Attention Startups, Online Gambling May Be the Big Market in New York for 2012
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I agree with you in regards to online slots and blackjack. There's a definite house edge and you're always playing a losing game in the long run. These games are engineered to give a false sense of strategy to less-intelligent participants.
I don't think games of true skill should be lopped-in with slots and lotteries.
To "disrupt" the gambling industry is to inevitably profit off of addicts.
(Though, the same could be said of booze makers and alcoholics.)
The same can be said about MMORPGS. I knew many people from highschool that never graduated because of this addiction.
More people need to take personal responsibility for their decisions. Many people gamble and are not addicted.
I used to play poker with a group of local friends. It started off friendly enough ($50 tournaments). They started playing a lot of cash games and the table stakes got crazy (e.g. $1k+ hands). Needless to say, I left that group behind.
It's a matter of personal discipline. If you can't afford to throw the money out the window, you shouldn't be playing. I play because I enjoy the game and the company of friends.
For those of you thinking of the potential for income please consider where the money is coming from. While a gambler will still find somewhere to lose his/her money it would be heartening to see systems implemented that are on the lookout for addicts, while providing entertainment for those who can afford to spend (I have no problem with gambling and enjoy a game of poker, or going to the races, myself, but I 'play to lose'.)
That's called Farmville and many other online games. The revolution, in that regard, is here.
Business is all about risk. As an example: when you purchase advertising, you are gambling on the fact that you will get enough buyers to cover the cost of advertising.
Should we ban advertising too?
Instead of trying to protect the world by banning these things, we need to educate more people on their risks. If they choose not to listen, it is at their own peril. Hopefully they will learn life's harsh lessons.
I don't think that's really fair. Are you familiar with the effects of gambling in poor communities? Every pokie machine can have a sign on it that says 'Gambling ruins you and your family' and it doesn't help. Enabling a community to flourish in it's own right is what stops gambling.
Anyway, what I was pointing out is that the online gambling industry has so far worked well to get money out of two types of people: those who can afford to lose, and those who can't. I'd like to see anyone going into this industry really focusing on the first group and not being predatory in attracting the second. How? I don't know but I'll support whoever manages it with my own poker-chip purchases.
An example: be a good gambling franchise and put 30% of your profit into addiction awareness and support (something like this is mandatory in Australia for example I believe).
Maybe it was a bad exposure/experience for me but those companies are filled with your typical fraudster/scammer (kind of like that MegaUpload guy, or the Bodog guy).
If you looked at the recent trend in EPL (English Premier League, Football), it's a bit concerning where there are a few mediocre teams being sponsored by these companies and with lots of around the field ads promoting their sites.
Competing in this space would be difficult. Licensing is expensive. The competition is huge and well entrenched.
You never heard about a place but they are a questionable jurisdiction?
"Antigua is a recognised centre for online gambling companies. Antigua was one of the very first nations to legalise, licence and regulate online gaming."[1]
"Stable Jurisdiction: Antigua and Barbuda is an independent nation state with a stable Westminster-style democratic government. General elections are constitutionally due every five (5) years.
Antigua is a member of the Organization of Eastern Caribbean States (OECS), and is one of the fastest growing economies in that region. The currency is the Eastern Caribbean dollar, which is pegged to the US dollar at a rate of EC$2.7 to the dollar."[2]
When I was growing up[I'm an Antiguan], Antigua had the most ip per users in the world. Even right now they are working to keep their infrastructure top notch.
Investors don't invest in countries that are unstable[insert something about PESTLE here[3]]. The fact that it's a internet gambling hub testify to its stability for economic venture. The people in power are pretty cognizant of the fact that they need to appear stable and have a transparent democracy.
[1]http://en.wikipedia.org/wiki/Antigua#Internet_hosting_and_ga...
[2]http://www.investantiguabarbuda.org/abia/offshore/financial_...
They also happened to be spending the cash of players, rather than carrying enough cash on hand to cover all obligations to players AND maintaining a firewall that keeps their deposits from being considered part of the corporation.
Many professional players I know are out of significant sums of money. As a player myself, I don't consider Antigua-hosted gaming corporations trustworthy.
By Antigua's standards, they have done no wrong. If there is no law on the books that protects players, then they broke no law. If they choose to limit withdrawals to $1 per week, what law are they breaking? There will be no justice here. The best one can hope for is that they somehow survive long enough to get back on secure financial footing.
There are other examples from other small island countries. Look at Microgaming and companies that ran 'skin' sites on their network. Years have gone by and there has been zero progress, and what information is available is sparse and contradictory.
I was affected by one of these sites, and you think that calling the Malta police on Eurolinx will accomplish anything? The money is gone having disappeared into the pockets of the owners, and the owners are gone. Any investors, creditors, or customers will see no money. And in some cases, any money that exists will go to creditors before the players.
And have a read of the financial regulations:
http://www.antiguagaming.gov.ag/files/Antigua_and_Barbuda_Ga...
________________
Financial Services Regulatory Commission
Division of Gaming
2nd Floor - West Wing
First Caribbean Financial Centre
Old Parham Road
P.O. Box 588
St John's
Antigua and Barbuda
West Indies
Tel: (268) 481 3300
Fax: (268) 481 3305
Email: Director: director@antiguagaming.gov.ag
General Information: info@antiguagaming.gov.ag
Personally, I'd like to see an intersection of gambling in the traditional sense with social games from Zynga and others and also with eGaming like Star Craft II and Diablo.
Also, a market that is growing fast that you may not be aware of is daily fantasy sports. Fantasy Football is considered a "game of skill". So, companies are popping up that allow users to build "fantasy teams" that only play for one week. Basically, you are using your skill to pick the best players for the week.
IMO, the companies that are doing well in this market have poor marketing and a 1990's aura about them. Someone could just in right now, buy a subscription to a stats provider, make a slick mobile app, and take the whole market.