Ballyhoo and Reckoning: The Brave New World of Online Gambling
Mary Kitt-Neel, Smashwords Edition
Copyright 2011, Mary Kitt-Neel
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Contents
Chapter 1: Overview and History of Online Gambling
Chapter 2: Management of Online Gambling
Chapter 3: Slots and Online Tournaments
Chapter 4: Games Ending in ‘O’
Chapter 6: Roulette and Baccarat
Chapter 9: Mobile Gaming and the Future of Online Gaming
Chapter 10: Internet Gambling Laws in the USA
Chapter 11: The Bad Side of Online Gambling
Introduction
I don’t gamble online. I thought I should get that out of the way right up front. For one thing, gambling with actual money doesn’t interest me, and for another, whenever I have any extra money (and my youngest child is about to go to college, so that rarely happens), there are other things I want to spend it on.
However, in my career as the writer of web content, I have been assigned extensive work on online casinos, online games, and online gambling. While I don’t have any interest in joining a site and pulling a virtual slots lever, I do happen to be fascinated by the mathematics of probability, the making of odds, and how the house edge works. Before becoming a writer I worked as an engineer for over a decade, and some of the fascination with numbers stayed with me after I left.
This book is a primer on online gambling: the good, the bad, the indifferent, and the ugly. If you’re going to try online gambling, you owe it to yourself to learn which games have the greatest and least house edge, which bets are just plain stupid to take, and how to find an online casino with a bonus structure, games, and payout percentages that work with your wagering and playing style.
The world of online gambling is fascinating for many reasons. It had a quick and meteoric rise to worldwide popularity due to the internet, has suffered setbacks due to legislation in the United States and elsewhere, made accommodations and started thriving again, and is now branching out into the worlds of mobile handheld devices and social networking. So let’s get started exploring this amazing electronic universe.
Chapter 1: Overview and History of Online Gambling
How Internet Gambling Became a Multi-Billion Dollar Industry
Online wagering got its start in the 1990s, but it didn't take long for it to turn into a multi-million dollar business. The catalyst for the explosive growth in online gaming came in 1994, when the government in Antigua Barbuda, an island nation in the Caribbean, passed legislation allowing internet casinos to operate from there.
Naturally, plenty of people saw this as a huge opportunity, and two in particular, Andrew and Mark Rivkin, formed a company called Cryptologic to write the software platforms that enabled safe handling of finances for online wagering with till-then unsurpassed encryption practices. Another big internet gaming company was formed in 1994 too: Microgaming.
Cryptologic and Microgaming were the two top companies as far as gaming technology. Cryptologic was the first to make a fully operational gaming software platform with electronic bankroll management. By the end of 1996, InterCasino was also up and operational on the web - one of the very first online betting sites. It wasn't long before online casinos became a multi-million dollar juggernaut. Not long after that it stepped up to being a multi-billion dollar industry.
In 1997, Microgaming introduced Cash Splash, the first online progressive slots game. Back then, players from the US composed a large chunk of the online betting population, and this fact drew the particular attention of Senator John Kyl (R-AZ), who started drafting legislation to stop people from betting online. The first bill addressing the issue, the Internet Gambling Prohibition Act, did not pass, and Americans continued to enjoy their love affair with online gambling.
Other world players that came on board the online casino train during the late 1990s included Argentina, and UK territories Gibralter and Isle of Man, which set up hugely popular online sports betting sites. By 2001, the British Channel Islands had legalized online betting, and later that same year, there was a push to legalize internet wagering in the entire UK.
In 2005, the UK Gambling Act was made law, and it was a boon for the internet casino industry. The law created the UK Gambling Commission for oversight of all enforcement of regulations in licensing online casino sites, preventing underage gambling and ensuring software platform fairness accreditation and reporting of monthly payout percentages. The Commission also investigates and prosecutes illegal gambling activity and basically is a very comprehensive online gambling regulatory agency. The UK's internet wagering oversight is now considered a model for other countries that want to regulate online gambling.
In October 2006, US legislators tried to legislate the end of betting online by American citizens, with the Unlawful Internet Gambling Enforcement Act, or UIGEA. Then-Senate Majority Leader Bill Frist (R-TN), attached the bill to a "must-pass" bill on Port Security aimed at combating global terrorism, claiming that online wagering proceeds were used by offshore companies to fund terrorism. Congress wanted to go home before the midterm elections and passed the bill. But just before enforcement of this act was to go into place, new legislation was written allowing US citizens to participate in online gaming. Though it has passed from committee, there is no guess as to when or if it will be passed by the House and Senate. That means that as of late 2010, US online gamblers exist in a hazy area of the law, though public sentiment is strong behind full legalization of online gambling in the US.
Online Casinos Take to the European Stock Market
As of 2010, internet gambling already has a place on the London Stock Exchange, and this trend is set to continue strongly as worldwide acceptance of internet wagering increases. The UK online gambling site Betfair stormed onto the London Stock Exchange with a stock float of £1.5 billion on October 22, 2010. Founders Andrew Black and Ed Wray, who own 25% of the firm realized £375 million, and are likely to sell some of their holdings if the stock increases as expected after the offering.
Another big financial step in the online gambling business is the upcoming merger between PartyGaming PLC and Bwin Interactive Entertainment. The merger will create the world's largest online betting empire, leading the worldwide market in casino games and sports betting. Shareholders of both the entities have approved of the merger, and the deal is expected to close in the first quarter of 2011. The resulting company will be traded on the London Stock Exchange.
Before the merger, the companies combined had net gaming revenues in 2009 of 682 million Euros, and PartyGaming experienced an immediate 25% jump in its shares after the merger was publicly confirmed. PartyGaming is based in Gibralter, and Bwin is based in Austria. After the merger, Bwin's assets and liabilities will then transfer to PartyGaming, and the newly merged company will be based in Gibralter.
The PartyGaming-Bwin merger is expected to prompt more mergers and acquisitions, particularly when coupled with a worldwide trend of relaxing gambling laws.
Another trend that is likely to improve the finances of the internet gaming industry is the increase in the use of handheld mobile devices for online wagering. The value of the mobile online gaming sub-sector is valued at around $20 billion (US) in 2010, and that value is expected to grow rapidly in 2011. For more on mobile gambling, see Chapter 9: Mobile Gaming and the Future of Online Gaming
Right now, the main thing holding back the impending surge in mobile gaming is that mobile device brands and media owners are waiting on various international legalities of online gambling to work themselves out, particularly in the U.S., which would represent an enormous market if legislation is passed by the U.S. Congress clarifying the legal status of online casinos in the U.S.
But internet wagering concerns aren’t waiting around. Some companies are developing and testing mobile platforms in anticipation of growth in the sector, and the UK has led the way in this effort. Other areas of the world expected to capitalize on the growing popularity of mobile internet gambling include Europe as a whole, which currently makes up 37% of the market. The Asia-Pacific region makes up nearly 40% of the market. The biggest contributors to the fortunes of mobile gambling in terms of games are expected to be lotteries, with sports betting coming in second, and casino gaming following.
Web Casinos and Land Casinos
Not
everyone in the U.S. lives near Las Vegas or Atlantic City, and many
of those who do don't especially like the atmosphere at land-based
casinos. Web casinos have multiplied rapidly since the year 2000, and
they thrive partly due to the advantages they offer over the
bricks-and-mortar casinos. The reasons for their appeal range from
the generic to the specific. One of the main advantages of betting
online is that you can participate in pajamas, listening to your
favorite music rather than the clatter of machines, while enjoying
your favorite snacks.
With online betting games, you can have your dog curled up next to you and the smell of that spaghetti carbonara your spouse is cooking coming from the kitchen. But at a land-based casino, you might be alone, and you’ll have to put up with a smell that has been described by some as "cigarette drenched jackets and fear."
While live casinos do offer a certain type of social interaction, the venues can be very intimidating to the beginner, particularly with games like craps and baccarat. On the web, you're in your own space and you can make the online casino disappear altogether with the click of a button. For people who don't live near a casino, the best case scenario for playing live casino games is a long drive, and the worst case scenario is a series of soul-sucking airports with all the attendant hassles and expenses.
Online poker is in many cases more of an intellectual pursuit than live poker. Successful online poker playing requires highly developed skills since you don’t have "tells" or clues about what the other players are holding. Teasing out the aggressive bettors is harder online, but there are fewer distractions, making it easier for you to actually consider a strategy. With live poker, personalities are always strongly in evidence, and there's a good chance you won't like some of them. Another advantage of web-based poker is not having to cope with patronizing people at the table who are all too willing to tell you how you blew your hand and what you should have done instead. Do they know what they're talking about, or do they just like hearing themselves talk?
But honestly, with online poker, there are social aspects too. You can join forums to learn the game and interact with people from all over the globe, many of whom are at the same experience level as you are. You also have instant access to hundreds of games, and you can take a break from the action whenever you like. It's a matter of personal choice, and while some people like the vibrant atmosphere of the casinos with the winners shouting and craps tables clattering, some find them overwhelming and intimidating. And besides, if you think you may want to visit Las Vegas or some other gambling city in the future, it can only help if you practice and fine-tune your game at your own pace.
Craps is an example of a game that has greatly benefited from web casinos. If you're a new craps player and see it live at a casino, you're likely to be confused and a little intimidated by the fast pace, the lingo you haven't learned, and the shouting. Online, however, all those distractions disappear, and you can concentrate on the basics while you learn the game.
Playing
online, there'll
be no "experts" standing there telling you that you're
shooting the dice wrong or betting wrong, and you don't have to worry
about shakily
rolling the dice and having them not reach the back wall of the
table, or having go
right over
the end of the table. You would think that something as simple
as rolling two dice all the way to the other side of a table would be
a
cinch.
Yet in the buzzing environment of the
live
craps table, even this can be daunting. And
on a more practical note,
you're expected to tip the dealer at a live craps table, and online
casinos eliminate this expense.
If you want to play craps
online, you can start
today
by reading up on how to play the game, why the table is formatted
and marked
as it is, which bets are your best, and the basic strategies for
winning. You can play as many practice games as you want
without risking a dime.
If you get to the point where you feel like playing for real money,
you can do so at when
you’re good and ready.
Shooting is only a matter of clicking "Roll" and waiting
for the random number generator.
Poker is another huge draw for internet casinos, and it's no mystery why. Beginners can learn the game at their own pace and play without betting real money until they’re sure they're ready for the real thing. Mis-playing a hand on the internet is much less embarrassing than doing so in person, and avatars are far less scary (if less revealing of motives) than actual people who may have much more experience sharing a live poker table with you. And once you do get good at playing online poker, you can maybe even earn some decent money from playing - something that you generally can't expect to do playing typical live casino poker.
While there are some people who genuinely enjoy the noise, energy, and smell of a live poker table or a live craps table, there are plenty more people who want to enjoy the game itself without the distractions found in bricks-and-mortars casinos. Internet casinos are the answer for millions of people who want to play mostly for the love of the game.
The Excitement and Popularity of Online Casinos
The online casino business has boomed throughout the economic downturn of the late 00’s, and it is little wonder why. Playing in a casino on the web is something people can do at home, and with games like the perennially popular Texas Hold'em poker, people can build their skills and test them against very talented players. Online bingo can be a great, easy diversion on a rainy, cold night when people don't want to go out, and playing blackjack online is fast-paced and thrilling.
People can and do win big with internet gaming, though it’s not a good idea to go into online gambling with the idea that this will be your fate. On the other hand, 1,000 people buying in to a bingo game makes for a much bigger payout than most people can find at a local land-based bingo hall.
There are advantages to playing online with other games, too, like poker. If you play live poker, you risk the other players being able to “read” your body language. While there are tips and tricks to “reading” poker players' behavior online, it's definitely not as easy as it is face to face!
Many people find the draw of the online gambling hall much more easygoing than a bricks-and-mortar establishment. Most players are friendly and easy to “talk” to on forums - a boon to shy people who have always wanted to try their hand at slots or craps.
The UK is one of the world's hottest places for online casinos, and really set the standard for online gambling regulation with their early laws on the matter. A research study by Nielsen in 2010 discovered that from July 2009 to July 2010 UK internet gaming sites experienced larger increases in visitors than Facebook!
During that year, 3.2 million new participants visited online wagering sites, versus 2.2 million new members on Facebook. That represents a 40% increase over the previous year for the UK online casinos. The demographics of those who choose to play at a casino online are broadly spread, to, with women making up nearly half of web casino gamblers.
In 2010 online slots were the most popular of the internet casino games. Slots are easy to play and skills aren't necessary, because the outcome is based purely on chance. And because players are only playing against the house, there's no fear of silent judgment from others.
The best of the online slots pay out quite well. Experienced slots players will tell you that over the long term, playing slots with more, smaller payouts works out better than playing slots with fewer, larger jackpots for the average slots players, so be sure to check the payout tables before committing to a slots game. All the classic casino games are available on the web, including keno, baccarat, and roulette. All have their unique appeal to the web gamer, and all make for an exciting time.
Microgaming Software
Of course, none of the excitement that is online gambling would be possible without the software that makes it possible Microgaming Software Systems Ltd. is the software platform developer that is one of the leading providers of software to web casinos. As of mid-2010, Microgaming Software provided the software to power over 40 poker rooms and 120 internet gambling sites, representing a total of over 400 uniquely branded games.
There are now also numerous progressive jackpot and poker networks that are tied together on the web with Microgaming software. The Progressive Jackpot Network, for example, ties together multiple online casinos, allowing players in all of them to watch as the jackpots grow, and better yet, have a chance at winning them.
The Progressive Jackpot Network claims to have paid out nearly $300 million from the time it started through the summer of 2010. In May 2009, a progressive slot game called Mega Moolah gave away €6.37 million via the Progressive Jackpot Network.
The Microgaming Poker Network is an internet poker subsidiary of Microgaming Software Systems. It allows players to participate in multiple-player games like the super-popular Texas hold’em version of poker in real time against real people.
In early 2009 the Microgaming Poker Network entered into a partnership with Ladbrokes Poker, which is Europe’s biggest online poker site. On Ladbrokes, players can play to qualify for the World Series of Poker, Poker Aussie Millions, the Irish Poker Festival, the European Poker Tour, and the European Ladies Championships. When Microgaming Software Systems and Ladbrokes announced their partnership, they launched a promotion to give away the equivalent of $1 million per month. The partnership also allowed Ladbrokes to award prizes in Euros for the first time ever.
There are several reasons why Microgaming Software Systems is so popular with online casinos. For one thing, the graphics and sound quality are top-notch, and Microgaming has a good track record with its high impact graphics and sound, along with smooth animation and engaging audio.
Microgaming Software Systems also has the most extensive selection of games for online casinos. Some of the sites that Microgaming supports have more than 200 games for players to choose from. They’re also reliable for making their game updates quick and seamless whenever possible. Initial downloads for first-time players do, of course, take time, but once the games have been downloaded, updates can be seamlessly downloaded in the background without interrupting play.
Microgaming Software Systems has over a dozen progressive games, like progressive blackjack, poker, and slots. These games are networked into the Progressive Jackpot Network, which allows for higher initial seed values for jackpots.
And as for the user experience in downloading Microgaming’s online games client, it is highly rated and considered by many to be the best currently available. Switching among languages is possible directly in the software client once it’s been installed on a player’s computer. This may only matter for players who want to play in their native language after downloading, say, the English version, but it can also be helpful in multi-lingual households where people want to play online in different languages.
Instant play, or “no download” versions of many popular online casino games is another feature that Microgaming Software Systems does well. These games require Adobe Flash, and they require players to allow Microgaming Systems to install an ActiveX controls for identifying their unique computer. While some players may not like this, it is one measure that the company uses in an attempt to curb fraud in online gaming.
Finding the Best Online Casino for You
The online casinos open to US players have to be able to handle payments from the US. (File that under “Duh.”) A lot of reputable internet casinos are now able to do this by employing various “e-wallet” setups, prepaid plastic, and other types of money transfer. While you can use some US credit cards at some web casinos, this is not always a sure thing. And there’s no real way to know whether it will work without just trying it. Therefore, it’s very important that you figure out your payment options before you set up an account at an online casino.
What else should a new player look for when choosing an internet casino? The casino’s reputation is important, as are whether or not their payouts are independently audited (they definitely should be), how seriously they take customer support, and what their bonus terms and conditions are.
You can determine a great deal about a casino’s reputation by spending some time on general online gambling portals and by reading through several online gambling forums. Even if a casino is highly touted on a general online gambling portal, be sure to take the time to check things out for yourself before creating an account. Have a look at the site itself. Is the text content written in poor English? Does the site look like something is “off”? Does your browser give you a malware warning and make you click through it to view the site? All of these are important signs that you should look at some other sites.
Perusing online gambling forums is another good way to find out what people really think of gambling sites. On these, you’ll find out whether US players have problems using a site’s payment systems for one thing. You canl also find out if a lot of players have had bad experiences or trouble collecting at certain sites.
When reading forums, you should realize that sometimes people with ulterior motives post on forum sites, and you should take any overwhelmingly positive or overwhelmingly negative posts with a grain of salt, especially if they are outnumbered by posts saying the opposite. Remember how they used to judge figure skating? Throw out the high score and the low score, and average what’s left. That’s the same approach you should take when reading forums.
When you investigate a promising gambling site, one of the first things you should do is check the casino’s payout percentages, and also whether they are audited independently. The best sites’ payout percentages are independently audited. Check out the payout reports to get an idea of a casino’s long-term payouts. You’d be wise to compare payout reports from a handful of promising sites before setting up an account on any of them.
Top web casinos should offer 24/7/365 email support, toll-free phone lines for different countries, and live chat support. Some casinos offer call back service in addition to these. The more support options you find, and the more prominently they’re displayed, the better. If you have to search the site with a fine-toothed comb to find out your support options, it’s a bad sign.
Gambling website bonuses always come with game restrictions and wagering requirements. While it’s a pain, you should absolutely read a site’s bonus terms and conditions so you’ll know exactly how they work. If the bonus terms and conditions are hidden away in the deep recesses of the site, or not found anywhere on the site that you can find, beware. The terms and conditions for a site’s bonuses should be clearly spelled out on the site unless the casino tries to cheat players using bonuses as a marketing trick.
Also, while there is nothing wrong with setting up accounts at reputable web casinos based on generous bonuses, don’t bother trying to game the system once you run out of money. They can tell if you’re cloaking your IP address in an attempt to convince them you’re someone else setting up a new account. If you’re caught, you’ll be banned from that web casino altogether. The bonuses may be generous, but online casinos don’t offer them out of the goodness of their hearts. They offer them because they’re good business in the long run.
Finding good online casinos that US players can use may take a little extra research, but they most certainly exist: casinos want to attract customers from the US if they can, and many of them have made provisions so that US players can transfer money legally and participate in online gambling.
There are, unfortunately, bad sites out there too, so it is vital that you thoroughly check up on the reputation, terms and conditions, and customer support options for any casino to which you plan to transfer your hard-earned money.
A Brief Description of the Big Three: Blackjack, Poker, and Slots
Three of the most popular internet casino games are blackjack, poker, and slots.
Blackjack played online is just like blackjack in a land-based casino. The object is to beat the "dealer" by getting a hand as close as possible to 21 without going over. The game of blackjack has been around in various forms for more than three centuries, with the rules remaining much the same over that time span.
Success in online blackjack utilizes both chance and skill, yet the game very easy to learn. Using a standard 52-card deck, the player and dealer are both dealt two cards. The goal is to get a hand whose cards' values add up to 21. In order to make 21, you must be dealt an ace, because an ace is the only card that can have the value of 1. An ace can also have the value of 11. Face cards have the value of 10.
If a player's hand adds up to something other than 21, he can choose to receive one card at a time until one of three things happens. If the value of the hand reaches exactly 21 he wins (unless the dealer also hits 21. More on this in Chapter 7.). If the value of the hand exceeds 21, he loses and forfeits the hand. If the value of the hand is close enough to 21 that the player believes he or she will beat the dealer, they can choose to "stand" rather than receive any more cards.
There are a few fine points to the game, like what happens when both the player and the dealer reach 21, and when the dealer has to "stand" and when the dealer has to take another card, but the basic objective is to beat the dealer in getting closest to 21 without going over.
Online poker is enormously popular, with games like Texas Hold'em being among the most popular poker variations in history. Step one for playing poker online is learning the hierarchy of winning hands: royal flush, straight flush, four of a kind, full house, flush, straight, three of a kind, two pairs, one pair, high card. Most online casinos have several free practice tables where new online poker players can learn the basics and the pace of online poker without risking real money. It's a very good idea to practice and master the basics before playing in actual games for money.
Slots are perhaps the most popular online casino game, and although there is no “strategy” in virtually pulling a slot machine lever online, there is a strategy to choosing whether to pursue bonuses or not. Your success at online slots depends on luck, but also on mastering each game's payout tables.