FRIDAY IN FOCUS
Internet gambling providers are on a roll
01-09-2000
by Emmet Cole
It is one of the Internet's largest and fastest-growing industries with revenues expected to top the USD 3 billion mark by 2002, but some customers have been discovering the downside of on-line wagering.
It's a case of buyers beware. The number of allegations of credit card fraud and unpaid winnings being made against on-line providers is rising and parents are getting concerned about their children illegally gaining access to Internet wagering.
With a growing number of complaints being filed against gambling providers, such as that of a Florida man who had to take an on-line lottery company to court to receive his winnings last month, the on-line gambling industry has an image problem.
Even old allies are crumbling. In 1999, the Australian Government was one of only a handful to publicly embrace on-line gaming and allow gambling providers to operate in their jurisdiction. But now they are enduring a crisis of conscience over the issue. Netbets, the report from the Australian Senate Inquiry into on-line gambling, raises serious concerns about criminality and the long-term social and economic effects of online gambling. The Australian Government is now considering pulling the plug on the gambling providers completely.
The challenge facing governments trying to protect consumers from illegal gaming operations is the porous nature of the Internet's electronic frontiers. They are trying to legislate for an electronic region that doesn't feel restrained by traditional boundaries.
Globally, Internet legislation is in its infancy and some operators are taking advantage of the loopholes. However, you can reduce the odds on being taken for a ride by an unscrupulous gambling provider by doing some quick research.
Before you place a bet on-line, browse the providers' FAQ pages and find out how much information they volunteer about their identity, their payment processes and their gaming policies. The safest bet is to stick to gambling providers that have an established offline presence. These companies have the experience and expertise to ensure that your gambling experience is a satisfactory one.
The Interactive Gaming Council (IGC) is an umbrella organization that represents some of biggest and best-known gambling providers. Their Code of Conduct guarantees that IGC members will make their systems, algorithms and practices available to government bodies in cases where disputes arise. It also promises that all IGC members will make detailed transaction records available in the event of contested transactions. This is the kind of transparency you should look for before making the virtual roulette wheels spin.
What about the moral issues? In the US, support for comprehensive legislation is growing. Hardly surprising, given that The National Gambling Impact Study Commission estimates that 20 million adult Americans are problem gamblers or hover on the brink, two percent of these gambling regularly on-line in their own homes.
Kevin O'Neill, a former Chair of the National Council on Problem Gambling's Internet Committee, based in New Jersey, told me that 'providers could protect problem gamblers by initiating cooling-off periods and a regulated system of loss limits, but they have been slow to address these issues.' Try this 'advice' for video poker players in the Tips section of one casino website as an example of how low industry standards can go: "At first, bet big... Because they are virtual machines, they haven't adjusted to their normal percentages yet. Your chances of winning immediately are high."
It must be like taking sweets from a baby for now, but rogue gambling providers worldwide are starting to come under close scrutiny from governmental agencies and reputable providers are starting to develop standards for their industry. The days of the rogue operation are definitely numbered, but until the industry has stabilised, sensible customers will maintain a high level of scepticism towards providers that reveal the least about their identity or processes.
Using the subject line to get noticed: Denise Cox argues that to get results you have to make every word work in a subject line.
