Online casino
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Online casinos, also known as virtual casinos or Internet casinos, are online versions of traditional ("brick and mortar") casinos. Online casinos enable gamblers to play and wager on casino games through the Internet.
Online casinos generally offer odds and payback percentages that are comparable to land-based casinos. Some online casinos claim higher payback percentages for slot machine games, and some publish payout percentage audits on their websites. Assuming that the online casino is using an appropriately programmed random number generator, table games like blackjack have an established house edge. The payout percentage for these games are established by the rules of the game.
Many online casinos lease or purchase their software from companies like CryptoLogic Inc, CasinoWebScripts, International Game Technology, Microgaming, Playtech and Realtime Gaming.
Online casino types
Online casinos can be divided into two groups based on their interface: web-based and download-only casinos. Some casinos offer both interfaces.
Web-based online casinos
Web-based online casinos (also known as flash casinos) are websites where users may play casino games without downloading software to the local computer. Games are mainly represented in the browser plugins Macromedia Flash, Macromedia Shockwave, or Java and require browser support for these plugins. Also, bandwidth is needed since all graphics, sounds and animations are loaded through the web via the plugin. Some online casinos also allow gameplay through a plain HTML interface. Apple devices such as iPod, iPad and iPhone cannot play Flash games as the technology is not supported.
Download-based online casinos
Download-based online casinos require the download of the software client in order to play and wager on the casino games offered. The online casino software connects to the casino service provider and handles contact without browser support. Download-based online casinos generally run faster than web-based online casinos since the graphics and sound programs are located within the software client, rather than having to be loaded from the Internet. On the other hand, the initial download and installation of a download-based online casino client does take time. As with any download from the Internet, the risk of the program containing malware does exist. Still the graphics and sounds at download-based online casinos are most of the time much better than those at web-based online casinos.
Online casino game variants
The game types through the online casino interface can also be divided into two categories: live casinos, which offer live interactive casino gaming via video link, and virtual casinos, which provide computer simulations of popular casino games.[citation needed] However, there is a great deal of crossover between the two, as most of the major virtual casinos now offer live gaming, and websites that are predominantly marketed as live casinos usually tend to offer virtual gaming in addition to live dealer games.[citation needed]
Virtual casino games
In a virtual casino game, the outcome of each game is dependent on the data produced by a pseudorandom number generator (PRNG). This determines the order of the cards in card games, the outcome of a dice throw, or the results produced by the spinning of a slot machine or roulette wheel. PRNGs use a set of mathematical instructions known as an algorithm to generate a long stream of numbers that give the impression of true randomness. While this is not the same as true random number generation (computers are incapable of this without an external input source), it provides results that satisfy all but the most stringent requirements for true randomness.[1]
When implemented correctly, a PRNG algorithm such as the Mersenne Twister will ensure that the games are both fair and unpredictable. However, the player has to take it on trust that the software has not been rigged to increase the house edge, as its inner workings are invisible to the user. Properly regulated online casinos are audited externally by independent regulators such as eCOGRA to ensure that their win percentages are in line with the stated odds, and this provides a degree of assurance to the player that the games are fair.[citation needed]
Live dealer casino games
In a live casino game, a human dealer runs the game in real time from a casino gaming table, which can be seen via a live streaming video link. Players can make betting decisions via a console on their computer screen, and can communicate with the dealer using a text chat function.
The results of the physical transactions by the dealer, such as the outcome of the roulette wheel spin or the dealing of cards, are translated into data that can be utilized by the software by means of optical character recognition (OCR) technology. This enables the player to interact with the game in much the same way as they would with a virtual casino game, except for the fact that the results are determined by real-life actions rather than automated processes.
These games are a lot more expensive for websites to host than virtual games, as they involve a heavier investment in technology and staffing. A live casino studio typically employs one or more cameramen, several croupiers running the various games, an IT manager to ensure that any technical hitches are dealt with swiftly, and a pit boss that acts as an adjudicator in case of disputes between players and croupiers.
In most cases, this requires at least a three room setup, comprising a live studio, a server/software room, and an analyst’s room. The configuration of these rooms varies from casino to casino, with some having several gaming tables in one room, and some having a single table in each room.[2]
The high running costs involved with operating live dealer games is the reason why online casinos only tend to offer a handful of the most popular games in this format, such as roulette, blackjack, sic bo, baccarat, and poker. In comparison, the running costs associated with virtual games are very low, and it is not uncommon for online casinos to offer hundreds of different virtual casino games to players on their site.
Online casinos vary in their approach to the hosting of live games, with some providing live games via their own television channel, and others offering the games exclusively via their website. In the case of televised games, players can often use their mobile phone or television remote controls to place bets instead of doing so via a computer connected to the internet.
Games offered
A typical selection of gambling games offered at an online casino might include:
Bonuses
Many online casinos offer sign-up bonuses to new players making their first deposit, and often on subsequent play as well. These bonuses are a form of marketing that may incur a cost (potentially justifiable in order to attract a new player who may return and deposit many more times), since the casino is essentially giving away money, in return for a commitment from the player to wager a certain minimum amount, usually a multiple of the deposit and/or bonus credited to the player's account. Since all casino games have a house edge, the wagering requirements ensure that the player cannot simply walk away with the casino's money, and indeed if the wagering requirements are sufficiently high, he may in fact have a negative expectation, exactly as if he had deposited without any bonus.
Casinos may choose to restrict certain games from fulfilling the wagering requirements, either to restrict players from playing low-edge games, or to restrict 'risk-free' play (betting for instance both red and black on roulette, thereby completing the wagering requirement with a guaranteed profit, after the bonus is taken into account.[3]
No deposit bonuses
The most popular form of bonus is one that can be claimed without the need to deposit any of the player's own money - known as a no deposit bonus. These bonuses are used as acquisition tools by casinos wishing to attract new players. No deposit bonuses don't always take the form of real cash, as exemplified below.
Non-cashable bonuses
Non-cashable bonuses may be called "sticky" or "phantom" bonuses.[4] In both cases, the bonus forms a part of the player's balance, but cannot be cashed out. The difference comes at cashout time. A phantom bonus disappears when the player cashes out, while the sticky bonus 'sticks' to the player's account until it is lost.
Comp points
Comps are commonly available at land-based casinos, but also exist online. Comp points can usually be exchanged for cash, prizes, or other comps. The amount of cash given per wager is usually very small and often varies with game selection. A casino might offer three comp points for each $10 wagered on slots and one comp point for each $10 wagered on blackjack. The casino might give $1 for each 100 comp points. This example is equivalent to returning 0.3% of wagers on slots and 0.1% of wagers on blackjack. In addition online casinos may offer comps such as free tickets to online tournaments, tickets to other special events, extra bonuses, souvenirs and pay back.
Bonus hunting
Bonus hunting (also known as bonus bagging or bonus whoring) is a type of advantage gambling where turning a profit from casino, sportsbook and poker room bonus situations is mathematically possible. For example, the house edge in blackjack is roughly 0.5%. In the example above, $5000 in wagering with a house edge of 0.5% will result in an expected loss of $25. Since the player received a $100 sign-up bonus, after subtracting the expected loss of $25, the player has an expected gain of $75.
Bonus disputes
A large portion of online casino disputes relate to bonuses.[5] Casinos may label players who win using bonuses as "bonus abusers." Both players and casinos may commit fraud. An example of player fraud is creating multiple accounts and using the accounts to claim a sign-up bonus several times. An example of casino fraud is changing terms of a bonus after a player has completed the wagering requirements, then requiring the player to meet the new bonus terms.[citation needed]
Fraudulent online casino operator behavior
Fraudulent behavior on the part of online casinos has been documented.[by whom?] The most commonly reported behaviors are refusal to pay withdrawals or cheating software with rigged payouts. An online casino with multiple confirmed cases of fraudulent behavior is often called a rogue casino by the online casino player community.[6]
Some casino software has been mathematically proven to cheat, such as Elka System/Oyster Gaming and Casino Bar.[7] Screen shots from the back office of an older brand of software indicated the odds could be adjusted by the operator.
Many casino gambling portals and player forums maintain blacklists of rogue casinos.[8] While some carry more authority than others, most blacklists constitute individual webmaster and player opinions rather than anything official from any type of regulating body.
Legality
Online gambling legislation often has loopholes that result from the rapid development of the technology underpinning the development of the industry. Such countries as Belgium, Canada, Finland, Sweden have state gambling monopolies and do not grant licenses to foreign casino operators. According to their law, operators licensed on the territory of these countries can only be considered legal. At the same time, they can't prosecute foreign casino operators and only block their sites. Players in these countries can't be punished and can gamble at any site they can access.
Belgium
The Belgian Gaming Act[9] allows online gambling, but only under very strict conditions and surveillance.[10]
United States
In the United States, all online casino operators – local and foreign – should be prosecuted if they accept wagering money from American citizens.[11] Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA) limits restrictions to online gambling operators, while players can be prosecuted only in certain states, where the state law prohibits placing bets.[12] The effectiveness of the UIGEA act in terms of preventing US citizens from participating in online gambling has been questioned by some notable gambling authorities.[13] Certain states have started regulated online gambling[14] and it is expected that regulation will continue on a state by state basis.
Canada
Gambling online has never been a crime in Canada, as international casino operators can provide their services to residents so long as they are regulated in their own jurisdictions. Recently, however, local gaming commissions have decided to launch their own online gambling commission, providing residents with the opportunity to play at online casinos that are regulated by their own provincial governments. The British Columbia Lottery Corporation and Loto Quebec are the first two provincial entities to launch these types of online casinos. PlayNow.com was first launched by the British Columbia Lottery Commission in 2010. While the site got off to a slow start, there are now 180 000 players registered on Playnow.com.[15] BCLC launched the site as an alternative to offshore gambling websites, so the local economy would be able to reclaim a portion of the profits that residents have been spending on gambling websites located in other countries. Since the British Columbia Lottery Corporation operators the site, profits are tax by the government and used to fund a wide range of programs across the province. Loto Quebec became the second Canadian lottery commission to launch its own online gambling website later in 2010. Despite the Kahnawake Gaming Commission being located in the province, the lottery commission wanted to reclaim a portion of the revenue that was going to sites ‘offshore’ websites, providing players with a government-regulated option. Both websites offer players online lottery sales, in addition to a wide range of online casino games. Slots, table games and card games are all available – and the two companies have even teamed up to launch their inter-province poker network.[16] Several other provincial lottery commissions are considering the option of launching their own online gambling websites. The Ontario Lottery and Gaming Corporation is the latest Canadian lottery to express its interest in the online gambling market, recently announcing its plans to launch its own online casino.[17]
See also
Notes
- ^ Roulette.co.uk: Understanding Random Number Generation
- ^ Liveroulette.co.uk: Live Dealer Casinos, how the technology works
- ^ WizardOfOdds.com Ask The Wizard May 8, 2002
- ^ Wizard of Odds.com glossary See "sticky bonus" and "phantom bonus"
- ^ eCOGRA Casino Dispute Report
- ^ Casinomeister's Rogue Pit
- ^ Casinobar evidence by Michael Shackleford
- ^ WizardofOdds.com: Blacklist
- ^ Gaming Act
- ^ Controversial New Gambling Legislation
- ^ [1]
- ^ Is There a Law Against Gambling on the Internet?
- ^ "ThePOGG Interviews - Michael Shackleford - The Wizard of Odds". Retrieved 1st November 2012.
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(help) - ^ 888 Legal online casino in Nevada
- ^ Playnow.com
- ^ Their inter-province poker network
- ^ OnlineCasino.org