Ultimate Guide To Online Gambling: What The Experts Say?

To give you a good example. Canada has banned internet gambling at federal level but allow the provinces to offer their own games. In turn, most provinces (Alberta and Saskatchewan excluded) offer some sort of online gambling portal. The problem is that the provinces aren’t allowed to offer online casinos licenses since they can’t compete with companies who have the monopoly. The market share for the provincially-operated games in a place like British Columbia is as high as 25 percent.

The only type of online gambling the federal government in Canada bans is sports betting. This really came to a head when the Canadian Gaming Association (CGA) completely ripped their legislature a new one because of all of the illegal bets that were made on the Super Bowl. In short, the governments could have profited from it without this ludicrous rule.

Otto: ”Can you explain to us in detail how the wagering requirement attached to a sign up bonus is calculated?”

Jesse Eddleman: If you look at the payout rates of the various games from a wider lens, slots machines have a higher house advantage than table games. Any player can find the perfect strategy to play blackjack and video poker. If you are a skilled player with the correct strategy, you can win a substantial amount just by playing these games because the house edge is less than one percent. Some blackjack and video poker games’ house edge is lower than one-quarter of a percent.

I can understand why operators offer bonuses that favor slots players instead of table players. This extends to both the size of the bonus offers and the level of the play-through requirements. The reason why the casinos impose a play-through requirement is to protect them from players abusing their bonuses. If you have a 100 percent match on a $75 deposit with a 20x play-through requirement that’s on the deposit and bonus, then your total requirement would be 20 * $150 = $3,000. Before you can cash out your winnings you must turn over a total of $3,000. This rule only applies if you played slots machines since they have a weighting of 100%.

Once you’ve completed the play-through some bonuses can be cashed out along with your winnings. These are called cashable deals. They are more advantageous over non-cashable bonuses since they turn into cash once the bonus wagering is completed. When you withdraw your winnings non-cashable deals are deducted from your account.

Otto:” Would you say that the current internet poker market in the U.S is ”player-friendly?”

Jesse: No, it’s not. U.S-based players thinking of playing professional poker will find it difficult to earn a living; there aren’t that many large sites with decent player bases at the moment. As it is, the sites that do offer poker only have 500 to 5,000 players online at any given time. Loyal players aren’t offered many incentives (rakeback) and multi-tabling selection is limited. To compound matters further, the rake is significantly higher at microstakes games.

When it comes to regulation, states like New Jersey, Delaware and Nevada are the only U.S states that regulated poker over the Internet. If poker has a remote chance, Delaware and Nevada must come to some form of agreement and pool their respective resources. Even though poker is legalised in these states, they have small populations if compared to California (38 million residents). Until more states regulate it on a large scale, the future of online poker is getting dire by the day.

8. André Wilsenach, Executive Director of the Alderney Gambling Control Commission (AGCC): Mr Wilsenach is a member of the Steering Committee of the International Association of Gaming Regulators and a member of the International Masters of Gaming Law.

Otto: ”Can you tell us why Alderney is such a popular destination for licensed online casinos?”

Andre: As a jurisdiction for licensed egambling operators Alderney is popular for various reasons. It’s one of the largest hubs for B2B services and currently transmits high volumes of internet eGambling traffic.

Why Alderney Is A Popular Jurisdiction

• It’s part of a group of islands called the Bailiwick of Guernsey the largest island in the Bailiwick. It’s unfrastruscture supports a bustling financial market further augmented by secure telecoms links which gives it an edge over its competitors.
• Businesses regulated by the AGCC can operate from Guernsey or Alderney. In turn they benefit from a common tax regime of zero corporation tax, low property taxes, no VAT, no capital gains tax etc.
• It’s has a highly skilled workforce making it an attractive place to live and work and has a solid reputation in the international eGambling community.
• The AGCC’s main objective is to create a highly-reputable regulatory environment that meets world-class standards laying the foundation for world-class operators to operate from. At this point in time there are 2000 licensed operators owned by 350 businesses operating in regulated any meaningful way.

The AGCC positioned itself to attract a relatively small number of operators who seek a comprehensive and favourable climate to operate in. In the longer term, the quality companies are likely to dominate the world-wide internet gambling business.

Otto: ”Money laundering is a problem in our industry. How does the AGCC clamp down on it?”

Andre: The AGCC’s takes its lead from the Financial Action Task Force (FATF) which operates within the ambit of global standards. As such it identifies businesses where the risks of money laundering and terrorist financing could pose a problem. Licensed operators agree that all aspects of their operations relating to AML/CFT controls will be scrutinized and regular on-site inspections will be undertaken by the AGCC.

‘‘Money laundering and terrorism financing are serious international issues and it is important that such criminal activities are identified and prevented by all available means. Unfortunately, it has been identified that the gaming industry – including online gaming – may be a vehicle for those who wish to commit crime, conceal the profits of their crime or fund terrorist activity. The online gaming industry therefore has a duty to work to detect and prevent money laundering and the financing of terrorism wherever possible.”

The Effects Of Money Laundering On The iGaming Industry

• The fight against money laundering and the financing of terrorism affects all parties involved. Licensees must comply with the various laws, ordinances and regulations that have been adopted in the fight against money laundering and the financing of terrorism.
• Prospective e-gambling operators must be aware that the registration process is an arduous process before a license is awarded. Operators will be requested to provide additional information about themselves. Key areas that deal specifically with the wider banking and financial services sector.
• Regrettably, the nature of the eGambling industry is that it poses a great risks by virtue of the amount of money involved, the speed of transactions and the levels of turnover. This weakness is identified by the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (Moneyval).
• A further risk of the sector is that transactions are not face to face. However, one of its strengths is that the audit trail left by eGambling transactions are relatively easy to follow and to investigate.

9. Heather Gartland is joint-owner of the TopbossGroup.com: She was the senior credit manager for a reputable bank in South Africa for many years before she joined the online gambling industry.

Otto: ”Has the industry changed a lot during the past decade and would you say it is transparent from a player and affiliate point of view?

Heather: Our industry has seen a lot of changes but the core principles still remain the same. When we first started out 15 years ago there were only a handful of online casinos powered by the likes of Microgaming, RTG and Playtech. The competition wasn’t as fierce as it is today, it was pretty easy to rank your site and to start making money. Google’s guidelines were clear-cut. If you abide by its rules you could get your pages onto the first page relatively quickly.

With Google’s Panda and Penguin the SEO landscape changed forever. Today it’s extremely difficult to stay ahead since you got extreme competition on the one hand and Google on the other. However, I do believe Google has made it easier for the smaller webmaster to compete providing you consistently add decent content.

I’d say that the industry is better regulated from a player point of view than it was five years ago. The casinos offer more games and exclusive offers. Casino affiliates are worse off because competition is very high. We’re not only competing against each other but against Google which is on the warpath against thin affiliate sites with spammy content-to compound matters further negative SEO is a reality too. On a scale of 1 to 10 I’d give it a 4. Player and affiliate shaving is still rife among many of the casinos since the operators only let us see a watered-down version of their stats.

Otto: ”What’s your take on the South African market at the moment?”

”We have been waiting for online gambling in South Africa to be legalized for years and each time a new bill gets to Parliament it has to go back to the drawing board for one reason or another. Currently we believe there is a further bill being presented to parliament, early 2015 , but the Anti-Gambling lobbyists are making a lot of noise, as they always do when there is a bill on the table.”

Heather: The sooner the South African government regulates internet gambling the better. If it’s not regulated within the foreseeable future South Africa will remain in the dark ages. My initial research indicates that the pros far outweigh the cons. The Government can do with additional revenue since unemployment is at an all-time high in SA.

10. Kristy Arnett, professional poker player: She grew up in Kalamazoo, Michigan, she started playing poker in college and loved the competitive aspect of it. 

Otto: ”What’s the difference between male and female poker players and what advice would you give to new players?”

Kristy: If one takes the numbers into account I’d say that poker as a game is still pretty much dominated by men but more and more woman are taking a liking to it. There’s no discernible difference between male and female poker players in terms of their cognitive abilities. Both sexes face the same obstacles.

In my experience a woman gets “hit on” more often than a man does at a table. As a female player if you’re not on top of your game this can be distracting. To be a successful poker player you must have the right temperament, sound poker knowledge, experience, discipline and commitment.

If you’re new to the game, play against poker players who are better than you which mirror your strengths and weaknesses. One of the main reasons why most poker players fail is because they have an ego. To be a good player you must look at what’s not working instead of justifying poor play. The most successful players analyze their game such as their strength and weakness and work tirelessly to improve.

Otto:”Which celebrities are your role models and what’s the lasting impression they made upon you?”

Kristy: I have to go with Daniel Negreanu. He knew who I was since he read the articles I wrote at Card Player. I was a bit star struck and could barely utter a word when I met him the first time. He’s one of the most sincere, friendly, genuine and encouraging human beings I’ve ever met and has always supported me throughout my career.

Daniel is not one to mince his words since he stands up for what he believes, outspoken and very considerate towards others. He’s also a great humanitarian who’s raised $350,000 for St. Jude Children’s Research Hospital. This is the kind of person I want to be. Another person whom I admire is Andrew “Balugawhale” Seidman. Not only is he my poker mentor but completely transformed my game. It all starts with: ”Why? Why are you betting? Why did you fold?”

11. Dr Rachel Volberg, Principal Investigator SEIGMA (Social and Economic Impacts of Gambling Massachusetts): Dr. Volberg is the first investigator to receive funding from the (U.S.) National Institutes of Health to study the prevalence of problem gambling. Since 1985 she has been involved in epidemiological research on gambling.

Otto: ”What’s the socio-economic impact of gambling on society as a whole?”

Dr Volberg: It’s challenging to describe the impact of gambling on society as a whole since it depends on various factors such as the type of gambling, the environment into which it is introduced and when it occurs. Impacts depend on whether patrons are local or from outside a region and on the strength of policies to mitigate negative effects. Also, the social and economic impacts of gambling tends to change over time.

Dr Rob Williams wrote an interesting piece that summarizes the social and economic impacts of gambling. In it he highlights key impacts such as increases in government revenue, public services, regulatory costs, infrastructure value and infrastructure costs, and problem gambling and its related indices. The way I see it is that the impact gambling has is not as bad as opponents argue. From a research perspective few governments keep track of the negative aspects of it so that harms can be minimized and mitigated. This is exactly what we’re doing in Massachusetts at the moment.

Otto: ”As an expert in your field how would you curtail the effect of problem gambling?”

Dr Volberg: Let me be clear that it’s not the responsibility of the casinos or other gambling operators to minimize and mitigate the effects off problem gambling or to prevent underage gambling. It’s up to policymakers, regulators, operators, health care professionals, gamblers and their families to come up with a lasting solution to curb it.

What are the proper mechanisms? It includes a holistic approach that encompasses education and prevention directed at non-gamblers and those who do relatively little gambling. Extensive research must be carried out on gamblers who experienced harm all the way through to the provision of counseling and other helping services.

It’s best not to ”pigeonhole” problem gambling on a numerical scale since it affects individuals differently based on their circumstances. Based on a comprehensive study of problem gambling; the highest rates occur in Asia while the lowest rates are found in European countries of Denmark, the Netherlands and Germany. One cannot say for certain as to why Asian countries have higher rates of problem gambling than Western countries. It could be ascribed to the fact that attitudes toward luck and fate play a pivotal role.

12. Dr Lia Nower, Director of Gambling Studies, Rutgers University: Her research focuses on the psychometric measurement, the etiology and treatment of behavioral conditions and gambling-related policy issues.

Otto: ”Over the last decade gambling at land-based casino and online has taken a moral seismic shift. In your expert opinion what has changed and what encourages people to gamble?”

Professor Nower: It’s difficult to pin-point with accuracy in which country gambling is growing the fastest because some countries are in the process of regulating it while others have just ventured into this market. The way I see it:

”Gambling has the same appeal as a romantic relationship with an emotionally unavailable partner: A few intermittent wins followed by long periods where you’re pushing buttons and not getting a response. All the while you’re waiting for the big payout and the longer you wait, the more invested you become.”

The difference between gambling and relationships is that it’s dependent on randomness; patterns and prior experience is irrelvant. Successful treatment involves helping gamblers understand that the uncontrollable is entirely dependent on chance. One must help them to understand the underlying issues that make it so important for them to feel like a “winner” by replacing the ”winning feeling” with something more productive.

Otto: ”In the United States where do you see internet gambling ten years from now?”

Professor Nower: The major markets ten years from now will be electronic. I won’t be surprised if the majority of states would follow the example of New Jersey, Delaware and Nevada by building a “Powerball”-type system for Internet gambling. How would they go about it?

A state like California could team up with New Jersey to use its current infrastructure at a relatively cheap rate. New Jersey will receive a percentage of the revenue of player losses and California would avoid most of the start-up costs and regulatory nightmare setting up new technology. Fantasy sports dailies transformed seasonal sports into a hybrid form of gambling, assuming New Jersey manages to offer internet sports betting. Other variants of gambling and social games makes a lot of money. However, all these forms of gambling is still pretty much a grey area.

13. Victor Royer also known as ”Vegas Vic”: He is a professional writer and gambler from Las Vegas, Nevada that’s semi-retired. He has written numerous articles and 42 books on gambling.

Otto: ”Do you believe that the ”House Always Wins” and that certain games carry a higher house edge than others?”

Vegas Vic: It’s an old saying that the ”house always wins” but it’s not always the case. Believe it or not that 90% of all the people who come to a casino actually win. If you insert $100 into a slots machine, you win $20 and cash out your $120, the return on your money is 20%. Had this been the stock market every Tom, Dick and Sally would be buying shares like it’s going out of fashion.

In the casino this value is deemed relative. The $20 you’ve just won is not seen as a 20% return on your money. You could say it’s just a drop in the ocean. The reason why people visit casinos is to enjoy themselves and hopefully win some cash along the way. This is why a $20 win isn’t really considered a “win” per se. As it is the “profit” goes straight right back to the casino be it on the table games, to the Bar or the Show. At the end of the day less than 1% of all casino players actually win. Why?

Two Reasons:

• They never go home with the cash they’ve won. They have fun and won’t stop until all the money is lost. They go home to fetch more money, gamble again, lose it all again and only then they’ll go home. Strictly speaking they are your recreational gamblers who only gamble to have fun.
• Two, every casino game aside from live poker has a high house percentage. What does it mean? The mathematics of the game always favors the house be it in the short or long term. Therefore, if a player wins a lot and calls it quits, the mathematics of the game makes provision for it. Long story short “the house always wins” is true but it’s relatively speaking of course.

Otto: ”What’s the biggest mistake gamblers make and what advice would you give to them?”

Vegas Vic: The biggest mistake gamblers normally make is going to the casino ”blind”. In other words they play the casinos’ games without the necessary knowledge, skills or understanding how the payout ratios work. When I started playing Blackjack and Poker 45 years ago, there were only two books on these games. I educated myself on the game rules, strategy, payout percentages, terminology, bankroll management etc. If you want to be a successful gambler you must do it by trial and error.

14. Keith Furlong, CEO Interactive Gaming Council (IGC): The IGC is a leading trade association formed in 1996. It ensures that its members (e-casinos) operate within the organization’s guidelines.

Otto: ”When the IGC first started out in 1996 what were the biggest challenges it faced?”

Keith: The IGC faced many tough challenges over the years and it aims to create an environment where operators can operate unencumbered. What sets us apart from similar organizations is that we are credible and provide certain benefits to our members. We’ve build up a solid reputation in the U.S, Australia, New Zealand, Europe and especially the United Kingdom. In 2005, the IGC played a pivotal role in the regulation of online gambling in the UK.

The Role Of The IGC

• It aims to create an environment that promotes safe and fair regulation of online gaming in the United States. It focuses on an open and regulated model throughout the world by providing industry experience and cooperation to all governments that wants to regulate it.
• Canada is one of the countries that’s busy regulating it this is why the IGC is spending a lot of time and resources in an effort to speed up the process. The crux of the matter is that Canadians are gambling online. H2 Gambling Capital did a research on the Canadian online gambling market in 2013 and stated that it’s worth $870 million. This includes sports betting, casino, poker and bingo. Governments must realise that it’s not going to go away, it’s just getting bigger and more popular.

Otto: eGaming is often described as the ”Wild West”. Do you believe the industry is properly regulated, if not which mechanisms do you propose to do so?

Keith: When jurisdictions or governments deal with Internet gaming, they have three options at their disposal: (1) take no action; (2) curtail it or (3) regulate it. By taking no action gamblers are left at the mercy of the operator plus they become vulnerable to fraud and identity theft. Not to mention other issues such as underage and problem gambling.

This causes money to flow out which could have been used to create jobs, contribute towards developmental projects, community upliftment and so forth. Prohibition is technologically difficult, and has proven ineffective in the United States and other free societies. Regulation accepts the reality of Internet gaming and addresses the problems created by it. Regulation has always been at the heart of the IGC’s efforts.

”The IGC continues to emphasize that perceived problems of underage and problem gambling can best be resolved through a combination of up-to-date technology, proper internal controls and regulatory oversight.”

Another feather in the cap of computer technology is that it can identify patterns of behavior. If a problem arises the program can step in a timely manner. Once again I’d like to circle back to regulation. If governments wants to protect the public, especially children and compulsive gamblers they must regulate it.

15. Professor Joseph M. Kelly, Buffalo State University: He is co-editor of the Gaming Law Review and Economics, a leading gaming law journal. He also published articles on Internet gambling law cited in the Report of the British Parliament by the Secretary of State of Culture Media and Sport and by the California Gambling Control Commission (2006).

Otto: ”What’s the state of California’s stance towards regulation and where does the American Indian, the Alturas Rancheria Tribe fit into the equation?

Professor Kelly: With a total population of 38 million residents, regulated internet poker could give the state of California a huge financial boost. However, presently regulation could best be described as a circular firing squad. This is because the tribes and legal card clubs can’t decide whether or not they must include state horse racing operators or prevent PokerStars from operating in the state. To stop the latter it must impose a ”bad actors” clause.

To date Native-American online gambling has not delivered the goods. The Iipay Nation attempted to launch online intrastate bingo but the State of California and the U.S. government came down on them like a ton of bricks.

Otto: ”Only three U.S states, Delaware, Nevada and New Jersey have regulated egambling. Do you think that regulation has been a success and will other states follow suit?

Professor Kelly: Although the projected results were ”slightly” inflated, 2014 was a dismal year for New Jersey casinos. Delaware and New Jersey legalized online gambling and Nevada internet poker. Online gambling revenues failed to meet projections because credit card companies still perceive it as a risk and see it as a ”gray” area within the law.

”Online gambling revenues will help state revenues at the expense of offshore unregulated jurisdictions. It will create “technical” jobs. Few experts believe it will “cannibalize” land based gambling.”

None of the states with large populations legalized online gambling yet. Pennsylvania is thinking of legalizing online poker or igaming. Fantasy Sports, especially daily games looks very appealing.

Montana is the only U.S state that regulated Fantasy Sports, it’s not prohibited by statute in any state. Federal regulation is a minefield, except for the Indian Gaming Regulatory Act. The states have done a great job to ensure gambling operators are suitable and solvent.

16. Oren, Managing Editor, Onlinecasinoreports.com: Online Casino Reports (OCR) was officially launched in 1999 by a small group of friends who loved gambling and saw a niche in the industry. The site has been online for more than 15 years and considered by many industry experts as one of the best source of casinos for online gambling portals for players.

Otto: ”Do you believe that player and affiliate shaving by online casinos is on the up and which criteria does Onlinecasinoreports.com take into account before it signs up with an operator?”

Oren: Regrettably there’s a lot of dishonesty going on. As one of the major players in the industry we’ve often fallen prey to player shaving and theft. Most of the cases we’ve dealt with dubious terms and conditions where the operator closes your account if you are not delivering a certain amount of players per month. One of the programs that comes to mind is rogue operator, BetVictor-stay away from them!

Conclusion