|
Internet Gambling is one of the fastest growing forms of gambling worldwide. Whilst only small numbers of Australians currently gamble online, the money spent is significant. It is also easy for these people to experience gambling problems without anyone being aware of it. In this issue’s focus on gambling we look at Internet Gambling.
Internet gambling is a subset of a wider range of gambling forms termed interactive gambling. Interactive Gambling is defined as betting using a service provided over the Internet, a broadcasting or datacasting service or any other content service. This includes gambling over interactive and digital television, over mobile phones or any other form of gambling that uses a communication medium such as a phone line.
Interactive gambling, including internet gambling, is regulated in Australia by the Commonwealth Interactive Gambling Act. This is different to all other forms of gambling which are regulated by the individual states.
Many people are unclear whether internet gambling is legal in Australia and this has led to some people hiding their online gambling. Whilst it is illegal to set up an internet casino in Australia targeting Australians, these sites can accept bets from foreigners. There is however only one internet casino operating in Australia, namely Lasseters.Com. This site is connected to the Lasseters land based casino based in Alice Springs.
It is also legal for Australians to gamble on sites overseas. Whilst this has been a significant deterrent for many potential online gamblers it has also meant that Australian gamblers do not received the benefit of consumer protection measures required for Australian-based internet casinos.
How big is internet gambling?
About 6% of Australia’s Gambling Revenue comes from Internet gambling ($765m). This is compared to $4.238b lost on poker machines in the same year. (2000/01) (ABS Data). Internet gambling worldwide is forecast to reach A$17.6 billion in 2006.
Australia represents about 1.3% of the world’s interactive gaming market. This sector is however growing rapidly at an estimated 20% every year. Australia is currently under-represented mainly due to the federal legislation but with internet casinos being legalised in many countries around the world that Australians can relate to and trust, this is starting to change.
Gambling Online
All types of conventional gambling are available on the internet in simulated forms. Games include pokies/slot machines, table games, video poker, traditional poker, wagering, sportsbetting and various types of lotteries including standard lotteries, keno and scratch tickets.
Limited skills are required to gamble on the internet. Basically all you need is to speak a language (not necessarily English), be able to count (so you know how much you have won or lost) and how to operate a computer.
On some sites you don’t even need money to gamble. "Playing for fun" usually involves setting up an account as if you were to gamble "for real" but instead of gambling with money you gamble with points. Unfortunately these games seem to win more often when playing for points than for money and can give an impression that you could win significant amounts playing these games. This can lead to losses for unsuspecting internet gamblers.
Payment Methods
Whilst most people use credit cards to gamble online, there are other forms of payment used to deposit and receive funds. Many of these other forms exist because some banks or credit institutions do not allow their cards to be used for gambling transactions. To get around this bank or wire transfers are often used. Another popular alternative is third party payment systems such as Neteller.
Neteller works by acting as a middle-man between the bank and the online casino. Money is deposited from the gamblers account into the Neteller account. In theory money deposited into a Neteller account could be used for a range of online purchases however it is most commonly used for gambling as this gets around the fact that some banks do not allow their cards to be used for this purpose. Winnings from the casino are also credited back to the Neteller account. With third-party payment systems such as Neteller it is very difficult to track that the money is for gambling. The integrity of operators varies considerably. Where possible only sites that are well established, located in regulated jurisdictions and have good independent reviews should be used.
Watchdog sites such as Casinomeister review and provide advice on online casinos. They list both recommended and rogue casinos. Rogue casinos are categorised as "guilty of gross customer negligence bordering on the criminal. Some of these casinos have disappeared leaving their players empty handed and downright disgusted with the industry as a whole."
It is also worthwhile examining whether an operator is a member of the Interactive Gaming Council, the peak body of online gaming operators. The Interactive Gaming Council supports responsible gambling approaches and also acts as a lobby to government on behalf of the online gaming industry.
Odds and Chances of Winning
Your odds and chances of winning are, for most forms of gambling, the same online as they would be if you walked into a TAB or casino. There are however two main exceptions. If you bet using a betting exchange such as BetFair rather than a traditional TAB, the return to player is higher. The other major exception is poker machines. Online poker machines usually have a higher return to player than for poker machines you would find in traditional pokies venues. The difference in return to player can be up to 5% or 5c in every dollar played.
You should however also check that what an online casino claims they pay back is true and accurate. Some of the larger more established online casinos will publish their audited return to player statements on their website.
Betting Exchanges
Betting Exchanges work by matching the bets of punters to each other. Gamblers can bet in the normal way (back) or offer odds to other gamblers (lay.) The gambler chooses what odds to accept. If you offer unrealistic odds it may not be matched.
The world’s largest betting exchange is the UK-based BetFair. Betfair has a turnover of $9b per year and continues to grow at 25% every month. BetFair is opposed by Australian TABs (Tabcorp, Unitab) who fear it will take market share, and by racing clubs who claim it will affect the integrity of the sport.
BetFair currently does not have an Australian licence but accepts bets from Australians and on Australian Sports from its base in the UK. BetFair makes money by taking a commission from the winner of between 2 and 5% depending on loyalty (how much the gambler bets over a given period.)
Consumer Protection
Consumer protection has many more possibilities online when compared to traditional gambling forms. The fact that technology controls who, how and when a player can play enables measures to be used which potentially can reduce the harm from gambling. In many case these measures are not used, but for sites operating out of Australia certain consumer protections must be in place. Unfortunately as Australians cannot gamble on Australian-based sites, we do not get the benefit of these protections.
Protections include:
• Underage Gambling – Proof of Identification must be provided within 90 days of opening an account
• Bet Limits – Max bet limits set by casino and personal limits which cannot be raised without 7 days notice
• Deposit Limits – Maximum of US$500 per month. Maximum amount lost is US$500 + accumulated winnings.
• No credit betting (No negative accounts).
• No immediate access to winnings (paid by cheque (not negotiable) or to third party accounts)
• Transaction Record
• Self-Exclusion – 7 day period if used three times permanent exclusion
• Player tracking of behaviour to identify potential problem players and exclude them
• Online Counselling
The who, what, why and how of online gamblers
1.2% of Australians gambled online in the twelve months to April 2003.
Online gamblers are likely to meet one or more of the following characteristics:
· Male
· 18-24
· Student
· Low level of education
· Single
· High discretionary income
Currently online gamblers are more likely to participate in wagering or sportsbooks rather than gaming but this can be expected to change with the growth in regulated sites around the world.
Most online gamblers say that the gamble online because it is more convenient than other traditional gambling forms. Online casino customers also say it is easier to gamble online than at a land-based venue or casino.
Most gamblers (58%) gamble more than once a week, and many (65%) have accounts with up to three providers.
Are online gamblers at risk?
According to Websense, Online gambling is considered the 5th most addictive internet activity at 8% behind shopping (24%), news (23%) and pornography (18%).
Almost 10% of online gamblers can be considered to be at risk however problem gamblers with internet experiences usually have more severe problems. Problem gambling is also more prevalent in those who gamble online than those who gamble on other forms. Unfortunately internet gamblers are less likely to believe that they have a problem when compared to the traditional gambling population.
Online protections, supports, information and activism
Whilst internet gambling is growing rapidly, a wide range of information to protect consumers from gambling or to obtain help from gambling is also available. Have a look at some of the other articles in this issue of Gambling Matters to find out more.
|
