House Resolutions 2266 and 2267 proposing the reversal of the UIGEA simultaneous to the legalization and regulation of online gambling in the U.S. were on the agenda for a House Committee meeting on April 16, but the bills were pushed off the agenda in lieu of what committee members deemed to be more pressing economy-related matters.

The UIGEA is scheduled to go into effect on June 1 of this year. The act was originally scheduled to go into effect in 2009 but the implementation was delayed to give the necessary government bodies time to review HR 2266 and HR 2267. With the new deadline rapidly approaching and no new hearing yet scheduled, many proponents of online gambling are concerned that the U.S. will return to its restrictive online gambling policies.

Until the UIGEA is implemented, the U.S. government has no official stance on online gambling, but many state and federal offices have used the preexisting Wire Act to prosecute casino operators and funds transfer service companies for sending and receiving money to and from American residents for the purpose of gambling online. In fact, on April 16 an Australian payment facilitator named Daniel Tzvetkoff was arrested in Las Vegas amidst allegations of processing almost half a billion dollars in illegal online gambling payments.

If the BetOnSports case which just wrapped in January is any indication of how the U.S. legal system plans to treat such operators, then Tzvetkoff could be in big trouble. BetOnSports founder Gary Kaplan and CEO David Carruthers received four years and three years respectively for encouraging their company to accept payments from American banks. Both men were likewise fined a combined total of more than $70 million.

What do the legislation delays and operator crackdowns mean to the common player? If you’re not American, then neither scenario will affect you. If you are an American gambler, you cannot be prosecuted for playing real-money games online, but funds that are in transit to or from an online casino could be seized by a government body. That’s what happened to hundreds of American players when the Southern District of New York seized more than $30 million last year. None of the funds have as yet been returned to the account holders.

Earlier this week, in a relatively close vote of 299 to 223, France’s National Assembly passed a new bill which will pave the way for popular online gambling activities like cash poker and sports betting. The bill is now on its way to the European Commission where it is expected to be approved in April. From there the bill will move on to the French Minister who is likely to sign off on the new laws in May, allowing near-immediate implementation nationwide.

It would be nice to say that French legislators finally saw the light, but it’s more likely that what they saw was green. With one of the most popular sports betting events – the World Cup – fast approaching in June, the National Assembly seemed all too eager to push through the once-controversial legislation which should coincidentally be in place just in time to allow the country to profit from remote betting for the event.

In the past, France has only allowed online gambling through approved national operators. Though this new legislation will ideally open the market to more outside operators, finally giving French players their choice of online poker rooms and casinos, many private companies still fear that France will cling to its national interests by continuing to openly favor French-owned operations. These concerns aren’t entirely unfounded, especially since the French-based Mangas Gaming group was the first to profit from new advertising deals.

Reuters released a comprehensive French online gambling market overview on the heels of the National Assembly’s positive decision, and by all accounts the potential profit margin for operators based outside of France are grim, what with continuing restrictions on popular games like roulette and blackjack. Still, such operators remain optimistic about their prospects in France. Leading bookmaker bwin – which only four years ago faced legal action in France for illegal gambling charges – is only days of away from relaunching French access to their sites.

Veterans vs. Newcomers

When trying to determine why one casino has considerably more games than their competition, one must understand that some online casino software providers have been in the business much longer than others.  For instance, Microgaming has been around for more than a decade now whereas Rival Gaming got its start just a few years ago.  This alone is a significant factor that accounts for the vast difference in the number of games a given casino has to offer.  The second reason is associated with the rate of releases.  Over the years, Microgaming has been committed to introducing three to four new titles every month, while Rival Gaming adds new games on a more sporadic schedule.

The Aspect of Variety

When you create an account with an online casino powered by Microgaming software, you will have your shot at well over 400 games.  More than likely, you will not have the time or desire to play all 400.  Some players prefer slots, some love scratch cards and others live for the thrill of table games.  For this reason, they are more likely to stick with the games that fall into those categories.  Hence, the power of Microgaming casinos does not lie in the 400 games, but the variety they offer to the player.  Everyone is different and has their own preference, factors that allow the software provider and its licensees to cater to the masses.  So while a company such as Rival Gaming cannot match Microgaming’s variety, one like Cryptoplogic, which offers a diverse portfolio of about 200 games, can.

Out with the Old, in with the New

The rate at which new casino games are added is another important factor on the market.  While certain games such as blackjack and poker will probably maintain their popularity for an eternity, other games will become dull over time once people grow tired of playing them.  For example, online slots without the additional bonus game on the separate screen are considered old news among many players.  While some players still prefer the old school version, that percentage is dwindling quickly.  For this reason, software providers that keep the market fresh with new titles are more likely to attract more players and maintain their interest.

Conclusion

The battle continues to wage on, but direct competition in the online gambling space is actually on the decline.  Today, operators are focused on strengthening their bottom line through niche markets.  A perfect example is Rival Gaming and its exclusive i-Slots.  As more players emerge online, they will likely discover their niche and find that the number of games a casino offers isn’t as important as it once seemed.

A Fall From Grace

Online casinos are able to offer games with a lower house edge because their operating costs are much lower than land-based casinos.  This equates to higher payout rates and greater opportunities for the player.  Unfortunately, players tend to part with larger amounts of money faster online than when gambling in brick and mortar casinos.  The main reason – players get lost in their emotions and continue to wager when they should just sit back and enjoy their winnings.

Take the player who just cashed out big at an online casino for example.  After winning, they brag and boast to their friends, relishing in their good luck and all the money they won.  Convinced that today is their lucky day, they continue to gamble, now wagering with the feeling of invisibility.  Unfortunately, more often than not, the player ends up losing all of their winnings and may even dip further into their funds to hand over more money to the casino.  Desperate to get it all back at all costs, they keep gambling and continue to lose.  A good rule of thumb for online gambling is to never play more than you originally intended to bet.  If you do, you could find yourself chasing elusive winnings that only stand to deplete your bankroll in record time.

If the player in the above scenario would have kept their emotion under wraps and applied rational thinking to their subsequent wagers, the outcome would have probably worked more in their favor.  There is nothing wrong with showing a little emotion when you win money from betting online.  However, if these are substantial winnings, you may want to consider withdrawing them before popping the champagne cork and celebrating into the night.  The last thing you want to do is blow the money you won and lose even more by trying to redeem yourself.

The Moral of the Story

When it comes to gambling online, it is important to adopt the skill of being able to control your emotions whether you win or lose.  This is not as easy as it may sound so if you have never played at an online casino, you may want to practice with some free games before you even put up a wager.  If not, you stand the risk of losing a lot of money and taking the first step on the road to compulsive gambling.

Security Conscious Casinos

Interested yet hesitant parties should be comforted to know that reputable online casino operators understand their concerns regarding security.  These companies work diligently to prevent issues of fraud and hacking from occurring within their gaming environment.  The online gambling industry is prevalent in the UK and to no surprise, this area is home to internet casinos that offer players some of the best protection available.  At the same time, they realize that no website is ever 100% safe, so many are now working to improve their level of security to ensure players even better protection.  UK operators are currently working with internet security firms to enforce security protocols and verify identification.  Casinos are putting emphasis on mechanisms that prevent underage gambling as well as unauthorized account access from parties that are not validated.  These efforts are being made to better ensure that player casino accounts and most importantly, their funds, are protected.

PartyGaming and PKR.com are two of several online casinos in the UK that have decided to ramp up their security efforts.  They have let it be known that it is their obligation to keep the security systems up to date and also make sure underage gamblers are not participating.  When asked if these efforts were being made to eventually tap into the American market when and if regulation is introduced, both stated while they always look to expand, they are more concerned about providing a secure gaming environment.  In the eyes of PartyGaming and PKR.com, the potential of the U.S. market isn’t nearly as important as protecting the players.

Conclusion

If an online casino cannot provide dependable security, there is no way they will survive in this fiercely competitive market.  However, operators must be aware that the evolution of technology opens up the door to more security woes.  Every time a viable security tool or method is introduced, the criminals always seem to find a way around it.  Therefore, security systems need to be updated on a regular basis to keep the player community protected.  Thankfully, many online casinos in the UK and other areas realize this and do their best to ensure security for their players regardless of where they reside.

Cost Efficient and Effective

There are two qualities an online casino must possess.  First and foremost, the support staff should be available whenever you need them in some form or another.  It should also be freely available to the customer.  Support that is either unresponsive or costly is of no use to the customer.  Keep in mind that online casinos add the cost for support in their average payout percentages so there should be no need for you to pay extra for it.  While support can be delivered in many ways, there is only one method that has the ability to effectively meet both qualities: live chat.

The Downside of Traditional Methods

At one time, telephone was the preferred method of support for online gamblers.  Unfortunately, toll-free phone is an option primarily limited to locations such as the United States and Europe, leaving players from other countries to pay for support and thus, increase the overall cost of gambling online.  Another drawback to telephone support stems from the fact that it can be rather time consuming.  Because the typical conversation often involves the exchange of confidential information, the support agent must take more time asking questions to verify that they are speaking with a legitimate casino account owner.  The verification process can be very cumbersome, aggravating and costly if a player if forced to pay for that time.  Live chat eliminates these problems by allowing the player and support representative to chat online in real time and exchange sensitive details over a secure encrypted connection.

Email is another support method that while effective, fails to fulfill the requirements the player needs to feel content.  Obtaining support via email usually will not cost you a thing but the average response time tends to be less than desirable.  In many cases, the queue contains a ton of messages that must be addressed and most casinos let players know that they must wait up to 24 hours to receive a response.  Depending on the situation, 24 hours may be time you cannot afford to waste, especially when problems regarding the gaming software arise or more serious issues such as payments not being recorded.

Getting the Best Support Possible

Live chat makes a perfect alternative to the disadvantages of phone and email support.  Because live chat does not guarantee quality support, it is up to the player to seek out a reliable casino site that will be able to assist them in their time of need.  In fact, it would be wise to find yourself an operator that offers support in the form of live chat as well as phone and email to ensure that you can be serviced efficiently from all angles.

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.

The Trying Life of the American Player

Jurisdiction and sovereignty are two pressing issues that make the laws regarding online gambling even sketchier.  Under the Wire Act, it is illegal to utilize electronic wiring to transmit funds for wagers to areas in which gambling in not permitted.  The U.S. courts typically agree that this includes the super network known as the internet.  Therefore, an operator located in Germany is essentially breaking U.S. law by allowing American players to play their casino games.  The tricky part of it all is that the United States does not really have the legal reach to prosecute and convict operators in other countries.  Because players are also rarely apprehended and prosecuted, we are stuck with an act that is viewed as illegal but goes unpunished more often than not.  This puts a player in a very tough decision because if the casino cheats them out of their winnings and online gambling is illegal in their area, they will have a very difficult time taking legal action and proving their case.  In fact, suing the shady casino is virtually impossible.

The Hope for Regulation

Regulation is one of the hottest and most controversial topics surrounding online gambling.  There are quite a few countries that have regulated the industry with strict guidelines to ensure that the online casinos in their jurisdiction are operating legitimately.  On the other hand, some countries are far more lenient regarding regulation and appear to be more focused on the tax revenues generated from internet gambling.  The industry’s potential as a major tax revenue generator is one of the main arguments of proponents who want to see gambling fully legalized and regulated in the United States.

What You Should Know

Upon registering for an online gambling account, the operator calls for you to agree to the terms and conditions of the website.  While you may be able to slide through the cracks of some casinos, determining if online gambling is legal where you reside is a responsibility that falls on your shoulders.  There are various laws specific to certain locations, including legislation based on age limitations and whether it is even legal to gamble online at all.  Should you find that it is indeed illegal in your state and the authorities learn that you won money by playing, not only could your winnings be seized, but you could also find yourself in a world of legal trouble.  Therefore, it pays to do your homework before wagering at any online gambling site.

In the Beginning

In the mid to late 1990s, online casinos evolved in terms of features and overall quality.  One of the most notable features introduced during this time was the progressive jackpot.  Still popular today, this feature allowed players across a network of online casinos playing the same game to contribute to a growing jackpot that grew large very quickly.  Another feature added in the late 1990s was a built-in function that gave players the ability to view details on their gaming and financial transaction history.

Evolution

Once the new millennium rolled around, online gambling had grown to become a phenomenon.  A large majority of the online casino software vendors improved their platforms significantly and new players were signing up at an amazing rate.   The 2000s saw the launch of many new features, including Flash implementation, which enabled casinos to be compatible with operating systems other than Microsoft Windows.  This revolution also provided players with a way to play casino games directly through their browsers without needing to download them.  With the industry growing fast, multilingual and multi-currency casinos were introduced to service new players emerging in the continents of Asia and Europe.  Around this time, the self regulation framework came into play and casino operators began to have their software platforms tested and audited by independent organizations such as TST (Technical Systems Testing) and eCOCRA.

The UIEGA Shakes up the Market

The popularity of online gambling continued to explode through the middle of the decade and it appeared as if that growth would proceed without interruption.  However, in 2006, the United States Congress passed the Unlawful Internet Gambling Enforcement Act, a legislation initially put in place to prevent terrorist organizations from laundering money through internet casinos.  Under this act, it was now illegal for financial institutions to process and transfer funds for players involved in online gambling.  With leading online casinos such as PartyGaming already facing legal ramifications over the Wire Act, Cryptologic, Playtech and many other prominent software providers fled the market by closing their doors to American players.  Microgaming is another well known vendor to recently flee the U.S. market.

Online gambling has come a long way but its progress has not been without controversy. And while several software providers have abandoned U.S. players, vendors like Real time Gaming, Wizard Gaming and Vegas Technology have remained and actually strengthened their brands in the United States following the departure of Microgaming.  Will others follow suit?  Only time will tell.

]]> http://onlinecasinospotlight.com/2009/09/the-history-of-online-gambling-a-brief-look-at-then-and-now/feed/ 0 http://onlinecasinospotlight.com/2009/09/eluding-the-dreaded-reversal-withdrawal/ http://onlinecasinospotlight.com/2009/09/eluding-the-dreaded-reversal-withdrawal/#comments Fri, 04 Sep 2009 19:48:17 +0000 gracechen http://onlinecasinospotlight.com/?p=191 Online gambling can be fun and prosperous, but there is a lot players need to be aware of before creating an account and making a deposit.  You must take security into consideration, the software platform and overall quality of the casino.  One specific aspect that often gets overlooked is the withdrawal process.

The Typical Scenario

In most cases, players who do not take advantage of bonus offerings have the freedom to withdraw their remaining balance from an online casino at any time.  On the other hand, players who do take advantage of bonuses are generally required to meet the predetermined wagering stipulations before withdrawing their balance.  In both scenarios, the withdrawal process should be fast and easy barring the standard waiting period.  All you have to do is visit the withdrawal section, choose the appropriate options and enter the amount you want to withdraw.  Unfortunately, this process is not always is a seamless as it should be.

The Roadblock

After the withdrawal process is initiated, online casino operators usually let players know that their request will be processed in a certain amount of time.  This time period typically ranges from 24 to 48 hours depending on the casino.  The waiting period is necessary because of backlog requests and the standard protocol of payment processing.  Although waiting time is essentially unavoidable, during this period, some casinos extend the time frame then inform the player that they can cancel the withdrawal and transfer the money back into their account.  This common practice is known as a reverse withdrawal.

The online casino obviously benefits should the player decide to cancel the withdrawal and wager the remaining balance instead of retrieving it.  Waiting periods that exceed the norm are implemented to persuade the player into changing their mind and leaving the funds in their account.  While the funds are waiting to be processed, they are not in the player’s bank account, e-wallet or casino account.  In fact, you cannot use them in any way and because you requested a withdrawal, you must now wait for the casino operator to take action and initiate the process.  However, you can easily use the reverse withdrawal option to transfer the funds back into your casino account.  This puts a tremendous amount of pressure on the player who feels that if they cannot withdraw their funds in a timely fashion, they should follow through on the reverse withdrawal and try their luck again by wagering the balance.

Conclusion

Though perfectly legal, reverse withdrawal is a questionable practice you want to avoid.  Sure, you have just as good of chance at winning as the next player, but hitting the jackpot in an online casino is never guaranteed.  If you feel the need to withdraw the balance from your account, stick to your guns and do so.  Never let the casino tempt you into canceling the withdrawal and risk losing all of your money.  Because of the growing outrage, more casinos are minimizing the waiting period while others are abandoning the reverse withdrawal concept altogether.  If you are someone who is easily tempted, it might be in your best interests to seek out such casinos and spend your money with them.