Internet Gambling Revised Feb 8.ppt
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Transcript Internet Gambling Revised Feb 8.ppt
INTERNET GAMBLING:
SETTING THE STAGE
Today’s Agenda Lec
Video Part 1 of 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
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)
Current Internet Gambling:
2093 Online Sites http://online.casinocity.com/
Casinos http://www.freecasinogames.com/enter.html
Poker Rooms http://www.onlinegambling.com/freecasinogames/Poker.html
Sports/Race Books
https://www.bwin.com/sportsbook.aspx
Skill game sites http://www.king.com/
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)
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/
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).
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
PastYear Gambling Participation in Canada in 2007
amongst Gamblers
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
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/
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
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
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
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
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
Poker Bot
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
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
Problem Gambling in Canada in 2007
All Canadians
Canadian Gamblers
100.0%
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Canadian Internet Gamblers
Wood & Williams, 2009; n = 8,498
2.4%
NonProblem
Gambler
Low Risk
Gambler
12.6%
3.4%
Moderate
Problem
Gambler
1.1%
4.5%
0.8%
Severe Problem
Gambler
Future of Internet Gambling
Continued strong revenue growth
Particularly strong growth among the Asian
market
Strong growth in Betting Exchanges and Skill
Games
Future of Internet Gambling
Market consolidation
Growth of other forms of remote gambling
Future of Internet Gambling
Increasing rates of problem gambling
Movement toward legalized and regulated
markets (with some later regrets?)
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
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