, control board
enforcement division chief. The $3.5 million won from gamblers doesn't say as
much about the private casino action as would the total drop - the amount of
money players exchanged for chips - a number the control board declined to
provide.
The Nevada Gaming Commission approved the rules allowing international gaming
salons in January 2002, as a means to attract international gamblers who want to
bet in private. The MGM Grand's private casino license was approved in July
2002. Caesars Palace received one in September and Mandalay Bay in December.
Executives for the companies operating the private betting salons say they're
not surprised initial response to private gambling has been slow. Park Place
Entertainment spokesman Robert Stewart said Caesars Palace's marketing efforts
geared toward attracting new customers for the private salons didn't begin until
the beginning of this year.
Original Solution For Online
Gambling Debt Problem
It seems like Lisa and
Andrew Harding from California had a lot of fun gambling online… but now they
have a slight problem with paying the bill. The couple is suing the credit card
companies and card issuers that allowed them to gamble and lose more than
$100,000 from online casinos in 2002 and 2003. The lawsuit seeks to relieve the
couple of the debt.
The Hardings claim that by processing their bets, the businesses violated not
only California's Unfair Business Practices Act and a state law that prohibits
providing credit for gambling but also the USA Patriot Act, which bans any
illegal transfers of funds. The couple's lawsuit is actually a countersuit to a
lawsuit originally filed by Retailers National Bank. The credit card company
charged the couple with not paying the debt.
The couple is suing credit card companies Visa International, Visa USA,
MasterCard International and Discover Financial Services; several card issuers,
including Retailers National Bank and Citibank; and Western Union Holdings,
which transferred the funds electronically.
Because of the financial dangers and addiction associated with Internet
gambling, many efforts are being made to ban it in the U.S. In July, the Senate
Banking Committee approved a bill to block U.S. financial institutions from
processing online gambling transactions; the House has passed a similar bill.
Many major credit card companies have policies against processing Internet
gambling transactions (although a few bugs appear to be in the system), and
eBay's online payment division, PayPal, has stopped sending payments to these
types of businesses. Efforts by New York State Attorney General Eliot Spitzer
since June 2002 have resulted in many credit card issuers and banks agreeing to
block these types of transactions.
Legislators and U.S. financial institutions still might face an uphill battle. A
recent report, "Wagering on the Internet," from River City Group and
Christiansen Capital Advisors, LLC, predicts revenues from online gambling will
double to $12.6 billion in three years. Most of the revenue still comes from
gamblers in the U.S. who find ways to send funds to offshore Web site operators
around the world where Internet gambling is legal.
New Gamblers Road To Riches:
Eight Short Hints
The road to riches for
first-time gamblers on the Internet can be had but here are eight great ways to
pave the way successfully.
1.) Decide whether to download games, or for easier access make use of games
from the web directly.
2.) If you choose to download games, install software and click on the casino
icon,
And first play for fun. The rich graphics are visually exciting. Have Fun!
{Note: fast playing after downloading}.
3.) Collect your profit. Casinos have different collection policies. They do not
all allow you to take the money and run. Even though there is easy access to the
money, it can take a week or two to receive a check. In fact some allow you to
withdraw only the amount you deposited using your credit card. So hang in there
and pay attention to the options you might have. You might be required to have a
pin number and other various documentation. Pick your casino according to the
most hassle-free requirements!
4.) Most casinos will give you a special number called a pin number. Although it
can take a while to receive it, it is impontant because it prevents casino
fraud. Be patient, most casino collection policies are sound-except for the
hassle of waiting.
5.) Don’t think that you are home free without any casino charges. If you decide
to collect your money, expect to be charged a fee. This charge might be a fixed
rate, while other casinos might charge a percentage. The best advice is to read
each casino's policy. Click on to their banking and withdrawal website.
6.) Beware of bank fees.
7.) You should have no problem running casino software on your computer unless
the computer is very outdated. Casinos have technical support, so use it!
8.) Casino bonuses: All casinos require that you play for bonuses before
collecting your money. Bonus policy varies so make sure to check each casino's
policy.
Since then, the war in Iraq
and the severe acute respiratory syndrome virus outbreak severely affected Asian
high-roller travel to Las Vegas, he said.
USA Gambling Laws
In 1961 the Interstate
Wireline Act (18 U.S.C. section 1084) made it illegal for companies to take bets
via wire connections such as phone calls. Over thirty years later the U.S
Department of Justice made an attack on offshore sport gambling sites because
they directly violate the Wireline Act. Then in June of 1999 the National
Gambling Impact Study Commission recommended online wagering to Congress.
Another committee proposed the exact opposite. They claimed that gambling thru
the internet should be illegal and convinced Congress to side with their
opinion.
Senator Jon Kyl of Arizona attempted to amend the Wireline Act with the Internet
Gambling Prohibition Act of 1997. The Senate voted on the bill one year later
and it passed. This was a huge set back for the Online Casino Industry. Luckily
the bill was held up in the House due to pressure from special interest groups.
The bill was also found to be too general and may negatively impact the global
Internet commerce.
Most online gambling companies are positioned offshore and claim that they are
not obligated to follow U.S. laws. However this only holds true if the host
country states that gambling is legal.
The USA Government disagrees; if the site is specifically targets American
residents then courts may have jurisdiction. In the case against offshore sites
the FBI said that their agents successfully opened accounts and made bets from
the phone and thru the internet in NY which obviously illegal.
Oops, I Earned $1.4 Million
The Las Vegas Sands casino
company has sued Umar Siddiqui for keeping more than $1.4 million the casino
says it wired to him by mistake.
According to the lawsuit, Siddiqui has suggested that he has no plans to return
the money. Last Friday, Santa Clara County Judge William Elfing signed a
preliminary injunction freezing Siddiqui's bank account, saying he should not
use the money until the matter can go to trial.
The company, which owns the Venetian hotel-casino, refuses to talk about the
case. No one is saying why the money was sent to Siddiqui's account, although
one source suggested it may have been a line of gambling credit.
What is clear from the lawsuit is this: The Sands has sued Siddiqui “to return
funds inadvertently'' deposited by electronic transfer to his Citibank account.
For whatever reason, the Nevada corporation had legitimately agreed to wire
$1.435 million to him.
The problem is that from a separate Bank of America account, the company wired
him a duplicate $1.435 million, which Siddiqui has refused to return, according
to the suit.
The court papers say the Las Vegas Sands and Venetian marketing corporation
wanted to freeze Siddiqui's account before he could drain it. And, in legal
documents, it said he's already used a portion of the money and is worried
creditors could attach or encumber the money.
Siddiqui´s home was unlighted this week and no one responded at the door. A
neighbor described him as a private man who travels a lot, has several homes and
only lives in Palo Alto part time.
Two attorneys for the Sands -- one in San Francisco and one in Las Vegas --
declined to comment on the lawsuit.
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