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Online Gambling Jurisdictions

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The first rule in selecting an online casino is that it must be licensed to offer online gambling services. And the license must be issued by a reputed “jurisdiction”. At least the name of the licensing jurisdiction must be displayed on the home page of the online casino. It is preferred that the license details and a link to the actual license be also provided. The question that arises is what the gambling jurisdictions are.

Gambling jurisdictions are sovereign regions that have set up a mechanism for vetting applicants who want to offer online gambling services. Historically the first of these were established in the mid 1990s. They were small nations or independently administered areas that derived a significant share of their income from the licensing of online gambling. Over time they acquired a reputation for conducting strict due diligence of applicants before issuing licenses and enforcing strict regulation of licensing conditions afterwards. The best of these are constantly upgrading the required practices and norms. Today, some of the most respected online gambling jurisdictions are Antigua and Barbuda, Kahnawake, Curacao, Gibraltar, Alderney, Isle of Man and Malta.

Established in 1994, Antigua and Barbuda was one of the earliest online gambling jurisdictions. The designated body that conducts the licensing and regulatory activities is the Division of Offshore Gaming, which has been formed under the Financial Services Regulatory Commission. The Kahnawake Gaming Commission was established in 1996. It regulates online gaming activities conducted from the Mohawk Territory of Kahnawake in Canada. Special rights were given to the native tribes to conduct gambling operations. Kahnawake is one of the largest online gambling jurisdictions with over 110 online establishments licensed by it. The Curacao Internet Gaming Association is the regulatory body of the Netherlands Antilles. It was instituted in 2001. The Lotteries and Gaming Authority is the body that licenses and regulates online gambling from the Malta jurisdiction. It was formed in 2001 after the enactment of the Lotteries and Other Games Act.

California: Lotteries versus Gambling

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There is an abiding misconception in the gambling community about the legal history of games like poker in the State of California.  It is improperly assumed that poker is permitted because it is a game of skill, as opposed to a game of chance.  Misstatements abound that California courts have so held.

The truth is that California law bans (i) most lotteries, (ii) a few specific games and (iii) all unlicensed “banked” or “percentage” games played with cards or dice.  There is no mention of “games of skill” in the last two categories  The “raked” games are all played for money where the host, or “house,” makes money on the game other than as a mere player competing on equal terms with the other players.  All other games are legal.

Article IV, Legislative, Section 19 of the California Constitution [1] bans most private lotteries.  The language of the Constitution shows that card games and other casino-style games are not viewed as lotteries.  An expansive reading of the meaning of “lottery” to include card and various casino-style games is the law in many states, but California is not one of them.

The basic California gambling prohibitions are in Sections 319 (lotteries) and 330 (other gambling) of its Penal Code.[2]  Section 330 was originally enacted in 1872, and has been amended several times since.  In 1885 the statute was amended to add “stud-horse poker” (which has now been removed) to the specific games prohibited.  No definition of “stud-horse poker” was included in the statute.  In an opinion in 1947 the attorney general of California said that “stud-horse” poker was the same as stud poker, and thus gambling at stud poker was barred by the statute.  Attorney General Opinion No. 47-25 (March 11, 1947)  Note that this Opinion did not address any aspect of the predominance of skill over chance, or vice versa.

The only California case I have found that squarely addresses the issue of skill versus chance in a card game is In re Allen, 59 Cal.2d 5, 377 P.2d 280, which held that the game of bridge is a game of skill, not a game of chance.  Neither the California Constitution nor the California Penal Code was in question in this case.

The case involved  “a petition for a writ of habeas corpus on behalf of a defendant who was arrested and charged with a violation of section 22 of article 2 of Los Angeles County Gambling Ordinance No. 461.  The section provided: ‘A person shall not knowingly permit any game prohibited by this ordinance to be played, conducted, or dealt, in any house or other premises, owned by, rented by, or in the lawful possession of such person.’  Section 21 of article 2 provides, in part: ‘A person shall not deal, play, carry on, open, cause to be opened, or conduct any game of chance played with cards, dice, or other device for money, checks, credits, or other thing of value.’


Online Gambling and Casinos in New Jersey

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Gambling Online at an Atlantic City Casino The Intrastate Internet Gambling Bill, formally known as bill S3167, was introduced by Senator Ray Lesniak in the beginning of 2010.
It covers all games that may be played in the Atlantic City casinos, including poker. The bill would enable New Jersey residents over 21 to place bets at licensed online casinos.
As the bill currently stands, licenses for offering online casino games will only be handed out to brick-and-mortar Atlantic City casinos.
New Jersey Casinos for New Jersey Residents According to the bill, the entire physical set-up for offering the online casino games – including the computers, servers and the security monitoring rooms – must be located on the premises of an Atlantic City casino.
This requirement enables the New Jersey Casino Control Commission to keep a close watch on the online gambling equipment, the security procedures and the administrative and accounting processes.
It also aims to ensure expected revenues (over $250 million) and job creation (over 1,500 new jobs) will benefit New Jersey casinos and job-seekers.
 What Atlantic City Casinos Will Hit the Web? Looking at the current brick-and-mortar Atlantic City casinos, these are the likely properties to expand quickly into the online casino gaming realm:
  • Atlantic City Hilton
  • Bally’s Atlantic City; Bally’s Claridge Tower; Bally’s Wild Wild West Casino
  • The Borgata Atlantic City
  • Caesars Atlantic City
  • Harrah’s Atlantic City
  • Resorts Atlantic City
  • Showboat Atlantic City
  • Atlantic City Tropicana
  • Trump Marina; Trump Plaza; Trump Taj Mahal
If big New Jersey casino names like the Tropicana Atlantic City, the Borgata Atlantic City, or Harrah’s Atlantic City team up with established names in the online casino software industry, like PlayTech or Microgaming, they would be able to provide online versions of their games very quickly.

Signing the Bill As of Feb. 10, 2011, all eyes were on New Jersey Governor Chris Christie to sign the bill and start the process of regulating and licensing online gambling in New Jersey.
At first it was expected Christie would sign without much hesitation. But after a month passed without the bill being approved, pundits began speculating Christie's backing of the bill wasn't a sure thing.
That speculation came to fruition on Mar.4, when Gov. Christie announced he would use his veto power and decline to sign the bill, saying it was not in line with the State Constitution of New Jersey.
Given the comfortable margin with which the bill passed the legislature, however, Gov. Christie did leave the door open to it being re-visited, saying in his veto message:
"“If the Legislature believes that expanding gambling outside of Atlantic City is in the best interests of the State of New Jersey, it should place the question on the ballot for the voters to decide.”


Security and Online Gambling

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Is it safe to gamble on the internet? Could their identity be stolen and abused to run down their credits, etc? The answer is very simple. If an online casino is safe, it will tell you about so. Look for sites that feature so-called secure encryption technology, for example, 128 bit SSL digital encryption. This means that all financial transactions are done using a state-of-the-art technology that does not allow hackers to tap any sensitive information from your online casino session.

No cryptic transactions with encryption This method is also used by major banking institutions and credit card companies over the entire world. If you feel safe using ATM or making online purchases, then you should have no problem with online casinos. Most online casino sites have an account history function, where you and you only can see all the financial transactions that you have had with the site. If you should have a question or even some kind of dispute, all the information you need is right there for you to scrutinize. Some sites use a digital encryption that is stronger than 128 bit. The more the better, but 128 bit is more than enough, and that's what most sites use.

Who hides behind the glittering logotype A safe transfer of information to the online casino is not enough. Once your sensitive information has arrived at the casino, how do you know it will not be sold or abused in some way? You should look for a few things to ensure that a casino is reliable. It takes just a couple of minutes, but ensures that the site is dependable and not some shady business. Here are three requirements that all safe online casinos will fulfill:

Licensing The casino must be licensed by a particular jurisdiction. This means that a local jurisdiction (such as Antigua and Barbuda) has given an official license to the casino and has the ability to monitor them legally. If a casino does not have such a license, do not play there.

Reputable software Check if the online casino runs on software from a big provider. A casino that does not have a license from a gaming jurisdiction will not be allowed to use software from the biggest software providers. The largest software providers are: PlayTech, Water Logic, Cryptologic, MicroGaming, Odds-On, RTG, Boss Media, and iGlobal Media. 

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