Gamble in Vegas
A Brief History of Online Gambling
For all the obstacles it has faced (and continues to face) online gambling has certainly come a long way since it began in the early nineties. While it continues to be embroiled in controversy, particularly the United Sates, its popularity endures.
The history of online gambling can be traced back to an island nation in the eastern Caribbean called Antigua and Barbuda. In 1994 their government enacted the Free Trade and Processing Zone Act, which paved the way for the issuance of gambling licenses. To this day the island remains a hotbed of online gambling operations because of the ease it obtaining a license.
The next important development took place in 1995 in Europe, specifically in the Isle of Man when Microgaming developed the first online casino software. During the same period CryptoLogic created several applications to ensure secure monetary transactions. By the end of 1995 the first online casinos began to appear on the Internet.
The other major innovation came from Boss Media in 2000 when they successfully launched the first casino software with multiplayer capabilities, allowing for full interaction. The advent of multiplayer capable software and the security of online transactions, led to online gambling's rapid growth, with earnings increasing yearly.
Revenues of online gambling totaled just over $15 billion in 2006. According to a survey conducted in 2001 over 8 million individuals have gambled real money online, the first million dollar winner being announced in May 2002. The figure has no doubt increased since then. The total number of gambling sites cannot be measured with much accuracy, as new ones spring up constantly, but one estimate puts it at no less than 2,500 by 2006.
In 2003 the eCOGRA (eCommerce and online gaming regulation and assurance) was established to address security and legal concerns, as well as setting up standard rules and regulations.
While online gambling continues to grow, it has encountered several legal issues in several countries, particularly the Untied States. While previous attempts at passing bills that seek to curb or prohibit this activity were unsuccessful, on October 13 2006, President George W. Bush signed into law the Internet Gambling Enforcement Act 2006 (H.R. 4411). This law forbids US banks and other monetary companies from accepting payments by American residents to online gambling institutions.
The passage of this bill was a blow to the industry, since nearly half of the total revenues came from the Untied States. In 2007, two bills, HR 2046, the Internet Gambling Regulation and Enforcement Act (IGREA), authored by Representative Barney Frank and HR 2610, the Skill Game Protection Act, introduced by Rep. Robert Wexler, sought to amend the existing laws by allowing for the operation of certain games online (such as poker, bridge etc), albeit under strict supervision.
While the future of online gambling in the United States remains unclear, it is still gaining popularity in other countries where laws are more lenient.