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Our resident online sportsbooks & offshore sportsbetting
gambling expert, James Johnson, weighs in with his articles
on the status of the online gambling industry and online
sportsbooks. Be sure to check WagerOnFootball.com
every week for his next bit of amazing insight on the world
of offshore and online gambling. This man knows gambling!
This man knows his way around a few sportsbooks too!!!!
Offshore Sportsbetting - Online Casino
Gambling
Not only has the Internet brought
gambling and online casinos into the home, it has made it
anonymous and readily available to virtually anyone at any
time and at any place. As a result, the popularity of the
online casino has skyrocketed over the past few years. Since
the first virtual online casino started up in 1995, the
industry has grown to over 450 gambling websites. In 1997,
Internet gambling produced at least $200 million in business.
Conservative estimates conclude that online casinos will
bring in at least $5 billion of annual revenue by 2006.
Gambling over the Internet can be performed in most traditional
manners. “Virtual” casinos and sports books,
however, continue to lead the online gambling industry.
A typical on-line gambling experience is as quick and easy
as turning on your computer and going to your favourite
gambling casino site.
Gamblers first click on a link
that takes them to an “account-opening” page
where they can access their account and/or deposit more
money. Once the account is opened, funds can be deposited
by using a credit card, certified check, money order, or
through a wire transfer. When the account has funds, gamblers
are ready to play. If they win, the amount of the bet will
automatically be credited in their account. In the United
States there is a growing concern about Internet gambling
is loss of tax revenue. Americans are required to pay taxes
on lottery winnings and one argument raised in favour of
prohibiting online gambling is the need to protect state
revenues generated by legal and state-run gambling operations
(i.e., state lotteries). Internet gambling offers users
the ability to avoid paying taxes on winnings because of
the difficulty in tracking online gambling winnings. Although
Canadians aren’t faced with this particular problem
because lottery winnings are not taxable income, there is
the concern that the legalized government run gambling operations
would lose revenue because many gamblers choose to spend
their money online. Many traditional casinos have expressly
voiced their concerns over online casinos arguing that this
loss of revenue would significantly reduce the legal gambling
industry. The reduction, arguably, would mean a loss of
jobs and provincial funding generated from these revenues.
Many jurisdictions have been
struggling with the implications of Internet gambling and
how they should react to it. There are no simple or obvious
solutions to the question of what should be done as is evidenced
by the wide range of approaches around the world. A number
of small jurisdictions such as those in the Caribbean have
embraced the opportunities and have specifically granted
Internet gambling licences (often for relatively small fees
and with no duty payments because of the employment benefits);
some jurisdictions within Australia are also following the
path of licensing along with extensive regulation; a number
of European countries now permit their already licensed
gambling operators to offer online casino services but to
residents only; and the USA is still seeking a way in which
it can effectively prevent Internet casino gambling by its
residents, whether offered by operators at home or abroad.
There are two main approaches
that Canada could take to deal with online gambling. The
first is to continue prohibiting online gambling either
through the current gambling offences in the Criminal Code
or by way of new legislation specifically banning internet
gambling. The second approach is to create a new legal framework
for licensing and regulating a legalized online gambling
industry in Canada.
In Canadian law, section 207(4)(c)
prohibits lottery schemes “operated on or through
a computer, video device or slot machine” if it is
not conducted and managed by a provincial government. Internet
gambling is likely illegal under this section although this
provision was not created specifically in contemplation
of online casino gambling. At this time Canada has not enacted
any new legislation that specifically addresses gambling
on the Internet and online casinos. In America, the government
is moving towards adopting legislation what will attempt
to specifically ban online gambling. Congress is currently
considering proposed legislation that would prohibit most
forms of online gambling. The most important bill is the
Internet Gambling Prohibition Act (IGPA). This bill is also
known as the “Kyl Bill” because of its initial
proposal from Senator Jon Kyl. The IGPA was initially introduced
into Congress in 1997 but never successfully passed through
Congress. In 2000, Senator Kyl reintroduced the bill with
some significant changes. The new version is quite lengthy
and complicated and cannot be examined in depth in this
paper. Specifically, the bill states: “it shall be
unlawful for a person engaged in a gambling business to
use the Internet or any other interactive computer service
to place, receive, or otherwise make a bet or wager.”
Essentially, this bill would outlaw most Internet gambling
except for fantasy sports, state lotteries, and betting
on activities such as dog racing and horse racing. In response
to the American approach, it is often argued that attempting
to ban online gambling is naïve and counterproductive.
Whether or not banning internet gambling is desirable, issues
such as enforceability, increased usage, and assorted jurisdiction
problems all appear to be obstacles to effective prohibition
of this industry. Enforcing Internet gambling laws would
be a major problem for authorities. Arguably, even if future
legislation is enacted, the online gaming industry will
not be shut down. In explaining the futility of such a ban,
Tom Bell states that “the Internet’s inherently
open architecture already hobbles law enforcement officials,
while relentless technological innovation ensures that they
will only fall farther and farther behind.” The anonymous
identity of users remains one of the key aspects of cyberspace
enforcement. “The ease with which an Internet gambler
may disguise his or her identity makes it difficult to trace
users of Internet gambling sites.” Furthermore, “indecipherable
and untraceable financial transactions, accomplished through
the use of encryption and electronic money, could essentially
thwart law enforcement's ability to trace violations of
gambling laws over the Internet.” Even if law enforcement
officials are able to find the identity of online gamblers,
it may be in vain because of the time constraints of tracking
them.
Arguably, most users will have
stopped playing by the time officials are able to track
them and thus efforts spent on tracing would be useless.
An enormous amount of funding would have to be allocated
to law enforcement to allow even a chance at proper enforcement.
Appropriate funding would be needed for providing more law
enforcement officers, equipment, training, search warrants,
subpoenas and prosecuting the criminals. Meaningful prohibition
of the online gambling industry could become a very expensive
and time-consuming approach. Jurisdictional issues create
further obstacles to preventing online gambling. Concern
stems from whether Canada or the U.S. could exercise jurisdiction
over online gambling companies outside the country in order
to prosecute for the offence of providing Internet gambling.
The answer doesn't seem to be clear. As previously mentioned,
some other countries have already legalized and regulated
Internet gambling.
Antigua, and other such countries
that have legalized the industry are not likely to cooperate
with Canadian or American officials in prosecuting individuals
who run what in their country constitutes a legitimate online
gambling company. Attempts to implement Canadian or U.S.
laws on a country that has chosen to legalize such an activity
have the potential to create a strain on political, legal,
and social relations between the respective countries. Ultimately,
this strain could even lead to a reduction of the Internet.
“If every state and nation…attempts to apply
its laws with respect to Internet activities it deems illegal,
the end result will be an Internet that satisfied the lowest
common denominator in terms of acceptable activity…”
Furthermore, “[v]alues and morals are so different
and the desire to regulate so different-especially from
country-to-country-that agreeing to a common framework would
be difficult.” Legal prohibitions are pointless if
they cannot be enforced. In the case of online gambling
it appears that both practical and legal barriers will cause
significant difficulty for law enforcement.
The fundamental question is
whether Internet gambling can be controlled, and to what
extent. As discussed, it appears that legislative attempts
to eliminate this industry will ultimately be ineffective.
Therefore, it would seem a more useful approach to dealing
with problems of online gambling would be to legalize and
regulate the industry. Online gambling companies could be
licensed and regulated by the government. Other countries
have recognized this new technology and look forward to
a potential gain in economic growth by providing a “safe-haven”
for entrepreneurs interested in starting an Internet gambling
business. Whether or not online gambling is good for our
society is irrelevant if it cannot be prevented. Regardless
of the law Canadians can continue to gamble online without
much fear of legal consequence.
If the government refuse to legalize
and regulate a form of this industry in Canada other countries
will increasingly profit from Canadian business while the
provinces of Canada lose revenue. Essentially the provincial
governments will not be able to maintain their monopoly
of the gambling industry if they have to compete with online
gambling sites from around the world. Although regulation
cannot prevent all of the societal harms gambling can cause,
it could definitely take steps towards that goal. Australia,
for example, has implemented what it calls the “Draft
Regulatory Model.” Under this regulatory model, a
number of basic principles are included to help control,
not eliminate the online gambling industry in Australia.
First, a variety of regulations can be imposed to reduce
the chance of fraud and further acquire a percentage of
profits from Internet gambling. Licensing of service providers
pursuant to background checks and determination of financial
capacity to pay out winnings should be instituted. These
licensing and fee requirements should help reduce the potential
for unlawful practices of online gambling companies. Although
evasion of licensing requirements and government monitoring
might easily be accomplished by online casino operators,
online gamblers would have the choice to interact only with
those who are licensed. Thereby providing an incentive for
compliance and offering online gamblers some assurance that
they are dealing with legitimate organizations. In order
to combat the serious concern of minors being able to gamble
online requirements for player authentication should be
implemented. It is now possible to block children's access
to online gambling sites by using a registration procedure
that is cross-verified with available databases. Also governments
should provide education to parents and schools on the dangers
of unmonitored Internet use by children. Greater use of
filtering programs in home and school computers could go
a long way in solving this problem. To reduce the potential
for addiction and financial loss, maximum limits on wagering
should be set. Also, contact information and further assistance
for problems of gambling addictions should be advertised
on gambling websites.
Gambling on the Internet has
become an enormous industry worldwide. This explosive growth
will surely continue with improved technology and more accessibility
of the Internet to users in all corners of the world. Instead
of fighting a losing battle, it seems logical to regulate
and monitor this type of gambling. By doing this, Canada
will be able to more effectively manage the obvious concerns
that surround this industry. Furthermore, by implementing
a scheme where Internet gambling is not prohibited, but
regulated, Canada should be able to turn these same concerns
into positive aspects by providing reassurances that protect
users and facilitate a viable entertainment and economic
industry.
As always Check out my picks for the
best offshore sportsbetting Sportsbooks and Casinos Online.
NFL
Sportsbooks Ratings Guide
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