• high cost to set up online gambling system such as online gambling software
• expensive legal license need to purchase
• require professional skill person to control complicated system to avoid risky system
• government have authority to ban online gambling website in some country
• higher maintenance fees to keep up-to-date and prevent virus access to the gambling system
• system break down also one of the big challenge
Hi, Ngu and Ngui
ReplyDeleteI believe there are some challenges of online gambling system. Online gambling is the gambling through internet, for example, the poker game can be played through a shared electronic interface, displayed on every player's computer screen in real-time.
I have some idea about the problem with online gambling. The problem is the risk of financial loss. The losses are one’s savings, house, inheritance and even spouse. This is because of gambling addiction. An addiction to gambling really is as powerful as drugs or alcohol. Gamblers have gambling addiction so they cannot stop betting more money. If they do it, they will do it one more round to win it back. If they loss, they also gamble again to win it back. When we lose money, we cannot get any return back. Gambling is all about the money.
Another problem is the money laundering. The money launderer needs only deposit money into an offshore account and uses that money to gamble and then cash out the remaining funds. This problem is not easily to be detected because gamblers use the anonymity.
There are some solutions with the problems of online gambling. The first solution is to allow federal banking regulators to require financial institutions to use designed methods to block illegal online gambling transactions (Jon Kyl 2003). The federal government must uses the policies to prevent more online gamblers will fall into the trap of relying too much on online gambling.
Another solution is reducing to access money. Gamblers must cut up their credit and debit cards. They just can carry small amount of money so they will not waste any money on gambling.
Reference:
Jon Kyl 2003, ‘Illegal internet gambling: problems and solutions’, viewed on 7 October 2010, http://spgfoundation.org/Library/internet/Kyl_Internet.pdf
Hello, Ngu & Ngui
ReplyDeleteAs my group is doing online casino which is gambling related issue as well, I would like to share some of my view towards the challenges. I agree with some of the point stated above such as the gaming licences. Referring to the statistic provided by Young and Todd 2008, it is true that the licences are expensive compare to other business (ranged between €5000 – €90000 per annum) Sometimes the licences are difficult to obtained and yet, the issued one might be forged for the purpose of unethical gain. Government intervention sometimes causes a big headache for the online gambling industry as well. Although the online gambling it is allowed but the government tends to limit their number.
While for the point that high cost is needed to set up an online gambling system, I do not agree with it. In my opinion, the setting cost of a web gambling server is far cheaper than the brick and mortar store. This is due to the lower assets contribution with fewer employees needed and the start up cost is estimated to be ranged from less than $200 to over $5,000 (Wilson 2005). What they need to bear during in the short term after the business started is the advertising expenses for promoting the system.
Frequent maintenance may be common to prevent the system from breaking down, but it is not in higher cost compare to a real casino. What need to be maintained for the online gambling is only the server and system. While for the landed casino, it may involve the use of large capital to improve the business operation.
Young, R & Todd, J. (2008), ONLINE GAMBLING: Focusing in Integrity and a Code of Conduct for Gambling, European Parliament, viewed 9 October 2010,
http://www.europarl.europa.eu/activities/committees/studies/download.do?file=23191
Wilson R 2005, Casino Business Opportunity, EzineArticles.com, viewed 8 October 2010,
http://ezinearticles.com/?Casino-Business-Opportunity&id=36521