Internet Magazine, May 2004
Using the mouse, I place my chips on the roulette table and spin the wheel. A satisfying rumble emanates from my headphones as the roulette ball races around the wheel. It bounces four, five, six, seven times. "Fourteen red," a male voice says. "Player wins!"
I can almost hear the onlookers' cheers and smell the cigarette smoke as the losers around me light up, but this is one gambling hall where no one's actually here in the flesh to witness my success.
My chips are dealt out. Preferring not to lose what I've just won, I cash my chips in and close the game. "Are you sure you want to exit?" I'm asked. I decisively click the 'Yes' box. It feels like I'm stumbling out of a dimly-lit casino and heading back to the stark reality of daylight. I had fun in there, but I'm sure glad to be back in the real world.
Online gambling in its various forms is set to be worth $30 billion (16 billion [pounds sterling]) by 2005, states the 2003 Casino and Gaming Market Research Handbook. Management consultancy Schema (www.schemaonline.com) predicts that online gambling, which accounted for 1 per cent of gambling spend in 2000, will represent 10 per cent of gambling spend by 2005.
The UK gambling sector is set for a shake up in the coming months once the government's latest Gambling Bill becomes law. This will let companies that run online casinos or similar 'remote gambling' operations (such as mobile gambling) apply for UK licences for the first time, rather than having to set up shop in offshore locations. By 2005, a new Gambling Commission will be established to replace the current Gaming Board, and will act as a single regulator for all kinds of gambling. The new Commission will also be responsible for ensuring that gambling is a crime free activity.
Casino royale
Online casinos are easy and fun to play, particularly if you've got a broadband connection available. You usually have to download some mammoth sized software in order to play games like roulette, blackjack or slot machines, although some sites like PokerRoom (www.pokerroom.com) use Java applets so you won't need to download any extra bits to play. A lot of the software, like 32Red's ( www.32red-casino.co.uk) and Victor Chandler's ( www.victorchandler.com), seeks to glamorise the casino scene, as if you were immersed in a movie like Ocean's Eleven or Croupier. Opening sequences display images of women in red, the sound of muzak, and sparkly golden lights.
Online gambling doesn't have to be a solitary experience. Poker is enjoying a comeback thanks to the attraction of playing against real people on virtual card tables. In January, Ladbrokes' site www.ladbrokespoker.com released a report suggesting that 2.9 million UK adults are now interested in playing poker online.
At PokerRoom.com, most people only gamble with play money, but around 10 per cent of its 1.5 million registered users play for real cash, according to managing director Patrik Selin. That's easily enough for the site to generate a profit.
"Poker is growing like crazy," says Selin. "It's community based and you're playing against other people--that's the fun part. It's also quite fast--you can play 100 hands in one hour. It's thrilling, it's real money, and you're betting on your own cards compared to other people's."
The overwhelming majority of PokerRoom.com's clientele is American, which is no surprise--they're the most passionate poker players in the world. Sports betting and gambling on games of chance is illegal in the US, but Selin says the legality of gambling on poker is a "grey area", because it can be perceived as a strategic, skill based game rather than something essentially random.
In any case, many online gambling sites will not accept US customers because of its ambiguous gambling law, and in an attempt to stop US citizens from betting online at non-US sites, many credit card issuing banks block the cards'| use for gambling transactions.
In the UK's Department of Culture, Media and Sport's April 2003 paper on remote gambling, it acknowledged that continued prohibition of cross border gambling is "neither desirable nor practical". It reads: "Nowhere is this better illustrated than in the USA where, despite the apparent illegality of cross-border gambling, more of its citizens gamble online than anywhere else in the world."
Only 10 per cent of PokerRoom.com's customer base comes from the UK, Selin says, but hat number is doubling month by month, as is its total user base. PokerRoom.com, founded in Sweden, currently has its gambling licence and servers in the Mohawk territory of Kahnawake in Canada. When the Gambling Bill becomes law, the company will look to register a gaming licence in the UK.
"From our side, it's about trust," says Selin. "If the UK government can approve our company, that will make more customers want to play with us." However, although online casinos have generally welcomed the Gambling Bill, some are still concerned that the Treasury will impose the same 15 per cent tax on gross profits that it levies on high street bookmakers.
Cool technology
Cutting-edge technology is behind many online gaming and betting sites. Safeguards are required to protect people from tumbling into debt. Cheats need to be tracked down. Then there are audit checks, underage gaming preventions and rigging to think of.
Most websites check details against a credit reference agency like Experian ( www.experian.com), or a verification system like VerifyME ( www.verifymyidentification.com). Meanwhile, companies like PricewaterhouseCoopers analyse card shuffling processes and random number generators to verify sites like LadbrokesCasino.com. When the Gambling Bill becomes law, the random number generators that underpin most online games will need to meet the requirements of the Gambling Commission and undergo ongoing testing.
To combat cheating in a multiplayer environment, PokerRoom.com logs all the hands a member has played. "A cheat's technique would involve a person having had cards and trying to raise money to help their friend who has really good cards," says Selin. "So if we see that you've folded to another person many times, it flags that up on our system."
Technology is also required to protect sites vulnerable to online extortion. Already, betting sites based in offshore locations like Gibraltar have been intimidated by hackers threatening to launch denial of service attacks against certain gambling sites unless the site operators pay up thousands of dollars. Usually, these threats are made before big sporting events such as the Superbowl or Grand National.
Problem gambling
Technology also plays its part in allowing the vulnerable to become addicted to online gambling. In January the Edinburgh Evening News reported that the number of gambling addicts in the Scottish capital had doubled in the last 12 months, with one businessman gambling away 70,000 [pounds sterling] on his company business account in two months after maxing out his personal credit cards online.
Gambling help charity Gamcare (www.gamcare.org.uk) has reported an increase in the amount of people contacting its helpline and counselling services. If you've got the ability to gamble around the clock, an inability to keep track of time spent online and a decreasing perception of the value of cash, you could be developing a problem.
There's also always the danger that children could get addicted. Responsible websites will let users limit their losses and make sure no minors are playing for money.
"The extent to which the government opens up the gambling market will largely be determined by how confident it can be that these objectives [to protect the vulnerable] will not be undermined," the UK government writes in its position paper on remote gambling. Reality checks will need to be put in place.
Gamcare works hard with websites to encourage responsible gambling use among their users. "It's possible, if someone has problems, to shut them out of the site," says Selin. "People can also protect themselves by saying, 'I can only deposit one day a month' or 'I can only deposit 100 dollars at a time'."
At Casino On Net ( www.888.com), a self eviction program is in place. Memberships can be cancelled and you can be prevented from entering the casino at your own request. These are measures taken by most popular casino sites.
Place your bets
Apart from having a regular punt on a dog or a horse, the Internet is transforming the way we bet. The real growth is coming from peer-to-peer betting exchanges, which are mirroring the revolution we're seeing in digital music--and let you play the bookmaker.
The most popular gambling site in the UK is Betfair (www.betfair.com), according to Hitwise figures. Another online betting exchange is the year old ibetx ( www.ibetx.com). Here you can back or lay (bet to lose) a selection, even if a game is in play. You can take odds another user has offered, or offer odds for others to take. The sites will take a commission from your net winnings.
The Gambling Bill specifies that betting exchanges will be licensed as 'betting intermediaries', but users will not require a licence.
Don't take our word for it--why not register at some of these sites yourself and let us know how you get on? We'd highly recommend playing for fun money when first visiting an online casino. You can keep up to date with the latest casino developments by going to www.onlinecasinonews.com or www.casinogb.com. Be lucky!
GAMBLING AND BETTING SITES
Ladbrokes Casino www.ladbrokescasino.com
You could win 31,000 [pounds sterling] on Triple Sevens Blackjack like Joel H. from Manchester!
Casino On Net www.888.com
The adverts are everywhere--especially on the London Underground, and in countless pop-ups on websites the world over. It's the most popular online gambling /entertainment site in the UK, according to online research service Hitwise. Casino On Net launched multiplayer tables way back in 1996, and it lets you chat with others gamblers playing at the same table.
Harrods Casino www.harrods-casino.com
Bring the decadent opulence of the famous department store, as enjoyed by countless American tourists, to your very own living room.
Victor Chandler Casino www.victorhandlercasino.com
If you're afraid of gambling away too much money here, lock yourself out by changing your password when your eyes are closed. It worked for someone we know.
Bet365 www.bet365.com
"I won 75 [pounds sterling] on a fiver after betting that Kerry would win I'm a Celebrity!" exclaimed one former Internet Magazine staff member, who shall remain nameless.
Littlewoods Casino www.littlewoodscasino.com
Video poker, roulette, blackjack, sports betting (via BetDirect) and 24/7 support.
William Hill Sportsbook www.willhill.com
One of the UK's most popular gambling and entertainment websites. Bet in eight languages and 11 currencies.
Daily Draw www.dailydraw.com
Play for money in exchange for 'permission-based marketing emails'. Very popular.
Bet On Markets www.betonmarkets.com
If you don't love horses and dogs aren't your thing, perhaps the lure of the stock exchange will do it for you.
Betfair www.betfair.com
Bet against other punters in this lively gambling marketplace.
32 Red www.32red.com
Probably the sexiest roulette number ever. It's even red! Download this mammoth piece of casino software and play for real or virtual money.
THE NATIONAL LOTTERY
The National Lottery is now a British institution. To maintain its integrity operator Camelot must ensure that its online offerings protect players from fraud and problem or underage gambling. Camelot was the first company to acquire full Gamcare accreditation.
But the Lottery sets itself apart from other online casinos or bookmakers. "Realistically, when you go out and talk to lottery players, they do not see the lottery as gambling" says Richard Hurd-Wood, director of interactive at Camelot Group. "They see it as a chance to have a flutter or a life changing win. Also, they know that the purpose of the National Lottery is to develop money for good causes."
Online instant win games were introduced in March last year, but online Lotto only arrived last December. "We've appealing to two groups--dabblers and impulsives who only play the lottery occasionally," says Hurd-Wood. "It's convenient. It's Lotto from your lounge. We're got a strong at-home audience, and quite a strong daytime audience of people playing during their lunch break."
Camelot is not against any relaxation of the gambling laws, but wants to ensure that levels of player protection are taken into account. The company manages the entire site in-house--third parties do develop some of the interactive games, but random number generators are all maintained by Camelot to ensure their integrity. "Players respond well to games offering familiarity, nostalgia and humour," says Hurd-Wood.
By the end of Camelot's licence period in 2009 it expects interactive channels like the Internet, digital TV and mobile phones to generate 5 per cent of sales. With a current turnover of 85 million [pounds sterling] a week, that's a lot of online fluttering!
www.national-lottery.co.uk
THE GAMBLER'S STORY
Sean Hamill is one of millions of people who occasionally have a bet or gamble online. He divides his time between Betfair and Victor Chandler Poker.
Sean spends a maximum of 50 [pounds sterling] a month on these sites and prefers online gambling over traditional methods because of its instant access (he has broadband at home). "It also offers far better odds," he says. "Betfair, for example, will generally have prices that are at least 20 per cent better than the shops. Also, if you study Betfair, you can usually spot a winner or non-trier by the amount of money that's going on it or not! People using Betfair are usually in the know."
The most he's ever won from Betfair is 200 [pounds sterling]. The site lets you bet against other players, and you can also bet for a horse NOT to win, which is much easier than picking a winner. Although these quirks are the prime attractions for some, Sean says he's drawn towards Betfair for its excellent odds.
Meanwhile, Victor Chandler Poker provides him with some real-time excitement. "You have nine people at a table and get dealt the cards. You get a 2,000 point pot to gamble with--this pot can be bought for varying costs depending on the table you wish to join," he says. "A 50p pot means the prize pool is only 4.50 [pounds sterling], but a 100 [pounds sterling] pot gives you a chance of a 900 [pounds sterling] prize pool. It's up to you how much you gamble, and you can watch other people's strategies--which I like!"
Sean has never gambled beyond his means. "I've always viewed it as a bit of fun, and I'd view a 20 [pounds sterling] bet as a big gamble! But I have seen many people get hooked by gambling at dog tracks and in betting shops," he says. "I guess that's put me off getting hooked more than anything."
Posted by kimgilmour at May 6, 2004 09:40 AM