Ray Van Eng (08/11/97)
With digital cash being introduced in cyberspace, you think electronic betting would be far behind? That is just what Betting Inc., a newly formed Nevada company has in mind in bringing cash wagering to off-site locations away from casinos in such places as hotels, homes and offices with the use of a special ATM smart card. It is estimated there are 200 million ATM cards in use in the U.S. today, and the ATM network is very well developed in this country with card terminals installed in many public places like grocery supermarkets, shopping centers, gas stations, bus stops and many other places. However, the idea of putting the "Gamer" machines to read computer chip embedded ATM smart cards at people's houses, hotel rooms and even offices is a novel one.
The ATM smart card transactions act like as cash transactions at the point-of-sale, except that there are no refunds or exchanges. Only the recipient can reverse an ATM smart card transaction. If the consumer wins a game, the gaming host or Betting Inc. will notify a settlement bank to credit the prize money to the player's bank account and a receipt will also be printed out by the Gamer indicating the winning amount. A market trial will begin this August on the East coast. Slot machines, lottery, charity and other skill testing games are being planned for this new industry of off-site gaming to complement the estimated $550 billion yearly betting and casino business. However, there are some hurdles to jump. In the United States, gambling across physical state lines is illegal, but with the global borderless Internet, a new set of laws has to be created to regulate the industry. For example, Arizona Republican senator Jon Kyl wants to outlaw gambling over the Net. He proposes that if get caught, a bettor could be fined $2,500 together with a six month sentence. Penalty for Operators is even more serve -- a $20,000 fine and four years in prison. For now, wagering in cyberspace is in muddy legal water and many entrepreneurs are eyeing the enormous business opportunities for this industry. Some industry experts believe that electronic wagering could potentially double the total gaming income to over a trillion dollar annually by the year 2000. Betting Inc., stands to make about 2% to 6% of the transactions and the company has secured an investment from Russo Securities, a Wall Street brokerage firm. |
© Copyright Ray Van Eng 1997 - 1999. All Rights Reserved.
With
the ATM smart cards, the player can place a bet with a virtual casino or
an online gaming establishment and the Gamer will print out a receipt that
has the date, amount and acknowledgment codes on it and carry out the banking
transaction for the player. Winning settlement and even federal or state
tax settlement could be enabled by such as a system.