What Is Online Gambling

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Fraud affects to all participants in online gambling projects: both customers and operators.

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The essence of a problem

There are two main types of fraud in online casinos:

  1. Fraud from the side of players (for example, fraud with the input-withdrawal of money, ways to deceive the operator, etc.)
  2. Fraud from outside people, who are trying to invade the online casino software (one of the most common ways – by leaving backdoors in the code of ready scripts)

For customers, actions of intruders are threatened with financial losses and the leakage of personal data that they provide to a casino (these can be bank card numbers, passport data and other personal information that scammers can use to take advantage of).

For an operator, fraud implies both significant financial costs (for example, leakage of profits and penalties from payment systems), and reputational risks, as a consequence - distrust by Internet users, which for online casinos, as a rule, is equivalent to the end of activities.

Solution

The solution of this issue is being provided by the software provider itself. To exclude fraud on the part of a player, platform manufacturers embed in their product additional levels of identification, confirmation of accounts, the ability to block players on specified parameters (nickname, IP, etc.).

If it is a matter of preventing fraud from outside - an operator must have quality software that is 100% protected from outside interference.

To prevent a variety of fraudulent activities, online casino platform providers tend to develop a specialized anti-fraud system that is checked by a specially organized security department, conducting stress tests and trying to 'break through' the system in various ways - to find vulnerabilities that can be exploited for fraudulent Manipulations.

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As in the case of computer viruses, methods and ways of fraud are developing at the same speed as computer technologies.

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Therefore, it is very important that companies that provide software rent out keep an eye on all new technologies, and also monitor emerging fraud and introduce a system of counteraction to them.

CASEXE is concerned about the safety of its customers and constantly improves and complements its anti-fraud system.

You can find out more about the anti-fraud system, as well as about our platform, by clicking on the button below.

Thousands of Americans gamble online. But is online gambling legal? We break it down to show you what you can do, what you can't do, and what's still up in the air.

by Katherine Butler
updated September 03, 2020 · 2min read

What Is Online Gambling

The legality of online gambling is ever-changing. But one thing is constant: it makes a lot of money. Online gambling industry makes an estimated $1 billion dollars annually. This is a huge business, and a lot of people have cashed in on it. But it has led to some ambiguous legal issues, as the legality of online gambling is constantly being challenged.

There are differences in the legality of making bets, taking bets, facilitating payments to casinos, and advertising on websites. And there are constantly new legal challenges. So here is a breakdown of the law on online gambling.

Legal Forms of Gambling

There is no federal law against placing a wager online. So, you can legally place a bet online. However, a wager must not be placed on a site located in the United States. There is a small chance players might run afoul of state law, but there is little chance of prosecution. The only case cited where a person got into trouble with a state was in 2003. Jeffrey Trauman of North Dakota paid a $500 fine on over $100,000 of online sports bet winnings.

Sites that are set up outside of the United States are legal. Therefore, gambling on websites located in areas like Australia, the Caribbean, and Latin America is legal. Just be very clear that the site you are playing on is not based on U.S. soil.

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Definitely Not Legal Forms of Gambling

It is never legal to gamble on a website based in the United States. Also, if you are planning to operate an online gambling site, stay outside of the United States. You must also deal only with casino and poker wagers (not sports bets) from people in the US. And you cannot take bets over the phone from people in the United States.

Accepting online gambling advertising is also illegal. If you are a small publisher, you are less likely to be prosecuted, but why risk it? As of early 2009, only large and mid-size publishers had faced prosecution. In 2007, the three big search engines (Google, Yahoo, and Microsoft) each paid a fine for accepting online gambling ads, but did not face criminal charges. Other publishers, such as Esquire Magazine, have been warned by the government not to take online gambling advertising.

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Facilitating the transfer of funds to online casinos is also a bad idea. As of 2006, it became illegal for American banks to process transactions originating from or directed toward any online gambling operator. Because of this, several sites then refused to take bets from American players. But as the law seems difficult to enforce, it has not turned the tide completely for American players.

What Is Online Gambling

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Still up in the Air

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Advertisers who promote sports books in magazines and on billboards may or may not face prosecution. So far, sports books have never been scrutinized for advertising online. And online casinos, poker rooms, and sports books have never been prosecuted for buying ads.

Online casinos and operators still accept American players. And international financial parties have continued to process their transactions. The legality is always changing and there have been attempts to declare online wagering against the law, but for now, U.S. citizens who simply place bets online are in the clear.

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