"The Odds are Good that Online Gambling Will Continue to Thrive - But at What Price?"
Without a doubt, online poker is here to stay and it is staying quite
successfully too. According to the research firm, River City Group, Internet
poker alone is a two billion dollar a year industry, attracting a million
players each month. ComScore Media Matrix, which measures all U.S. Internet
users at home, work and college locations, reports that, out of a total
audience of 165 million, there were more than 29.1 million unique visitors
to online gambling sites in just April.
Moreover, according to a recent survey from
the University of Pennsylvania’s
Annenberg Public Policy Center, card playing for money is on the rise,
most notably amongst the 14 to 22 year age group. The Center’s
figures show that in 2004, 11.4 percent of in-school male
youth reported betting on cards at least once a week, up from 6.2 percent
in 2003. Furthermore, 11.4 percent of these weekly card players were
likely to participate in online gambling. Additionally, 43.2 percent
of the players who were playing cards for money on a weekly basis were
under the age of eighteen. The most popular Internet poker sites, according
to one source, include PacificPoker.com and PartyPoker.com, both based
in Gibraltar, Empire Poker and PokerRoom, both based in Canada, and Poker
World Online Cardroom, based in Jamaica.
It is hard to look at the figures and not be
impressed, in spite of the abundant negative aspects associated with
the proliferation of online gambling. Just the legal questions alone
are enough to give one pause. Questions abound concerning whether or
not online gambling is legal, if and how current gambling laws can
affect Internet gambling, how enforceable these laws are especially
overseas, and whether it is up to individual states or the federal
government to determine the legality of online gambling. Questions
regarding the social impact of online gambling abound as well. “There’s a lot of concern about whether this is
legal, especially when it’s a form of gambling that’s accessible
to adolescents,” says Daniel Romer, research director of Annenberg’s
Adolescent Risk Communications Institute. Romer points out that, while
brick and mortar type casinos are off limits to people under the age
of 21, and lottery tickets are sold only to those over 18 years of age,
online gambling is basically accessible to anyone with a computer and
a Internet connection even if Internet gambling sites do try to screen
for underage players. Dan Hunter, a Wharton legal professor, notes that “it’s
[online gambling] a big business, widely distributed and badly regulated”.
The U.S. policy on Internet gambling has simply
been to consider it illegal and has not even considered the possibility
of legalizing and regulating the industry. Basically, U.S. law enforcement
targets major site operators and punishes them with stiff penalties,
hoping to make examples out of them. Individual bettors are largely
ignored. It’s
difficult to enforce these policies over seas, however, where
the majority of online gambling companies are based and where online
gambling is legal.
In contrast, the United Kingdom, has decided
to legalize online gambling so that it could regulate the industry
and better protect underage players. “In
the U.K., the theory is to regulate [online gambling] to prevent underage
players,” says Romer.
Keith Whyte, executive director for the National
Council on Problem Gambling, points out that legality and enforcement
are two different things. “You can say online gambling is illegal, but if you can’t
enforce [the law] it doesn’t matter”, he says. Whyte also
points out that the biggest fear concerning Internet gambling
is that it will create a new generation of problem gamblers.
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