Gambling on the Internet... Johannes Beck Gambling on the Internet 18-Dec-2000

Johannes Beck Gambling on the Internet 28-Dec Structure of Term Paper I.Introduction (1)Types of Gambling (2)History II.Internet Gambling (1)Types (2)Development (3)Risks & Concerns (4)Benefits (5)Government Regulations III.Conclusions

Johannes Beck Gambling on the Internet 38-Dec-2000 Types and Development  30-80% annual growth  plus software and hardware business  Other studies vary significantly and are mostly higher  Online casinos and sports booking are the pillars of internet gambling  Digital divide also in internet gambling  Emerging markets are Europe and Asia Customers are mainly  Male  English speaking

Johannes Beck Gambling on the Internet 48-Dec-2000 Risks & Benefits Youth Gambling Pathological Gambling familiarity anonymity high level ofprivacy easy access 24hours Criminal Use 1. Lack of Accountability 3. Money Laundry 2. Computer Hacker  jobs  Investment  Tax revenue Contribution to society and economy PROBLEM: difficult to compare risks and benefits due to lack of information

Johannes Beck Gambling on the Internet 58-Dec-2000 Government Regulation „It is impossible to stop people gambling on the Internet, all you can do is to make it harder.” (The Economist 1999) „The government has as much of a chance of banning internet gambling as the FAA has of banning migrating ducks flying through commercial air space.“ (Posting in a gambling newsgroup)  40 countries worldwide which allow gambling  Australia, Austria, Germany, Finland...  Off-shore countries (tax haven)  USA struggles bet regulation and banning  $ 40 billion tax revenue by state-run lottery But is it possible to stop internet gambling without a worldwide uniform law?

Johannes Beck Gambling on the Internet 68-Dec-2000 Conclusions 2. Trend toward regulation instead of banning  regulation (mostly through licensing) is the only way to generate budget to cover the social costs following from excess gambling  these social costs occur independent from any regulation 1. Internet Gambling will not substitute off-line industry:  betting will be mostly conducted via Internet  but casinos and lotteries will hold a big market share  overall growth 3. Social Problems will sharply increase  youth gambling and pathological gambling due to features of Internet

Johannes Beck Gambling on the Internet 78-Dec-2000 End of the story „I had control of my gambling behaviour,......but the presence of internet gambling made it uncontrollable.“ (web posting of an addict)