Gambling on the Internet Gambling on the Internet
Gambling on the Internet Gambling. . . on the Internet 8 -Dec-2000 Johannes Beck 1
Gambling on the Internet Structure of Term Paper I. Introduction (1) Types of Gambling (2) History II. Internet Gambling 1 2 3 4 8 -Dec-2000 (1) Types (2) Development (3) Risks & Concerns (4) Benefits (5) Government Regulations III. Conclusions Johannes Beck 2
Gambling on the Internet Types and Development Customers are mainly Ø Digital 30 -80% Online casinos divide annual also and growth in Ø Male Ø internet plus sports software booking gambling and are the Ø English speaking Ø Emerging hardware pillars of internet business markets are Ø Europe Other studies gambling and Asia vary significantly and are mostly higher 8 -Dec-2000 Johannes Beck 3
Gambling on the Internet Risks & Benefits Ø jobs Ø Investment Ø Tax revenue Youth Gambling familiarity easy access anonymity high level of privacy 24 hours Contribution to society and economy Pathological Gambling PROBLEM: difficult to compare risks and benefits due to lack of information Criminal Use 1. Lack of Accountability 2. Computer Hacker 3. Money Laundry 8 -Dec-2000 Johannes Beck 4
Gambling on the Internet Government Regulation Ø 40 countries worldwide which allow gambling Ø Australia, Austria, Germany, Finland. . . Ø Off-shore countries (tax haven) Ø USA struggles bet regulation and banning Ø $ 40 billion tax revenue by state-run lottery But is it possible to stop internet gambling without a worldwide uniform law? „The government has as much of a chance of banning „It is impossible to stop people gambling on the internet gambling as the FAA has of banning migrating Internet, all you can do is to make it harder. ” ducks flying through commercial air space. “ (The Economist 1999) (Posting in a gambling newsgroup) 8 -Dec-2000 Johannes Beck 5
Gambling on the Internet Conclusions 1. Internet Gambling will not substitute off-line industry: Ø betting will be mostly conducted via Internet Ø but casinos and lotteries will hold a big market share Ø overall growth 2. Trend toward regulation instead of banning Ø regulation (mostly through licensing) is the only way to generate budget to cover the social costs following from excess gambling Ø these social costs occur independent from any regulation 3. Social Problems will sharply increase Ø youth gambling and pathological gambling due to features of Internet 8 -Dec-2000 Johannes Beck 6
End of the story Gambling on the Internet „I had control of my gambling behaviour, . . . but the presence of internet gambling made it uncontrollable. “ (web posting of an addict) 8 -Dec-2000 Johannes Beck 7
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