Focusing on the vices and virtues of online gambling

Focusing on the vices and virtues of online gambling

By Vishnu K. Mahmud

JAKARTA (JP): Two years ago, the lights, audacity and pure
tackiness of Las Vegas, gambling capital of the world, dazzled
me. No where else can the Egyptian Pyramids blend so well with a
castle from the Middle Ages, while on the other side of the road
sits a giant replica of New York City complete with the Coney
Island roller coaster.

This was a gamblers paradise and I thought there was no way
online gambling could be successful. You must visit a casino to
truly appreciate the "sport".

I was wrong. Today, Online Gambling is a multi-billion dollar
industry. Sites have sprouted around the net offering everything
from sports betting (who will win the next Super Bowl) to virtual
gambling (blackjack, poker and the like). For businesses, opening
a virtual gambling venture can be a profitable enterprise.

The start up cost can be small while they grow their
membership, and software is easy to create. There will never be a
shortage of customers to their sites as long as they update
continuously, pay their clients' winnings, have a good reputation
and provide excellent service.

With the help of the Net, these gaming sites can command a
worldwide audience. No more must people go to Vegas, Monte Carlo
or Macao for their gambling experience. Just sit back in your
living room, power up the computer and log on. You can place your
bets and win from the comfort of your own chair.

Statistics on previous sports results can be brought up and
help you to decide which wager to place. You can play blackjack
online with other punters from around the world. You can even
chat as you bet. You may miss the free drinks, smoky atmosphere
and background sounds of the slot machines but you still have the
chance of winning if you play!

Governments can benefit from legalized gambling since the
taxes can help build roads, improve social conditions and lower
taxes for its citizens. The State of Nevada (home to Las Vegas)
has no income tax for its residents and the state is continuously
expanding.

Even Malaysia has a special area where gambling is legal
thanks to its Prime Minister's pragmatism. In Britain, some money
from the National Lottery goes to the National Health Service.

There are, of course, moral considerations about gambling. In
Islam, gambling is forbidden. So opening up a gambling site based
in Indonesia will not be possible. And, although the site would
be profitable and create jobs for many here, a lot of people
would say that those profits would be on the backs of those who
really can't afford to gamble, who could then ignore their family
and social responsibilities for the sake of trying to win.

Many consider gambling as a social disease: once you start to
gamble it is difficult to stop. One person said that gambling is
like walking through a car park. You find $100 and think, "maybe
I should walk around the car park again." What is to stop an
average person from gambling in the privacy of his own home?
Getting deeper into debt. Mesmerized by the chance of winning.
But you can win lots of money if you try. So is it really that
bad to place a bet on the Canadiens hockey team against the
Boston Bruins? It's ONLY one bet, right?

Most online gambling sites are based outside the United States
that, interestingly enough, has strict interstate gambling laws.
It is illegal for a citizen of one state (where gambling is
illegal) to place a wager over telephone lines (thus, the
internet) in another state where gambling is legal.

It is not actually moral considerations that prompt state
governments to declare war on online gambling but rather those of
revenue. Since most of these outfits are offshore, none of the
states can get income tax revenue from the winnings. And
recently, the U.S. has begun to flex its muscles with regard to
virtual gambling.

World Sport Exchange (www.wsex.com) is an offshore Internet
Gambling company based in Antigua whose executives were recently
targeted by an FBI sting operation.

Jay Cohen, co-founder of the site, was convicted of illegal
Internet wagering. He was accused of allowing a resident of New
York State (where gambling is illegal) to place sports bets.
Never mind that the company is based in the Caribbean, Cohen, an
American, was found guilty nevertheless.

This case has opened a Pandora's box of conflicting legal
issues. Whose laws can be applied where and for what? Can a U.S.
court convict a company based in Turkey? Can a French court
condemn an American citizen in Germany for selling banned
memorabilia? As many have found out, thanks to the anarchic
nature of the Internet, national borders are practically useless
in the virtual world. But that hasn't stopped countries from
trying.

But, in the end gambling sites are probably a necessary evil.
They create revenue, taxes and jobs. As does the cigarette
industry. Despite the social and health considerations, they
exist and it is up to the individual user to decide if he or she
will log on or light up. Punters should always remember though,
the odds favor the gambling establishment. The house almost
always wins. (vmahmud@yahoo.com)