Online casinos, also known as virtual casinos or Internet casinos, are online versions of traditional ('brick and mortar') casinos. Online casinos enable gamblers to play and wager on casino games through the Internet. It is a prolific form of online gambling.
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Online casinos generally offer odds and payback percentages that are a bit higher than land-based casinos.[citation needed] Some online casinos claim higher payback percentages for slot machine games, and some publish payout percentage audits on their websites. Assuming that the online casino is using an appropriately programmed random number generator, table games like blackjack have an established house edge. The payout percentage for these games are established by the rules of the game.
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Many online casinos rent or buy their software from companies like CryptoLogic Inc (now Amaya), International Game Technology, Microgaming, Playtech, Golden Race and Realtime Gaming.
- 1Online casino types
- 3Bonuses
- 5Legality
Online casino types
Online casinos can be divided into two groups based on their interface: web-based and download-only casinos. Some casinos offer both interfaces.
Web-based online casinos
Web-based online casinos (also known as flash casinos) are websites where users may play casino games without downloading software to their local computer. Games are mainly represented in the browser plugins Macromedia Flash, Macromedia Shockwave, or Java and require browser support for these plugins. Also, bandwidth is needed since all graphics, sounds and animations are loaded through the web via the plugin. Some online casinos also allow gameplay through a HTML interface. Apple devices such as iPod, iPad and iPhone cannot play Flash games as the technology is not supported.
Download-based online casinos
Download-based online casinos require the download of the software client in order to play and wager on the casino games offered. The online casino software connects to the casino service provider and handles contact without browser support. Download-based online casinos generally run faster than web-based online casinos since the graphics and sound programs are cached by the software client, rather than having to be loaded from the Internet. On the other hand, the initial download and installation of a download-based online casino client does take time. As with any download from the Internet, the risk of the program containing malware exists.
Virtual casino games
In a virtual casino game, the outcome of each game is dependent on the data produced by a pseudorandom number generator (PRNG). This determines the order of the cards in card games, the outcome of a dice throw, or the results produced by the spinning of a slot machine or roulette wheel. PRNGs use a set of mathematical instructions known as an algorithm to generate a long stream of numbers that give the impression of true randomness. While this is not the same as true random number generation (computers are incapable of this without an external input source), it provides results that satisfy all but the most stringent requirements for true randomness.
When implemented correctly, a PRNG algorithm such as the Mersenne Twister will ensure that the games are both fair and unpredictable. However, usually the player has to trust that the software has not been rigged to increase the house edge, as its inner workings are invisible to the user. Properly regulated online casinos are audited externally by independent regulators to ensure that their win percentages are in line with the stated odds, and this can provide a degree of assurance to the player that the games are fair, assuming the player trusts the regulator.
Live dealer casino games
In a live casino game, a human dealer runs the game in real time from a casino gaming table, which can be seen via a live streaming video link. Players can make betting decisions via a console on their computer screen, and can communicate with the dealer using a text chat function.
The results of the physical transactions by the dealer, such as the outcome of the roulette wheel spin or the dealing of cards, are translated into data that can be utilized by the software by means of optical character recognition (OCR) technology. This enables the player to interact with the game in much the same way as they would with a virtual casino game, except for the fact that the results are determined by real-life actions rather than automated processes.
These games are a lot more expensive for websites to host than virtual games, as they involve a heavier investment in technology and staffing. A live casino studio typically employs one or more cameramen, several croupiers running the various games, an information technology manager to ensure that any technical hitches are dealt with swiftly, and a pit boss that acts as an adjudicator in case of disputes between players and croupiers.
In most cases this requires at least a three-room setup, comprising a live studio, a server/software room, and an analyst’s room. The configuration of these rooms varies from casino to casino, with some having several gaming tables in one room, and some having a single table in each room.
The high running costs involved with operating live dealer games is the reason why online casinos only tend to offer a handful of the most popular games in this format, such as roulette, blackjack, sic bo, and baccarat. In comparison, the running costs associated with virtual games are very low, and it is not uncommon for online casinos to offer hundreds of different virtual casino games to players on their site.
Online casinos vary in their approach to the hosting of live games, with some providing live games via their own television channel, and others offering the games exclusively via their website. In the case of televised games, players can often use their mobile phone or television remote controls to place bets instead of doing so via a computer connected to the internet. The most common live dealer games offered at online casinos are baccarat, blackjack and roulette.
Games offered
A typical selection of gambling games offered at an online casino might include:
Bonuses
Many online casinos offer sign-up bonuses to new players making their first deposit, and often on subsequent play as well. These bonuses are a form of marketing that may incur a cost (potentially justifiable in order to attract a new player who may return and deposit many more times), since the casino is essentially giving away money in return for a commitment from the player to wager a certain minimum amount before they are allowed to withdraw. Since all casino games have a house edge, the wagering requirements ensure that the player cannot simply walk away with the casino's money immediately after claiming the bonus. These wagering requirements are commonly set to be sufficiently high that the player has a negative expectation, exactly as if they had deposited and not claimed a bonus.
Casinos may choose to restrict certain games from fulfilling the wagering requirements, either to restrict players from playing low-edge games or to restrict 'risk-free' play (betting for instance both red and black on roulette), thereby completing the wagering requirement with a guaranteed profit after the bonus is taken into account.
Welcome bonuses
The Welcome bonus is a deposit match bonus on the first deposit ever made in the casino or casino group. Welcome bonuses sometimes come in packages and may be given to match the first two or three deposits (First Deposit Welcome Bonus, Second Deposit Welcome Bonus, etc.). They can also be tied to specific games, such as the Welcome Slots Bonus or the Welcome Table Games Bonus. The casino may also offer Welcome bonuses for high rollers who make an initial deposit above the standard amount limit.
Referral bonuses
There are two types of Referral bonuses: one for the Referee and one for the Referrer. The Referee gets a bonus when he or she registers an account at the casino and mentions the Referrer. The Referrer gets a bonus when the Referee completes all the requirements, such as making the deposit and wagering it a certain number of times.
Cashback or Insurance bonuses
Cashback or Insurance bonuses are offered as a percentage of all losses in the player’s previous gaming activity. Typically, only deposits that were not matched with bonuses count towards this bonus. You can additionally find websites that offer casino cashback payments based on your losses encountered while playing with one or more online casinos. Those type of cashback deals are usually paid back to players by the casino portal that offers those special cashback offers.
No deposit bonuses
The most popular form of bonus is one that can be claimed without the need to deposit any of the player's own money - known as a no deposit bonus. These bonuses are used as acquisition tools by casinos wishing to attract new players. No deposit bonuses don't always take the form of real cash, as exemplified below.
Non-cashable bonuses
Non-cashable bonuses may be called 'sticky' or 'phantom' bonuses. In both cases, the bonus forms a part of the player's balance, but cannot be cashed out. The difference between cash-able and phantom bonuses comes at cashout time. A phantom bonus is deducted from the player's balance at the moment he places his withdrawal request. For example: if you deposited $100, received a $100, played and finished the wagering with $150. If the bonus is sticky, the player will be able to withdraw just $50. If bonus is cash-able, then the whole balance is available for withdrawal.
Comp points
Comps are commonly available at land-based casinos, but also exist online. Comp points can usually be exchanged for cash, prizes, or other comps. The amount of cash given per wager is usually very small and often varies with game selection. A casino might offer three comp points for each $10 wagered on slots and one comp point for each $10 wagered on blackjack. The casino might give $1 for each 100 comp points. This example is equivalent to returning 0.3% of wagers on slots and 0.1% of wagers on blackjack. In addition online casinos may offer comps such as free tickets to online tournaments, free slots online, tickets to other special events, extra bonuses, souvenirs and pay back.
Bonus hunting
Bonus hunting (also known as bonus bagging or bonus whoring) is a type of advantage gambling where turning a profit from casino, sportsbook and poker room bonus situations is mathematically possible. For example, the house edge in blackjack is roughly 0.5%. If a player is offered a $100 cashable bonus requiring $5000 in wagering on blackjack with a house edge of 0.5%, the expected loss is $25. Therefore, the player has an expected gain of $75 after claiming the $100 bonus.
Bonus disputes
A large portion of online casino disputes relate to bonuses. Casinos may label players who win using bonuses as 'bonus abusers.' Both players and casinos may commit fraud. An example of player fraud is creating multiple accounts and using the accounts to claim a sign-up bonus several times. An example of casino fraud is changing terms of a bonus after a player has completed the wagering requirements, then requiring the player to meet the new bonus terms.[citation needed]
Fraudulent online casino operator behaviour
Fraudulent behaviour on the part of online casinos has been documented, almost exclusively by player advocacy websites and forums. The most commonly reported behaviour is a refusal to pay withdrawals to legitimate winners. An online casino with multiple confirmed cases of fraudulent behavior is often called a rogue casino by the online casino player community.
Many casino gambling portals and player forums maintain blacklists of rogue casinos. While some carry more authority than others, all blacklists constitute individual webmaster and player opinions rather than an official list from any type of regulating body.
Often, casinos use buffer sites that offer free play of their casino games but in reality use different means of deceptive strategies to redirect or lure the visitors into signing up to their services via appealing bonus offers or exclusive reward programs. Majority of these deceptive 'free' sites lead to equally deceptive casinos.
Since almost all existing online casinos offer free play of their casino games, recognising whether a casino is deceptive based on whether they offer free gameplay is no longer viable.
Legality
Online gambling legislation often has loopholes that result from the rapid development of the technology underpinning the development of the industry. Some countries, including Belgium, Canada, Finland and Sweden have state gambling monopolies and do not grant licenses to foreign casino operators. According to their law, operators licensed on the territory of these countries can only be considered legal. At the same time, they can't prosecute foreign casino operators and only block their sites. Players in these countries can't be punished and can gamble at any site they can access.
Australia
The Australian Interactive Gambling Act 2001 (IGA)[1] criminalises the supply of online casino games by an operator anywhere in the world to persons located in Australia. It only targets operators of online gambling sites, resulting in the curious situation that it is not illegal for a player in Australia to access and gamble at an online casino. No operator has even been charged with an offence under the IGA and many online casinos accept Australian customers.[2] In June 2016, the South Australian Government became the first state or territory in the world to introduce a 15% Place Of Consumption Tax (POCT) modelled on the 2014 UK POCT.[3]
Belgium
The Belgian Gaming Act[4] went into effect in January 2011 and allows online gambling, but only under very strict conditions and surveillance.[5]
Canada
The Canadian criminal code states that only provincial governments and charitable organizations licensed by provincial governments may operate a casino in Canada. It also prohibits residents from participating in any lottery scheme, game of chance, or gambling activity not licensed or operated by a provincial government.[6] In 2010, the British Columbia Lottery Corporation launched Canada’s first legal online casino, PlayNow, which is available to residents of British Columbia. The province of Quebec also operates a legal online casino through Loto-Québec.
Despite this legislation, the Kahnawake First Nation in Quebec has taken the position that it is a sovereign nation, able to enact its own gambling legislation, and has licensed and hosted nearly 350 gambling websites, without ever being prosecuted.[7]
Germany
A German state contract about gambling (German: Glücksspielstaatsvertrag [de]) between all 16 German states was ratified in 2008 and has been adapted in 2012. It regulates a restrictive handling of online-gambling, including a basic state monopoly on public gambling with limited exceptions for a few commercial providers. Online gambling, and other forms of public gambling, against these regulations is illegal in Germany. The state contract, its implementation in contrast to the more lenient EU legislation, and possible further changes have been controversially discussed in the public, politics, and courts.
United Kingdom
In the United Kingdom, the Gambling Bill that was passed into law in 2005 tends to all matters of online gambling, permitting online betting sites to have a Remote Gambling Licence in order to offer online betting to UK citizens. In 2014, the UK government put into law the Gambling Act of 2014 which in addition to the original 2005 law, required offshore online gambling operators catering to UK players to obtain a UK license. The new regulation required operators to pay a 15% Place of Consumption Tax (POCT), something that triggered an exodus of sorts of some operators from the British Isles. However, this exodus did not last long in most cases as the benefits outweighed the stumbling blocks, due to the UK being a major market for online gambling.[citation needed]
In 2019 the United Kingdom Gambling Commission (UKGC) announced a series of new measures that apply to online and mobile casinos to reduce underage gambling with the aim of increasing fairness and transparency.[8] The new measures will require casinos to have users verify their identity and age in order to gamble.[9]
United States
In the United States, the legality of online gambling is debated and can vary from state to state. The Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA) limits the ability of banks and payment processors to transact with internet gambling sites that are unlawful under any federal or state law. However it does not define the legality or otherwise of an internet based gambling site. It was commonly assumed that the Federal Wire Act prohibited all forms of online gambling. However, in December 2011, the United States Department of Justice released a statement clarifying that the Wire Act applied only to sports betting sites and not to online casinos, poker, or lottery sites,[10][11] leaving the definition of legality up to individual states. Certain states such as Nevada, Delaware, and New Jersey have started the process of legalising and regulating online gambling and it is expected that regulation will continue on a state by state basis.
See also
Notes
- ^Interactive Gambling Act 1998 - Australia
- ^Cowie, Tom. 'Last Bets: around the world in online casinos — first stop, Gibraltar'. Crikey.
- ^SA to become most expensive place in the world to wage a bet, betting agency says
- ^Gaming Act
- ^Platteau, Koen (23 October 2012). 'Online gambling is taking off in Belgium'. Olswang LLP. Archived from the original on 7 November 2012.
- ^'The Criminal Code of Canada (s.206 and s.207)'. Retrieved 9 April 2014.
- ^Crowne, Emir; Roy, Sanjay (May 2010). 'Maintaining Provincial Monopolies: The Legality of Online Gambling Sites in Canada'. Canadian Gaming Lawyer Magazine. Vol. 3 no. 1. SSRN1611862.
- ^Miller, George (2019-02-11). 'UKGC: New rules to make online gambling in Britain fairer and safer'.
- ^'New rules to make online gambling in Britain fairer and safer'. www.gamblingcommission.gov.uk. Retrieved 2019-03-07.
- ^Vardi, Nathan. 'Department Of Justice Flip-Flops On Internet Gambling'. Forbes.
- ^Dunstan, Roger (March 1997). 'II. History of Gambling in the United States II-1'. Gambling in California. California State Library. Archived from the original on 2017-01-18.
External links
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Hundreds of legal blackjack casinos exist on the Internet. At last count, 764 different licensed online casinos were listed on a reputable online gambling authority site. All of these casinos offer some form of blackjack or another, so you could consider them “blackjack casinos”. That’s the subject I want to discuss today.
I won’t be giving you recommendations on which legal blackjack casinos to play at. You’d be right to suspect my motivations, since a profit motive might be attached to those reviews. Instead, I want to discuss what to look for in determining which blackjack casinos should be considered legitimate. The subject of licensing and regulation is going to be the centerpiece of this discussion. I also want to speak in brief about industry watchdog groups and legit software development companies, too, but the main question is which governments are telling you these websites are legal and therefore legit.
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Licensing Authorities that Regulate Legal Blackjack Casinos
Governments had a myriad of reactions to the online gambling. Governments in the countries with vocal religious groups, such as the United States and the Middle East, tended to enact moralist anti-gambling legislation. Certain totalitarian states, such as North Korea, also banned Internet gambling–though this was more a ban on any electronic communication with the outside world. Governments in more progressive countries also enacted laws, but these were meant to regulate and tax the new form of gambling. Most of western civilization chose to restrict certain forms of gambling, but allow legitimately licensed casino operators to cater to their citizens. Debates raged–and continue to rage–in certain of these countries. France has many restrictions on gambling, while the 15 federated states Germany are only now beginning to agree on gambling laws. After scandals involving state-run gambling ventures, Greece outlawed most forms of Internet gaming in 2012.
Meanwhile, world governments have become more comfortable with the practice of online gambling worldwide. For instance, once the Chinese government decided online gambling wasn’t subversive, but instead gave their new middle class a distracting past-time, you would see that some online sites accept players from mainland China, Hong Kong, and Macau. Asia is a growing online gambling community, with leading casinos beginning to open up “Asian rooms” or “live Asian gambling” to lure in more of this clientele. With a patchwork of policies upheld by the government agencies, software designers, money transfer companies, and individual operators in the Internet gambling industry, it’s no wonder that sites have an endless number of restrictions on who can play at their sites. It can be confusing to know who is legitimate, especially since the countries which do most of the licensing are smaller and out-of-the-way locations. For this reason, I want to point out the legit licensing authorities around the globe.
Gibraltar
Gibraltar is a top licensing authority in the online casino industry. Gibraltar is a British overseas territory and has been since the 1713 Treaty of Utrecht, which ratified the seizure of the tip of Spain from the Spanish monarchy. Gibraltar was an important naval base for the British Empire, a choke point which allowed the British navy to regulate naval traffic between the Mediterranean Sea and the Atlantic Ocean. The sovereignty remains a point of contention between England and Spain, with the nearly 30,000 Gibralterans rejecting several motions to join with Spain again. Gibraltar is best-known for its tourism, but it handles financial services which might not be quite as acceptable inside the United Kingdom itself. These days, Gibraltar licenses many Microgaming, Playtech, and Net Entertainment casinos.
The Republic of Malta
The Republic of Malta is found between Italy and North Africa in the central Mediterranean Sea and has been a strategic island throughout most of human history. Malta was contested between Rome and Carthage over 2,100 years ago, and was a key stronghold during the many years of Christian and Muslim conflict over the Mediterranean. The Knights of St. John eventually controlled the island from 1530 onward, until they were ousted by Napoleon in 1800. By the end of the Napoleonic Wars, the British Empire controlled Malta and it served as a strategic base for air power during World War II. Malta gained its independence in 1964 and remains a part of the Commonwealth of Nations. This confers the legitimacy of British-style officialdom on Malta’s licensing authorities. Many of the UK sitesnot licensed by Gibraltar are licensed by Malta.
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Alderney
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Alderney is a tiny island in the English Channel between France and England. This Channel Island is a part of the Bailiwick of Guernsey. Casinos licensed in Alderney are therefore licensed by British officials. Though not as prevelant as Gibraltar or Malta, Alderney is still found licensing a few Playtech and Microgaming casinos.
Isle of Man
The Isle of Man is a tiny island found between Northern England and Northern Ireland in the Irish Sea. The Manx island is home to one world-famous poker site, but also to the Playtech corporation. While it seems to be more active in online poker, a few online casinos are regulated out of the Isle of Man. The Isle of Man is a British Crown Dependency, so it is affiliated with the UK.
The Kahnawake Gaming Commission
The Kahnawake Reservation is found just south of Montreal, Quebec in Canada. The Kahnawake Gaming Commission licenses gambling sites which cater to UK players and some which cater to US players. Many Native American tribes in the United States and Canada exist as semi-autonomous countries which can choose to engage in gambling practices outlawed in the wider country in which they’re found.
The Netherlands Antilles
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The Netherlands Antilles gained independence from the Dutch in 1986, but maintain many of the laws and customs of the Netherlands. The licensing authority on the island of Curacao tends to be the Netherlands Antilles regulatory agency for gambling. Many of the RealTime Gaming sites are licensed in the Netherlands Antilles, while many of the same sites have their corporate headquarters there.
Antigua & Barbuda
Antigua & Barbuda are another tiny Caribbean island nation which licenses online gambling websites. Antigua & Barbuda are famous in the industry for taking the United States government before the WTO World Court and winning a court case which said the enforcement of US anti-gambling laws broke international law. The American government has successfully dragged out the appeals process for years, so Antigua & Barbuda’s legal victories are more Pyrrhic in nature, as the legal fees have been a drain on their small economy. You won’t find a licensing authority more ready to defy the U.S. government, though.
Cyprus
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The nation of Cyprus also licenses casino gambling. Most of the sites I’ve seen licensed by the Cypriot government tend to be based out of Nicosia, Cyprus. Like it larger Greek neighbor, Cyprus’s government began taking a more hard line stance against gambling in 2012, so it’s unsure how long blackjack casinos will operate under a Cyprus license.