On February 5th the most anticipated sporting event in the United States will take place; the Super Bowl. This is the biggest and most watched football game of the year. Over half of all American adults will place bets on the outcome of the game between the New England Patriots and the New York Giants. About $8 billion will be wagered and most of the bets will be illegal. Illegal bets include private wagers, bets placed at offshore gambling sites, bets placed with bookies connected with organized crime and office pools. At this time of year just about every office, bar and tavern has its own Superbowl pool and in most cases law enforcement looks the other way.

The United States is a nation of risk takers so it should come as no surprise that Americans love gambling. In the US Las Vegas is the only place where gamblers can place bets on the Superbowl legally but punters in the US have other options. In Las Vegas the Superbowl is a major event and data from the American Gaming Association shows that in 2009 legal sports betting in Nevada totaled $2.57 billion. Since then the numbers have increased but that figure is dwarfed by the amount spent on illegal wagers. The National Gambling Impact Study Commission has estimated that illegal sports wagers total about $380 billion annually.

If the study’s estimate is correct the US Treasury is missing out on a major source of revenue. Since illegal sports bets are not reported the money remains untaxed. Gambling winnings are taxable but most winners do not report the income to authorities. At casinos and racetracks taxes are automatically deducted from winnings over a certain amount. 25% is automatically withheld from winnings over $5,000 from sweepstakes, lottery winnings, and betting pools. At land based casinos winners must provide the casino with their tax ID. (Social security number)

It is possible to place a bet on the Superbowl on the internet. There are many internet gambling sites that still accept American players. Most provide details like point spreads and odds for the convenience of players.  Some internet gambling sites have mobile applications and punters can place Superbowl bets on their cell phones. Although placing bets at offshore websites can be risky there are many internet gambling blogs and information sites that can provide players with accurate information and point them towards a reputable gaming site.

At the most recent meeting of Atlantic City’s Casino Reinvestment Development Authority the document that sets the framework for the gambling Mecca’s newly created tourism district was unanimously approved. Atlantic City has experienced a drop in the number of visitors partially because of competition from newly opened casinos in Pennsylvania. The board voted 14-0 in favor of the plan. Supporters of the measure say that the state-run district’s is to enhance the experience of visitors to the city and broaden the array of offerings in an attempt to make Atlantic City a world class tourist destination.

In addition to gamblers the city hopes to lure conventions, cultural attractions, entertainment and residential and retail development. The short and long term initiatives of the plan are to promote commercial development, clean up the city, reduce crime and make the city more attractive for tourists. The initiatives include;
Creating a series of linked neighborhoods along Atlantic Ave.
Improvements for Michigan, Missouri, and Mississippi Avenues.
The development of Gardner’s Basin into an authentic waterfront experience for tourists.
Turning Bader Field into a mixed use residential zone.
The development of both gaming and non gaming resorts and a network of pedestrian and bike paths in the Marina District.

Last April the development authority approved tourist district boundaries which are the centerpiece of New Jersey Governor Christie’s proposed facelift for Atlantic City designed to promote tourism and gaming. The tourist district boundaries are Albany Avenue to the west, New Hampshire Avenue to the east, and the Boardwalk to the south, incorporating Atlantic City Outlets including the Atlantic City Convention Center, the outdoor mall, the Marina District, Bader Field and Gardner’s Basin. In May 1st 2011 the Casino Reinvestment Development Authority took control of the district and the most recent vote was the result of fine tuning the master plan as required by New Jersey law.

Don Marrandino of Caesars Entertainment Inc. stated “The master planning for our destination is crucial to moving us forward. All of these shareholders, along with the casino industry and business district, want what is best for our city. . . . Supporting top-notch entertainment bookings at Boardwalk Hall, along with signature events and festivals, are some of what’s key to our future success.” Tom Balance of the Borgata echoed Marrandino’s sentiments and said “We applaud the efforts of CRDA to produce this critical plan for the revitalization of Atlantic City.” Balance pointed out that the new master plan “replaces blight with developments that encourage pedestrian connections between our greatest assets, the Boardwalk and the existing nongaming developments, the Walk, and the Atlantic City Convention Center, which is exactly what our research has suggested is needed for Atlantic City to appeal to a broader audience.” For years Atlantic City has been plagued by blight and crime and hopefully the initiatives will change all that.

Gambling in the United States has a long and colorful history. Humans have gambled since prehistoric times and dice have been found in several Roman ruins. Native Americans still play the ancient ‘stick game’ at Pow wows. Gambling played an important role in colonial America. The first settlement at Jamestown was partially funded by lotteries and all of the original 13 colonies operated lotteries. Lotteries financed churches, libraries, colleges and infrastructure projects. Harvard University was originally funded by lotteries. Most of the founding fathers including Washington and Franklin supported lotteries.

As the nation expanded westward gambling played a major role on the new frontiers. The early to mid 1800’s was a period of risk taking and high expectations. Horse racing, cock fighting and casinos were all a part of frontier culture. New Orleans became a major gambling center and riverboat gamblers made their appearance up and down the Mississippi river. The gold rush of 1848-49 brought a new era of gambling in the United States. In San Francisco a 25′ x 15′ tent used for a casino had an annual rent of $40,000. Later in the century Charles Fey invented the first slot machine in California and in 1911 the state outlawed all gambling. The turn of the century brought an end to open gambling and New Mexico and Arizona were forced to close casinos as a condition for statehood.

For a good part of the 20th century gambling was driven underground and only Nevada offered wide open legal gambling. Because of the prohibition against gambling criminal elements entered the business. Most major cities had their own numbers racket and underground casinos. The tide finally turned in the 70’ and 80’s. In 1976 the state of New Jersey legalized gambling in Atlantic City to spur investment in the city’s rundown boardwalk. The move was successful and Atlantic City remains a gambling Mecca to this day.

By the end of the 80’s most states had lotteries putting many in the numbers racket out of business. Gambling technology also changed rapidly. Once the internet was operational gaming companies saw the potential and launched internet gambling operations. By 2000 there were hundreds of internet gambling sites in operation offering games like poker, blackjack, bingo, keno and other casino games. In 2006 the US passed laws designed to stop internet gambling but the industry continued to grow in the UK, Europe and Asia. Recently the US government changed course and a recent ruling gave the green light to intrastate internet gambling operations. Today gamblers have more options and thanks to internet gambling a trip to a casino is no longer necessary. Gambling has come a long way since prehistoric times and will be with us well into the future.

Several states are considering the possibility of expanding their gambling options from building new casinos to entering the world of online gambling. States are searching for new revenue streams to address expanding budget deficits. Companies, both foreign and domestic, are lining up to take advantage of newly liberalized gambling laws and a recent DOJ ruling that makes intrastate internet gambling legal.

New York may change its gambling laws to allow brick and mortar casinos. Malaysian gaming giant Genting is planning a multibillion dollar project that will expand the Aqueduct horseracing facility into a giant facility that will include one of the nation’s largest casinos and convention centers. Genting has a prominent place in the gambling industry and plenty of gaming experience. In the UK Genting is the largest casino operator and operates 45 casinos throughout the UK.  Genting entered the British casino market in 1976 and own some of the largest casinos in the country. If anyone has the resources and experience to transform Aqueduct into a premier gambling facility it is Genting. The company also has a major presence in Asia.

In Florida the state may bring casino style gambling to the Miami area and once again Genting is involved. Genting is in the forefront of developers and gaming companies lining up to take advantage of this huge opportunity. As many as three new casinos could be built in the Miami area. Recently Massachusetts approved the construction of casinos in the state and Ohio’s first casinos are on track to open sometime in 2012. In October the Massachusetts Senate approved a gambling bill and sent it to the governor to sign. In January the head of Massachusetts new gambling commission said the state is seeking ‘creative’ casino bids. The recent DOJ ruling fueled even more interest by gaming companies. Man states plan to offer intrastate internet gambling to residents and several gaming companies have expressed interest in this new opportunity.

The renewed interest in gambling is driven by a push by state governments to add jobs and revenues. Large casinos provide hundreds of living wage jobs and the high unemployment rate in most states makes casinos seem particularly attractive. Most states are looking for ways to add new revenues without raising taxes which is politically unpopular. The casinos are an easy pitch to many voters who currently cross state lines to gamble legally. For the gambling industry the future looks very bright indeed.

Washington D C was on track to be the first jurisdiction in the United States to offer internet gambling to residents. In an astounding about turn the city council is now poised to repeal the program before it starts. The action by the D C council is not based on moral objections and council members say they are upset with the way the measure was passed. Some council members say they didn’t realize they had voted to approve the measure. Councilman Jack Evans told Associated Press reporters that he is planning to move a repeal bill out of finance and revenue committee. Evans also said he will vote for repeal when the measure goes before the bill council. The bill has the support of a majority of D C council members.

Evans said that neither the D C council of the public was given adequate opportunity to weigh in on the measure before it became law. He also cited a troubling report by the district’s Inspector General that raised questions about the district’s current contract with its lottery vendor. Evans said “We just need to start over,” and said he has no plans to introduce another internet gambling bill. The internet gambling program would have permitted D C residents to play internet poker, blackjack and other skill based gambling games. The bill said that all players must be 19 years old and wagers are limited to $250 a week.

A December ruling by the justice department said that intrastate gambling is legal and several states are considering internet gambling. So far only Nevada and the District of Columbia have approved laws regulating and authorizing internet gambling. Under the current law the internet gambling operation would be run by D C’s lottery vendor Intralot. When the D C council approved Intralot’s $39 million contract the document did not specify that would be able to introduce internet gambling in the district. The contract did include language referring to “nontraditional games.”

The contract with Intralot was later amended to say that Intralot could introduce an internet gambling system in late 2010 Councilmember Michael A. Brown inserted language in a supplemental budget bill that legalized internet gambling in the district. Councilmember David Catania has threatened to sue the district’s chief financial officer for altering the contract with the approval of the council. Members are divided on the issue. Catania and Councilmember Muriel Bowser who are members of the Finance and Revenue Committee chaired by Evans plan to vote for repeal. Brown and Marion Barry want to launch the internet gambling program.

Other council members support repeal including Jim Graham, Phil Mendelson and Tommy Wells. Chairman Kwame Brown has not taken a position but in the past has said he opposes all gambling. D C Mayor Vincent Gray is also in favor of repeal. Gray’s spokesman Pedro Ribeiro stated “It’s become such a divisive issue. It’s not critical to the fiscal needs of the city. It’s just better to stop this, take a few steps back, take a deep breath and figure out where to go from here.”

Soon the figures will be out for the gambling industry’s take for the previous year. Until the economic slide of 2007 the gambling industry in the United States enjoyed brisk growth. Up until 2010 the industry had not recovered but state lotteries were doing fairly well and were seen as recession resistant. In 2011 Datamonitor, which tracks gambling industry figures was predicting renewed growth through 2015. The company is predicting figures of $110 billion in 2015, up from $89 billion in 2010. In addition to gambling Meccas like Las Vegas and Atlantic City several states have allowed casino development. There is hardly a Native American tribe without some sort of casino or gambling operation.

Casino advertising has become big business and gambling interests spend millions each year promoting their products. Up until now internet gambling has been a mixed picture. Current federal law prohibits banks, credit card companies and other payment processors from handling transactions related to internet gambling. A recent Justice Department ruling could change all that. In a memo released in December the DOJ ruled that only sports betting is prohibited online. Although there are naysayers and moral objections to gambling in some quarters the industry seems unstoppable.

According to Datamonitor the United States is not an isolated case. Currently the US accounts for only 23% of all gambling activity in the world. The European figures are slightly more but Asia accounts for a whopping 43% of all gambling activity. Macao is now one of the largest gambling centers on the planet. In some nations gambling has become a troubling activity. In Australia pokies (video poker machines and slots) have become a political issue. Australian Prime Minister Julia Gillard created a Labor government 16 months ago promising to deal with problem gambling. After a fierce campaign by the nation’s club industry Gillard changed course putting her government at risk during the next national elections.

Although internet gambling remains controversial in the United States several major players in the nation’s gambling industry have expressed interest in launching internet gambling operations. Casino Mogul Donald Trump has expressed great interest in online gaming. Currently Americans spend $6 billion annually at offshore internet gambling sites like online bingo sites. Industry experts and analysts say that legal internet gambling could bring in billions for state governments. Most in the industry expect gambling revenues to rise as the economy shows signs of recovery.

Internet gambling is incredibly popular around the world and the industry has grown with amazing speed despite the worst recession in decades. Recently the internet gambling industry got a boost after the US Department of Justice cleared the way for states to offer residents legal internet gambling. Millions of people play at online casinos 24/7 and the action is nonstop. New internet casinos appear regularly and the competition has been good for online gamblers. The growth of internet gambling is easy to understand. Internet casinos do not have to pay a large staff of employees and do not need a large land based casino making internet gambling very profitable. Internet casinos are capable of reaching millions twenty four hours a day.

Unfortunately the large profits generated by internet casinos have attracted scam artists, thieves and conmen who will stop at nothing to separate players from their hard earned money. Their sole aim is to steal money from unsuspecting players through rigged or dishonest games. Informed players can avoid rogue casinos if they know the telltale signs of a rogue internet casino.

Since many rogue internet casinos are set up in countries where English is not the mother tongue there will probably be several spelling and grammar mistakes. This shows that the casino is not concerned with how they present themselves to players. A legitimate internet casino will take great pains to be attractive and presentable and major internet casinos invest a lot of time and money on site design and content.

Legitimate casinos will provide information about the licensing body and jurisdiction. Some sites also display seals of accreditation but these can easily be faked. On more than one occasion rogue casinos have simply made up an accreditation seal  and in some cases post a logo from a totally fake ‘gambling organization.’ A quick Google search can save players from being taken by these falsifications.

ECOGRA (ecommerce and Online Gambling Regulation and Assurance) is one of the most respected and widely recognized accreditation companies. ECOGRA awards seals of approval to internet casinos that meet their high standards of fairness, reliability and honesty and responsible gaming. In is a good idea to ask an internet casino for information on their regulatory body and legitimate casinos will always provide players with this information.

Rogue casinos are notorious spammers. Most legitimate casinos do not bombard their players with spam but will provide them with pertinent information about special promotions, bonuses and site changes.

There are several websites that have been set up for the sole purpose of protecting gamblers from rogue casinos. Keep in mind that there have been cases where a disgruntled player has set up a site specifically to destroy the reputation of a site because of a bad experience. Make sure to check out several sites.

Other signs of a rogue internet casino include;
Slow response to inquiries
Failing to honor bonus and promotional offers
Excessive wagering requirements to claim a bonus
Failing to pay legitimate winnings
Deceptive advertising
The use of cheating software
Slow play or defective software

Last December Las Vegas casino mogul Sheldon Adelson revealed he was opposed to internet gambling on ‘moral grounds. In a stunning act of hypocrisy Adelson said he was suddenly concerned about ‘underage gambling.’ In a statement dripping with hypocrisy Adelson told Senator Jon Kyl, one of the architects of the Unlawful Internet Gambling Enforcement Act, and the American Gaming Association “that he doesn’t believe technology can prevent underage gamblers from betting online, and that he is ‘morally opposed’ to internet gaming” according to a report by the Las Vegas Review Journal. Recently Adelson donated $10 million to Newt Gingrich’s campaign for president.

Adelson’s statements did not go over well with others in the gaming industry and poker players. Representatives of the Poker Players Alliance took issue with Adelson and struck back. Adelson’s comments also were the topic of conversation at many internet gambling and video poker blogs and forums. The Review Journal reported “Hours after news broke that Adelson opposes any Federal legislation allowing states to license and regulate online poker, players flooded social media with calls to boycott the Venetian’s 11,000-square-foot poker room.” QuadJacks host Marco Valerio told the Review Journal “The players know who is on their side and who isn’t. They’re very conscious of the influence they can exert when united. I think Mr. Adelson may have underestimated this.”

The Poker Player’s Alliance, which is the lobbying organization representing American poker players, is keeping a close eye on Adelson. Vice President of Player Relations for the PPA Rich Muny stated “I haven’t heard anything about an official boycott. What we want to do is communicate with the Palazzo and Venetian and make sure they understand where the poker community stands on this issue. We believe in liberty and we believe that age verification works in an online system.” Muny went on to say “While we expect many players will choose not to patronize businesses where their CEO actively opposes our right to play, and while we are actively informing the membership of Adelson’s position on this issue, we’re not calling for an official boycott at this time. For now, it’s important now to keep the lines of communication open.”

The American Gaming Association repeated its support for legal internet gambling and told reporters from the United Press “Sheldon has long had concerns about this issue, and it is perfectly within his right to make this decision. However, the AGA, at the direction of our Board of Directors, will continue to support Federal legislation to allow states to license and regulate online poker.” It would appear that Adelson is out of step with many in the gaming industry. Several major gaming companies are entering the internet gambling industry. Gaming giants MGM Resorts International, Boyd Gaming and Caesar’s Entertainment are all planning to offer internet gambling in the future. Although Adelson’s influence in Washington is not clear his opponents include some of the heaviest hitters in the gaming industry. Most in the industry think Adelson’s position is motivated solely be self interest.

Playtech, one of the largest software suppliers to the internet gambling industry, has revealed that the company is in talks with several potential partners in the United States. A recent interpretation of the 1961 wire act by the Justice Department has opened the door for states to provide residents with legal internet gambling. Playtech CEO Mor Weizer told reporters from Reuters “We have lots of potential customers that approached us or that we approached that would like to have us as their suppliers of online gaming products like online slots or bingo games when the market opens up. There is a lot of work being done behind the scenes in various states by various local authorities. We have people on the ground now in the U.S. working with us in order to monitor all these processes.”

Internet gambling has been illegal in the US since congress passed anti online gambling legislation in 2006. Weizer cautioned that it is too early to say if the current laws are overturned this year. The company said that liberalization of gambling laws in several countries have created new opportunities for the software giant. Playtech also announced joint ventures with Germany’s gaming machine business Merkur and South African gaming and resort business Peermont.  Playtech purchased a 49.99% stake in a new venture with Gauselmann, the parent company of Merkur. Playtech believes that new German regulations will allow online sports betting.  Playtech entered into a 50/50 partnership with Peermont a casino operator located in South Africa. The company plans to offer sports betting in South Africa and anticipates new regulations that will allow internet gambling in the country.

Earlier in the week Playtech revealed that the company would restructure its agreement with Scientific Games. Playtech had entered into a joint venture last summer to provide internet poker in California. Playtech purchased Geneity, a sportsbook developed in the United Kingdom. The purchase cost Playtech about £11 million ($17.2 million UDS) and will lead to a replacement of Playtech’s present sportsbook products. The new partnerships and acquisitions were announced on the same day that Playtech announced an astounding 89% increase in year on year revenues during the fourth quarter of 2011. Fourth quarter Playtech revenues were $90.8 million. Playtech is not the only gaming company interested in the lucrative American market. Currently legalization will take place on a state by state basis but most experts say that if enough states enter the internet gambling industry federal legalization is sure to follow.

Just about every poker player in the US remembers ‘black Friday.’ On Friday, April 15th 2011 the US department of justice sieves several internet gambling sites and their assets. Players logging on to their regular poker sites were greeted by a DOJ logo informing them that the site had been seized by the DOJ and the department of homeland security. Player’s accounts were frozen and at the time it was unclear whether they would be able to recover their money. Insiders say that the information leading to the seizures came from an Australian payment processor who was facing 75 years in prison.

Ira Rubin was one of 11 people indicted and was charged with nine counts of processing illegal payments for poker for poker sites. Last week Rubin pleaded guilty to three of the nine counts including “conspiracy to violate the Unlawful Internet Gambling Enforcement Act, one count of conspiracy to commit bank and wire fraud, and one count of money laundering conspiracy.” The maximum sentence Rubin is facing is 55 years but the Stipulated Guideline Range in the plea agreement is between 18 and 24 months.

According to the April 15th indictment Rubin “lied to banks about the nature of the financial transactions they were processing.” The indictment accused Rubin of setting up “phony corporations and websites to disguise payments to the Poker Companies.” Rubin is the latest person to plead guilty to charges stemming from the black Friday seizures and indictments. In December 2011 Brent Beckley pleaded guilty to conspiracy to violate the Unlawful Internet Gambling Enforcement Act (UIGEA) and conspiracy to commit wire and bank fraud. Beckley could face a sentence of 35 years but prosecutors are recommending a sentence of 12 to 18 months. Beckley will be sentenced on April 19, 2012. Beckley admitted to a federal judge that “it was illegal to accept credit cards so that customers could gamble on the internet” and that he was aware it was “it was illegal to deceive the banks.”

In May 2011 Bradley Franzen pleaded guilty to conspiracy to commit bank fraud, conspiracy to commit money laundering, and accepting funds in violation of the UIGEA. Franzen could serve 30 years but a sentence recommendation has been withheld and currently a sentencing hearing has not been scheduled. Not all of the black Friday defendants were willing to plead guilty. John Campos and Chad Elie are fighting the charges and are scheduled to go on trial March 12.