1 / 29

INTERNET GAMBLING: SETTING THE STAGE

Today’s Agenda Lec Video Part 1 of 2. INTERNET GAMBLING: SETTING THE STAGE. Internet Gambling: Tale of the Tape. Oct 1995 Liechtenstein conducts online purchase of lottery tickets 1996-1997

luana
Download Presentation

INTERNET GAMBLING: SETTING THE STAGE

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Today’s Agenda Lec Video Part 1 of 2 INTERNET GAMBLING: SETTING THE STAGE

  2. Internet Gambling: Tale of the Tape Oct 1995 • Liechtenstein conducts online purchase of lottery tickets 1996-1997 • Caribbean & Central American countries begin hosting online casinos &/or sports/race books: Antigua; Netherland Antilles; Turks & Caicos; Dominican Republic; Grenada; Costa Rica; Belize; Panama • Online casinos &/or sports/race books offered by a few U.K. and Australian based companies • Online lotteries conducted in Finland and Coeur d’Alene tribe in Idaho

  3. Interactive Television (iTV) • iTV launched in late 1990s (e.g., movies on demand) • Has expanded to include shopping, banking, music selection, video game playing + GAMBLING • Interactive lotteries, bingo, horse racing, sports betting • TVG 1999 in U.S. (horse race betting) • Still very small percentage of ‘remote’ gambling market • Primary penetration in Europe (U.K. & France)

  4. Current Internet Gambling: 2093 Online Sites http://online.casinocity.com/

  5. Casinos http://www.freecasinogames.com/enter.html • Poker Rooms http://www.online-gambling.com/freecasinogames/Poker.html • Sports/Race Books https://www.bwin.com/sportsbook.aspx • Skill game sites http://www.king.com/

  6. Current Internet Gambling: Providers • 48 jurisdictions • Major providers are: • Gibraltar (208 sites) • United Kingdom (98 sites) • Malta (314 sites) • Alderney (62 sites) • Isle of Man (14 sites) • Netherland Antilles (257 sites) • Austria (9 sites) • Costa Rica (218 sites) • Antigua (76 sites)

  7. World’s 3rd Largest Provider • Canada! • Kahnawake Mohawk Territory in Quebec sites (n = 256) • http://www.canadian-casinos-online.com/kahnawake-gaming-commission.html • http://www.allslotscasino.com/ca/

  8. Payment Methods • 150 ways to pay • Visa and MasterCard most popular, and accepted by 90% of sites (not from U.S. players) • Other popular methods: Neteller (72% of sites); Bank Wire Transfer (58% of sites); Moneybookers (50% of sites); personal cheque (25% of sites).

  9. Current Internet Gambling: Market Share • $15-20 billion in 2008, with sports/race books, casinos and poker accounting for large majority • 4-5% of worldwide gambling market • Patronage uncertain: North America (30-35%) Asia (11 – 49%); Europe (23-44%) • U.S., China, U.K. largest single markets within these continents

  10. Past Year Gambling Participation in Canada in 2007 amongst Gamblers

  11. Prevalence of Internet Gambling • 0% to 7% depending on the country • 7% in U.K. in 2008 (9% if include iTV) • 7% Norway in 2006 • 1-3% U.S. in 2006/2007 • 2.1% in Canada in 2007 • 1-2% Australia in 2006/2007 • 1% Singapore in 2008 • growing

  12. Canadian Regulatory Framework • Provinces can operate all forms of Internet gambling (except horse racing) as long as patrons are residents of the province • In 2004, Atlantic LC & British Columbia LC began providing online sports betting, interactive lotteries, & lottery ticket sales • http://www.bclc.com/Default.asp • Federal govt oversees horse racing, and began allowing online bets in 2003. • In 2004, Woodbine Entertainment in Ontario began taking online horse race betting for tracks around the world • http://www.horseplayerinteractive.com/

  13. Canadian Regulatory Framework • Legality of Canadians placing online bets outside their province is unclear • Certain Canadian First Nations groups: Kahnawake (QU), Ochapowace (SK), Six Nations Grand River (ON), Alexander (AB) have hosted online gambling

  14. Internet Gambling: Legality 2009 Elsewhere • Total prohibition • U.S., China, Russia, Greece, Portugal, Bermuda, Pakistan, Saudi Arabia, Cambodia • All forms legal • U.K., Gibraltar, Antigua, Malta, Netherland Antilles, Panama • Some forms legal • Sweden, Finland, Germany, Hong Kong, Liechtenstein, New Zealand

  15. Internet Gambling: Legality 2009 • Only legal for residents • Finland, Austria, Norway, Canadian provinces • Only legal for residents and residents cannot gamble online outside the country • Czech Republic, Denmark, France, Germany, Hong Kong, Hungary, Italy, Norway, Slovakia, Sweden

  16. Concerns with Internet Gambling • Unfair, Illegal, or Irresponsible Business Practices • Not paying player winnings • Unfair odds • Free-Play sections with odds that favour the player • 1/3 of online players report having had a dispute with an online casino or poker website

  17. Concerns with Internet Gambling • Unfair or Illegal Player Practices • Hacking sites to pay wins • Theft and fraud at skill game sites • ‘denial of service’ attacks (extortion) • Money laundering • Player collusion • Poker bots

  18. Poker Bot

  19. Concerns with Internet Gambling • Internet gambling by prohibited groups (underage, site employees) • 50% of N.A. high school and college/university students have played on free play online gambling site (Derevensky et al., 2006) • 2% - 9% of North American youth report having gambled online for money

  20. Problems with Internet Gambling • Nature of Internet Gambling makes it conducive to producing Problem Gambling • 24 hr immediate access • Solitary play • Immersive interface • ‘electronic cash’ • Ability to play under influence of drugs or alcohol • In general, evidence suggests the prevalence of problem gambling is 3 to 4 times higher in Internet gamblers

  21. Problem Gambling in Canada in 2007 • Wood & Williams, 2009; n = 8,498

  22. Future of Internet Gambling • Continued strong revenue growth • Particularly strong growth among the Asian market • Strong growth in Betting Exchanges and Skill Games

  23. Future of Internet Gambling • Market consolidation • Growth of other forms of remote gambling

  24. Future of Internet Gambling • Increasing rates of problem gambling • Movement toward legalized and regulated markets (with some later regrets?)

  25. Pros of Legalized Internet Gambling • Regulatory control would ensure fair games and better player protection • Regulatory control would accrue economic benefits that are currently leaving the jurisdiction ($$$ then applied to prevention/treatment) • Govt should not be regulating people’s leisure behaviour or how they spend their money

  26. Cons of Legalized Internet Gambling • Legalization will increase the rates of problem gambling • Nature of online gambling makes it inherently more problematic • Significant % of online gambling revenue comes from problem gamblers (41% in Canada; 27% internationally) • Legalizing online gambling and redirecting $ into treatment does not offset the harm caused

More Related