Online casino
Encyclopedia
Online casinos, also known as virtual casinos or Internet casinos, are online versions of traditional ("brick and mortar") casino
s. Online casinos enable gamblers
to play and wager on casino games through the Internet
.
Online casinos generally offer odds and payback percentages that are comparable to land-based casinos. Some online casinos claim higher payback percentages for slot machine
games, and some publish payout percentage audits on their website
s. Assuming that the online casino is using an appropriately programmed random number generator, table game
s like blackjack
have an established house edge. The payout percentage for these games are established by the rules of the game.
Many online casinos lease or purchase their software from companies like Microgaming
, Realtime Gaming
, Playtech
, International Game Technology
and CryptoLogic Inc
.
Some casinos offer 'Live gaming', either exclusively, or as part of a wider online casino offering. In live online casinos, popular casino games such as roulette
and blackjack are dealt by real dealers
in casino studios, in an attempt to convey more of the atmosphere of a physical casino. Player actions (including chat) such as 'hit' in the game of blackjack may be transmitted to the dealer; in some online casinos more than one player may 'sit' at a particular 'seat' on the table, and in this case there is no interactivity between player and dealer, the question of which player(s) requested the extra card that the dealer dealt and which chose to 'stand' will be handled by the software. It is usual for players to be able to observe a video feed of the action, and equally common for players to opt to turn it off, if they lack the bandwidth
- as the cards are read by OCR and other technology, the video feed is only ever a visual cue.
, or Java and require browser support for these plugins. Also, bandwidth is needed since all graphics, sounds and animations are loaded through the web via the plugin. Some online casinos also allow gameplay through a plain HTML
interface. Apple devices such as iPod, iPad and iPhone cannot play Flash games as the technology is not supported.
does exist. Still the graphics and sounds at download-based online casinos are most of the time much better than those at web-based online casinos.
that may incur a cost (potentially justifiable in order to attract a new player who may return and deposit many more times), since the casino is essentially giving away money, in return for a commitment from the player to wager a certain minimum amount, usually a multiple of the deposit and/or bonus credited to the player's account. Since all casino games have a house edge, the wagering requirements ensure that the player cannot simply walk away with the casino's money, and indeed if the wagering requirements are sufficiently high, he may in fact have a negative expectation, exactly as if he had deposited without any bonus.
Casinos may choose to restrict certain games from fulfilling the wagering requirements, either to restrict players from playing low-edge games, or to restrict 'risk-free' play (betting for instance both red and black on roulette, thereby completing the wagering requirement with a guaranteed profit, after the bonus is taken into account.
s, tickets to other special events, extra bonuses, souvenirs and pay back.
where turning a profit from casino, sportsbook
and poker
room bonus situations is mathematically possible. For example, the house edge in blackjack is roughly 0.5%. In the example above, $5000 in wagering with a house edge of 0.5% will result in an expected loss of $25. Since the player received a $100 sign-up bonus, after subtracting the expected loss of $25, the player has an expected gain of $75.
Some casino software has been mathematically proven to cheat, such as Elka System/Oyster Gaming and Casino Bar. Screen shots from the back office of an older brand of software indicated the odds could be adjusted by the operator.
Many casino gambling portals and player forums maintain blacklists of rogue casinos. While some carry more authority than others, most blacklists constitute individual webmaster and player opinions rather than anything official from any type of regulating body.
In Belgium, according to their Gaming Act, all people involved in illegal gambling should be prosecuted, which includes both operators and gamblers.
In the United States, all online casino operators – local and foreign – should be prosecuted if they accept wagering money from American citizens. Unlawful Internet Gambling Enforcement Act of 2006
(UIGEA) limits restrictions to online gambling operators, while players can be prosecuted only in certain states, where the state law prohibits placing bets.
Casino
In modern English, a casino is a facility which houses and accommodates certain types of gambling activities. Casinos are most commonly built near or combined with hotels, restaurants, retail shopping, cruise ships or other tourist attractions...
s. Online casinos enable gamblers
Gambling
Gambling is the wagering of money or something of material value on an event with an uncertain outcome with the primary intent of winning additional money and/or material goods...
to play and wager on casino games through the Internet
Internet
The Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...
.
Online casinos generally offer odds and payback percentages that are comparable to land-based casinos. Some online casinos claim higher payback percentages for slot machine
Slot machine
A slot machine , informally fruit machine , the slots , poker machine or "pokies" or simply slot is a casino gambling machine with three or more reels which spin when a button is pushed...
games, and some publish payout percentage audits on their website
Website
A website, also written as Web site, web site, or simply site, is a collection of related web pages containing images, videos or other digital assets. A website is hosted on at least one web server, accessible via a network such as the Internet or a private local area network through an Internet...
s. Assuming that the online casino is using an appropriately programmed random number generator, table game
Table game
In casinos, the term table game is used to distinguish games such as blackjack, craps, roulette and baccarat that are played on a table and operated by one or more live dealers like a croupier or poker dealer, as opposed to a games played on a mechanical device like a video slot machine...
s like blackjack
Blackjack
Blackjack, also known as Twenty-one or Vingt-et-un , is the most widely played casino banking game in the world...
have an established house edge. The payout percentage for these games are established by the rules of the game.
Many online casinos lease or purchase their software from companies like Microgaming
Microgaming
Microgaming Software Systems Ltd is a privately held Isle of Man based software development company which claims to have released the first genuine online casino in 1994. The company is one of the leading software providers to the online gambling industry, with just under 100 casinos listed on its...
, Realtime Gaming
Realtime Gaming
Realtime Gaming is an online casino company developing download-based casino software, licensed by various operators running their own branded RTG-powered casino sites...
, Playtech
Playtech
Playtech Ltd. is a gaming software development company founded in 1999. The company provides software for online casinos, online poker rooms, online bingo games, online sports betting, scratch games, mobile gaming, live dealer games and fixed-odds arcade games online.-Playtech gaming software and...
, International Game Technology
International Game Technology
International Game Technology is a Nevada based company specializing in the design, development, manufacturing, sales and distribution of gaming machines and network system products internationally, as well as online and mobile gaming solutions for regulated markets. The company's main offices are...
and CryptoLogic Inc
CryptoLogic Inc
Cryptologic Limited is a Dublin, Ireland-based software application service provider , one of the five largest in the industry along with Boss Media, Microgaming, Playtech, and Real Time Gaming....
.
Online casino types
Online casinos can be divided into two groups based on their interface: web-based and download-only casinos. Some casinos offer both interfaces.Some casinos offer 'Live gaming', either exclusively, or as part of a wider online casino offering. In live online casinos, popular casino games such as roulette
Roulette
Roulette is a casino game named after a French diminutive for little wheel. In the game, players may choose to place bets on either a single number or a range of numbers, the colors red or black, or whether the number is odd or even....
and blackjack are dealt by real dealers
Croupier
A croupier or dealer is someone appointed at a gambling table to assist in the conduct of the game, especially in the distribution of bets and payouts. Croupiers are typically employed by casinos.-Origin of the word:...
in casino studios, in an attempt to convey more of the atmosphere of a physical casino. Player actions (including chat) such as 'hit' in the game of blackjack may be transmitted to the dealer; in some online casinos more than one player may 'sit' at a particular 'seat' on the table, and in this case there is no interactivity between player and dealer, the question of which player(s) requested the extra card that the dealer dealt and which chose to 'stand' will be handled by the software. It is usual for players to be able to observe a video feed of the action, and equally common for players to opt to turn it off, if they lack the bandwidth
Bandwidth (computing)
In computer networking and computer science, bandwidth, network bandwidth, data bandwidth, or digital bandwidth is a measure of available or consumed data communication resources expressed in bits/second or multiples of it .Note that in textbooks on wireless communications, modem data transmission,...
- as the cards are read by OCR and other technology, the video feed is only ever a visual cue.
Web-based online casinos
Web-based online casinos are websites where users may play casino games without downloading software to the local computer. Games are mainly represented in the browser plugins Macromedia Flash, Macromedia ShockwaveMacromedia Shockwave
Adobe Shockwave is a multimedia platform used to add animation and interactivity to web pages. It allows Adobe Director applications to be published on the Internet and viewed in a web browser on any computer which has the Shockwave plug-in installed...
, or Java and require browser support for these plugins. Also, bandwidth is needed since all graphics, sounds and animations are loaded through the web via the plugin. Some online casinos also allow gameplay through a plain HTML
HTML
HyperText Markup Language is the predominant markup language for web pages. HTML elements are the basic building-blocks of webpages....
interface. Apple devices such as iPod, iPad and iPhone cannot play Flash games as the technology is not supported.
Download-based online casinos
Download-based online casinos require the download of the software client in order to play and wager on the casino games offered. The online casino software connects to the casino service provider and handles contact without browser support. Download-based online casinos generally run faster than web-based online casinos since the graphics and sound programs are located within the software client, rather than having to be loaded from the Internet. On the other hand, the initial download and installation of a download-based online casino client does take time. As with any download from the Internet, the risk of the program containing malwareMalware
Malware, short for malicious software, consists of programming that is designed to disrupt or deny operation, gather information that leads to loss of privacy or exploitation, or gain unauthorized access to system resources, or that otherwise exhibits abusive behavior...
does exist. Still the graphics and sounds at download-based online casinos are most of the time much better than those at web-based online casinos.
Games offered
A typical selection of gambling games offered at an online casino might include:- BaccaratBaccaratBaccarat is a card game, played at casinos and by gamblers. It is believed to have been introduced into France from Italy during the reign of King Charles VIII , and it is similar to Faro and Basset...
- BlackjackBlackjackBlackjack, also known as Twenty-one or Vingt-et-un , is the most widely played casino banking game in the world...
- CrapsCrapsCraps is a dice game in which players place wagers on the outcome of the roll, or a series of rolls, of a pair of dice. Players may wager money against each other or a bank...
- RouletteRouletteRoulette is a casino game named after a French diminutive for little wheel. In the game, players may choose to place bets on either a single number or a range of numbers, the colors red or black, or whether the number is odd or even....
- Online slot games
- Online pokerOnline pokerOnline poker is the game of poker played over the Internet. It has been partly responsible for a dramatic increase in the number of poker players worldwide...
- KenoKenoKeno is a lottery or bingo gambling game often played at modern casinos, and is also offered as a game in some state lotteries. A traditional live casino keno game uses a circular glass enclosure called a "bubble" containing 80 balls which determine the ball draw result. Each ball is imprinted...
- BingoOnline bingoOnline bingo is the game of bingo played on the Internet. It is estimated that the global gross gaming yield of bingo was US$500 million in 2006, and it is forecasted to grow to $1,000 million by 2010....
Bonuses
Many online casinos offer sign-up bonuses to new players making their first deposit, and often on subsequent play as well. These bonuses are a form of marketingMarketing
Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...
that may incur a cost (potentially justifiable in order to attract a new player who may return and deposit many more times), since the casino is essentially giving away money, in return for a commitment from the player to wager a certain minimum amount, usually a multiple of the deposit and/or bonus credited to the player's account. Since all casino games have a house edge, the wagering requirements ensure that the player cannot simply walk away with the casino's money, and indeed if the wagering requirements are sufficiently high, he may in fact have a negative expectation, exactly as if he had deposited without any bonus.
Casinos may choose to restrict certain games from fulfilling the wagering requirements, either to restrict players from playing low-edge games, or to restrict 'risk-free' play (betting for instance both red and black on roulette, thereby completing the wagering requirement with a guaranteed profit, after the bonus is taken into account.
Non-cashable bonuses
Non-cashable bonuses may be called "sticky" or "phantom" bonuses. In both cases, the bonus forms a part of the player's balance, but cannot be cashed out. The difference comes at cashout time. A phantom bonus disappears when the player cashes out, while the sticky bonus 'sticks' to the player's account until it is lost.Comp points
Comps are commonly available at land-based casinos, but also exist online. Comp points can usually be exchanged for cash, prizes, or other comps. The amount of cash given per wager is usually very small and often varies with game selection. A casino might offer three comp points for each $10 wagered on slots and one comp point for each $10 wagered on blackjack. The casino might give $1 for each 100 comp points. This example is equivalent to returning 0.3% of wagers on slots and 0.1% of wagers on blackjack. In addition online casinos may offer comps such as free tickets to online tournamentTournament
A tournament is a competition involving a relatively large number of competitors, all participating in a sport or game. More specifically, the term may be used in either of two overlapping senses:...
s, tickets to other special events, extra bonuses, souvenirs and pay back.
Bonus hunting
Bonus hunting (also known as bonus bagging or bonus whoring) is a type of advantage gamblingAdvantage gambling
Advantage gambling, or advantage play, refers to a practice of using legal ways to gain a mathematical advantage while gambling. The term usually refers to house-banked games, but can also refer to games played against other players, such as poker...
where turning a profit from casino, sportsbook
Sportsbook
In the United States a sportsbook or a race and sports book is a place where a gambler can wager on various sports competitions, including golf, football, basketball, baseball, hockey, soccer, horse racing, boxing, and mixed martial arts. The method of betting varies with the sport and the type of...
and poker
Poker
Poker is a family of card games that share betting rules and usually hand rankings. Poker games differ in how the cards are dealt, how hands may be formed, whether the high or low hand wins the pot in a showdown , limits on bet sizes, and how many rounds of betting are allowed.In most modern poker...
room bonus situations is mathematically possible. For example, the house edge in blackjack is roughly 0.5%. In the example above, $5000 in wagering with a house edge of 0.5% will result in an expected loss of $25. Since the player received a $100 sign-up bonus, after subtracting the expected loss of $25, the player has an expected gain of $75.
Bonus disputes
A large portion of online casino disputes relate to bonuses. Casinos may label players who win using bonuses as "bonus abusers." Both players and casinos may commit fraud. An example of player fraud is creating multiple accounts and using the accounts to claim a sign-up bonus several times. An example of casino fraud is changing terms of a bonus after a player has completed the wagering requirements, then requiring the player to meet the new bonus terms.Fraudulent online casino operator behavior
Fraudulent behavior on the part of online casinos has been documented. The most commonly reported behaviors are refusal to pay withdrawals or cheating software with rigged payouts. An online casino with multiple confirmed cases of fraudulent behavior is often called a rogue casino by the online casino player community.Some casino software has been mathematically proven to cheat, such as Elka System/Oyster Gaming and Casino Bar. Screen shots from the back office of an older brand of software indicated the odds could be adjusted by the operator.
Many casino gambling portals and player forums maintain blacklists of rogue casinos. While some carry more authority than others, most blacklists constitute individual webmaster and player opinions rather than anything official from any type of regulating body.
Legality
Online gambling legislation often has loopholes that result from the rapid development of the technology underpinning the development of the industry. Such countries as Canada, Finland, Sweden have state gambling monopolies and don't grant licenses to foreign casino operators. According to their law, operators licensed on the territory of these countries can only be considered legal. At the same time, they can't prosecute foreign casino operators and only block their sites. Players in these countries can't be punished and can gamble at any site they can access.In Belgium, according to their Gaming Act, all people involved in illegal gambling should be prosecuted, which includes both operators and gamblers.
In the United States, all online casino operators – local and foreign – should be prosecuted if they accept wagering money from American citizens. Unlawful Internet Gambling Enforcement Act of 2006
Unlawful Internet Gambling Enforcement Act of 2006
The Unlawful Internet Gambling Enforcement Act of 2006 is United States legislation regulating online gambling. It was added as Title VIII to the SAFE Port Act which otherwise regulated port security...
(UIGEA) limits restrictions to online gambling operators, while players can be prosecuted only in certain states, where the state law prohibits placing bets.