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)