Online Casino Gambling

Like many other states, Colorado has stringent gaming laws limiting the availability of specific games to the public. Colorado only offers specific types of betting games in designated areas of the state including the following historic towns:

• Central City
• Black Hawk
• Cripple Creek

This decision was made into a law in 1989 and only allowed blackjack, poker and slot machines with a maximum bet of five dollars to be wagered. Central City and Black Hawk are in the North Central section of the state approximately 37 miles from Denver. Cripple Creek is in the center of the state, just outside Colorado Springs.

The agency overseeing gaming is the Division of Gaming and the Colorado Limited Gaming Control Commission with The Department of Revenue as the supervisory body. The Division of Gaming distributes gambling licenses and regulates the behavior of the industry.

The Governor appoints five members to the Gaming Control Commission which is corroborated by Colorado Senate. Only three members can be of the same political party with only one from per congressional district. The members must have an attorney, public accountant, a management-level business person, a law enforcement officer and a registered voter not in the industry of the other four members.

The four members of their specific professions must have five years experience in their industry. All terms are staggered with no single member serving more than two terms.  The commission propagates all gambling regulations, establishes the gaming tax, allots funds to various state departments and designates fiduciary power over the Division of Gaming.

Additional functions include collecting license fees, adopting and enforcing regulations as well as research and development and conducting investigations of gaming in Colorado. The tax structure for casino properties within the state is up to 18 percent of revenue depending on the size of the operation. There is also an annual tax on gaming licenses.

There are many rules and regulations in place to keep gaming in Colorado limited to three towns offering the service and only three games available with a small maximum bet. The Division of Gaming and the Gaming Commission have many responsibilities to keep the limited operators in check.

Its unlikely Colorado will expand its laws in the near future to include additional casino operators and games. The stringent laws have been successful since implementation in 1989. As a result, these regulations have kept order and minimized criminal activity.

Industry titan Harrah’s Entertainment Inc. of Las Vegas is backed by many investors with deep pockets. The company has continued to progress with its properties despite billions of dollars of loss and a debt of $22 billion as a result of the current recession. Moody’s Investor Services recently released a report questioning the current growth strategy implemented by Harrah’s.

Moody’s Point of View

One of the main points of the report is that Harrah’s debt encumbrance continues to leave the company with deficient funds for maintenance and growth plans. Moody’s suggests that Harrah’s restructure the debt load, sell off assets, or go public on the stock market. At the same time, the three options all present new obstacles to the company.

Moody’s claims that like many other casinos, they need to find a method of bringing new customers in while retaining current consumers as the gaming industry is in decline and unlikely to rebound in the near future. Despite financial engineering and some restructuring, debt payments consume 90 percent of earnings prior to depreciation, amortization, interest and taxes.

Furthermore, Moody’s believes Harrah’s isn’t investing more in their properties, although with insufficient cash, it’s a difficult task to undertake. Overtime this substantially damages their competitive position. It is clear that management is more focused on implementing growth than reducing the amount of debt.

The Numbers

Harrah’s owns nine Las Vegas Strip properties including Bally’s and Caesar’s Palace. Although second quarter financial results are yet to be released, from 2008 to the first quarter of 2010, the company incurred $4.4 billion in losses, much in the form of asset write-downs. This was to compensate from their inability to generate profits.

Additionally, Harrah’s is challenged with annual interest costs of almost $1.7 billion. On the positive side, Harrah’s has managed to decrease operating costs by hundreds of millions of dollars.

Harrah’s Future Plans

Although no official comment has been made regarding their debt burden, Harrah’s recently acquired Planet Hollywood on the Las Vegas Strip with plans to attain Ohio’s Thistledown Race Track. Additionally, it is rumored they are looking to expand to a property in Mulvane, Kansas; all of this will substantial debt.

Although backed by deeply pocketed investors on Wall Street, Harrah’s needs to address the major debt issue at hand with a proper debt strategy. Expansion with no excess capital is a major mistake during a global economic recession.

Formed in 2006, Wizard Gaming is one of the newest online software providers. Despite their lack of experience in the industry, they have developed some of the best looking casino slot game software currently available online. Although their software is only available for download, the features are easy to use, convenient and the program is fast. Their current software features over 20 slot games with different themes, luring prizes and bonus rounds.

Advantages

There are a few advantages to using Wizard Gaming’s online casino software. First are the numerous features available within the software. Also Wizard Gaming offers excellent payout percentages on many games. Additionally they continue to develop brand new, innovative games to give the player an alternative to the regular gaming establishments.

The Best Attributes of the Software

Wizard Gaming software offers a few unique features not found in other online casinos. First, the ability to change download settings. This allows you to download only the games you want to play as opposed to the whole library of games thus speeding up downloading and installation times. Also the graphics and sound quality rank well. The games provide high impact animation, bonus rounds, spin features and an excellent design. The sound effects and music are second to none.

Another area where the software excels is the updating category. They plan to update their software on a regular basis to continue to provide fresh games to their patrons. They also plan to add video poker, blackjack, craps, roulette and other popular games.

Disadvantages

There are two specific disadvantages to the software. First, there is no instant play version like those offered at other casinos. The only way to play any of the games is through the downloadable application, not through a web-based version. Second, the casino lacks a full suite of games. Although unique and innovative games are offered, it doesn’t have the common types found at mainstream casinos. This can discourage new players from trying out the casino.

The Top Five Games

The top five games offered by Wizard Gaming include Divin’ for Pearls, Cashasarus, Knockout, Lizard Lounge, Main Course, 80’s Night and Classic Blackjack. The majority of these are unknown slot video games.

Wizard Gaming software is a whole new player to the online gaming community. By offering top-notch sound and graphics, different-types of games and constant updates they’re right on track to become an industry leader.

When online casinos first hit the market, there were no regulations. Players could place wagers at sports betting sites or play poker at an online casino. Since that time the laws relating to internet gambling have become much more stringent. So much that many international casinos have chosen not to allow U.S. gamers due to the complications.

Where are these Casinos?

Most online gaming sites are located outside of the U.S. This means that the owners avoid any type of legal prosecution from the U.S. Government. Ironically there are several states that allow land-based casino properties within their boundaries, but stringently oppose internet gaming. For the most part many of these international casinos allowing U.S. players are based out of the Caribbean, Costa Rica and Europe. These areas allow regulate all types of gambling.

Why is there a Strong Opposition?

Internet gambling makes it difficult to track the flow of money. Therefore the Government would have a tough time collecting taxes. Neteller is an online bank that used to be the primary method of monetary exchange between the players and the casino. The players used to be able to acquire a Neteller debit card which would allow them to withdraw money directly from their Neteller account, completely bypassing U.S. banks and hiding money. This operation was eventually shut down.

The Government also mentions the point of allowing games of chance to be played by anyone with a computer, including children. Although online gaming sites cost significantly less to create than a land-based operation, they also employ significantly less workers, potentially resulting in a loss of the workforce.

The Catch-22

U.S. law dictates that owning an online casino without a license is illegal. In order to get a license you must apply through a state agency. Unfortunately there are no states granting online gaming licenses. The consequence of being caught gambling online also vary between states.

International Issues

Since internet gambling is such a huge money-maker, the Government of Antigua and Barbuda complained to the World Trade Organization regarding U.S. action to forbid online casinos. Since a good portion of their market is in the U.S. they were losing money. Initially they won the case, but it was later partially reversed.

Although land-based casinos are legal in certain areas of the United States, online are not. Regulations continue to become more rigorous as time goes on. Although there are still millions of Americans that continue to place bets and engage in games of chance online, the Government is watching and will eventually crack down.

Slots have a rich history beginning over 100 years ago. They went from a mechanical machine to the glitz, glamour and appeal we see today. The first slot machine was produce in 1895 by Charles Fey. Over the next 12 years, Fey tweaked and perfected this machine until it was ready to be sold to Mill Novelty Company. The first slot machine was named “Mills Liberty Bell.”

The Old Design

The original slot machine design had both feet and toes and was completely made of cast iron. The toes soon disappeared from the design leaving feet which were tremendously detailed. The first machine also had reels, similar to those available today. The reels had actual playing cards (king, queen and jack) instead of bars. Also, each time a player won the spin, a bell would ring. This has since been replaced by a bell that sounds when the max jackpot is won.

The New Design

It’s interesting to note that many current slot designs continue to be based on the design of 1907. Many older machines were limited to 20 symbols that could be achieved. The newer machines contain computer memory that can store hundreds of randomly generated symbols. Also the three reels are rarely still used. Instead many machines currently provide five reels.

Operation Bell

In 1910, the Operation Bell slot machine was introduced. The design was based on the Liberty Bell. It contained a coin entry with various fruit symbols. Many machines were modeled after Operation Bell. The slot machine weighed over 100 pounds and sold over 30,000 units.

Wooden Machines

The design of the machines changed again in 1915 to wooden material. The wooden material provided a quieter gaming environment in addition to lower costs and an easier production cycle. A double jackpot was also added to the machines. In 1931 Mills added color and began producing the first themed machines to improve the fun factor. As a result Lion Head, War Eagle and Roman Head were released to the market.

It took thirty years from conception for the slot machines to become popular with the gambling community. Bugsy Sigel first introduced slot machines into the Flamingo Hilton Hotel during the 1940’s. At first the main players were females as it gave them something to pass the time while waiting for the high rollers to finish playing.

Slot machines have had many different designs over its 100 year time frame. It began with heavy cast iron material and has become a lightweight electronic machine designed to please the senses. Since slots comprise 2/3’s of U.S. casino’s revenue, the designs will continue to be innovative and appeal to the masses.

WagerWorks began as a subsidiary for Silicon Gaming; an industry-leading slot machine manufacturer. When International Game Technology bought them out in 2005, WagerWorks became an independent unit. At this time they began focusing primarily on developing software for online gaming. WagerWorks is one of the only online casino software providers whose origin stems from a land-based operation.

WagerWorks offers many advantageous features that make their software unique. First, they output high quality sound accompanied with excellent graphics. A nice feature is that users can adjust the quality of the graphics to align with the player’s internet speed without affecting the game. Standard features like enabling or disabling the sound are also present. WagerWorks also boasts excellent flash software.

Another advantage is WagerWorks offers the highest starting progressive jackpot in the whole industry. The jackpot network is based on three specific slot games. Once hit, the network resets the jackpot to 1.5 million pounds. This is the minimum amount that can be won on the jackpot.

Finally, the games they offer are well-branded. With a 75 game repertoire, regular as well as alternative games are available. Interesting games include Monopoly, Battleship, Jeopardy, and Wheel of Fortune.

There are a few disadvantages to utilizing this software. First, there are only three progressive jackpots. This is far less than their competitors. Second, there are only three video poker games available and four classic slot games which is a poor selection. Since these are extremely popular games, the choices need to be improved.

Third, there is no downloadable version available; all gaming must be conducted online. Finally, WagerWorks doesn’t accept players from the United States. They are missing out on a huge market of potential players.

Some of the most popular casinos in the world use WagerWorks Software. These include:

• Virgin Casino
• Paddy Power Casino
• PartyCasino
• Coral Casino
• Sky Vegas

Although WagerWorks has a few disadvantages they have many advantages to counterbalance. The rich graphics and crisp sounds provide an experience like no other. Also with a progressive jackpot of over 1.5 million pounds, players can win excellent money at any given turn. Additionally by offering standard and unique games, their software appeals to many different types of players.

WagerWorks develops internet gaming software for many powerhouse clients. As they continue to gain further experience and large customers, they can become an industry leader in online gaming software development.