Internet GamblingInternet GamblingInternet GamblingInternet GamblingJared RichardsonJared Richardson

MIS MWF 1pmMIS MWF 1pmJabyrekXX@hotmail.comJabyrekXX@hotmail.com

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Table of ContentsTable of ContentsTable of ContentsTable of Contents

The GameThe Game Slide 04Slide 04

How The Game Got StartedHow The Game Got Started Slide 05Slide 05

Estimated Internet GamblingEstimated Internet Gambling Slide 07Slide 07

The Growth MarketsThe Growth Markets Slide 08Slide 08

Games Available OnlineGames Available Online Slide 09Slide 09

Types of Online Gambling SitesTypes of Online Gambling Sites Slide 10Slide 10

Internet GamblingInternet Gambling Slide 11Slide 11

How the Game Gets PlayedHow the Game Gets Played Slide 12Slide 12

The Games Uses Innovative TechThe Games Uses Innovative Tech Slide 13Slide 13

The Risk Associated..The Risk Associated.. Slide 15Slide 15

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Table of ContentsTable of ContentsTable of ContentsTable of Contents

Who Deals the Cards ?Who Deals the Cards ? Slide 16Slide 16

Threats to the GameThreats to the Game Slide 17Slide 17

The Games Possible FutureThe Games Possible Future Slide 18Slide 18

BibliographyBibliography Slide 19Slide 19

Americans…Americans…

The Computer Age ….The Computer Age ….

The Internet ...The Internet ...

have long toiled over the entertainment value of gambling vs. the social

implications that accompany.

have long toiled over the entertainment value of gambling vs. the social

implications that accompany.

has brought gambling literally at the fingertips of millions without leaving their

homes.

has brought gambling literally at the fingertips of millions without leaving their

homes.

allows millions to place wagers on their sports teams, favorite card game, or sit at a virtual

casino table and play a game of craps.

allows millions to place wagers on their sports teams, favorite card game, or sit at a virtual

casino table and play a game of craps.

THE GAMETHE GAME

Source: Nick Feldman “Internet Gambling” 2001 http://gsulaw.gsu.edu/lawand/papers/su01/feldman

Source: Nick Feldman “Internet Gambling” 2001 http://gsulaw.gsu.edu/lawand/papers/su01/feldman

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How The Game Got StartedHow The Game Got StartedHow The Game Got StartedHow The Game Got Started

• As the internet emerged as a median for As the internet emerged as a median for communication, information exchange, and communication, information exchange, and ecommerce, businesses sought new ways to ecommerce, businesses sought new ways to make profits and capitalize on this fast make profits and capitalize on this fast evolving market. evolving market.

• In 1997, the year considered the internet In 1997, the year considered the internet boom, online revenues exceeded 1 billion. boom, online revenues exceeded 1 billion. Five years later in 2002, internet revenues Five years later in 2002, internet revenues exceeded 300 billionexceeded 300 billion

• Therefore it was only a matter of time before Therefore it was only a matter of time before gambling agencies tapped into this market gambling agencies tapped into this market and created an online gambling agency.and created an online gambling agency.Source: Nick Feldman “Internet

Gambling”

Source: Nick Feldman “Internet Gambling”

HISTORYHISTORY

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How The Game Got StartedHow The Game Got StartedHow The Game Got StartedHow The Game Got Started

• Interactive Casino (ICI) was the first online Interactive Casino (ICI) was the first online casino. In 1995 this site provided 18 casino casino. In 1995 this site provided 18 casino games, online access to the National Indian games, online access to the National Indian Lottery, and an internet sports book.Lottery, and an internet sports book.

• Henceforth, Online Gambling has become a Henceforth, Online Gambling has become a multi-billion industry. By 1999 there were over multi-billion industry. By 1999 there were over 250 online casino internet sites and 139 online 250 online casino internet sites and 139 online sports books.sports books.

• In 2002 internet gambling represented 1.5 % of In 2002 internet gambling represented 1.5 % of the total gambling market and generated the total gambling market and generated revenues exceeding 3.3 billionrevenues exceeding 3.3 billion

• In 2004 online gambling exceed total revenues In 2004 online gambling exceed total revenues at 10 billion, and over 2000 gambling sites. Up at 10 billion, and over 2000 gambling sites. Up 40 % from 2004. 40 % from 2004.

HISTORYHISTORY

Source: Nick Feldman “Internet Gambling”

Source: Nick Feldman “Internet Gambling”

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Estimated Actual Internet Gambling Expenditures 1999-2003Estimated Actual Internet Gambling Expenditures 1999-2003(in millions U.S.D.)(in millions U.S.D.)Estimated Actual Internet Gambling Expenditures 1999-2003Estimated Actual Internet Gambling Expenditures 1999-2003(in millions U.S.D.)(in millions U.S.D.)

Graphically Depicting The Game Graphically Depicting The Game

$1,167.0

$2,207.5

$3,119.0

$4,546.6

$6,346.3

$-

$1,000.0

$2,000.0

$3,000.0

$4,000.0

$5,000.0

$6,000.0

$7,000.0

1999 2000 2001 2002 2003

Source: Christiansen Capital Advisors, LLC “Internet Gambling” 2004 http://www.cca-i.com

Source: Christiansen Capital Advisors, LLC “Internet Gambling” 2004 http://www.cca-i.com

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The Growth MarketsThe Growth MarketsThe Growth MarketsThe Growth Markets

Graphically Depicting The Game Graphically Depicting The Game

19%

26%

53%

43%

56%

0%

10%

20%

30%

40%

50%

60%

UnitedStates

WesternEurope

Non-JapanAsia

Japan LatinAmerica

Estimated Internet Usage Growth RateBy Region, 1997 - 2004

Source: Christiansen Capital Advisors, LLC

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Games Available OnlineGames Available OnlineGames Available OnlineGames Available Online

• PokerPoker

• BlackjackBlackjack

• CrapsCraps

• SlotsSlots

• KenoKeno

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Types of Online Gambling SitesTypes of Online Gambling SitesTypes of Online Gambling SitesTypes of Online Gambling Sites

Graphically Depicting The Game Graphically Depicting The Game

Single player casino games

56.4%

Fixed odds sports betting30.7%

Bingo0.9% Market betting

0.9%

Poker rooms0.6%Pari-mutuel

1.3%

Index/spredad betting0.9%

Multi-player casino games6.4%

Lottery draw2.0%

Source: Christiansen Capital Advisors, LLC

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Internet Gambling – 2000Internet Gambling – 2000 Total Consumer Expenditures $2.2 Billion (U.S.D.)Total Consumer Expenditures $2.2 Billion (U.S.D.)

Internet Gambling – 2000Internet Gambling – 2000 Total Consumer Expenditures $2.2 Billion (U.S.D.)Total Consumer Expenditures $2.2 Billion (U.S.D.)

Graphically Depicting The Game Graphically Depicting The Game

Casino Games

40%

Sports Betting

45%

Lotteries

10%

All other

5%

Source: Christiansen Capital Advisors, LLC

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How The Game Gets PlayedHow The Game Gets Played How The Game Gets PlayedHow The Game Gets Played

• Gamblers provide their credit card, use pay pal Gamblers provide their credit card, use pay pal or western union to enter online games and or western union to enter online games and place bets.place bets.

• Online gambling sites receive bets, collect Online gambling sites receive bets, collect funds, and distribute winnings and loss.funds, and distribute winnings and loss.

• Online gambling sites use complex Online gambling sites use complex programming and innovated technology to programming and innovated technology to simulate card games, and provide an virtual simulate card games, and provide an virtual casino environment.casino environment.

• The gambler plays all games online, and if he The gambler plays all games online, and if he wins his account is credited, if he loses funds wins his account is credited, if he loses funds are automatically deducted from his credit card are automatically deducted from his credit card or pay pal account. or pay pal account. Playing The GamePlaying The Game

Source: Gambling. COM “Dollar Casinos” 2004 < http://www.gambling.com/best/dollar-casinos.htm >

Source: Gambling. COM “Dollar Casinos” 2004 < http://www.gambling.com/best/dollar-casinos.htm >

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The Game Uses Innovative TechnologyThe Game Uses Innovative TechnologyThe Game Uses Innovative TechnologyThe Game Uses Innovative Technology

Playing The GamePlaying The Game

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The Game Uses Innovative TechnologyThe Game Uses Innovative TechnologyThe Game Uses Innovative TechnologyThe Game Uses Innovative Technology

Playing The GamePlaying The Game

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The Risks Associated With The GameThe Risks Associated With The GameThe Risks Associated With The GameThe Risks Associated With The Game

• Online gamblers have no way to ensure the games Online gamblers have no way to ensure the games are operated fairly.are operated fairly.

• Gamblers are at the mercy of a computer that may Gamblers are at the mercy of a computer that may manipulate the game to ensure it wins.manipulate the game to ensure it wins.

• Gamblers cannot verify that dice, roulette, and cards Gamblers cannot verify that dice, roulette, and cards are rolled, spun, or dealt randomly.are rolled, spun, or dealt randomly.

• Online Sites does not prevent children access.Online Sites does not prevent children access.

• Online gambling sites are linked to the reason rise in Online gambling sites are linked to the reason rise in cases of gambling addictions. cases of gambling addictions.

• The operators of online gambling sites are offshore, The operators of online gambling sites are offshore, and are not regulated by U.S. federal laws.and are not regulated by U.S. federal laws.

Sounds To Good To Be True ?Sounds To Good To Be True ?

Source: AnteUp.Com “Playing It Safe” 2004 http://gamblinglinks.com/tips.html

Source: AnteUp.Com “Playing It Safe” 2004 http://gamblinglinks.com/tips.html

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Who Deals the Cards…The U.S. PositionWho Deals the Cards…The U.S. PositionWho Deals the Cards…The U.S. PositionWho Deals the Cards…The U.S. Position

• Online gambling is primarily regulated by the Online gambling is primarily regulated by the 1961 Interstate Wire line Act1961 Interstate Wire line Act

• This acts makes is illegal for anyone to offer This acts makes is illegal for anyone to offer or take bets over phone lines or through or take bets over phone lines or through other wired devices, unless otherwise other wired devices, unless otherwise authorized by a stateauthorized by a state

• Many politicians have attempted to pass bills Many politicians have attempted to pass bills directly related to online gambling but none directly related to online gambling but none have been successfulhave been successful

Possible ThreatsPossible Threats

Source: Steve Badger “Is Online Gambling Legal ? ” 2004 http://www.playwinningpoker.com/guide6.html Phone Interview: Attorney Alexander Martin

Source: Steve Badger “Is Online Gambling Legal ? ” 2004 http://www.playwinningpoker.com/guide6.html Phone Interview: Attorney Alexander Martin

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Threats To The GameThreats To The GameThreats To The GameThreats To The Game

• U.S. States: California, Louisiana, New York, and U.S. States: California, Louisiana, New York, and Virginia have filled law suits to challenge Virginia have filled law suits to challenge internet gambling.internet gambling.

• Nevada has made it illegal to place bets online, Nevada has made it illegal to place bets online, and prohibits accepting bets online.and prohibits accepting bets online.

• New legislation has entered congress seeking to New legislation has entered congress seeking to impose penalties to online operators of cyber impose penalties to online operators of cyber casinos, online gambling sites , and ISP. casinos, online gambling sites , and ISP. Penalties would include fines up to 2,500 an or Penalties would include fines up to 2,500 an or six months in prison.six months in prison.

• Senator James Leach has introduced a second Senator James Leach has introduced a second piece of legislation that inhibits Americans from piece of legislation that inhibits Americans from online gambling.online gambling.

Legal TroublesLegal Troubles

Source: Nick Feldman “Internet Gambling”

Source: Nick Feldman “Internet Gambling”

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The Game’s Possible FutureThe Game’s Possible FutureThe Game’s Possible FutureThe Game’s Possible Future

• Online Gambling goes mainstream in most major Online Gambling goes mainstream in most major markets. Total revenues are estimated to reach markets. Total revenues are estimated to reach 400 billion world-wide.400 billion world-wide.

• Consolidation among online sites, and Consolidation among online sites, and conglomerates form to better protect the industry conglomerates form to better protect the industry and increase revenues.and increase revenues.

• Online Gambling integrates into new media forms, Online Gambling integrates into new media forms, including interactive television, wireless hand-including interactive television, wireless hand-held games, and cell phones.held games, and cell phones.

• Gambling sites open new markets to include bets Gambling sites open new markets to include bets on foreign sports, television show plots, and on foreign sports, television show plots, and award show winners.award show winners.

THE POSSIBILITIESTHE POSSIBILITIES

Source: E Commerce Times “The Future of Online Gambling” 2005 http://www.ecommercetimes.com/story/31962.html

Source: E Commerce Times “The Future of Online Gambling” 2005 http://www.ecommercetimes.com/story/31962.html

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BibliographyBibliographyBibliographyBibliography

1. Nick Feldman “Internet Gambling” 2001 <http://gsulaw.gsu.edu/lawand/papers/su01/feldman >

2. Christiansen Capital Advisors, LLC “Internet Gambling” 2004 <http://www.cca-i.com>

3. Source: Gambling. COM “Dollar Casinos” 2004 < http://www.gambling.com/best/dollar-casinos.htm >

4. AnteUp.Com “Playing It Safe” 2004 http://gamblinglinks.com/tips.html

5. E Commerce Times “The Future of Online Gambling” 2005 http://www.ecommercetimes.com/story/31962.html

6. Phone Interview: Attorney Alexander Martin , District Attorney 22nd Circuit Court. 601-894-5040

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