legalized gambling


Legal Issues

• Gambling is legal under US federal law;• Regulation by State’s Gambling commission;• Ex: Montana: Video Poker, slot machines, Black Jack, etc;

– Approved and background checks on employees; Licenses;

Ex: Nevada: regulates 1,800 slot machines 5,000 gaming tables;– Requires insurance on the money that comes in;– No regulations, no money;


How Internet Changed Gambling

• No restrictions; democratic place;

• Problem; Run by computer

• States start to regulate


IS ONLINE GAMBLING ILLEGAL ?

- Is Online Gambling illegal ?

• The legality of Online Gambling;• Technically illegal in most of the US; servers are off shore;• Around 70 countries allow O.G. sites, including Australia S Korea and

France.• Player’s responsibility; winnings forfeit;

- Internet Funding Prohibition Act passed, after 4 years;- Congressman James Leach- Illegal for banks and CC transfer funds;- Gambling = sports betting;


NO LEGAL CASINOS PRIOR 1978


SEGMENTS OF LEGALIZED GAMBLING

Commercial casinos Native American casinos State lotteries


EFFECTS

More jobs dispersed among more people No impact on unemployment rates A limited positive effect on some house prices A modest increase in bankruptcies More total crime but less per-capita crime No impact on total revenues or expenditures A decline in per-capita spending and revenues


FEDERAL WIRE ACT IN 1961

“Whoever being engaged in the business of betting or wagering knowingly uses a wire communication facility for the transmission in interstate or foreign commerce of bets or wagers or information assisting in the placing of bets or wagers on any sporting event or contest, or for the transmission of a wire communication which entitles the recipient to receive money or credit as a result of bets or wagers, or for information assisting in the placing of bets or wagers, shall be fined under this title or imprisoned not more than two years, or both.”


UNLAWFUL INTERNET GAMBLING ENFORCEMENT ACT 2006

• Under UIGEA, “unlawful Internet gambling” means “to place, receive,or otherwise knowingly transmit a bet or wager by any means which involves the use, at leastin part, of the Internet” in a jurisdiction where applicable federal or state law makes such a bet illegal. 31 U.S.C. § 5362(10)(A).

• UIGEA prohibit all kind money transfer


THE FORMAL OPINION ISSUED BY THE DEPARTMENT OF JUSTICE REGARDING THE WIRE ACT TO INTERNET GAMBLING IN 2011

In September of 2011 the state of New York and Illinois the application of the Wire Act to interstate sales of lottery tickets on the Internet.

The DJO decided that:

• Interstate transmissions of wire communications that do not relate to a “sporting event or contest” fall outside the reach of the Wire Act.

• Because the proposed New York and Illinois lottery proposals do not involve wagering on sporting events or contests, the Wire Act does not prohibit them.


FUTURE IMPLICATIONS - MARKETING PURPOSE

TARGET MARKET • This pronunciation open a huge market for online gambling that is

not related to sports, because now states were the gambling is permitted can increase their target market going to “sell” their gambling services for costumers located


FUTURE IMPLICATIONS - MARKETING PURPOSE

PROMOTION • Use credits that can be exchange in a store for a special product

or service. The company could promote games such as poker, black jack, Roulette and the points or credits that people wins can be uses as a coupon for purchase product or services in stores. This can help marketers to track sales what is so hard nowadays.

• On the other hand, Studies shows that online gamblers are more likely than other Internet users to click on ads, to be less annoyed by them and to be more likely to remember advertising messages. They also are more likely to sign up for e-mail marketing and to open e-mail promotions.


FUTURE IMPLICATIONS

BENEFITS FOR THE GOVERNMENT AND THE ECONOMY • Legislators in Florida presented a study showing that legalizing

online poker could raise US$90 million annually in taxes.• Goldman Sachs evaluated that U.S. market for online casinos and

poker could be worth as much as US$12 billion.


IS ONLINE GAMBLING WORSE THAN ONLINE GAMING?


CURRENT CORPORATE SOCIAL RESPONSIBILITY

“The gambling industry supports education and donates millions of dollars to colleges across the United States. For example, in Georgia the Hope Scholarships is a program created by the gambling lottery industry and gives full scholarships to well deserved Georgia students.”


CURRENT, CHARITY BENEFITS

“The gambling industry supports education and donates millions of dollars to colleges across the United States. For example, in Georgia the Hope Scholarships is a program created by the gambling lottery industry and gives full scholarships to well deserved Georgia students.”


CURRENT, CHARITY BENEFITS

• Charitable Institutions: Receiving benefits from the gambling industry for their different causes

• Schools: Holding casino night events to raise money for the construction of their school buildings

• Some State-Run Institutions use some forms of gambling: large bingo games, lotteries, raffle events and charity poker events


CURRENT CODE OF ETHICS

• AMA (American Gaming Association) – Code of Conduct Established 2003

• The Code of Conduct is a pledge to employees, patrons and the public to promote responsible gaming in every aspect of the casino business, including employee training, customer education, the prevention of underage gambling, responsible alcohol service, and responsible marketing and advertising. All AGA member companies adhere to the provisions of the Code, and its reach for responsible gaming programs in international jurisdictions and non-member casinos across the country as well


Sources:http://www.gamblingandthelaw.com/http://entertainment.howstuffworks.com/online-gambling2.htmhttp://vegasclick.com/online/legal.htmlhttp://www.coolcat-casino.com/casino-news/legal-issues-in-online-gambling.phphttp://uscode.house.gov/download/pls/18C50.txthttp://www.nigc.gov/LinkClick.aspx?link=NIGC%20Uploads/readingroom/bulletins/20093UIGEAbulletin.pdfhttp://www.justice.gov/olc/2011/state-lotteries-opinion.pdfhttp://www.justice.gov/olc/2011/state-lotteries-opinion.pdfhttp://www.nber.org/papers/w11234.pdf?new_window=1https://www.cityofboston.gov/Images_Documents/Betting%20on%20the%20Future%20Econ%20Impact%20of%20Legalized%20Gambling%20(Baxandall)_tcm3-35765.pdf


http://www.forbes.com/sites/nathanvardi/2011/12/23/department-of-justice-flip-flops-on-internet-gambling/http://www.natlawreview.com/article/doj-s-reversal-wire-act-what-it-means-internet-gaminghttp://www.nytimes.com/2011/12/25/us/online-gaming-loses-obstacle-at-justice-department.html?pagewanted=all&_r=1&http://www.gamesindustry.biz/articles/2013-05-01-facebook-q1-game-revenue-up-12-percent-zynga-down-37-percenthttp://www.fifa.com/mm/document/affederation/administration/50/02/82/codeofethics2012e.pdfhttp://www.americangaming.org/social-responsibility/responsible-gaming/code-conducthttp://truist.com/why-corporate-social-responsibility-is-so-important-in-2013/


http://www.library.illinois.edu/gaming/groups.htmlhttp://www.tax-news.com/malta/responsible_gaming.asphttp://dro.deakin.edu.au/view/DU:30018005

http://www.flickr.com/photos/21812821@N05/5431046425/in/photostream/http://www.casinoscamreport.com/2010/08/27/casino-getting-prepared-for-online-gambling-legalization/

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