Online Casino Gambling

The state of Nevada is the home of beautiful desert terrain, brothels and most notably, Las Vegas, now referred to by many as Sin City.  It is no secret that Nevada has become synonymous with gambling over the years.  With so many casinos and gambling establishments in the area, the prevalence of online gambling has sparked major competition on a state wide level.  And while you could say there is really no point in playing from your computer when you could easily venture to vibrant venues offering free alcohol and casino games galore, online gambling has managed to make its way into the homes of thousands of Nevada residents.  The more than one hundred sportsbooks and casinos may not like it but up to this point, they, like much of the rest of the world, have been powerless to stop it.  However, there are a few reasons why online gambling has still yet to explode as fast as eager players in Nevada would like.

Problems with Regulation

You might be surprised at the support internet gambling has garnered in recent times.  Several local governments are taking a closer look at existing laws while even some officials on the federal level are openly exploring ways to effectively regulate the industry.  In the state of Nevada, regulation and full legalization all rests on the shoulders of the Gaming Control Board and Gaming Commission, the two entities that would be responsible for adopting and enforcing the new provisions.  Unfortunately, there are currently three major roadblocks within the existing state legislation that might cause problems.

1.)  The first hurdle is the United States Department of Justice, an agency that would need to give Nevada regulators the green light and also one that is adamantly against online gambling.

2.) Second and very important, regulators would have to ensure virtual gambling technology that provides a reasonable level of protection to prevent minors from participating or stop online gambling in locations where the act is illegal.

3. Finally, regulators would have to make sure that internet gambling is consistent with the state’s public policy of maintaining the stability and success of Nevada gaming.  This is perhaps the biggest concern of all.

In 2001, a Nevada law was passed that authorized the state to at least explore the possibility of online gambling regulation. Now however, it looks as if legislators are holding back and observing the action of their neighbors.

America’s Online Gambling Capital?

California, the most popular state in the country and home to one of the world’s biggest regional economies, is currently lobbying strong for the regulation of online gambling.   The state is trying to leverage a sizable loophole in the UIGEA that will allow internet wagering to be legislated and fully regulated.  Due to its aggressiveness, many experts are predicting that California will eventually hold the title of America’s online gambling capital while Nevada sits back and watches.  There is a lot of tax revenue to be generated so if California succeeds, others will likely follow suit.

Playtech has become one of the major industry leaders in casino software since being founded a decade ago in 1999. The company lays claim to being the world’s largest publicly traded online gaming software supplier.

Playtech has grown steadily over the last ten years. In 2002, the company initiated Casino Soleil which became the first European land based casino to go online. In the following year, the company launched a worldwide bingo network. In 2006, the company’s shares were admitted to the AIM market of the London Stock Exchange. Last year, Playtech reached a deal with Paramount Digital Entertainment that enabled the company to produce online games related to a couple of viable brands/movies of Paramount Pictures.

Products

The company has implemented a variety of software products over the last decade. Casino, poker and bingo games are among the games that Playtech has developed software for. Playtech’s online casino features over 140 games for the player to choose from. Software is available in slots, table games, live games, arcade games and Asian games. The company claims to have the world’s biggest independent poker network through their iPoker software.

Playtech also offers broadcast gaming and mobile phone software. Playtech TV software brings the atmosphere of a live casino directly into the player’s living room through live or fully automated game shows. A televised presenter actually leads a real casino game show with real time statistics.

The company’s fixed odds games were designed to amplify online Sports book casino operations. Playtech’s Derby Day is among the virtual racing games that the company offers.

Playtech’s Information Management Solution (IMS) is an all-encompassing management system for all of the operations of the products offered by the company.

Services

Playtech offers their clients a range of support to supplement the company’s software. Financial, hosting, payment advisory, live dealer and marketing services are a few of the areas offered by Playtech. The company also offers a poker and bingo management network.

Marvel slots added to portfolio

Playtech recently engineered a deal with Marvel Entertainment to produce a series of online games related to the popular comic book/movie characters. The first games are set to launch this week. The Incredible Hulk and Iron Man slot games are being launched with other characters set to be featured in upcoming months. Each of the Incredible Hulk/Iron Man games are 20 payline video slots.

Playtech is hoping that the Marvel games will follow in the footsteps of their previously released Gladiator slot games based on the Russell Crowe movie. “Following the overwhelming success of the Gladiator branded slots Playtech is delighted to enable our licensees to add these remarkably popular, well known brands to their games offering. We are confident that these slots, with their established mass market appeal will appeal to a large audience of new and existing players, supporting our licensees’ acquisition and player retention efforts, by raising the profile of their games portfolio and further enhancing the gaming experience for the players,” said Playtech’s Shahar Sella.

Over the last several weeks, the US government has been aggressively pursuing bank accounts that have been allegedly used for illegal online gambling. The most recent seizures were made public last week in documents released by Maryland’s U.S. District Court.

Six Wachovia Bank accounts were seized in last week’s raid. The accounts belonged to Forshay Enterprises, a payment processing company. In the documents, Forshay is listed as the owner of TransActSvc.com. These raids follow nine other account seizures that were secured in Maryland in July and August. In addition to Wachovia, accounts have also been frozen at First Premier Bank, Interstate Net Bank and Bank of America.

Federal agents in Maryland have also been involved in a case with ties to Bodog.com. In 2008, charges were filed against Michael Garone and Edward Coury. The two men have allegedly been involved in money laundering with supposed ties to Bodog.

Controversial legislation being enforced

The recent seizures are tied to the Unlawful Internet Gaming Enforcement Act (UIGEA). The legislation attempted to ban internet gambling but the policy has proved to be a controversial measure since it was initiated by the Bush Administration in 2006. Despite a transition in the White House this year, the government’s recent actions in Maryland are a sign that the raids are set to continue.

The vagueness of the law is problematic for everyone involved. On the one hand, court rulings have stipulated that federal laws restricting online wagering apply only to sports betting. However, the Justice Department has taken a broader view of the legislation. In their viewpoint, all forms of online gambling are illegal.

A reform bill could be the solution

There is hope that the UIGEA can be overturned. Massachusetts congressman Barney Frank has been trying to gain support for his online gaming bill since last year. The Democrat was unable to convince a Republican-led Congress to support the legislation in 2008. With Democrats now leading Congress, the bill has a better chance of getting approved.

Frank’s Internet Gambling Regulation, Consumer Protection and Enforcement Act (H.R. 2267) would license and regulate online poker and internet gambling for US residents. While he has secured nearly 60 co-sponsors to support the bill, the legislation is a very minor issue in the political landscape at the moment. Issues related to the nation’s struggling economy and health care reform are overshadowing other bills that are being proposed in Washington. It appears doubtful that Frank’s bill will be approved by the end of this year.

There is some light at the end of the tunnel. The controversies that have arisen over the last three years have drawn enough attention to ultimately overturn the UIGEA bill. There is little doubt that online gambling will continue to grow in the next decade. Frank’s legislation would help to remove the vague nature of what is currently being enforced. While it may take a backseat to the economy for awhile, online gambling reform is on the horizon.

It can be easy to understand why many players exploring the notion of using an online casino may be hesitant to do so. There are many options to choose from but it can be a gamble in more ways than one. Players want to feel confident that there transactions are being completed in a secure manner. Since online casinos constantly process credit card transactions, they are a major target for computer hackers. Encryption security is critical to the operation of an online casino.

The Secure Socket Layer (SSL) is a must for any reputable online casino. This technology filters transmitted information through codes to protect all of the transactions. The SSL ensures that the information being sent back and forth cannot be intercepted by a third party.

A SSL certificate encompasses both a private and public key. The public key is encrypted while the private key deciphers the information. When a Web browser contacts a secured domain, a SSL handshake authenticates the server and client. An encryption method is initiated with a unique session key, at which point the secure transmission will commence.

Banks and credit institutions use the same technology

The technology tool being used by online casinos is the same one that is being implemented by most banks and credit institutions. In other words, online casino transactions with SSL are as safe as a standard ATM withdrawal. Most online casinos use the latest 256 bit SSL encryption tool. Also, these casinos will display a valid SSL certificate at their website.

Firewalls also play a key role

While the Secure Socket Layer protects transactions, there is another avenue that hackers can attempt access to. The online casinos store plenty of valuable data on their servers. Firewalls are used to keep all of this information secure for online casinos. Most online casinos entrust companies like VeriSign to implement the security software that protects the data that is stored on the servers.

The basic software of the casino is also geared towards security. An online player can operate his casino account using the log in name and password that they select. Also, most online casinos provide an account number or pin number that has to be produced while asking for withdrawals. Generally, online casinos automatically log out the player when he exits from the casino. The software at some casinos remembers the log in name and password for automatic log in, but allows members to disable this facility.

Payment options

After finding a secure casino to handle the transactions, the player still needs to make sure that the casinos accept a variety of payment options. Obviously, most will accept credit/debit cards from Visa and Mastercard. However, there are many players who will need to use other forms of payment in their transactions. It is important to make sure that secured casinos provide other payment options for their clients beyond credit cards. Payment options like PayPal and Netseller are becoming more popular for a variety of online transactions.

2009 has been a busy year for the community of internet hackers.  It has also been one of major concern for the online gambling business.  The latest issue for the industry is gambling sites being compromised through a technique known as web scraping.  According to a report published in SC magazine, internet hackers are frequently using bot programs to capture information from online casino sites to fix the odds to reveal pattern payouts and ensure larger winnings.  After gathering the information, hackers can then use their arbitration systems to determine which bets are most likely to win.  When bets are involved, this malicious technique is incredibly difficult to detect, prevent and track because the programs run off automated scripts designed to simulate the play of a live human gambler.  This also leads security experts to believe that money laundering is still a possibility within the realm of online gambling.

How Web Scraping Works

Also referred to as web harvesting, web scraping is a technique performed by a software program that extracts data from a website.  In some cases, the program is intended to simulate human exploration of the web or a particular site.  This is typically done by implementing a lower level version of HTTP or even embedding entire browsers such as Mozilla FireFox or Internet Explorer.  The technique of web scraping is quite similar to web indexing, which involves a bot crawling the web to index pages for search engines.  Though it can be used in a benign manner when it comes to web research and data integration, this technique is very dangerous in the hands of a hacker out to wreak havoc.

Virtual Casinos a Perfect Target

The fact that online gambling is entirely based on the web makes this prosperous industry a prime target for web scraping.  Knowledgeable hackers can use the method to extract the necessary details from a casino site and use their arbitration systems to play the odds at a level that virtually guarantees huge winnings.  They can use these tools to manipulate the odds in a way that improves their winning margin and also monitor the site to determine when it experiences the most traffic.  All of this is done in stealth manner, leaving the casino to believe they are dealing with a real human player while the criminal skates off undetected.

Analysts are predicting that the online gambling industry will be worth an estimated $125 billion by the year 2015.  If that is true, hackers and techniques like web scraping could become even bigger problems for the industry.  Security experts warn that web scraping occurs quite frequently, stating that a savvy hacker can easily steal data from a website, host it on another and redirect unknowing players.  Something this manipulative could lead to phishing, fraud and even identity theft.  While there are some preventative measures that can be put in place to minimize the risk, expects are concerned that far too many casino operators do not have the time or knowledge to implement them.