Non-virtual realities of the virtual casinos

“Gentlemen, place your bets! No bets anymore!” Very soon people will be obliged to pass thousands of kilometers to hear these words in Russia. Being more specific, they will need to go to one of the 4 casino zones, which the government has defined as Russian Las Vegas. But where to go for those who see that world of crazy bets, fantastic dozes of adrenaline and extreme passions in a small screen of a PC? In its desire to follow all the modern European and American tendencies the Russian politicians decided give up virtual pokerrooms and a casinos as a bad job, and it is a pity … We feel pity since online casino could become a gold vein and even a kind of panacea from the world financial crisis which more and more tightens a noose around the neck of the developed countries even.

Let’s turn to the history a little. Some people think that it was the USA who started the war against online gambling. However, having search for some information we found that the Americans were really the first but only after the Australians who decided to stop the malicious hobbies of their Internet users in June, 2001. But in a quiet and peaceful Australia everything passed not so all has passed not so loudly and grandiosely as in the USA, where such ban has caused a storm, and not in a teacup at all.

In November, 2002 the appeal court of the USA of the fifth circuit has forbidden the financial institutions of the country to conduct any financial operations with the funds of the citizens aimed to pay some virtual gambling services. Everything is ok but for the staunch opponents of such restrictions. And not in the territory of the US as such. In June 2003 a small Caribbean offshore state Antigua and Barbuda has filed a suit to the World Trading Organization where it claimed that the United States have deprived their state of the steady income. It is not a secret at all that the offshore states with their loyal laws have become a shelter for many companies forbidden in the developed countries long ago. Antigua and Barbuda, as well as many states of such kind produces nothing and the whole state live on the income from the offshore business, tourism and the gambling industry. The main argument in the claim of Antigua and Barbuda was that having restricted their residents from the online gambling the United States have deprived them of their profit as the Americans were the main consumers of their services. In 2004 of WTO has uphold the claim of Antigua and Barbuda and stated that the United States should lift their ban in respect of the offshore states. However the US is not as simple as it may be seen! The country has refused to lift their ban and lodged an appeal. In 2005 the WTO has re-considered that case and has made a decision in the favor of the US. Though Antigua and Barbuda decided to fight to the bitter end, and in June, 2007 has filed another claim to WTO where it demanded 3.4 billion dollars as a an indemnification. And won the case however the amount was decreased. But not the amount decrease was surprising but the pay of payment! According to the decision of the WTO Antigua and Barbuda were authorized to breach a copyright and to steal the American intellectual property! Now the residents of this small state which was unknown before that case are authorized to copy and sell quite the CDs and DVDs with American music and movies without any problems with copyright for a total amount up to 21 million a year. Probably, the other states will be inspired with such example and demand the similar indemnifications.

Though, some ones have already demanded: Canada, Japan, the European Union. The amounts demanded are more than hundreds millions dollars. Firstly the USA wanted to pay by providing "offended parties " any other sector of economy, but then, after some reflecting have decided to pay in cash. And it is still unknown how much the US will pay. This year the EC has started its investigation aimed at finding whether this notorious ban was a discrimination regarding the the EU countries. If it will be found out that some discrimination existed the US will be obliged to pay again. And is it necessary for the US? Actually Internet gamblers will find a way to play and to spend thousands of dollars for that purposes. And the United States will continue to pay. In other words, uncle Sam will pay twice. What’s the sense? Especially now, when the country is almost at the bottom of the financial crisis. Today, when the USA is lost in the debts and borrows 4 billion dollars every day! And does Russia need it? Isn’t it simpler to legalize the Internet casino and to make the owners to pay taxes? The UK did so and does not regret. With an ban of the Internet casino in the United States the profits from the gambling services on the Internet have increased several times and continue to grow.

This struggle reflects a fight with windmills. Our government tries to fight with the smoking for several years and what? Today 5 year children buy cigarettes without any problems! Having found some idea our statesmen do not think whether it was necessary and worthy. As a matter of fact, the Internet only starts to grow, gaining popularity. The online gambling industry is still not developed properly to be cut. To nip in the bud is also hardly possible as cut on a root too it will not turn out, as that it is impossible to break something that doesn’t exist. Actually there is no such a term as “Internet casino” in the Russian legislation. So, how it possible to ban it? if that tand even if such law appears it will likely be unnecessary as already today the company owners presser register in some offshore jurisdictions to escape any prosecutions and problems in the future. The processing companies do the same as everybody remembers what has happened to Neteller payment processor.

Though everywhere there are some advantages and disadvantages. In addition to the easy money, passions and extreme adrenaline online casinos are an excellent way to launder the money! Everybody knows that very often the carders use such services for money-laundering. The mechanism is very simple: you deposit money, play a little and withdraw to your own e-wallet or plastic card. But in fact it is just one aspect. And we face such BUTs in our everyday life as well. Is t a reason to forbid the industry completely? Casino is like a bad habit but who have no bad habits? Alcohol, tobacco, and the same fast food are the harm as well! However nobody forbids McDonalds worldwide!

When forbidding the online gambling it will be necessary to forbid the ads as well. Though it has already been forbidden and what? Today we still can see on the Internet the advertising of some online casinos or the offer to buy some software for just 5 euros. Isn’t it strange especially since the law forbidding virtual casino has come into force in last year July? By the way, such giants of the Internet as Google and Yahoo! have also refused the advertising of online casinos in 2004 in order not to be punished when Uncle Sam was angry. However, this year Google decided to break its vow and started advertising the casinos, but only in territory of the United Kingdom. Though Yandexis not Google and Russia not the US to be compared and we still have some problems with order…

The orders will likely appear only when some company will be punished publicly. There is no another way. It is still not clear what penalties and punishments will be as a whole, and what criteria will be to judge. For example, in the United States all the responsibility lays down on financial institutions, and in hot Argentina it is supposed to punish the suppliers of the Internet service. In Russia everything is in the air. To forbid something it is necessary to create some preconditions and to prepare everything carefully to make it clear who and what for is being punished. And another issue is that it is necessary to find out whether it is necessary to forbid the online gambling? Today in the same US more and more people speak for lifting the ban. Why can’t we learn from the others’ mistakes in order not to pay much for our own ones? How long will it take and how much will it cost? There are too many questions and it is time to send them all to the popular TV show What? Where? When?

And ill the popular game be closed as an advertising of the casino?

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