I’ve not had problems being paid.”
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).
Nonetheless, some experts think the case could be made to stick. But as more and more traditional firms become involved, the consumer will look for the brand name. Even the firms that have enjoyed some stock-price popularity – such as Youbet.com – have shaky fundamentals. 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. If an activity is prohibited in the physical world but not on the Internet, the Internet becomes a safe haven for that criminal activity. Casino games are available on a site or via downloadable software. . “Since there are no controls at present regarding Internet wagering, I would urge investors to shun these firms at present,” he says. As Timothy L. But following a 1997 indictment, the state of Missouri settled a suit against the company and its president, Michael Simone, for about $35,000. 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?
Running an online casino carries all the usual challenges of Internet businesses, from low click-through rates to servers that fail. 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. 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. But the travails associated with fending off lawsuits have essentially put the company out of business. His equal partner is Australian tycoon Kerry Packer of the Crown Casino in Victoria. Attorney White has proceeded slowly and quietly. Justice believes that any legislation addressing criminal misuse of computers or computer systems (including the Internet) should have three vital characteristics. Today, a roster on one “gambling portal” site lists well over 200.
Take Interactive Gaming and Communications, another publicly traded company, located in Blue Bell, Pa. Aruba, for one, is refusing to extradite any indicted individuals to the U.S., and thus far the U.S. Would-be wagerers open an account with a credit card, although some sites also accept cash and cashier’s checks. 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. 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. A Ninemsn spokesperson says that the site does not now offer online gambling and would not comment on future plans. The Standard obtained a Department of Justice analysis of the bill S. That figure exaggerates the size of the Internet gambling sector, since some companies operate more than one online betting parlor. 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. Her higher-ups in the Justice Department appear to agree.
Does the seeming invincibility of online gambling make it an enticing business? Jason Ader of Bear Stearns, urges caution. Inland, for example, operates two Web sites in addition to the one bearing Kenny Rogers’ likeness: Casinoaustralia.com and Goodluckclub.com. … attorney’s office theoretically operate out of the Caribbean. But according to Inland CEO Don Speer, elusive profits need not be one of them.
So how is it that these companies appear to operate legally, but a dozen Caribbean cowboys found themselves under felony indictment?
The amount spent on Internet gambling is harder to calculate.
First, legislation should treat physical activity and cyberactivity in the same way. In a highly publicized March 1998 “raid,” Mary Jo White, the U.S. One Australian state, Queensland, is already awarding licenses for online gambling, and others may follow soon. Even the precise number of online casinos is hard to calculate.
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. 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. “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. 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. 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. Says Sinclair of Christiansen/Cummings: “You are going to feel more comfortable wagering with a Hilton than you will with Joe’s Casino.”
Gambling is as at least as old as Christianity (that is, if Ben Hur can be trusted). Almost all online gambling sites work the same. 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).
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.
Finally, the DoJ believes that any federal law must recognize that the Internet is different from other communications media: … More Info