1. Internet Gambling Jared Richardson MIS MWF 1pm JabyrekXX@hotmail.com

2. 2 Table of Contents The GameSlide 04 How The Game Got StartedSlide 05 Estimated Internet GamblingSlide 07 The Growth MarketsSlide 08 Games Available OnlineSlide 09 Types of Online Gambling Sites Slide 10 Internet GamblingSlide 11 How the Game Gets PlayedSlide 12 The Games Uses Innovative TechSlide 13 The Risk Associated..Slide 15

3. 3 Table of Contents Who Deals the Cards ?Slide 16 Threats to the GameSlide 17 The Games Possible FutureSlide 18 BibliographySlide 19

4. Americans… The Computer Age …. The Internet... have long toiled over the entertainment value of gambling vs. the social implications that accompany. has brought gambling literally at the fingertips of millions without leaving their homes. allows millions to place wagers on their sports teams, favorite card game, or sit at a virtual casino table and play a game of craps. THE GAME Source: Nick Feldman “Internet Gambling” 2001 http://gsulaw.gsu.edu/lawand/papers/su01/feldman

5. 5 How The Game Got Started As the internet emerged as a median for communication, information exchange, and ecommerce, businesses sought new ways to make profits and capitalize on this fast evolving market. As the internet emerged as a median for communication, information exchange, and ecommerce, businesses sought new ways to make profits and capitalize on this fast evolving market. In 1997, the year considered the internet boom, online revenues exceeded 1 billion. Five years later in 2002, internet revenues exceeded 300 billion In 1997, the year considered the internet boom, online revenues exceeded 1 billion. Five years later in 2002, internet revenues exceeded 300 billion Therefore it was only a matter of time before gambling agencies tapped into this market and created an online gambling agency. Therefore it was only a matter of time before gambling agencies tapped into this market and created an online gambling agency. Source: Nick Feldman “Internet Gambling” HISTORY

6. 6 How The Game Got Started Interactive Casino (ICI) was the first online casino. In 1995 this site provided 18 casino games, online access to the National Indian Lottery, and an internet sports book. Interactive Casino (ICI) was the first online casino. In 1995 this site provided 18 casino games, online access to the National Indian Lottery, and an internet sports book. Henceforth, Online Gambling has become a multi-billion industry. By 1999 there were over 250 online casino internet sites and 139 online sports books. Henceforth, Online Gambling has become a multi-billion industry. By 1999 there were over 250 online casino internet sites and 139 online sports books. In 2002 internet gambling represented 1.5 % of the total gambling market and generated revenues exceeding 3.3 billion In 2002 internet gambling represented 1.5 % of the total gambling market and generated revenues exceeding 3.3 billion In 2004 online gambling exceed total revenues at 10 billion, and over 2000 gambling sites. Up 40 % from 2004. In 2004 online gambling exceed total revenues at 10 billion, and over 2000 gambling sites. Up 40 % from 2004. HISTORY Source: Nick Feldman “Internet Gambling”

7. 7 Estimated Actual Internet Gambling Expenditures 1999-2003 (in millions U.S.D.) Graphically Depicting The Game $1,167.0 $2,207.5 $3,119.0 $4,546.6 $6,346.3 $- $1,000.0 $2,000.0 $3,000.0 $4,000.0 $5,000.0 $6,000.0 $7,000.0 19992000200120022003 Source: Christiansen Capital Advisors, LLC “Internet Gambling” 2004 http://www.cca-i.comhttp://www.cca-i.com Source: Christiansen Capital Advisors, LLC “Internet Gambling” 2004 http://www.cca-i.comhttp://www.cca-i.com

8. 8 The Growth Markets Graphically Depicting The Game Source: Christiansen Capital Advisors, LLC

9. 9 Games Available Online Poker Poker Blackjack Blackjack Craps Craps Slots Slots Keno Keno

10. 10 Types of Online Gambling Sites Graphically Depicting The Game Source: Christiansen Capital Advisors, LLC

11. 11 Internet Gambling – 2000 Total Consumer Expenditures $2.2 Billion (U.S.D.) Graphically Depicting The Game Casino Games 40% Sports Betting 45% Lotteries 10% All other 5% Source: Christiansen Capital Advisors, LLC

12. 12 How The Game Gets Played Gamblers provide their credit card, use pay pal or western union to enter online games and place bets. Gamblers provide their credit card, use pay pal or western union to enter online games and place bets. Online gambling sites receive bets, collect funds, and distribute winnings and loss. Online gambling sites receive bets, collect funds, and distribute winnings and loss. Online gambling sites use complex programming and innovated technology to simulate card games, and provide an virtual casino environment. Online gambling sites use complex programming and innovated technology to simulate card games, and provide an virtual casino environment. The gambler plays all games online, and if he wins his account is credited, if he loses funds are automatically deducted from his credit card or pay pal account. The gambler plays all games online, and if he wins his account is credited, if he loses funds are automatically deducted from his credit card or pay pal account. Playing The Game Source: Gambling. COM “Dollar Casinos” 2004 http://www.gambling.com/best/dollar- casinos.htm Source: Gambling. COM “Dollar Casinos” 2004 http://www.gambling.com/best/dollar- casinos.htm

13. 13 The Game Uses Innovative Technology Playing The Game

14. 14 The Game Uses Innovative Technology Playing The Game

15. 15 The Risks Associated With The Game Online gamblers have no way to ensure the games are operated fairly. Online gamblers have no way to ensure the games are operated fairly. Gamblers are at the mercy of a computer that may manipulate the game to ensure it wins. Gamblers are at the mercy of a computer that may manipulate the game to ensure it wins. Gamblers cannot verify that dice, roulette, and cards are rolled, spun, or dealt randomly. Gamblers cannot verify that dice, roulette, and cards are rolled, spun, or dealt randomly. Online Sites does not prevent children access. Online Sites does not prevent children access. Online gambling sites are linked to the reason rise in cases of gambling addictions. Online gambling sites are linked to the reason rise in cases of gambling addictions. The operators of online gambling sites are offshore, and are not regulated by U.S. federal laws. The operators of online gambling sites are offshore, and are not regulated by U.S. federal laws. Sounds To Good To Be True ? Source: AnteUp.Com “Playing It Safe” 2004 http://gamblinglinks.com/tips.html http://gamblinglinks.com/tips.html Source: AnteUp.Com “Playing It Safe” 2004 http://gamblinglinks.com/tips.html http://gamblinglinks.com/tips.html

16. 16 Who Deals the Cards…The U.S. Position Online gambling is primarily regulated by the 1961 Interstate Wire line Act Online gambling is primarily regulated by the 1961 Interstate Wire line Act This acts makes is illegal for anyone to offer or take bets over phone lines or through other wired devices, unless otherwise authorized by a state This acts makes is illegal for anyone to offer or take bets over phone lines or through other wired devices, unless otherwise authorized by a state Many politicians have attempted to pass bills directly related to online gambling but none have been successful Many politicians have attempted to pass bills directly related to online gambling but none have been successful Possible Threats Source: Steve Badger “Is Online Gambling Legal ? ” 2004 http://www.playwinningpoker.com/guide6.html http://www.playwinningpoker.com/guide6.html Phone Interview: Attorney Alexander Martin Source: Steve Badger “Is Online Gambling Legal ? ” 2004 http://www.playwinningpoker.com/guide6.html http://www.playwinningpoker.com/guide6.html Phone Interview: Attorney Alexander Martin

17. 17 Threats To The Game U.S. States: California, Louisiana, New York, and Virginia have filled law suits to challenge internet gambling. U.S. States: California, Louisiana, New York, and Virginia have filled law suits to challenge internet gambling. Nevada has made it illegal to place bets online, and prohibits accepting bets online. Nevada has made it illegal to place bets online, and prohibits accepting bets online. New legislation has entered congress seeking to impose penalties to online operators of cyber casinos, online gambling sites, and ISP. Penalties would include fines up to 2,500 an or six months in prison. New legislation has entered congress seeking to impose penalties to online operators of cyber casinos, online gambling sites, and ISP. Penalties would include fines up to 2,500 an or six months in prison. Senator James Leach has introduced a second piece of legislation that inhibits Americans from online gambling. Senator James Leach has introduced a second piece of legislation that inhibits Americans from online gambling. Legal Troubles Source: Nick Feldman “Internet Gambling”

18. 18 The Game’s Possible Future Online Gambling goes mainstream in most major markets. Total revenues are estimated to reach 400 billion world- wide. Online Gambling goes mainstream in most major markets. Total revenues are estimated to reach 400 billion world- wide. Consolidation among online sites, and conglomerates form to better protect the industry and increase revenues. Consolidation among online sites, and conglomerates form to better protect the industry and increase revenues. Online Gambling integrates into new media forms, including interactive television, wireless hand-held games, and cell phones. Online Gambling integrates into new media forms, including interactive television, wireless hand-held games, and cell phones. Gambling sites open new markets to include bets on foreign sports, television show plots, and award show winners. Gambling sites open new markets to include bets on foreign sports, television show plots, and award show winners. THE POSSIBILITIES Source: E Commerce Times “The Future of Online Gambling” 2005 http://www.ecommercetimes.com/story/31962.html http://www.ecommercetimes.com/story/31962.html Source: E Commerce Times “The Future of Online Gambling” 2005 http://www.ecommercetimes.com/story/31962.html http://www.ecommercetimes.com/story/31962.html

19. 19 BibliographyBibliography   Nick Feldman “Internet Gambling” 2001 http://gsulaw.gsu.edu/lawand/papers/su01/feldman 2. 2.Christiansen Capital Advisors, LLC “Internet Gambling” 2004 http://www.cca-i.com 3. 3.Source: Gambling. COM “Dollar Casinos” 2004 http://www.gambling.com/best/dollar-casinos.htm   AnteUp.Com “Playing It Safe” 2004 http://gamblinglinks.com/tips.html http://gamblinglinks.com/tips.html 5. 5.E Commerce Times “The Future of Online Gambling” 2005 http://www.ecommercetimes.com/story/31962.html http://www.ecommercetimes.com/story/31962.html   Phone Interview: Attorney Alexander Martin, District Attorney 22 nd Circuit Court. 601-894-5040

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