internet gambling l.
Skip this Video
Loading SlideShow in 5 Seconds..
Internet Gambling PowerPoint Presentation
Download Presentation
Internet Gambling

Loading in 2 Seconds...

play fullscreen
1 / 15

Internet Gambling - PowerPoint PPT Presentation

  • Uploaded on

Internet Gambling. Economics vs. United States Law. Gambling in the Public Eye. Poker Tournaments on TV Everyday ESPN’s World Series of Poker Tilt Television Series Celebrity Poker NBC, FOX Sports, Travel Channel…. Gambling in the Public Eye. Hundreds of Internet Gambling Sites

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
Download Presentation

PowerPoint Slideshow about 'Internet Gambling' - richard_edik

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.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
internet gambling

Internet Gambling

Economics vs. United States Law

gambling in the public eye
Gambling in the Public Eye
  • Poker Tournaments on TV Everyday
    • ESPN’s World Series of Poker
    • Tilt Television Series
    • Celebrity Poker
    • NBC, FOX Sports, Travel Channel…
gambling in the public eye3
Gambling in the Public Eye
  • Hundreds of Internet Gambling Sites
    • Poker Rooms, Blackjack, Sports Betting, etc.
  • TV Commercials, Magazine Ads
    • Who hasn’t heard of Party Poker?

If gambling online is supposed to be illegal how come I see it everywhere?

gambling online is easy
Gambling Online Is Easy…
  • All you need is a Computer and an Internet Connection
    • No planes, no hotel rooms, no hassle
  • No pressures of the traditional casino
    • People aren’t sitting around watching
    • Money transforms from green paper and chips to a number on the screen
gambling online is easy5
Gambling Online Is Easy…
  • Betting online can be relatively cheap
    • Ultimate Bet has poker rooms with bets as low as a penny
    • Penny slots can be found just as cheap

I can play with 10 bucks for a few hours and consider it my cost of entertainment. Where’s the harm?

gambling online is easy money
Gambling Online Is Easy…Money
  • Traditional casinos cost in the hundreds of millions to build
    • An online casino can cost a couple million to build
  • Traditional casinos have thousands of employees
    • Compare that to a couple hundred for an online site
  • Online gambling sites have higher profit margins
    • ICI has a profit margin of about 24%
    • Compare that to 8-16% for the usual casino
how do they do it
How do they do it?
  • Most Internet gambling companies avoid prosecution from our government by locating their sites offshore.
    • No “state-lines” on the Internet
      • Where does the actual bet take place?
    • National Sovereignty applies
      • Our government can’t force other countries to enforce our laws
how do they do it8
How do they do it?
  • Gambling’s popularity is too strong
    • Creates pressure for legalization
    • What’s a politician to do?

Remember Prohibition of Alcohol?

us government s first try
US Government’s First Try
  • “Let’s enforce the Interstate Wireline Act!”
    • Prohibits taking bets over “phone lines and other wired devices”
  • Nice try, but…
    • Written in 1961 -> “What’s an Internet ?”
    • Internet communication crosses state lines
    • Satellite Internet technology doesn’t use wires
let s try again
Let’s Try Again
  • “Let’s take the power away from the states and write a new law!”
    • Internet Gaming Prohibition Act of 1997
    • Prohibits taking a bet over the Internet anywhere in the US
  • Almost there, but…
    • Can’t stop offshore sites from taking bets from Mr. Smith in Ohio

“Let’s take our online business somewhere else, the Caribbean sounds nice!”

world trade organization
World Trade Organization
  • Passes a ruling against the US
    • Claims online gambling is too big an industry
      • $6 Billion worldwide and growing!
    • Should be treated just like any other
      • Cars, electronics, gambling… all the same!
      • Antigua’s economy needs the money, fights US
  • US appeals this and…
world trade organization12
World Trade Organization
  • United States Loses Appeal
    • January 7, 2005
  • United States Replies:
    • “Online gambling will still be illegal in the US”
    • “We’ll retract our commitments to the WTO if necessary to protect our citizens”

US Government sure sounds serious but what can they do now?

what s a lawmaker to do
What’s a Lawmaker to do?
  • International law isn’t going anywhere
    • Other countries will still have their rights
  • “Can we still prosecute Americans who operate online gambling sites overseas?”
    • Sixth Amendment protects US citizens
    • Domestic laws don’t apply to Mr. Smith when he moves to England
and the winner is
And the Winner is…
  • Online Gambling’s future looks bright
    • National Sovereignty is here to stay
    • Sixth Amendment is here to stay too
  • The Caribbean is not alone
    • Great Britain, Australia, New Zealand and many more countries are moving to legalize gambling on the Internet

US seems alone and out of ideas right now

the end
The End?

"We just accommodate changes in legislation and find ways around it, there is far too much demand, and too many participants, for a prohibition to work.”

  • Dr. John Reynolds