Operating online-based casinos is currently illegal under United States law. New legislation has been proposed to punish foreign companies that have significantly profited by accepting bets from U.S. players. The idea is to help U.S. casinos improve their profits as less foreign gaming sites may now allow Americans. In turn more gamblers will visit land-based casinos.

Recently, the House Financial Services Committee passed a bill legalizing and regulating online gaming. Attached to the bill are amendments that prevent current online operators that are violating U.S. laws from obtaining a license under the new bill. For instance, one section prohibits those individuals that continued to operate or work for illegal online casinos from obtaining a license.

Another amendment allows the Treasury Department to outsource the regulation of the industry to state government agencies. Many states currently regulate land-based gaming operations so they have vast experience in the field. Also, delegating this responsibility to state agencies would eliminate a potential federal bureaucracy.

The restrictions of the bill were primarily supported by conservatives and moderates that are opposed to online gaming. They feel those that operated and participated in illegal casinos were committing a criminal act. Although advertised in the U.S., many of the popular poker brands are still illegal to play online. Currently, online gaming sites operate offshore so they don’t pay U.S. taxes.

This law would prohibit two of the world’s largest poker sites, PokerStars.net and FullTilt.com, from obtaining a gaming license. This would pave the way for land-based casinos like Harrah’s to create new gaming options. Harrah’s currently owns the World Series of Poker franchise. If the law passes, it would become difficult for those online gaming entities that current accept bets from Americans to legally operate.

Many of the controls in the bill mirror Las Vegas rules. These include:

• Conducting background checks of owners and managers
• Financing must be from a reputable source
• Licensed operators must have integrity and good character

Online gaming sites have been pushing for a law similar to this to be passed for many years. If this is passed by the House of Representatives, U.S. land-based casinos will enter the market. This will have an excellent effect on the economy since the American dollar will remain in the U.S.

The History

The Cryptologic Network was founded back in a year where online gaming was just a sparkle in the eye of software developers: 1995. It became publicly traded on the Canadian Dealer Network in 1996. That same year, the infamous InterCasino was released to the public which became an instant hit. Cryptologic Inc. has become of the five largest gaming software developers in the industry.

Innovative Features

Since its inception, the Cryptologic Network has redefined online gaming with various software advances and innovations. Over the years, they have introduced features such as live chat, multi-player games, custom browser windows and casino interfaces that support 3D graphics.

They have also been a leader in internet security to ensure their customer’s money is safe at all times. One example is their E-cash system where players receive a pin number via regular mail prior to them withdrawing funds from their account.

Customer Service

Another top feature the Cryptologic Network offers is their toll-free numbers that offer 24/7 support. Their customer service is the envy of the industry and has a high satisfaction rate among customers across the globe.

Cryptologic Software Uses

Cryptologic Inc. has a diverse portfolio of clients. Online Interactive Gaming was the first company to purchase their software. Since then they’ve added many online casinos and poker rooms. One notable client is William Hill plc which is a well-known bookmaking company based out of the United Kingdom. They were the first land-based casino to add operations online.

Also, Cryptologic Inc. created software for the Playboygaming.com casino. Additionally the company has begun offering online bingo software either utilizing Java or by a downloadable application.

Cryptologic Inc. was one of the first major online casino software developers which have transformed them into one of the largest available to date. With innovative thinking, years of experience and many high-profile clients, they know how to develop casino software for the customer. As internet gaming technology becomes more interactive with the consumer, Cryptologic Inc. will remain at the forefront in the gaming industry.

Massachusetts Approves of Online Gaming

The bill, which will be signed into law shortly in the state of Massachusetts, clearly states that gambling online shall be legal in the state of Massachusetts. The bill came to pass after a previous bill was brought forth in 2008 that made online gaming illegal. The penalty for playing poker online in Massachusetts came with a two year jail sentence or a fine up to $25,000.

Shortly after the first bill was put in to motion, the Poker Players Alliance began working with state legislatures for an amendment that removed the criminal charges associated with online gambling. Two years later, their efforts paid off.

The Poker Players Alliance

The Poker Players Alliance is a nationwide grassroots organize. Currently, there are over one million members in the United States, and 25,000 members in the state of Massachusetts. Poker Players Alliance is headed by John Pappas. John Pappas and the other members of the alliance work closely with legislatures to influence the outcome of gambling related laws in the United States. Massachusetts was a big win for the organization.

What The New Law Means for Massachusetts

The new bill will put an end to any fines or jail time associated with online gambling going forward. This does not mean, however, that the state does support, or will support, other gambling endeavors in the future. However, it is still a big win for gambling and online poker enthusiasts in the state of Massachusetts. Any resident who is of legal age to gamble is now welcome to do so inside their state.

An emerging market

The move by Chinese regulators is a blow to many gaming operators around the world. The nation is ripe for development and growth related to the online casino industry. It is estimated that 300 million Chinese residents use the internet an average of 18 hours per week. The latest measures will slowdown China’s online gaming market, which had been expected to grow 30 to 50% this year to $3.5 billion to 4 billion, according to GAPP’s forecast.

However, the nation has been seeking to monitor online content more aggressively in recent months. In July, China’s Ministry of Culture banned games featuring gangster themes or mafia-type gang activities. About 45 games have been banned over the past few months due to violent content. There is a belief that China has been unhappy with the influence that the foreign interests have had on the country’s online content. “In recent years, some foreign companies tried to get involved in China’s online game operations in various forms, which caused severe disorders in China’s online game industry,” said Kou Xiaowei, vice director of the technological and digital department of GAPP.

Control of content a key

China is trying to do something that seems to be an impossible task. Policing the internet seems to be a difficult mission. The attempt to block foreign companies from getting involved in online gaming could be only a small part of the process.

The GAPP has developed a broad view of how to control the world wide web. The content issues have extended to the actual location of where the games are manufactured. The new policy even blocks foreign companies from joining forces with domestic corporations.

The most recent announcement states that without the appropriate permissions from the government,  neither individuals nor organizations may run an online gaming business.

NetEase caught in the middle

The major Chinese online gaming company NetEase has been in the crossfire of the new legislation. The playing of their popular World of Warcraft game was blocked for nearly two months due to a change of operator. The game is also being censored for scenes of violence.

There is uncertainty about whether or not NetEase received clearance from the GAPP before launching the latest version of the game on September 19th. The issues have led to a sharp decline in stock prices for the company in recent weeks. The Nasdaq-listed company is the third largest online gaming company in China. It has a share of nearly 13% of the online gaming industry in the country.

Getting back in the game

PayPal has grown steadily as an online payments provider during this decade. The company claims to have over 75 million active accounts in 190 markets around the world. Their financial services are offered in nearly 20 currencies. PayPal’s parent company is the the eBay company.

The deal with Neovia is a change in strategy for PayPal. The company basically stepped away from the online casino industry back in 2002 under pressure from the United States government. PayPal was deemed to be in violation of the US Wire Wager and Patriot acts for transferring funds to offshore gambling sites. Under a settlement in 2003, eBay paid a $10 million penalty to the US government.

Neovia has also had their issues with the US government. In 2007, under the trading name of Neteller, the company had to forfeit $136 million to the United States for violations that were similar to the PayPal infractions. Neteller admitted to to operating an “unlicensed money transmitting business” while participating in the promotion of “unlawful transactions” between gaming operators and their customers in the United States.

A big deal

Paypal has gradually been getting back into the online casino market since 2006. The new deal is the most significant sign that PayPal is embracing the opportunity to regain a prominent place in the ever growing online casino industry.

“We are delighted to have signed this strategic partnership with Netbanx – one of the leading market payment service providers. Netbanx has a great merchant portfolio and this partnership offers PayPal an excellent way to reach this significant audience. Netbanx provides secure online credit card and debit card payment solutions and with PayPal its customers can keep their financial details secure and choose whether to fund the transaction either from a bank account or from a credit card,” said PayPal general manager of merchant services Cameron McLean. The company enables players to receive and send funds on the web without disclosing financial details, via their credit cards, bank accounts or account balances. Still, Paypal will not accept wagers from players based in the United States.

“We are pleased to be able to add PayPal to the range of payment options available to our merchants via our Netbank Payments Gateway, giving their customers more choice in how they want to purchase goods online. The PayPal option is fully integrated within Netbank, meaning that there is no integration required for merchants who have already migrated to our leading Netbank Unified PayPage checkout technology,” said Neovia’s Dan Starr.

The country is under a great deal of pressure from several forces to implement the legislation. It is estimated that about 3 million French citizens are illegally wagering at online casinos based abroad. Under the proposed law, private firms would obtain a permit from a newly created regulator. The firms could then set up websites offering wagers on skill games like horse racing, poker and sports contests.

Great potential for French market

According to consulting firm MECN, the French market could be worth nearly 2 billion Euros in gross revenues by the middle of next decade. The report is based on five key factors:

Liberalization-The legislation is expected to be in place by next summer.

The importance of the French market-Among casino operators and industry experts surveyed in the report, 80% indicated that France was relevant and important to their future endeavors.

Onlne poker-Nearly 80% of the casino operators in the survey are looking to secure a French poker license.

Market size-The licensed market in France last year totaled 70 billion Euros with a gross revenue of over 8 billion Euros.

Potential-The market has unlimited growth potential in poker and sports betting.

“The operators will focus on online poker and sports betting because they expect the French market to outstrip even the success story of the Italian online poker and betting market,” according to a statement from MECN.

The wheels are in motion

“We have chosen a middle way which I think is just and efficient, a controlled opening up of the market,” Budget Minister Eric Woerth told parliament. “I want to put an end to these parallel universes. I want to put an end to the jungle of illegal sites,” he said.

Under the current laws in France, two state-owned organizations handle legal online gambling operations in the country. The state makes about 5 billion Euros per year from gambling at race tracks, licensed cafes and the internet. Woerth has indicated that France could generate 1.5 billion Euros annually from taxes tied to the pending legalization.

In addition to pressure from private gaming firms and the European Union, there are several top soccer clubs in Europe pushing for the bill to go through. The soccer organizations feel that their sport would benefit by giving their fans a chance to place wagers on matches at their websites.

The bill is critical for online gaming corporations in the United Kingdom. Their profits have been down in recent years but the French legislation would be a major jump start for their operations over the next few years. Several major gaming companies in the UK saw their revenues decline by over 25% in the first-half in wake of the worst recession since World War II.

PartyGaming is governed in the jurisdiction of Gibraltar and currently employs more than twelve hundred people in its network of poker sites and casino rooms.  Collectively, this staff of highly skilled professionals make sure the games function correctly while performing regular monitoring to ensure the reliability of the systems.  Best of all, they help to uphold the high standards of fairness that gives players a real shot at winning.  In fact, the year of 2005 was a good one for customers as PartyPoker hosted over one billion hands of pokers and paid out more than $45 million to its players.

PartyGaming Safety and Security Features

PartyGaming software offers a ton of remarkable features to enhance the gaming experience, focusing its efforts towards the market of responsible gamblers.  The vendor takes a serious approach towards online gambling and various measures to ensure that minors to do not have access to their software.  PartyGaming tries to close its door to problem gamblers and puts an emphasis on security to ensure that personal and financial information remains safe and private.  This is accomplished by using a stable and secure platform equipped with industry standard 128-bit SSL encryption.  Player data is secured when in transit and when residing on servers to make sure it remains confidential and is not leaked to third-party sources.

PartyGaming takes security one step further with a player identification system and other mechanisms to ensure the safety of the player’s account, thus dramatically reducing the probability of fraud.  Players are only allowed a single account and an efficient system behind the scenes performs regular monitoring of the poker tables and game rooms.  PartyGaming is committed to the safety of its customers and takes action against players caught participating in fraud and other malicious practices.  Aside from ensuring safety and security, the vendor is dedicated to efficient payment processing and providing players with the best competition and some of the most generous bonuses in the industry.

World-Class Support

PartyGaming provides its players with some of the best support in the industry, making it easy to get the help you need 24/7.  The company recently expanded its platform to reach more players across the globe with multilingual gaming solutions that help it service customers in more than 190 countries.  As of 2006, the firm hads approximately 750,000 loyal customers playing for real money, and all were located outside of the United States.

Privacy for Email

It is critical to make sure the online casino’s privacy policy covers email communications.  The company should clearly state that it will not distribute spam to your email address or solicit it to third-party sources.  Your email address should only be used for matters pertaining to your casino account or newsletters and promotional offers you agreed to receive.  Under no circumstance should it ever be given to an outside company or auctioned off for sale.  To put it simple, your email address should only be a communications medium between you and the casino operator.

Efficient Sign-in Systems

Online casinos require that you submit a great deal of personal information upon signing up for an account.  This generally includes your name, home address, email address and phone number.  You will have to fork over even more details if you want to fund your account with real money.  While this can be a hassle and scary for some, it is a requirement that must be met in order to place a wager. Even though there is no getting round this aspect, it is still advisable to find a casino that ensures privacy with a system that requires you to enter these details only once, opposed to every time you want to make a wager.

Be Aware of Cookies

There are many sites that rely on cookies to keep track of the players who register at the casino.  This helps them automatically recognize you the next time you pay a visit.  However, the basic functioning of cookies could be a privacy concern.  You could always disable cookies through your browser but there may be a few consequences.  While most sites allow you to access the normal casino features, others will be limited in terms of functionality because their gaming software requires the use of cookies.

These are just a few of many important factors that must be considered when evaluating the privacy policy of an online casino.  Although each operator has different policies, all should be designed to keep your information safe.  Because you will be required to comply with an agreement before signing up, this would be the perfect opportunity to speak with someone at the company to make sure the privacy policy lives up to your standards.  If the person cannot answer your questions to satisfactory or you find something in the policy that sound right, simply move onto to another casino site.  Rest assured, there are plenty of suitors that can provide you with the level of privacy and security you need to feel comfortable.

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