Online casino
As online casinos are virtual casinos referred to on the Internet can be accessed. Online casinos enable betting and playing of casino games via devices connected to the Internet ( PC , smart TV , tablet , etc.).
Regulated online casinos usually have the same odds and payout percentages as stationary casinos, with some operators offering higher payback percentages for customer recruitment , for example for slot machine games. With many providers, the repayment rates of the individual games can be found on their websites. The core principle of software for gambling is a functioning random number generator . In table games like blackjack , the house edge is predetermined or programmed into the rules. Casino software can also be leased from operating companies ( CryptoLogic , International Game Technology and others).
Due to tax and legal advantages, many online casino operators are based in offshore financial centers such as Gibraltar or inner-European countries such as the Isle of Man , Cyprus or Malta . As a rule, these countries offer state-controlled and regulated gaming licenses .
Types of Online Casinos
Web based online casinos
Web-based casinos can be used directly through an internet browser . There is no need to download any software . In the past, it was only necessary to install additional programs such as Java , Flash or Shockwave for some more complex games , but this has become increasingly rare since the obsolescence of Java and Flash. In the meantime, more and more casino game providers are programming their developments exclusively in HTML5 format.
Sufficient internet connection bandwidth is required to run these games as all graphics, sounds and animations must be downloaded via the browser. Most online casinos now have games that can be controlled via an HTML interface, which is particularly useful for mobile devices such as tablets and smartphones that do not support Flash.
Download based casinos
In the past, numerous online casinos required the download of special software. The software connects to the casino's service provider and manages the contact without an intermediary web browser . Download-based casinos usually work faster than the web-based equivalents because all components are stored on the local hard drive and do not have to be downloaded first. On the other hand, the initial installation of the software is often time-consuming and, as with any installation of programs from the Internet, there is a risk of built-in malware .
Game offer
The range of games in online casinos can be divided into games that are played against the computer - so-called virtual casino games - and games in which a real casino game takes place, in which the player participates in real time using live streaming technology can.
Virtual casino games
Virtual casino games are either virtual implementations of slot machines or table games. The outcome of a game is here data from a pseudo-random number generator (English: pseudo random number generator - PRNG) dependent. This data determines, for example, the order of the cards in card games, or the result of a die roll or a spin on the roulette pin. PRNGs are based on a set of mathematical rules (PRNG algorithm) that generate a long sequence of numbers that give the appearance of real randomness. Although this method cannot imitate real coincidence, since computers cannot imitate real coincidence without external input, PRNGs meet the most important criteria to ensure the fairness of the games.
Proper implementation of the PRNG algorithm (e.g. the Mersenne Twister ) ensures that the games are both fair and unpredictable. However, online casinos do not provide any insight into how the software works, which is why players have to blindly trust that no excessive house edge has been implemented. The functionality and the algorithm used are checked by external bodies at regulated online casinos in order to ensure that the profit margins of the provider match the chances of the games.
Another method for verifying the fair play of online casinos consists in generating the seed key by the casino server before displaying the results, and publishing the checksum of this value. After the outcome of the game, the player can check the seed key via a web interface and thus ensure that the outcome of the game has not been manipulated. However, this method does not work in multiplayer games (such as poker).
Live dealer games
In a live dealer casino, the respective game is moderated by a human croupier, whose game actions and communication are broadcast via live stream. Actions by the player take place through a console on the screen and communication with the dealer takes place through a chat window. The required game parameters are processed via Optical Character Recognition (OCR - software that recognizes image material and converts it into data) into data that can be used by the software. Players can interact with the game in the same way as they would in a regular virtual casino game, but the outcome of the game does not depend on random number generators but on physical interactions.
For the operators of such games, the financial outlay is much greater than the offer of simple virtual casino games. At least one live studio with one or more cameramen and a few croupiers, a server and software room and an analysis studio are required for operation. In addition, a pit boss must be employed as an arbitrator for differences of opinion and rule violations and an IT manager for the smooth functioning of the casino software.
The high financial outlay involved in operating such casinos is the reason why live dealer casinos only offer the most popular games such as Roulette , Blackjack , Sic Bo and Baccarat in this format. Offering the same games as a virtual version is relatively cheaper for operators, which is why it is not uncommon for operators of virtual casinos to offer hundreds of different games.
The offer of live dealer casinos exists in different modifications. For example, some operators broadcast the dealer interactions on their own television station, while others only offer the games on their website. Often the player interaction can also be handled via smart TV and smartphones .
As a rule, web-based online casinos offer games with live dealers within their usual game portfolio, so that independent live dealer casinos generally do not appear, but rather a category within the range of games offered by online casinos.
safety
Online casinos use encryption systems to encrypt the data between the online casino and the player's device. In order to rule out money laundering, breach of trust and fraud, the companies that operate the casinos are also obliged to verify the identity of the players using a KYC process. State regulation usually ensures a recurring review of the random number generators used.
Bonuses
Bonuses are often part of the marketing strategies of online casinos that want to attract new customers or keep existing customers. In doing so, the operators essentially allocate gaming capital and thereby tie players to the online casino in return. Such bonuses are linked to turnover rules (for example: the bonus amount must be wagered or played at least 20 times in order to have the winnings paid out) to prevent the player from simply withdrawing the bonus received immediately after receiving it can. The turnover rules are usually set up in such a way that a negative outcome for the player can be expected, as if he had deposited the bonus amount. Some online casinos limit the use of the bonus amount even further, for example by prohibiting risk-reduced betting, such as betting on both red and black in roulette, or by prohibiting the use of the bonus in games with a low house edge.
Similar strategies can also be found in real casinos in the form of so-called “comps”. These are free additional services on the part of the casino operator, which are intended to encourage the player to bet.
Online casino fraud
Online casinos can try to cheat their players in some cases. However, this risk mainly arises in online casinos that do not have a license, as supervisory authorities usually check the integrity of the IT system used. The most common unfair or even fraudulent business practices include:
- Unfair Games: The games work differently than stated in the game plan. So the chance of winning through manipulation of the system can be significantly lower than it is shown. This lowers the profitability of the games.
- Blocking of withdrawals: Online casinos can make it difficult to distribute profits to players. Transactions have to be verified anyway; however, casinos can make withdrawals even more complicated through unnecessary and unjustified delays and thus effectively prevent them.
- False Advertising: Online casinos usually offer a variety of promotions. A disadvantage for the player can, however, result from the fact that the real conditions of a special offer are worse than they were originally presented in the advertising.
legality
When regulating online casinos, legislators are faced with the challenge of resolving the tension between the economic interests of the providers and the concerns of addiction prevention . In addition, the dynamism of the Internet and the cross-border provision of offers make it difficult to efficiently prevent illegal online casinos. In dealing with this, international practice essentially follows two different approaches: a tightly regulated legalization of private gaming offers on the one hand and criminalization on the other (often paired with a state monopoly). In most cases, however, the criminal liability only affects the supply side. Users of such offers are usually not prosecuted.
In addition, various countries choose a middle course: Countries such as Belgium, Canada, Sweden and Finland only partially prohibit private gambling. They each have state gambling monopolies and do not issue licenses to foreign casino operators. In contrast, domestic casinos that are licensed to operate on their national territory are to be regarded as legal within their legislation.
Austria
The machine gaming regulation is subjected to an assessment process with open participation. The assessment began on February 20, 2014 and ended on March 6, 2014. Only a few casinos still accept players from Austria.
Switzerland
In Switzerland there has been a law since July 1, 2019, which only allows online casinos with an additional license. This also applies to providers from abroad. The range of legal online casinos has thus decreased significantly in Switzerland. There are currently only a handful of legal online casinos in Switzerland.
Germany and Europe
Some non-European and inner-European countries such as Isle of Man or Malta offer state-regulated and controlled gaming licenses (e.g. the MGA ). Due to the European legislation such as the freedom of trade, it is possible for individual European companies to legally disregard country-specific restrictive laws. The income generated by online casinos within the European Union in 2011 amounted to approx. 9.3 billion euros. Germany's restrictive stance has been criticized by the European Union in the past. The Federal Republic of Germany was asked to prove that games in online casinos are particularly addictive. In the meantime, however, this position has been revised by the European Court of Justice , since a general ban would serve the common good.
According to the Amending State Treaty on Gaming, which came into force on July 1, 2012 , the operation of an online casino is generally prohibited for German companies. The only exceptions are online sports betting, and only to the extent that a license has been applied for at least under a concession procedure that has now been stopped. Only the federal state of Schleswig-Holstein took a special route for a short time and issued some licenses for online casinos in 2012. An amendment to gaming law failed in 2017 due to disagreement among the federal states as to whether only sports betting should be legalized on the Internet or other types of gambling.
2015 German citizen for playing was blackjack at an online casino based in Gibraltar by the Munich District Court to a fine for involvement in illicit gambling convicted. The entire profit was confiscated. In the terms of use , the foreign provider himself drew attention to the fact that its own offer can be illegal in some countries and that players must check this themselves. In the second instance , the judgment was overturned because German criminal law is not applicable to online gambling.
United States
In the United States , online gambling was first regulated by the Federal Wire Act in 1961 , which only addressed sports betting and expressly excluded other forms of online gambling. The 2006 Internet Gambling Enforcement Act (UIGEA) restricts banks and other credit institutions from receiving and sending payments at Internet casinos that operate illegally on US territory. However, it does not determine which casinos are legal or illegal. The regulation of online gambling is largely left to the individual states to this day. However, some of them have already started the process of legalizing and regulating online casinos.
Australia
In Australia , the Interactive Gambling Act (IGA) has been in force since 2001, criminalizing every provider of online casino games to people in Australia worldwide. However, it only prohibits the provider, not its use. As a result, it is illegal to offer online casinos in Australia, but players can use these services unimpeded. No provider has been charged with violating the IGA and many online casinos accept players from Australia.
Canada
Canada is one of the few countries that criminalizes not only the provision but also the use of online casinos that are not state licensed. Despite this regulation, Kahnawake , a Quebec Indian reservation , has licensed around 350 gambling websites on its own initiative without ever being prosecuted.
Belgium
Belgian legislation allows online gambling, but only under very strict conditions.
Online casino games
Individual evidence
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