Bet-ya wanted to know that...
101 FAQs about online gambling
1 - 10
What is online sports betting?
What are the laws on online gambling in the United States?
Is online gambling legal in Australia?
Is online gambling legal in other countries?
What are the statistics for Problem Gambling?
Are online casinos fair and honest?
There are a large number of online casinos, in which people can play casino games such as roulette, blackjack, pachinko, bacarrat and many others. These games are played against the "house", which makes money due to the fact that the odds are in its favor. See Online Casinos for more FAQs.
Online poker tables commonly offer Texas hold 'em, Omaha, Seven Card Stud, razz and other game types in both tournament and ring game structures. Players play against each other rather than the "house", with the card room making its money through 'rake' and through tournament fees.
What is online sports betting?
Bookmakers and betting exchanges offer fixed-odds gambling over the Internet on the results of sporting events.
There are a number of online bingo rooms offering games on the Internet. See Online Bingo for FAQS about this social game
Typically, gamblers upload funds to the online gambling company, make bets or play the games that it offers, and then cash out any winnings. European gamblers can often fund gambling accounts by credit card or debit card, and cash out winnings directly back to the card. However, most US banks prohibit the use of their cards for the purpose of internet gambling, and attempts by Americans to use credit cards at internet gambling sites are usually rejected. A number of electronic money services offer accounts with which online gambling can be funded. However, many top fund-transfer sites such as FirePay, Neteller & Moneybookers have discontinued service for U.S. residents.
What are the laws on online gambling in the United States ?
The United States Court of Appeals for the Fifth Circuit ruled in November 2002 that the Federal Wire Act prohibits electronic transmission of information for sports betting across state lines but affirmed a lower court ruling that the Wire Act "'in plain language' does not prohibit Internet gambling on a game of chance."
Some states have specific laws against online gambling of any kind. Also, owning an online gaming operation without proper licensing would be illegal, and no states are currently granting online gaming licenses.
In March 2003, Deputy Assistant Attorney General John G. Malcolm testified before the Senate Banking Committee regarding the special problems presented by online gambling. A major concern of the US Department of Justice is online money laundering. The anonymous nature of the Internet and the use of encryption make it especially difficult to trace online money laundering transactions.
In April 2004 Google and Yahoo!, the two largest internet search engines, announced that they were removing online gambling advertising from their sites. The move followed a United States Department of Justice announcement that, in what some say is a contradiction of the Appeals Court ruling, the Wire Act relating to telephone betting applies to all forms of Internet gambling, and that any advertising of such gambling "may" be deemed as aiding and abetting. Critics of the Justice Department's move say that it has no legal basis for pressuring companies to remove advertisements and that the advertisements are protected by the First Amendment . As of April 2005, Yahoo! has instigated a restrictive policy about gambling ads.
In August 2004, Casino City, an online portal for internet gambling sites, sued the US Department of Justice. The complaint alleged, inter alia, that the websites business—promoting internet gambling—was legal, and requested a declaration from the court that its business was protected by the First Amendment. The U.S. District Court for the Middle District of Louisiana dismissed the case in February of 2005.
In the same month, the North Dakota House of Representatives passed a bill to legalize and regulate online poker and online poker cardroom operators in the State. Testifying before the State Senate, Nigel Payne, CEO of Paradise Piker, pledged to relocate to the state if the bill became law. However, the measure was defeated by the State Senate in March 2005. Rep. Jim Kasper, who sponsored the 2005 legislation, plans to introduce similar bills in the 2007 North Dakota legislative session.
In September 2006, just before adjourning for the midterm elections, both the House of Representatives and Senate passed legislation (as an amendment to the unrelated SAFE Port Act) that would make transactions from banks or similar institutions to online gambling sites illegal. This differed from a previous bill passed only by the House that expanded the scope of the Wire Act. The passed bill only addressed banking issues. The Act was signed into law on October 13th, 2006 by President Bush. At the UIGEA bill-signing ceremony, Bush did not mention the Internet gambling measure, which was supported by the National Football League but opposed by banking groups.
In response to SAFE Port Act, a number of online gambling operators including PartyGaming, Bwin, Cassava Enterprises and Sportingbet announced that real-money gambling operations would be suspended for U.S. customers. PartyGaming's stock dropped by 60% following its announcement. Other operators such as PokerStars announced their intention to continue serving customers in the U.S.
On April 26, 2007, Rep. Barney Frank (D-MA) introduced HR 2046, the Internet Gambling Regulation and Enforcement Act, which would modify UIGEA by providing a provision for licensing of Internet gambling facilities by the Director of the Financial Crimes Enforcement Network.
On June 7, 2007, Rep. Robert Wexler (D-FL) introduced HR 2610, the Skill Game Protection Act which would legalize Internet poker, bridge, chess, and other games of skill. Also on June 7, Rep. Jim McDermott (D-WA) introduced H.R. 2607, the Internet Gambling Regulation and Tax Enforcement Act IGRTEA would legislate Internet gambling tax collection requirements.
On June 8 , 2007, the House Financial Service Committee chaired by Barney Frank, held a hearing entitled, "Can Internet Gambling Be Effectively Regulated to Protect Consumers and the Payments System?". Expert witnesses at the hearing testified that Internet gambling can be effectively regulated for age verification, money laundering issues, facilitation of state and federal tax collection, and for issues relating to compulsive gambling.
Is online gambling legal in Australia?
On the 28th of June 2001 the Australian Government passed the Interactive Gambling Act 2001 (IGA). The government said that the IGA was important to protect Australians from the harmful effects of gambling.
The IGA targets the providers of interactive gambling services, not their potential or actual customers. The IGA makes it an offence to provide an interactive gambling service to a customer physically present in Australia, but it is not an offence for Australian residents to play poker or casino games online. In stark contrast to the USA, sports betting online is also completely legal in Australia, with many state government licensed sportsbooks in operation, such as Centrebet, Sportingbet and Betfair.
The offence applies to all interactive gambling service providers, whether based in Australia or offshore, whether Australian or foreign owned. The offence carries a maximum penalty of $220,000 per day for individuals and $1.1 million per day for bodies corporate.
Complaints regarding Online gambling facilities serving Australian users can be made to the Australian Communication and Media Authority.
Is online gambling legal in other countries?
Various forms of online gambling are legal and regulated in many countries, including most members of the European Union and several nations in and around the Caribbean Sea.
In India it is neither legal nor illegal the Law is silent on the issue, but in the state of Maharashtra it is a banned offence under the "Bombay Wager Act".
The government of the island nation of Antigua and Barbuda which licenses Internet gambling entities, made a complaint to the World Trade Organization about the U.S. government's actions to impede online gaming. The Caribbean country won the preliminary ruling but WTO's appeals body somewhat narrowed that favorable ruling in April 2005. The appeals decision held that various state laws argued by Antigua and Barbuda to be contrary to WTO agreements were not sufficiently discussed during the course of the proceedings to be properly assessed by the panel. However, the appeals panel also ruled that the Wire Act and two other federal statutes prohibiting the provision of gambling services from Antigua to the United States violated the WTO's General Agreement on Trade Services, or "GATS". Although the United States convinced the appeals panel that these laws were "necessary" to protect public health and morals, the asserted United States defense on these grounds was ultimately rejected because its laws relating to remote gambling on horse-racing were not applied equally to foreign and domestic online betting companies, and thus the United States could not establish that its laws were non-discriminatory.
On March 30, 2007 the WTO confirmed the U.S. "had done nothing to abide by an earlier verdict that labeled some U.S. Internet gambling restrictions as illegal."
On June 19, 2007, Antigua filed a claim with the WTO for USD $3.4 billion in trade sanctions against the United States, along with a request for authorization to ignore U.S. patent and copyright laws. This followed by a day similar demands for compensation made by the European Union.
What are the statistics for Problem
Gambling?
A study by the UK Gambling Commission, the "British Gambling Prevalence Survey 2007", found that approximately 0.6% of the adult population had problem gambling issues, the same percentage as in 1999. The highest prevalence of problem gambling was found among those who participated in spread betting (14.7%), fixed odds betting terminals (11.2%) and betting exchanges (9.8%). Additionally the report noted a 4% drop in overall gambling in the prior year, from a rate of 62% in 1999 to 58% in 2007. Significantly the 2007 prevalence survey combined with the 1999 prevalence survey suggest that despite the rapid growth of Internet gambling there has been no associated increase in the number of problem gamblers. See Problem Gambling for more FAQs.
Are online casinos fair and honest?
Generally speaking, yes. Legitimate casinos do not need to operate crooked games to make a profit because the house edge and player mistakes provide them with a steady source of revenue. The rake in online poker games serves the same purpose.
However, dishonest casinos do exist. The most common complaint is that some online casinos are slow to pay out winnings or lock player accounts claiming that players have abused their games or played suspiciously. In a number of widely discussed cases, casinos have not paid out at all. We strongly recommend that players check the prominent internet casino message board services for the latest information on these issues or on a given casino.