Non-land Based Electronic Gambling - Research Paper Example

Non – Land Based Gambling Non – Land Based Electronic Gambling Electronic gambling has proved to be much more harmful than conventional gambling. Assuch, it is to be allowed, only under a stringent regulatory mechanism. This is due to the great harm that it causes to individual players and the security of the nation. The following discussion analyses the veracity of this statement. Cash transactions in the online environment are conducted electronically. This applies to online casinos, where the payments and deposits are performed through electronic means. Electronic cash transactions are usually completed through credit or debit cards. Thus, all the payments and deposits in the online environment transpire through credit cards, and they are as a result considered to be electronic money. Credit cards offer the simplest means of transporting money in the online setting (Advantages and Disadvantages of online Gambling). Electronic cash transactions are extremely hazardous, in gambling; because the player will not be in a position to assess the value of the money that is changing hands. In online gambling, the player should be very cautious and attentive; because, of the absence of physical money to check the balance available with him. Thus, it is very important to exercise caution, whilst making payments to online casinos through credit cards. Moreover, it is always preferable to utilize prepaid credit cards for online gambling purposes. The prepaid credit cards provide adequate control on the transfer of money to online casinos. The better designed online casinos attract users, by incorporating more realistic graphics and sound effects (Advantages and Disadvantages of online Gambling). The employment of credit cards in online casinos implies playing games with borrowed money. Since, there is no physical money or counters, available with the online gambler; such a person is likely to lose control over the amounts being put at stake. In fact, all that the player can see are the numbers that are displayed on the computer screen. The land based casinos display luxury in every aspect, and this is a notable omission, in the case of virtual casinos. Furthermore, the land based or real casinos entail the physical presence and movements of the players. An instance of this is actual travel to a conventional casino by the gambler. On the other, hand, in the online setting, the users are seated in front of their computer screen; and there is no other physical engagement (Advantages and Disadvantages of online Gambling). This absence of physical relocation causes a gambler to play for a much longer time, without coming to know about it. There has been a sudden spurt in Internet gambling, in the US. At present, there are a large number of online casinos that provide Internet gambling. These websites are perceived to pose a serious threat to the US economy. In the 1990s, the US economy had experienced unprecedented growth. This situation changed for the worse, in the 2000s, and the US has been experiencing an economic slowdown of epic proportions. A considerable amount of profit is made by the government from gambling revenues (Hammer, 2007). If Internet gambling is permitted, these revenues are likely to decrease. A number of States of the Union have legalized gambling, in order to generate additional revenue. Another sector that is threatened by online gambling is the credit card sector, where the safety of credit cards is under a serious threat (Hammer, 2007). Moreover, online gaming, like any other form of gambling adversely affects the family of the gambler. In additions, compulsive gamblers are more likely to commit crimes. Considerable litigation is likely to arise from the use of credit cards by those who gamble online. Such legal action by the Internet gamblers against the credit card companies could result in higher charges and fees to credit card holders, in order to make good the losses ensuing from the award of damages by the courts. This would have a significant effect on even the card holders who do not gamble online (Hammer, 2007). If the credit card companies were to succeed in their litigation against Internet gamblers, then the Internet gambling industry would gain credibility. This would attract a larger number of gamblers and ensure the accumulation of large gambling debts. Consequently, the credit card companies would be in no position to recover their dues, and would be compelled to charge much higher interest rates and fees (Hammer, 2007). This will result in an increase of gambling debts and interest rates. History of Non – Land Based Gambling The advent of the Internet was in the 1990s, and there has been a phenomenal growth in the number of online gambling sites, since that event. The US enacted legislation to prevent online gambling, in 1995. In August of that year, the first online gambling website was launched. At present, there are more than 2,500 websites that provide a variety of wagering options such as sports betting, casino games, lotteries and bingo. Internet gambling generated revenues to the tune of $6 billion, in the year 2008 from players in the US (American Gaming Association). Increased access to the Internet provided greater opportunities for businesses and other users. The number of homes and offices with Internet connections increased, and this provided easy access to Internet gambling. The number of websites that offer online gambling has increased rapidly; and this has proved to be very convenient for people who are interested in gambling from their homes and offices. The number of online gaming websites was 24 in the year 1995 (Wood, Williams, & Lawton 2007, 235). In 1995, the number of Internet gambling sites was insignificant. Thereafter, all the 50 States in the US, enacted legislation that prohibited unregulated online gambling activities, within their jurisdiction. Despite these measures, in 2002, more than $1.6 billion was placed in wagers; and there was scant regard for the legal prohibition of placing online wagers. The increased access to the Internet has served to increase the number of online gambling websites (Bachus, 2007). In August 1995, the world’s first online casino was launched on the Internet; and it offered 18 games. At the moment, there are nearly 2,185 websites, which offer innumerable gambling options. These websites offer casino games, sports betting, lottery, and bingo. The availability of Internet access, allows people to access these gambling sites from work. A number of studies have shown that frequent play leads to a variety of gambling problems (Internet Gambling, 2009). These websites, initially, lure people with offers of free play on their sites. Attracted by the lack of risk, people start playing free of cost and develop a false sense of winning, during these initial forays into online gambling. Subsequently, this activity transforms into serious gambling, in a real gambling environment that involves wagering with money (Internet Gambling, 2009). By the year 2006, the number of gambling websites increased to 2,500. Thus, there was a hundred fold, within the span of a decade. At present there are 1,082 online casinos, 592 sports and race books, 532 poker rooms, 224 online bingos, 49 skill game sites, 30 betting exchanges, 25 online lotteries, and 17 backgammon sites, for people who are interested in online gambling (Wood, Williams, & Lawton 2007, 235). Therefore, Internet gambling has spread throughout the world, and this has happened in a very short time. Definition of Gambling Online or Internet gambling, comprises of placing bets on sports type or casino type of games on the Internet (Online Gambling, 2009). The staking of money or thing that possesses material value on an event, whose outcome is uncertain; with the clear purpose of winning additional money or material, constitutes gambling (Gambling, 2002). In general, the result of a wager is realized quite quickly (Information. Rules. Gambling, 2009). Some examples of online gambling are betting on sports results, poker, lotteries and bingo (Gambling , 2009). Gambling is wagering of money on unpredictable outcomes. The primary intention in gambling is to earn additional money. In addition, the outcome of any wager is known in a short period of time. Stakeholders and Parties Involved A substantial number of the online gamblers are young people. It had also been observed that online gamblers were more likely to be unmarried. These gamblers lack proper education and come from lower income groups, in comparison to the non – Internet gamblers. In general, people from higher income families, have better access to the Internet. Moreover, it has always been assumed that users of the Internet are usually better educated than those who do not access the Internet (Partenheimer, 2002). Despite these generalities, it was found, to the astonishment of the research scholars that most of the Internet gamblers hailed from lower income groups and were less educated than the conventional gamblers. It was also found that people with a penchant for isolation and anonymity, were more likely to avail themselves of the facilities provided by Internet gambling (Partenheimer, 2002). Most of the online gamblers are less educated and belong to a lower stratum of society. The lack of education and paucity of funds, render them easy victims of online gambling. A number of studies have indicated that problem gamblers do not prefer Internet gambling. A problem gambler accesses an online gambling site, only when it is not possible to gamble in a land based casino or gambling den. Therefore, problem gamblers may access online gambling, if they cannot approach the more familiar places of vice. These sites can be accessed by anyone, including children. In addition, there are several websites that provide pornographic content. In this manner, children and the youth are exposed to a number of unethical and immoral activities. Moreover, virtual casinos have become ubiquitous in their presence, and they frequently flash across computer screens, connected to the Internet. Thus, the youth and children can gamble or access immoral content from their homes. To indulge in such tempting activity, it is sufficient to provide details of a credit card, and to have time on hand. In the US, nearly eighty percent of the college students possess credit cards. Furthermore, a third of the students have four or more credit cards (Bachus, 2007). The lack of maturity among children and the youth, results in serious harm to them. Advantages and Disadvantages of Online Gambling Online gambling is offered by some websites to the players. The latter do not have any knowledge about the operators of the websites, or their origin. Moreover, the credibility of these websites is not known to these gamblers. There is no guarantee regarding the payment of winnings, in the online environment. The money invested by the players may be used for criminal activities, such as terrorism. Furthermore, there are several other associated problems, like credit card frauds, identity theft or the transmission of malicious software code onto targeted computers (Internet Gambling, 2009). Since, the online gambler has no means of determining the credibility of the gambling website; he might unwittingly become a party or victim to fraud, terrorism and other crimes. The American Psychiatric Association had published the findings of new studies conducted, amongst the people who use the Internet for online gambling. According to the Psychology of Addictive Behaviors, which is the official journal of the American Psychiatric Association; people who are addicted to online gambling, suffer from several problems, in comparison to the people who use real time gambling facilities, such as slot machines or lotteries. It is also a fact that the proliferation of the Internet has tremendously increased the number of online gambling opportunities (Ladd & Petry, 2002, p. 76). The online gambling environment causes serious health and emotional disorders to this class of gamblers. Moreover, online gamblers are liable to develop addiction to drugs and intoxicating substances, during the course of their online gambling escapades. Many of these online gamblers have been seen to suffer from diseases of the cardio vascular system, mental depression, gastrointestinal distress, anxiety neurosis and impaired sexual function (Ladd & Petry, 2002, p. 76). Consequently, the online gambler stands to develop a multitude of health problems, on account of addiction to gambling. Thus, governments cannot initiate any legal action against these companies, because they are not located within their territory. This feature has helped many online gambling companies to come into existence. At the moment, the online gambling industry is registering multi – billion dollar turnovers. The players of these online gambling sites are adolescents and young people. Many nations have expressed their deep concern, regarding online gambling. In order, to protect their residents, these countries have attempted to ensure fair play, consumer protection, and the prevention of the increasing addiction to gambling (Internet Gambling, 2009). It is possible for people to preserve their anonymity whilst gambling on the Internet. The manner, in which people live in this world, has undergone a sea change, due to the Internet. This change is truly apparent, if a comparison is made with way in which people lived a couple of decades ago. Almost every aspect of human life has changed due to the Internet. In addition, businesses have also been influenced by the Internet; and gambling has emerged as one such business. It evolved in accordance with the new environment and achieved tremendous success. The transactions, in online gambling are of the order of billions of dollars; and new websites that offer gambling facilities are emerging with increasing frequency (Internet Gambling, 2009). It has spread like wildfire and has achieved the dubious distinction of being the most lucrative and successful online business in the world. Countries like the US, China, Russia, Greece, Portugal, Bermuda, Pakistan, Saudi Arabia, and Cambodia have enacted laws that prohibit online gambling in their territories. However, online gambling is legal in the UK, Gibraltar, Antigua and Barbuda, Malta, Netherlands Antilles, Panama, Isle of Man, Aldernay, and Kahnawake. In Finland, Austria, Norway, and some provinces of Canada, online gambling is legal only for their residents. Online gambling is legal only for nonresidents, in Australia and Papua New Guinea (Internet Gambling, 2009). This wide variance in the laws of the different countries makes it very difficult to supervise online gambling. In October 2006, the US enacted the Unlawful Internet Gambling Enforcement Act; which prohibits Internet gambling. The banks have been barred from conducting or processing transactions, involving Internet gambling sites. The Chairman of the House of Representatives Financial Services Committee has opposed the Unlawful Internet Gambling Enforcement Act, tooth and nail. He proposed the Internet Gambling Regulation, Consumer Protection, and Enforcement Act of 2009. This bill if enacted would permit online gambling website operators to operate legally in the US (Internet Gambling, 2009). It was his contention that gambling is a form of social entertainment that every individual is entitled to indulge in. It is the opinion of a large number of gamblers that Internet gambling is much safer than the traditional methods of gambling. However, there are certain negative issues, associated with online gambling. For instance, Internet gambling is available throughout the day and people can gamble round the clock from their homes (Gambling and Internet). Children and young people are more likely to become its addicts. In course of gambling, people could fail to keep track of their time and money in the online environment. The websites that offer online gambling are operated by unidentified persons or entities. Online gamblers are compelled to furnish their personal information to these entities, in order to make payments or receive their winnings. This places gamblers at risk of identity theft and credit card fraud. The gaming rooms engendered by online casinos are designed to circumvent the application of US law, and this is turn deprives the gambler of the protections, provided by US law (Should Online Gambling Be Banned). Online gambling websites collect billions of dollars from the US, and some of these companies have been known to engage in criminal activities. Some of the Internet gambling sites are a tangible threat to individuals, as well as the national security of the US. The threat posed by some of these websites, include the diversion of funds to procured weapons and fund criminal activities (Should Online Gambling Be Banned). Moreover, some criminal groups employ some of these websites for money laundering purposes. This constitutes one of the greatest threats faced by the nation, on account of online gambling. Internet gambling, despite being illegal, has shown extraordinary growth. It has been responsible for a number of illegal activities. From the US alone, these websites siphon off nearly six billion dollars a year. The US imposes stringent regulations, with regard to gambling; and these rules prohibit minors and problem gamblers from gambling. These measures ensure the integrity of games and sports (Should Online Gambling Be Banned). However, Internet gambling circumvents, these rules, by setting up business outside the US. Online gambling casinos have wrought tremendous change to conventional gambling practices. They offer better returns and options to the players. They are in a position to make these offers, because they need not spend huge amounts on constructing hotels, swimming pools and stage shows, like the traditional gambling casinos. Consequently, a greater share is diverted to the gamblers. Land based casinos have to spend large amount of money, in order to attract patrons; thereby, having to allocate substantial amounts towards entertainment (Online Gambling advantages). The hosting and maintenance of an online gambling website, entails considerable expenditure. Expenditure has to be incurred, so as to develop visually attractive gambling websites. Furthermore, substantial fees have to be paid to the professionals, maintaining the website. In addition, expensive security protocols have to be incorporated, in order to safeguard the private information of the gamblers (Online Gambling advantages). Conclusion The expansion of the Internet has provided new opportunities to the gambling industry. This activity has grown into a multibillion dollar business, and it is spread over the world. It is a truism that in the absence of the Internet, the gambling industry would not have grown to these gigantic proportions. It is now possible for a person to gamble from the comfort of his home, if he has an Internet connection. The proliferation of the Internet and the presence of sophisticated communication technology have made this possible. The exchange of money or something of value for unpredictable and uncertain results is called gambling. Thus, the money spent on gambling may or may not provide anything in return to the gambler, whose initial intention is to make easy money or to obtain goods. Online gambling is also a type of gambling that involves betting on games. It takes place on the Internet; and online gambling involves the placing of bets on sports like games and casino. There are a number of websites that offer a plethora of games, sports or casino. Some examples of the fare offered to the avid online gambler are roulette, poker, slots, lotteries, bingo and keno. Internet gambling entails the use of credit or debit cards, which makes it difficult for the player to assess the value of the money being wagered. Moreover, the player can continue to play for 24 hours a day. In addition, there is no age restriction, for gambling online. Consequently, any person, irrespective of age, can become a member of a gambling site and wager money. The danger of ending up in bankruptcy and resorting to crime is a real possibility in this mode of gambling. There are a large number of websites that provide online gambling facilities. People can now gamble from the place of their choice by opening an account with the online gambling providers. These sites provide a variety of gambling activities ranging from traditional betting to casino gambling. Moreover, there are other wagering activities, such as bingo, lotteries and sports betting. The advance of technology has brought gambling to interactive television and mobile phones. American society is facing the risk of Internet gambling. Compulsive gambling is a form of addiction. It is a serious psychological symptom that invariably leads to financial, physical and psychological loss to the compulsive gamblers. Problem gamblers are at the risk of losing their jobs, irretrievably harming their marriage and even attempting suicide. Internet gambling enhances the gravity of addictive gambling and has emerged as a major problem. Many nations have made Internet gambling illegal. Despite these prohibitory laws, Internet gambling is on the increase. The national legislations do not apply to the companies that offer Internet gambling. This is on account of the fact that these companies are situated, in places that fall outside the jurisdiction of the nation, in which those laws had been enacted. On the basis of the foregoing discussion, it can be surmised that online gambling poses a serious threat to the well being of the player, as well as the security of the nation. In the interests of the populace and the nation, it would be advisable to control online gambling. List of References Advantages and Disadvantages of online Gambling. (n.d.). Retrieved November 16, 2009, from http://www.onlinecasinos.gr/onlinecasinosplayerquide/casinosupsanddowns/index_en.html. American Gaming Association. (n.d.). Internet Gambling. Retrieved November 17, 2009, from http://www.americangaming.org/Industry/factsheets/issues_detail.cfv?id=17. Bachus, S. (2007). Internet Gambling Should Be Banned to Protect Children. Retrieved November 15, 2009, from Opposing Viewpoints Resource Center, Gale: http://find.galegroup.com/ovrc/infomark.do?&contentSet=GSRC&type=retrieve&tabID=T010&prodId=OVRC&docId=EJ3010221236&source=gale&srcprod=OVRC&userGroupName=cec&version=1.0. Gambling . (2009). Retrieved November 15, 2009, from The Hutchison Unabridged Encyclopedia : http://www.credoreference.com/entry/heliconhe/gambling. Gambling. (2002). Retrieved November 15, 2009, from World of Criminal Justice, Gale: http://www.credoreference.com/entry/worldcrims/gambling. Gambling and Internet. (n.d.). Retrieved November 17, 2009, from http://www.ccpg.org/audiences/internet.html. Hammer, R. D. (2007). Internet Gambling Should Be Curbed to Protect the Economy. Retrieved November 15, 2009, from Opposing Viewpoints Resource Center. Gale: http://find.galegroup.com/ovrc/infomark.do?&contentSet=GSRC&type=retrieve&tabID=T010&prodId=OVRC&docId=EJ3010221237&source=gale&srcprod=OVRC&userGroupName=cec&version=1.0. Information. Rules. Gambling. (2009). Retrieved November 17, 2009, from State Commission on Gambling: http://www.dkh.minfin.bg/inner.php?cat=180. Internet Gambling. (2009, June). Retrieved November 17, 2009, from http://www.nsgamingfoundation.org/publications/dialogue/Internet%20Gambling%202009.pdf. Ladd, G. T., & Petry, N. M. (2002, March 17). Disordered Gambling Among University-Based Medical and Dental Patients: A Focus on Internet Gambling. Psychology of Addictive Behaviors , 16(1), 76 – 79. Online Gambling. (2009). Retrieved November 15, 2009, from bitpipe: http://www.bitpipe.com/tlist/Online-Gambling.html. Online Gambling advantages. (n.d.). Retrieved November 14, 2009, from http://www.bestodds.info/. Partenheimer, D. (2002, March 17). Internet gamblers may be more likely to have a serious gambling problem than other gamblers, study finds. Retrieved November 15, 2009, from APA Online: http://www.apa.org/releases/gamblingonline.html. Should Online Gambling Be Banned. (n.d.). Retrieved November 17, 2009, from http://www.gamingnews.poker.tj/gaming-i-should-online-gambling-poker.html Wood, R. T., Williams, R. J., & Lawton, P. K. (2007). Why do Internet gamblers prefer online versus land-based venues? Some preliminary findings and implications. Journal of Gambling Issues ,(20), 235 – 252 . Read More