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Internet Gambling-A Short History

March 23rd, 2012

Gambling has a long history. Archaeologists found a 5,000 year old pair of dice while excavating a Bronze Age site in Iran. Native American tribes have games that date back thousands of years and a few of these games are still played today at Pow Wows. Humans have been risk takers for millennia and gambling is nothing new. It was inevitable that technology and gambling would be combined at some point in history. In the 1880’s Charles Fey invented the first slot machine. Fey’s machines eventually became the biggest moneymakers for Las Vegas casinos which had rows and rows of ‘One armed bandits’ in their casino floors.

In 1965 Donald Davies, a British computer scientist, suggested that modern technology could be applied to betting. The development of random number generators made today’s modern slot games and video keno, poker and blackjack possible. Game developers are quick to embrace and apply the latest technologies to various forms of gambling. Thirty years after Davies suggested combining technology with gambling the very first internet gambling sites appeared on the internet. The sites offered sports betting and casino games. IN 1999 the first online poker sites made their appearance and were an instant hit. The new industry flourished and by 2005 PartyPoker became one of the first internet gambling companies to go public and was listed on the London stock exchange.

The sudden popularity of internet gambling left governments struggling to keep up with the latest technologies and the legality of internet gambling was a legal grey area in many countries. While lawmakers argued about the morality and legality of internet gambling players continues to wager billions annually. Government bans on internet gambling have been ineffective at best and many compare the prohibition of online gambling with the ineffective prohibition of alcohol in the United States. Offshore gambling sites are beyond the reach of law enforcement. While some countries took a prohibitionist approach others decided to tax and regulate internet gambling. The UK is an example of a rational approach to internet gambling. In the UK internet gaming operators are licensed, taxed and regulated.

Today the most popular forms of remote gaming are casino games, sports betting and poker variations. In the early days of internet gambling most players were men from 25 to 35 years old. Today almost half of all internet gamblers are women. Studies show that women prefer online slots and internet bingo while men prefer poker and sports betting. Internet gambling has a 23% growth rate annually making the industry very attractive for savvy investors.

Ontario Gaming Overhaul Includes New Toronto Casino

March 21st, 2012

The provincial government of Ontario says that a proposed gambling overhaul could generate as much as $1.3 billion annually. Ontario Lottery and Gaming Corp. (OLG) plans to expand the sale of lottery tickets by adding new retailers, close underperforming gambling facilities, build a new casino in the Toronto area and Implement internet gambling. At a press conference Finance Minister Dwight Duncan stated “With its new business strategy, OLG will increase its revenues by more than $1billion a year. It will also create more than 2,300 net new jobs in the gaming industry and nearly 4,000 additional jobs in the hospitality and retail sectors by 2017-18.”

The lottery agency said that proposed changes could bring in $4.6 billion in new revenues over a six year period and will consistently bring in $1.3 billion every year. Toronto casino proponents say that the casino will create new jobs and attract tourists which would benefit local hotels, restaurants and entertainment venues. They also say that the casino will be a significant addition to Toronto’s tourism infrastructure which includes professional sports, music and entertainment, theatres, museums and galleries, restaurants and clubs. Currently Toronto attracts about 10 million overnight visitors a year.

Not everyone is happy with the idea of a new casino in the Toronto area. Toronto Councilman Adam Vaughan told reporters “The impact that urban casinos have on neighborhoods and communities that surround them are pretty close to devastating,” Vaughan said. Vaughn said that the focus on new revenue streams from gambling ignores the impact a casino would have on local businesses. Vaughn contends that casinos drain money out of the local economy and stated “Small restaurants and bars and entertainment facilities that are part of our fabric of urban life.…they lose and one big multi-national takes over and takes most of the money out of the province and of the country.” The councilman also said that casinos are linked to increases in crime.

One casino supporter pointed to research done in US jurisdictions outside of Nevada with casino gambling. Community leaders were asked that if they could return to the past would they allow casino gambling again. Three out of four said they would vote for casino gambling and cited the positive effects such as additional tax revenues, secondary economic development and casino contributions to charitable organizations and community projects. Both sides of the debate have legitimate concerns and hopefully the differences can be worked out amicably.

Three Stooges Slot Now Available Online

March 18th, 2012

The Three Stooges remain one of the most beloved comedy teams of all time. The antics of Larry, Curly and Moe are known to millions of diehard fans around the globe. Their short films may still be seen occasionally on late night television and although most of their short films were made in the 30’s and 40’s their popularity exploded in the 50’s when they were features in after school kids shows of the era. Now slot players can join the ranks of Three Stooges fans.  Most of the time game developers convert three reel games to five reels but Realtime Gaming (RTG) has just done some reverse engineering on their popular Three Stooges slots. The new game features three reels and three paylines. This is not the usual classic three reel slot and Realtime has added some enhanced features.

The Three Stooges 2 game has three progressive jackpots. Two of the jackpots are the Minor and Major which are featured on several RTG Real Series online slots. The jackpots can be hit randomly after any game spin. The third progressive jackpot is titled the Three Stooges jackpot. To win the top jackpot players must get three The Three Stooges II logos in any payline. The logo is also a wild game symbol. If the wild symbol appears in a winning combination the payout is tripled. If there are two wild symbols in any winning combination the payout is multiplied by nine.

Three Stooges 2 game symbols include a vintage limousine, movie studio, movie clapper board, and icons from classic three reel slots. Symbols only pay when the same symbol appears on all of the reels of a payline. The exception is the studio symbol which pays when two appear on a payline. Larry, Curly and Moe are also game symbols and are the same as the original version of the game. When the boys appear on a payline payouts accrue to the player. Video clips from the original Three Stooges shorts are played during the game.

Many of the new game’s features are the same as the original five reel game. Curly’s Cashola Feature is triggered when three Curly figures appear on a payline and 9 free spins are awarded with double payouts. If all Three Stooges symbols appear on a payline during the free spins one free spin is added. Three Larry’s symbols trigger Larry’s Stash Feature. A sic rung ladder appears and the number of free spins and the multiplier keep increasing. Moe symbols trigger the Moe’s Moolah Feature. The feature is the same as Larry’s except the offers are larger. The game is available at several internet casinos and is sure to be a big hit with Three Stooges fans everywhere!

Greyhound Racing a Dying Sport

March 17th, 2012

Greyhound racing may soon become a relic of the past. During the past decade over half of the greyhound tracks in the United States have closed and many track operators are eager to get out of the business. At the Bluffs Run Greyhound Park in Iowa a few diehard fans still cheer from the stands but these days most gamblers prefer to spend their money at the casino located at the track. The greyhound races are losing millions each year but the track operators must keep the dogs running six days a week to comply with the laws.

Most of the surviving tracks now have casinos that account for most of the business at the tracks. In the past tracks won permission from the states to operate slot machines and poker games on the condition that a part of the profits are used to support the races subsidizing one form of gambling with another. Track owners have had to defend themselves against charges that greyhound racing is inhumane. Surprisingly many track owners agree and are joining with animal rights groups to end dog racing.

Track owners say that they are forced to subsidize a form of gambling that the public has abandoned. Track owners in Iowa, Florida and Arizona have been lobbying state legislatures to change the laws to allow them to cut back on the number of required races and many want permission to shut down their tracks and keep the casinos open. Bo Guidry, general manager at the Horseshoe Council Bluffs casino complex, which includes Bluffs Run dog track told reporters “There is no reason to continue spending money on a dying sport.” Gaming giant Caesars Entertainment owns the track and casino and had to spend $10 million last year on dog racing. Caesar’s has offered the state of Iowa $49 million for permission to close the dog track.

For years animal rights groups have complained that greyhound racing is inhumane. Dogs spend most of their lives in confinement and often suffer debilitating injuries during races. Most dogs were put up for adoption at the end of their racing careers. Carey Theil, executive director of Grey2K USA, said of the unexpected alliance with track owners “We’ve been fighting the racetrack owners for years, and to suddenly have them as allies takes some getting used to.” The future of greyhound racing seems very dim but the future of casino gambling is very bright indeed.

Italy Now Europe’s Largest Internet Poker Market

March 16th, 2012

In Italy gambling has a long history predating the Roman Empire. The word ‘casino’ is of Italian origin and Italy had the first legal gambling house in the west. Some gaming historians claim that the popular card game baccarat was invented in Italy and historians are sure of bingo’s Italian origins in the 15th century. A bingo like game called Tombola has been a holiday tradition in Italy for centuries. With the nation’s long association with gambling it should come as no surprise that Italy is poised to become Europe’s largest internet poker market. Italy’s internet poker sector has surpassed that of any other European Union nation.

Figures published by leading gaming data specialist H2 Capital showed that in 2009 the UK was the largest European internet poker market until 2010 when Italy emerged as the largest. Italy was one of the first European countries to legalize and regulate internet poker, online slots,  and online casinos. At first only tournament poker was legal online but in 2011 the laws were changed to allow Italians to play online poker for real money. The H2 Capital report also predicts rapid year on year growth in the Italian internet gambling market through 2014.

Even though the Italian online gambling market is rapidly growing video lottery terminals are still the largest gaming sector in Italy. A 2010 study by MAG Consulenti Associati showed that video lottery terminals generated about half of Italy’s gambling revenues during the first six months of 2010. The latest figures from the Amministrazione Autonoma dei Monopoli de Stato (AAMS) show that VLT’s remain the most popular form of gambling in Italy.

Italy is not the only European country where poker is the most popular form of internet gambling. In Norway Figures from the Norwegian Gambling Commission show that online poker is the most popular form of internet gambling in the country. In Norway internet poker accounts for 28% of all online gaming followed by sportsbooks at 27% and 7% preferred other casino games. In the United States poker generates 19% of all online casino revenues. In Land based casinos in the US slots generate the lion’s share of revenues. Currently there are about 800,000 slot machines in the US generating 70% of casino revenues.

Most experts say that Italy will continue to dominate the European online poker market which should come as no surprise given the country’s centuries old association with legally sanctioned gambling.

New York to Legalize Off Reservation Casinos

March 15th, 2012

In a very rare case of politicians actually listening to voters the New York State Assembly may approve off reservation casino style gambling sometime this year. A Quinnipiac University poll taken last September showed that 56% of all of those polled support the construction of casinos away from Indian reservations. Currently Native American casinos have a monopoly on casinos in New York. 64% of those polled said that the new casinos would be good for the economy. The casino measures have long been pushed by New York Governor Andrew Cuomo and the state could see as many as seven new casinos this year.

The prospect of off reservation gambling in New York prompted an advertising campaign by casino interests interested in entering the very lucrative New York gaming market. In one radio ad a vacuum cleaner roars and a woman’s voice says “You hear that? It’s the sound of money and jobs being sucked right out of our state, with New Yorkers going to Connecticut and Atlantic City for casino gaming.” The ad was part of a $240,000 ad campaign that ran in Western New York in early February. Rival factions favor large scale casinos and competing interests include slot machine operators, three Native American tribes, Las Vegas gaming companies and a hugs Malaysian gaming conglomerate.

Governor Cuomo wants expanded casino gambling as an economic development tool. Currently there are nine state approved slot parlors at race tracks and five Indian casinos. The casino measure was part of a series of deals among Republican and Democratic politicians. The deals includes an expanded DNA database to fight crime and free wrongly convicted prisoners, the approval of seven casinos and reduced pensions for state workers.

State Assembly speaker Sheldon Silver told reporters that legislators are near an agreement to legalize seven public casinos. Silver, a Democrat, told reporters that the locations of the casino/resorts will be determined next year. Silver stated “We will deal with where, when and how next year in legislation.” The only way New York can legalize casinos is if two successively elected legislatures enact casino legislation. Voters would then have to vote on a constitutional amendment legalizing the casinos.

Casino interests in Atlantic City, Connecticut and Pennsylvania are following developments closely. The new casinos could threaten established interests because New Yorkers who currently frequent out of state casinos may choose to gamble closer to home. New York has also expressed an interest in internet gambling and was partially responsible for the December DOJ ruling that opened the door for internet gambling in individual states.

Another Alabama Bingo Battle In the Works

March 13th, 2012

In Alabama electronic bingo has been very controversial. Anti-gambling forced are strong in the state and last year the state conducted a series of raids on several casinos in the state. A trial ensued and the defendants were acquitted. Vindictive federal prosecutors decided to try the defendants a second time with predictable results; all of the defendants were acquitted a second time. Jurors felt that some of the witnesses lacked credibility. Shortly after the verdict casino operator Milton McGregor announced plans to reopen his VictoryLand casino which has been closed since last year. McGregor was acquitted on federal corruption charges in the second trial.

McGregor was thrilled with the verdict and said he will reopen his casino with the same electronic bingo machines the state says are illegal. Electronic bingo games are land based versions of the bingo games available at internet gambling websites. The state of Alabama contends that the machines are like slot machines and therefore illegal. Alabama attorney general warns that the machines are still illegal and says his office plans to strictly enforce the ban on the bingo machines.

Strange says that Alabama law clearly defined legal bingo games and told reporters “The only form of bingo authorized by any amendment to the Alabama Constitution is the traditional game commonly known as bingo. The six mandatory characteristics of bingo set forth by the Alabama Supreme Court in the 2010 Cornerstone case, which plainly requires that the human elements of the traditional game of bingo must be fully preserved in order for a game to potentially qualify as legal bingo, will be strictly followed. Slot machines and other illegal gambling devices cannot be used to play bingo, period. My office, along with other state and local law enforcement agencies, has been aggressive in investigating and shutting down illegal gambling operations since I took office in January 2011, and absolutely nothing has changed.”

Casino operator McGregor pointed out that tribal casinos pay no taxes to state and city governments and says his casino will create about 3,000 jobs. McGregor stated “We are entitled to the same thing the Native Americans have in Montgomery, Wetumpka and Atmore. The difference is we pay city, county and state taxes.” McGregor was forced to close his casino after a series of raids. VictoryLand was the largest employer in Macon County. McGregor contends that he is entitled to operate the same electronic gaming machines as those at Native American casinos in the state.

New Jersey to Have Internet Gambling by September

March 12th, 2012

New Jersey may very well be the first state to offer residents legal internet gambling this year. New Jersey state senator Raymond Lesniak told interviewers from Poker News that he expects both houses of the New Jersey legislature to approve internet gambling legislation by March 15th. Lesniak also expects Governor Christie to sign the bill this time around. Last year Christie vetoed a similar bill. Lesniak believes that video online  poker will be available in New Jersey by September of this year.

New Jersey was the first state to pass internet gambling legislation but the bill was vetoed by Governor Christie. Nevada has also passed internet gambling legislation and is already accepting applications for internet poker licenses.  Lesniak stated “The race is on. There’s certainly room for two major states to regulate the industry and combine with other states. If we get there first or they get there first, we’ll both be operating. We expect New Jersey to be the Silicon Valley of Internet gaming in the country.”

A state senate panel approved Lesniak’s revised bill Monday but a state assembly committee failed to vote on the bill citing concerns that a ballot initiative may be needed to amend the state’s constitution to make gambling outside of Atlantic City legal. The hubs for the internet casinos will be located at Atlantic City casinos. Lesniak does not believe that this will be an issue and expects the legislation to0p clear the committee next week. Lesniak said he always knew there was actual US gambling law that made internet poker illegal and believed the recent ruling by the Justice Department convinced Governor Christie to support the current bill.

Last year’s legislation would have only allowed internet gambling to be available to New Jersey residents but Lesniak believes that the DOJ ruling will allow New Jersey to form compacts with other states to increase the size of the player pool. Lesniak stated “Only a handful of states can have a regulatory scheme and possess the experience in operating these types of games — obviously Nevada and New Jersey, and likely California. It would be a lot easier for most other states to have a compact with us and do a profit-sharing agreement. Market share is very important in this business, and that’s why it’s important to be there first.”

Lesniak predicted a bright future for internet gambling and said “Once we’re up and running, there’s no way the federal government would shut us down. I know our U.S. Senators and Congressional delegation would prevent that from happening. When a federal bill passes, I think it will just open it up nationwide and, because of our marketing share and agreements with other states, we’ll be in position to take advantage.”

Casino Developers Looking For Land in Massachusetts

March 9th, 2012

Massachusetts passed a gambling law that is still so new that the agency that will enforce the law does not yet exist. Casino developers are scouring the state for likely casino locations. Brimfield Massachusetts, a small town with a population of 3,600 would be a perfect location for a “New England-style resort in the woods” according to MGM Resorts International which owns the Bellagio, the Mirage and other popular casinos on the famed Las Vegas strip.

After rejecting the idea of casinos for several years Massachusetts is searching for new revenue streams to address the state’s budget woes. Last fall Massachusetts became the first New England state to pass a law allowing the development of resort style casinos. Some experts say that other New England states may pass similar measures if Massachusetts’s experiment succeeds. The new law allows the development of three casinos to be built in three regions in the state. The state will get 25% of the gambling revenues and 40% from a separate slot parlor. Many in government say that the casinos will provide much needed cash and will create hundreds of new jobs.

The Massachusetts law is much different from the law in Connecticut that gives two Native American tribes exclusive rights to provide casino gambling at Foxwoods and Mohegan Sun. In return the state takes a percentage of all gaming revenues. In New Hampshire legislators are worried about losing tourist money to Massachusetts and are considering a bill that would allow the development of four casinos in the state. Recently Maine granted the state’s first casino license to a Bangor slot parlor that will add table games in March. The laws in both states are the result of voter referendums.

The Connecticut tribes are worried about losing players and money to the new casinos in Massachusetts. The Mohegan tribe hopes to win a Massachusetts license The Mohegan tribe. Both tribal casinos attract players from the northeast and have been very successful. Gambling law expert Clyde Barrow, a professor at the University of Massachusetts, Dartmouth says that the region’s small size makes the threat of losing players to a neighboring state more likely. Barrow stated “They already have people leaving to gamble,” he said of other New England states. “They can continue watching those jobs and revenues leave their state or pass gambling legislation to keep them.” Currently nine developers are seeking land for potential casino locations. Companies hoping to open casinos include MGM, Wynn resorts and Caesar’s Entertainment.

Internet Gambling and Market Share

March 7th, 2012

The recent surge in internet gambling has left governments scrambling to keep up with the latest industry developments and advances. In many countries the laws regarding internet gambling are vague and many governments are having difficulties finding ways to regulate the online games. While lawmakers argue over the legality and morality of internet gambling players continue to spend billions every year at internet gambling sites. Laws against internet gambling have worked as well as laws prohibiting alcohol in the 1920’s which is to say not at all. Regulating and controlling the internet is not feasible and any attempt at censorship sparks fierce political opposition. Governments may place obstacles in the way of online gamblers but most will find a way around any regulations and laws to get what they want.

To avoid laws against internet gambling many online casinos have located offshore. Today’s internet gambling centers include Gibraltar, Antigua, Alderney, and Malta. Gaming operators licensed in these jurisdictions enjoy tax policies favorable to web based businesses. For example Ladbrokes and William Hill, two of Great Britain’s largest bookmakers, are located in Gibraltar where they pay a 2% tax rate as opposed to 15% in Britain. The offshore location of most internet gambling operators further muddies the legal waters surrounding the internet gambling industry.

Several factors have contributed to the astounding growth of the internet Gambling industry. The most popular forms of remote gambling are traditional casino games. A recent article posted by Viaden Gaming revealed the market share of several games.  Wagering accounted for a37% market share, casino games 22%, poker 18%, and bingo, lotteries and skill games accounted for the remaining 23%. It has also been shown that internet gambling benefits lotteries and slots. Slot developers have responded to the demand and have created many new games with modern themes. New and improved games have contributed to recent industry growth and internet gambling operators continue to invest heavily in the latest games.

New player groups have emerged. Early internet gambling studies showed that most players were men aged 25 to 35. In recent years internet gambling has gained traction among women. A 2009 study found that women represented about 40$ of all internet gamblers worldwide. A recent study in the UK showed that the number of female gamblers was equal to men and that more women engaged in mobile gambling than men.  The study also showed that each group had its own gaming preferences; men favored poker and sports betting while women favored online slots and bingo. Currently the growth of internet gambling shows no signs of slowing and, for now, the future for operators looks very bright.

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