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SIGNUPHERE
A Short History of Online Gambling
On line betting is a fairly recent practice, yet still very controversial. Its
history began in the 90s, as the internet began experiencing a rise in
popularity. A foreshadowing event took place when the government of a small
island country in the Caribbean, Antigua and Barbados, passed a law in 1994
allowing on line casinos to license. This was called the Free Trade and
Processing Act. Realizing the almost endless possibilities of making real money
through Internet gambling, several entrepreneurs jumped at the then, and now,
legal chance to start this new venture.
Many different companies were formed that same year, and more followed in
the years after. Some companies created on line wagering websites, and others
designed the gaming software needed to run the financial transactions and
develop new games. As on line casinos increased in number and became
financially lucrative, with reported revenues of nearly 835 million dollars
in 1998 alone, different layers of U.S. government began to take notice.
In the U.S. Senate, a Republican from Arizona, Senator Jon Kyl, introduced
the Internet Gambling Prohibition Act in an attempt to restrict such
activity in the United States. The bill failed to pass Congress, and
casinos online continued to flourish. As internet betting continued to gain
popularity, a few companies created software packages that could be leased
by Internet betting sites in exchange for a percentage of earnings. This
helped many new betting sites appear.
Around this time, Canada also began to curb betting activities, raiding
offices and eventually levying a fine against one of largest web servers.
In 1999, Senator Kyl presented a revised version of his Prohibition Act bill,
and once again, it failed to gain the support needed in order to pass.
Meanwhile, Australia allowed the creation of an Internet casino, which in the
end became the only one allowed. Although many more would-be casinos attempted
to obtain licenses in Australia, their government quickly formed a law
preventing any new online wagering operations.
In the year 2000, Republican Senator Bob Goodlatte of Virginia, introduced in
Congress, a revised Prohibition Act, and it was also turned away. The following
year (2001), two bills that would help cut wagering were passed in Congress. One
was an updated version of the Wire Act, which makes it unlawful to be involved
in a business of betting or wagering. The other bill attempted to prevent
payment by prohibiting institutions, based in the USA, from handling such
payments. This made it more difficult for U.S. residents to engage in Internet
betting.
A few lawsuits were filed in the years that followed, and in 2006, several
arrests of top CEOs were made. At the same time, the U.S imposed sanctions on
offshore companies, resulting in Antigua and Barbados filing a case with the
World Trade Organization, which rules that U.S. actions are discriminatory and
unlawful. Nevertheless, in October, 2006, the Unlawful Internet Gambling
Enforcement Act (UIGEA) was approved by congress, as a Rider bill attached to
the Port Security Act. Ports never, to this day, became secure. Instead, many
trustworty gaming websites, along with software developers makers, closed shop,
withdrew combined Tens of Millions of US Dollars from US Banks, and fled the
country. It turned out to be a sad day for the legitimate gaming facilities.
Today, casinos online continue operating. Many U.S. states are attempting to
change laws to their favor. Meanwhile, some honest, trustworthy places are still
operating offshore. You can discover who they are by visiting review sites such
as this one. Despite all the many inconveniences to be endured, USA residents
make up a large part of their clientele.
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