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Tuesday, 22 November 2011 08:00

Prohibition in the Online Casino Era

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What’s the difference between an online casino and sweepstakes? Several cafe owners in the States are treading the fine semantic line between legal and illegal.

Across Florida, Ohio and California, people flock to internet sweepstakes cafes to play their favourite casino games.


‘Cafes’ is somewhat of a misnomer, because these little businesses don’t sell food, they sell internet time so patrons can play at what looks like an online casino – video slots, blackjack and other games. In a country where internet gambling is banned, these cafes dodge the long arm of the law by claiming their businesses are run as sweepstakes. The difference? Winners are not chosen by chance by the games themselves; instead they buy cards that give them internet time and this is what determines your win.


A rose by any other name.


Whilst legal eyebrows have so far been shooting skywards, many states have refrained from issuing a ban because the law surrounding this issue is typically murky – McDonalds, for instance, runs a Monopoly sweepstakes, as do many other companies wishing to promote their business. The key point of dispute is that the sweepstakes promote their primary business, whereas the cafes’ primary business is the sweepstakes.


Although many players are delighted to be able to play casino games online, this happiness is a delusion borne out of deprivation. Too many years of being separated from the US equivalent of a William Hill casino has made them grateful to be able to play at all – and yet the way they’re going about it is unsafe.


A safe industry is a clearly legal, well-regulated industry, not one that skirts on the edges of the law – because the trouble with being outside the law is that that you no longer have its protection. A safe industry encourages new entrants, promotes plenty of competition, has transparency and has an independent body governing its actions. Without these elements, these cafes become the gaming equivalent of a speakeasy.


If the only entrants to an industry are the businesspeople who are willing to hide behind the semantics of a delivery mechanism, I don’t much like your chances of being able to regulate it properly. Once and for all, the States needs to legalise online gambling so that the industry can be made safe for players.