The tribulations being faced by Full Tilt Poker at present are no doubt being watched with barely concealed schadenfreude by some of its competitors in the Internet gambling sector. But the events of the last few months concerning PokerStars and Full Tilt reflect badly on the entire e-gaming market.All e-commerce is based on consumer trust but within online gambling the dependence on trust is even more crucial. Online gambling companies do not make anything or sell anything physical. They simply hold players’ money and move that money around based on the outcome of events be they sports events or RNG-based events. Trust is a fragile commodity and anything that threatens it affects the entire e-gaming sector.Look at recent events involving PokerStars and FullTilt from the ordinary European players’ point of view.One Friday evening (European time) in April 2011 they logged into their account only to find that the US Department of Justice had seized the domain name.Then for FullTilt players, many were faced with a “system update” message at the end of June 2011 saying the system is down and giving an email address as a point of contact.Most players in Europe simply do not follow regulatory events as closely as those working in the industry do, so these events would have been both confusing and worrying.Both FullTilt and PokerStars are very high profile e-gaming firms in the UK, widely advertising on television and in print, as well as sponsoring televised poker tournaments. Regardless of the reality of the situation, many consumers will take the attitude that if it can happen to these two high-profile e-gaming websites, why shouldn’t it happen to any other gambling site? This in turn may influence consumer behaviour on e-gaming sites and their trust in them – maybe keeping lower amounts of funds in their accounts, for example, or hesitating to deposit funds at all.For consumers there is always a sense of anxiety when a business’ website experiences trouble – not just in e-gaming but any sector. This sense of anxiety is heightened when it is an “Internet only” business without a high-street presence.It is Gambling Consultancy assessment that a “clicks and mortar” strategy will be the most beneficial in years to come. This strategy could mean betting shops on the high-street, casinos, bingo halls, or, of course, lottery outlets. A state lottery is often a brand highly trusted by consumers and with an extensive presence on the high-street. They will be well-placed to take advantage of the “clicks and mortar strategy”.Many former “offshore” online gambling companies have undergone a Damascene conversion in the last few years. They now clamour to be regulated and taxed by every government in Europe rather than enjoy the benefits of low-tax offshore jurisdictions. As such, they have lost all the advantages they had over their land-based counterparts. If you are going to be taxed as highly as a land-based gambling operation why not get some of the benefits of a land-based business too and get a presence on the high-street to give consumers greater trust in your brand?
Internet Casinos Inc. (ICI), the world’s first online casino, started operating from August 18, 1995, with 18 different games. Since then more than 1,400 websites, mostly domiciled in small Caribbean islands, have given rise to an industry that grosses over $3 billion a year. In fact no business on the Internet earns more revenue than online gambling. Out of the estimated 14.5 million online gamblers, almost 30 per cent are from Asia.A bet can be placed in minutes. Anyone with a credit card can set up an offshore currency account with a gambling site, leaving them free to place bets on sporting events like Wimbledon, cricket, horse racing and Formula One, or join a virtual casino to play slot machines, roulette, blackjack, poker etc. Companies like Flutter and Betmart accept bets on anything from who is going to win the Nobel Prize to whether Madonna is getting a divorce or not. Bets can range from a nickel to thousands of dollars and according to whether you win or lose the amount is automatically adjusted to your account. The final balance can then either be mailed to you or left for future bets.The law relating to online gambling in India needs to be understood within the country’s socio-cultural context. At the outset, gambling, although not absolutely prohibited in India, does not receive express encouragement by policy makers. The Indian organized gambling industry is estimated to be worth around US$8 billion. While stringent laws have checked the proliferation of casinos and high street gaming centres as in many other countries, barring the state of Goa, the lottery business remains the most post popular form of gambling.Though gambling is not illegal, it is a highly controlled and regulated activity. Modern India is a quasi-federal Constitutional democracy and the powers to legislate are distributed at the federal as well as the state levels. Gambling features in List II of the Constitution of India, this implies that the state governments have the authority to enact laws in order to regulate gambling in the respective states. Thus, there is no single law governing gambling in the entire country. Different states have different laws governing gambling in addition to the laws that have an application across the country. While some states have banned lotteries, other states allow state government lotteries marketed and distributed in other lottery playing and promoting states through private entities.Regulation of gamblingThe courts have defined gambling as ‘the payment of a price for a chance to win a prize’. The dominant element of skill or chance shall determine the nature of the game. A game may be deemed to be gambling if the element of chance or luck predominates in deciding its outcome. As a result, Indian courts have held that betting on horse racing and a few card games are not gambling. The right to undertake the business of gambling and lotteries is not considered as a fundamental right protected by the Constitution of India. It may however be pointed out that the state government run lotteries make significant contributions to the state exchequer of several state governments and the Union government, and hence there is a resistance to complete prohibition.The following legislation is pertinent to gambling:The Public Gaming Act, 1867This Act provides punishment for public gambling and for keeping of a ‘common gaming house’. This Act also authorises the state governments to enact laws to regulate public gambling in their respective jurisdictions. The penal legislations in respective states have been amended in accordance with their policy on gambling. However, this legislation does not have any direct impact on online gambling unless a wide interpretation is given to the definition of common gaming house so as to include virtual forums as well.The Indian Contract Act, 1872 (ICA)The ICA is a codified umbrella legislation that governs all commercial contracts in India. Under the ICA, a wagering contract is the one which cannot be enforced. The Act lays down; ‘Agreements by way of wager are void, and no suit shall be brought for recovering anything alleged to be won on any wager or entrusted to any person to abide by the result of any game or other uncertain event on which any wager is made’. Gambling, lottery and prize games have held to be wagering contracts and thus void and unenforceable. While a wagering contract is not illegal, it cannot be enforced in a court of law. Thus, the courts will not entertain any cause of action that arises out of a wagering contract.Lotteries (Regulation) Act, 1998This Act provides a framework for organizing lotteries in the country. Under this Act, the state governments have been authorized to promote as well as prohibit lotteries within their territorial jurisdiction. This Act also provides for the manner in which the lotteries are to be conducted and prescribes punishment in case of breach of its provision. Lotteries not authorized by the state have been made an offence under the Indian Penal Code. Several non-lottery playing states, like Gujarat and Uttar Pradesh, have prohibited the sale of other state-government lotteries under this Act.Indian Penal Code, 1860Section 294A deals with keeping lottery office. It says that whoever keeps any office or place for the purpose of drawing any lottery not being a State lottery or a lottery authorised by the State Government, shall be punished with imprisonment of either description for a term which may extend to six months, or with fine, or with both.And whoever publishes any proposal to pay any sum, or to deliver any goods, or to do or forbear doing anything for the benefit of any person, on any event or contingency relative or applicable to the drawing of any ticket, lot, number or figure in any such lottery, shall be punished with fine which may extend to one thousand rupees.Internet gamblingThe law related to gambling is also applicable to online gambling. All gambling contracts are considered to be wagering contracts and it is not possible to enforce such contracts under the ICA, detailed above.As pointed out earlier, the online lottery is the most popular form of internet gambling in India. Most companies marketing and distributing or conducting state government-sponsored lotteries through the internet are not allowed to sell their services in the states that banned lotteries. In most cases, these marketers and distributors limit their online services to consumers who are residents of the states where a lottery is permissible. Notwithstanding the fact there has been no reported case of breach by any company promoting online lotteries, most of these companies (as a safeguard) seek an undertaking from their consumers relating to their residence.There have been instances where one state has banned the lottery of other states, including online lotteries. In a recent case, the Karnatka High Court upheld the decision of the Karnataka government to make itself a ‘lottery free zone’ by imposing a ban on lotteries of all other states, including online lotteries under the Lotteries (Regulation) Act 1998. The state government, in this case, directed the closure of the terminals and kiosks selling the online lotteries.Enforcement over foreign jurisdictionsIf the websites are hosted and operated from outside India, it may be difficult for the Indian authorities to issue any directive to close them down or prohibit their access without using its blocking powers under the ITA. The authorities have little to worry about, as Indian foreign exchange laws do not permit remittances outside India for gambling related activity, such as the purchase of lottery tickets, football pools and sweepstakes. As a result, a gambling website hosted outside India aiming at receiving money from within India cannot do so through legal channels.ConclusionOnline gambling remains a highly regulated sector with seemingly limited horizons to grow. While the present regulatory framework makes it difficult for offshore gambling websites to target customers in India, the India-based companies can only distribute and market state-government lotteries online in permitted territories. The pervasive authority with the government to block gambling related websites and the impossibility of enforcing gambling-related contracts further discourage the prospects for the industry.
Gambling Equipment 101
The excitement and popularity of the gambling games entices few players to own their own gaming equipments. Mini blackjack tables and poker tables are quite famous among the buyers.The most common and perhaps inexpensive of the gambling equipments is the dice. Dice games are so ancient that their inventor is unknown by the historians. However, that the dice games prevailed in almost all the early civilizations is an established fact. the initial dice were animal bones, fruit stones, small pebbles or ivory. Today, dice has acquired much more precision with its cubical shape. While the standard dice is crude and used in households games, casino dice is more accurate and perfect. The casino dice, also called the ‘perfect dice’ is made in a manner that each side weighs equal after the holes have been punctured on each side. This enables equal probability of either side being the outcome. Serious gamblers use casino die in their games. Casinos have dice tolls available with them like the dice punches and dice vices.Cards have been played by many civilizations. The first pack of cards was made of thick paper with hand painted figures on them. The modern cards got their suits and faces in France. The French deck consisted of 78 cards. The deck comprised of both gaming and tarot cards. The tarot cards were then separated to reduce the number of cards in the deck. The cards were adopted by the Europeans and traveled to America where the joker was added to them. Cards are inexpensive to procure. Many people are fond of collecting various casino cards. These cards have the casino’s logo imprinted on them. The casino cards can either be bridge size or poker wide.Casino tables vary according to the style game one is playing i.e. poker has different table than the blackjack. One table can cost the buyer some thousand dollars. The table can either be a standard one or customized. The tables differ in quality according to the price. The table face has a woolen felt surface with the game’s name marked. The odds and the areas for placing the bets is also demarcated. A person interested low on budget or keen on building his own table can do so with the help of various blueprints available.Poker has gained momentum over the years. The game was given a tremendous boost when the televised tournaments were organized by sports channels a few years back. Since then every poker player dreams to make it big. Online tournaments are also conducted. The basic poker requirements consist of grade cards, heavyweight chips and dice sets. Enthusiasts can also buy automatic card shufflers.Bingo a famous and simple game popular among all age groups consists of simple equipment. The entire requirements are contained in the bingo kit, which can be bought from the market. The kit usually comprises of bingo cards, hand cranked ball cage, bingo balls and markers. The players can diversify and go for other instruments like the daubers.The thrill and excitement of gambling has found players every where. Legalized gambling in cities like the Las Vegas and state owned lotteries boost the gambling economy. Poker groups are formulated in colleges, workplaces and are a perennial source of recreation. All these trends ensure a promising future to the gambling industry