PROPOSAL FOR SUBMISSION

Research Topic

Our research topic is about online gambling. In general, there are two kinds of online gambling which is online casino gambling and online sport gambling. Today, gambling becomes a massive industry worldwide. Until now, it has over 2500 sites which are offering about online gambling in several of country. After 2005 years, there are more than 100 casinos that use micro gaming software that company sells license to host their own online casino.

Reason for doing this topic

We decide to choose this topic because we are interested to know how the online gambling worked and how they can involved in this business industry. Besides that, we can get the online gambling knowledge about different rules and regulation in the different countries to avoid infringement.

Hence, in our report, we are going to have more discussion about online gambling in each domain.

The objectives of our research paper are to:

·  At first, we want to know how online gambling work.

·  Second, is the advantages and disadvantages of online gambling versus local bookies

·  Third, how online gambling can attract customers to bet through website.

·  Forth,is all the country allow online gambling? It is about legality in different country.

·  Fifth, is the security and the challenges of online gambling system.

Report Outline

1.0 Online Gambling

      1.1 Introduction of Online Gambling     

      1.2 Definition Online Gambling

2.0 How Does Online Gambling Work

      2.1 Process of Online Gambling

      2.2 Challenges Of Online Gambling System

      2.3 Marketing Techniques Used By Online Gambling Sites

3.0 Comparing Online Gambling Sites With Local Bookies

      3.1 Disadvantages To Users Of Online Gambling

      3.2 The Ways To Avoid Online Gambling Scams

      3.3 Advantages Local Bookies

      3.4 Problems To Local Bookies

      3.5 The Ways To Avoid Bookies’ Scammer

      3.6 Similarities Of Online Gambling With Local Bookies

4.0 Security About Online Gambling

        4.1 Licensing

        4.2 Reputable Software

        4.3 Certified Payouts

5.0 Legality Of Online Gambling In Different Countries

6.0 References

7.0 Appendix

Literature Review

Online gambling starts in about 1990s. It already become an active industry worldwide (Economy Watch).  Because of percentage increasing people using internet, it make online gambling become more popular.  The earlier operators that include sportsbook, online casino and others attract many gamblers to bet on website. Till now, it has already over 2500 sites which about gambling in several of contry. For example, www.ibc123.com, www.sbobet.com , www.888.com and others.

In Malaysia, it is prohibiting any online gambling (Accounting KL Management Service 2010). The government does not provide any licenses to open internet gambling sites. Although Ascot Sports Sdn Bhd submit a proposals to the government for getting a license, it is still reject by huge objection by opposition political parties after Umno supreme council meeting (T.K.Letchumy Tamboo 2010). However, online gambling is still allowed to other countries like United States, Australia (Gamling Planet.Org 2005-2010)

In the research report (Global Business Of Online Casino 2009), it believes that gambling industry will grow rapidly and even faster in the future. People feel relax and enjoyable to sit in front of a computer  to gamble without go to the location of casino. To them, they feel that online gambling is more interesting. In general, there has two types of online gambling which is online casino and online sports. They can play any types of gambling in casino games whenever they want. These games include texas hold’em. Roulette, craps, blackjack, poker and others.

Online gambling is legal to place bet in some country. It can consider as a big and organized business that pay licensing fees to take bets. If gamblers want to bet through website, they need to create an account with the online gambling company. They will start deposit the money that they want to bet through many online transaction facilities like PayPal, e-Check, Click2pay (Bonus Track 2010). They can get “welcome Bonus” or “New Player Bonus” through creating a account. Then, they can start to log in the account and start to bet. Online gambling through company is more suitable because it is in a safety situation to bet and it can become a trustworthy gambling operation to gamblers in the long term. Besides that, gamblers can access the website in 24 hours a day. Gamblers can bet at any time and the odds are website is more accurately.

But, it meets great challenges from local bookies (innovative Marketing 2006). Some gamblers like bet through local bookies because they feel there are a few disadvantages of online gambling. For example, they need to deposit the amount that they want to bet. If a person who is always mad or no self control when he losing money, he may start chasing the losses and betting bigger and bigger in the hope to win back the money that he has losing. It is totally wrong because poorer gamblers are facing higher risks in the hopes of win back money. Of course, there are many cases that either these gamblers are successful pulling back money which is losing or losing all money they have. After they losing, majority of them want to get much money to bet again. Therefore, there are many criminal cases happen like stealing, robbery, embezzlement or making their lives or families suffer as a result.  Not only that, it may have chances to gamblers having problems of downloading gambling software or facing virus that may affect their computers (Mary Landesman 2010). Each online gambling sites has different polices as to withdrawal amounts, however when it comes to the time, the process can be more consuming.

By the way, it still has many challenges to online gambling business. It includes high cost to set up a new online gambling system. If the system goes into risky, it needs professional skill person to control and repair complicated system again. It also needs a higher maintenance fees to keep up to date to prevent virus affect the system. It will cost a big amount of money. Not only that, it is very expensive to get a license and some government does not permit any online gambling in their country.

Furthermore, there are many cases that gamblers have been scammed (Stacy Mattingly 2010). Therefore, they need to do a few steps when they want to make a deposit. Firstly, they need to choose the website which is legal by searching that website and checking whether it is safety or on reputable. IF they cannot find any information that related to that website, this means that the website cannot be trust. Secondly, they need to ensure that they have good anti-spyware or virus protection. Thirdly, all emails that send to gamblers should be ignored and not be trusted. Gamblers shall not simply disclose any private information to the strangers. Lastly, gamblers should not make a loan to other gamblers. It is because there are many liar on internet and just want to gain your trust. So, gamblers needs always to identify what is real or fake to avoid being scammed.

However, nowadays most of websites are using 128-bitSSL digital encryption to ensure that all transaction of accounts is safety. It can give high protection to keep customers information into private to avoid getting hacked. Besides of SSL, Verisign Identity Proctection(VIP) also increases the level of banking security too (Han Dong 2009). Despite of that, gamblers can look through the licensing, reputable and certified payouts of company.

Now, I want to talk about why so many people prefer local bookies. Normally, they usually distributed in restaurants, parks or even schools or university (Christopher Hoffman 2009). They do not need to waste big amount money to get the license as well. They just need to refer the website and start to process this business.  To the gamblers, they do not need to deposit any money to local bookies. When gamblers are really losing money, they can ask local bookies to add up credit without deposit any cash at the time.  This means that, they still have the chances to win back the money that they losing.

Not only that, local bookies are able to pay them on a win and provide good quality service to attract them back to continue their bet. Of course, there are still many gamblers don’t like bet through local bookies. It is because local bookies always give a big credit amount for them to bet. Then, gamblers will feel relaxed and simply bet without control. At last, they lose all money in the credit. If they do not have enough cash to pay when making payment once a week, bookies will start to give a loan to them (David Korten 2010). After that, gamblers will continue to bet again and lose more and more. If gamblers do not have any money to pay to loan, then local bookies will start collect money from gambler’s family. At last they will go into bankruptcy. Furthermore, they are also many cases than local bookies disappear when gamblers win a big amount of money. Some of them even worse and asking gamblers do not ask money from them. If not, they will get the punishment.

So, if gamblers really want to bet through local bookies, they need to know whether that local bookie is enough faith or not. They can try to ask from their friends about that bookie. However, if a bookie that has been working for many years and have a good reputation, it is high percentage for gamblers to consider through this type local bookie.

Nowadays, there are more and more people do the job as bookie. But, they’re sure having a “boss” to support them behind. Some of bookie attracts students by teaching them how to earn commission money. The way is written in the blog as well. This also caused many gangsters and criminal cases happened.

In conclusion, online gambling will grow rapidly worldwide as well. So, gamblers are encouraged to bet through online gambling website. It is better to trust an “online gambling company” rather than a “human”. The trustee online gambling company has strict laws but local bookies do not.  Therefore, gamblers will always don’t know when the local bookies in good faith are or not. It is considers as a “time bomb” for gamblers.

Major References

Journal References

Casino Top10, “Online Gambling Security”, Viewed 25 September 2010, http://www.casinotop10.net/security-and-online-gambling-552.shtml

This article is explores in detail about security of online gambling in the advance technology. In turn to be sure that the online gambling is safe to play in, ensure that the gambling site is registered and approved by the e-Commerce Online Gambling Regulation and Assurance organization. The customer privacy were fully secure and must not disclose to the third party especially any transaction was involved. We decide to use this article as the cultural and security factor are affecting internet gambling.Before gamblers want bet through online, they need to research about the casino background whether it has a legal licenses or not. If it dun has any license, this mean that it is illegal and gamblers should not play at there.

Economy Watch, Online Gambling Industry, Viewed 17 September 2010, http://www.economywatch.com/world-industries/casino/online-gambling-industry.html

These articles are about the factor that growth of online gambling industry in worldwide. It also concerns about different kinds of online gambling games and some legal online gambling countries information. We decided to use this article as the points to help us how geographical and demographical on the online gambling pattern are affecting to the online gamblers.

Online Betting.me.uk, How Does Sports Betting Work, viewed at 19 September 2010, http://www.online-betting.me.uk/articles/how-does-sports-betting-work.html

This journal article is specifically about “how does sports betting work online”. It provides useful information to online gamblers, make sure they understanding different kinds of odds when they do the betting. We decide to use this article because the gambling website to attract more customers, the company need offer more benefit and give confidential to customer to join their online gambling website. Furthermore, gamblers can access the website 24 hours a day. It is impossible that local bookies can provide this function

Start Casino.com, Online Betting Legal Issues, viewed at 19 September 2010, http://www.startcasino.com/legal.php3

This article is introducing legality of online gambling and when the online gambling rules and regulation established in different countries. It is the serious offence if the company running online gambling business through internet without the license. We decide to use this article as it provides specific online gambling legislations for different countries. This has helped us to understand the online gambling regulation in different country to avoid contravention occurs during online gambling.

List of other references: 

Ed Grabianowski, A Discovery Company, How Online Gambling Work, viewed at 19 September 2010, http://entertainment.howstuffworks.com/online-gambling.htm

Ezine Articles, The Advantages Of Online Gambling, viewed at 22 September 2010, http://ezinearticles.com/?The-Advantages-of-Online-Gambling&id=99468

Fair Online Gambling, Introduction to Online Gambling, viewed at 21 September 2010, http://www.fair-online-gambling.com/casino/fog-introduction-to-online-gambling.html

Frank Belanger, Bookie Buster, How To earn more money, viewed at 22 September 2010, http://www.golden-systems.com/

Gambleaware.co.uk @2007~2010, Gaming Zion, Sports Betting In Malaysia, viewed at 19 September 2010, http://gamingzion.com/sportsbook/malaysia/

Sarah H, Ezine Articles, How Does Online Betting Work, viewed at 19 September 2010, http://ezinearticles.com/?How-Does-Online-Sports-Betting-Work?&id=1967030

Sports Betting, Corner Bookie or Online Sportsbook, viewed at 22 September 2010, http://www.ehow.com/how_5096962_bet-online-vs-local-bookmakers.html

Speech From Local Bookie “Ah Wei-Taukei” On 27 September 2010

How Bookies Attract More angent Bookie To Work For Them?

Normally, they will start to find students which is still in form3~form 5. Not only that, they also find college or university students to expand their business.

For example, they always attract students by teaching them how to earn commission money. Let’s say a team which is name Arsenal and it give 0.90 for his winning rate in website. Then student who has website can refer to the odds and open 0.80 to their friends. It means that it can earn 0.1. If 1 gambler wants to bet rm100 on arsenal and it win, that student bookie can earn rm10. All he needs to do is follow what team his friends want to bet and bet in the website.  If 5 person bet RM100 each, it is RM500. RM500x0.1=RM50. This is the amount that student earn. In other words, it also called “water money”. Of course it is not ONLY 1 match in 1 day only. If student’s gamblers who can bet 10 above match, try count the “water money” that the student bookie earn.


For other local bookies who do not have the website, they also do in this way. If the website show Arsenal -0.7, they also can tell their gamblers are -0.8 or -0.9. Therefore, no matters gamblers win or lose, they are 100% earn. This is why bookies more and more popular nowadays.

Because of website need gamblers to deposit before they bet in website, majority of them choose to bet through local bookies. It is because they do not need to deposit any money if they want to bet. They just pay the money once a week if they lose. Besides that, some bookies allow some gamblers for late payment too. If they are not willing to pay, then local bookie will call the gangster line what you mention in post out and collect money from gamblers. Normally, in Kuching, if bookie call gangsters go to collect money, it is 3/7. It means that the amount collect, gangsters can get 30% and bookie get 70%. Some even 4/6 and only this two types. I heard it from my 1 friend who name “ahwei” who is bookie too. He says that it is Sarawak bookie rules. It is a reason that there are more gangsters nowadays.

Process of Online Gambling

At first you need to types in the username and password were given by the online gambling company. Moreover, every time before access to gambling you require to types validation number was given by the website as well. Gambler also can select language they might to prefer and access to gambling website by using “Wap Mobile Betting” at anywhere, anytime.

    

1. If the gambler bet online website without through bookie, they need to deposit the money before gambling. Normally, they are required to deposit at least 70% of the bet credit amount they need to require. But if you bet through local bookie, they can open the amount money that you want without deposit. Bet credit is the maximum amount that the gambler can bet.
2. Let’s take Manchester United for an example. About odd 0.5-1, it means that if you bet RM100 on Manchester united, after full time score Manchester united win 1-0. It only wins half which is RM50 and if the score is 2-0, it wins all. If 0-0, it lose all.
3. Another example, if you bet Manchester United and its odds is -0.94. It means that you bet RM100 and it really lost at last. You just need to pay RM94.
4. Regarding the odds 2.5 mention above is  about under or over the total score for both team, example total score for under 2.5 are 0-0,1-0,1-1or 2-0.
5. Besides that, if you want playing online casino or poker gambling, you just click the mouse button.
6. You can check the complete result, balance or statement, either betting record that all locate at the top side.

Chat History With Bookie

I say:

halo, boss

ahWei-tauKei says:

?

wat matter?

I say:

i want ask you something about online gambling because this topic related to my assigment.

can i?

ahWei-tauKei says:

hmmmm....try ask something bah

I say:

how your start the online gambling business?

ahWei-tauKei says:

ok....i am my taukei's downline too

i ask my master taukei open 1 sub line for me

then i can open line to other people who do want to bet

I say:

how much you can earn in a month"?

ahWei-tauKei says:

it not really has a fix amount....sometimes we need to see how our kaki bet

for example, in some weeks they maybe bet big.....some weeks they bet small only

all need depend to them

I say:

oic.

what is the maximum amount you earned before?

ahWei-tauKei says:

haha.....its secret lo......nvm la i no scare to tell you

actually we do the financial statement in 1 week only n not for 1 month

so it need to counts in a week

around 100k lo

I say:

oh,so much.

what business you running before?

ahWei-tauKei says:

b4 i juz a kaki who help to work for my frens

my salary 1 month juz about 2.2k nia

it is totally waste time for me continue to work like this

I say:

.........

ahWei-tauKei says:

i mean i am saler*

I say:

how you collect money from gamblers?

ahWei-tauKei says:

normally we collect money by bank in

somes we collect in real life too

I say:

do you have any experience that u cant collect the money ?

ahWei-tauKei says:

of course la

there are many lasap kaki

if they cant pay so much in 1 time

for example he owe me 10k

i may ask him pay me 3k in a week lo

unless he dun want play....i will call some gangster go collect d

if not i eat myself meh.....

I say:

wow,it is high risk to do business in this way.

ahWei-tauKei says:

nvm.....b4 u wanna do tis

u need to find good gamblers who are bet dare lose 1

when u meet this type kaki...u should always treat him well

for instance....when u go out yamcha with him.....u nid help him to pay

when go anyplace to play....any small amount expenses u nid help to pay too

tis is a kind of feeling respect lo

I say:

when you receive money,is it all yours?

ahWei-tauKei says:

no o

i need to share some to taukei

because i juz take about 70%

normally we here subline only can take till 70%....my taukei only take 85% with his taukei too

I say:

where is your boss's boss?

ahWei-tauKei says:

macau lo.....

only my taukei meet him b4 nia

anything u want to ask again?

I say:

do u satisfy with your job now?

ahWei-tauKei says:

think urself....b4 me 1 month only can earn 2.2k

is 1 week*

now i 1 week maximum till 100k

how u think?

I say:

yup,,great job.

haha

Do u hv any advise for me?

ahWei-tauKei says:

sure

dun stupid agian only know to work with salary which is fix

i do 1 month totally same as you 1 year or 5 years

dun only think work in a poor live....try upgrade yourself

I say:

.......

ahWei-tauKei says:

do u wish u can happy everyday.....do no nid to worry about money?

I say:

before you start your business, you have any modal?

ahWei-tauKei says:

not really.....all is my taukei support me

lucky i meet a good taukei lo haha

I say:

okies

i finish my questions

thanks a lot

ahWei-tauKei says:

its ok...its just nth 4 me...

I say:

thx a lot, if gt any question i will ask u again k?

ahWei-tauKei says:

Sure.

Security About Online Gambling

Nowadays, the first thing that gamblers worry when they want bet through online is the security of online gambling problem. They always wonder that their credit or private information will been used or hacked. However, most of websites now are using 128-bit SSL digital encryption to ensure that all the transaction of accounts is safety. It can help to keep all customers’ information into private and given high protection to avoid being hacked.

Besides of SSL, VeriSign identity Protection (VIP) can help website operators to save money through the investigation of account takeover. Furthermore, it can increase the level of banking security and fine tuned for mobile gaming application.

Not only that, there are three elements that gamblers need to know about the security of online gambling. For example, licensing, reputable software and certified payouts.

Licensing

Before gamblers want bet through online, they need to research about the casino background whether it has a legal licenses or not. If it dun has any license, this mean that it is illegal and gamblers should not play at there.

Reputable Software.

It is always need for gamblers to know that whether the website is run from a big provider or not. For exmple, RTG, Boss Media, Iglobal Media and others.

Certified Payouts

Gamblers always need to check the reports of winning or losing to ensure it is recorded correctly. The independent accounting firm “PriceWaterHouseCoopers” can help this problem as well.

References:

Casino Top10, “Online Gambling Security”, Viewed 25 September 2010, http://www.casinotop10.net/security-and-online-gambling-552.shtml

Online Gambling Spotlight, “Better Security For Online Gambling Sites”, Viewed 25 September 2010, http://onlinecasinospotlight.com/2010/08/better-security-for-online-gaming-sites/

Challenges Of Online Gambling System

• 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

COMPARING ONLINE GAMBLING SITES WITH LOCAL BOOKIES

Normally, it is a difficult choice to gambler between online gambling and bookie. Actually, it is safer for gambler to bet online rather than bookie.

Definition Online gambling

Online gambling is gamblers bet through online website that has a license; it is legal to place bet in some country. The different for online gambling with bookies is that the gambler must deposit cash to create an online account and the transaction is directly debit or credit in the online gambling account. It is more safety at all. Furthermore, it also considered as a big and organized businesses that employ workers and pay licensing fees to take bets. Gamblers do not need to worry about the security or other problems because the website normally displays membership in online watchdog agencies. So, they are in a safety situation to bet as well.

Gamblers are not encourages to bet through the bookie that they don’t trust or the one with bad reputation. In conclusion, betting online is more profitable than local bookies. It will become a trustworthy gambling operation to gamblers in the long term.

DISADVANTAGES TO USERS OF ONLINE GAMBLING

If A person who has no self control over the online gambling, it can be disastrous till he or she finishes all the winning, start chasing their losses betting bigger and bigger in the hope to win back all they have lost in one hand. Besides that, personal savings and income are squandered; money is taken from other economic uses, investment, and charities. About the poverty is reinforced because poorer gamblers take higher risks in the hopes of a big win. However, addictive gamblers often resort to stealing, theft, robbery, embezzlement, and similar crimes to get cash, that their lives and their families suffer as a result. Sometimes, there maybe have the problem of downloading gambling software is that there is chances that there is a virus that may also affect one's computer. At last, every site has different policies as to withdrawal amounts and time frames, however when it comes time to withdrawal the funds, the process can be a bit more time consuming

The Ways To Avoid Online Gambling Scams

For the gamblers who like bet through online, it has happened many case that gamblers been scammed. So, they need to do a few steps before they want to make a deposit. First, they need to choose the website which is legal. They can go do research about the website and only sign up the sites which are on reputable. If they cannot find any reliable information that related the website, it means that the website cannot be trusted. Second, before gamblers sign up any website, they need to ensure that they have available anti-spyware or virus protection. Furthermore, scammers usually send the emails for asking the gamblers’ private information, it should be ignored and gamblers should not simply disclose their own information. Besides that, if gamblers want to update or changes their information, they should do it from the main site. Lastly is, gambler should not make a loan to other gamblers. It is because although some of them start to make conversations with you just because want to gain your trust. Gamblers should always need to identify what is real or fake to avoid being scammed.

Advantages Local Bookies

However, bookies now are popular in society nowadays. They usually distributed in pool halls, restaurants, and some community centers like parks. . For the illegal bookies is that the gambler can betting in advance to the bookies through phone call or illegal websites. So, the local bookies do not need to waste a big amount to buy a license. They just need to refer to the website and start to do the business themselves. Normally, local bookies receive money or payment was making once a week through bank in or face to face to gamblers. Gamblers like bet through local bookies because they are able to pay them on a win and provide good quality service to attract them back to continue their bet. The main point that gamblers like to bet through local bookies is, although they lose finish the credit; they can call the bookies to add up credit without deposit any cash at that time. This means that they still have the chance to win back. Of course, it can be a point of advantages of disadvantages as well.

Problems To local bookies

The problems with some local bookies are they usually give a big credit amount for gamblers to bet. Gamblers always feel relaxed about the credit that bookie given and simply bet without control. It is just like they dig a hole and jump into it themselves. If the gamblers do no have enough cash to pay for it, bookies will start go give a loan to them. Then gamblers will step deeper and deeper. At last they will go for a bankruptcy. If the gamblers do not have the money to pay their bookie, they will send some tough guys to collect the bad debts as well.

It is because some of the bookie always lost their faith when their down line gamblers win a big amount from them. They may start to act missing or close their headphone so their down line cannot find them. Some of them even worse, they may start to threat their down line that they should not ask money from them. If not they will get the punishment.

The Ways To Avoid Bookies’ Scammer

Gamblers should always careful when they bet through local bookies to avoid by getting scammed. They always need to know about the local bookies is enough faith or not. For example, they can ask through their friend about the bookies. However, a bookie that has been working for many years usuallt has a good reputation, it is reasonably sure that they are good businessmen and gamblers can consider bet through this type local bookie as well.

Similarites Of Online Gambling With Local Bookies

The similarities of both issues are can bring more convenient to the gambler which they no need go to the real casino place or legal bookies company. They also can save the time playing online gambling or avoid traffic jam when they feel want to play online gambling and betting through bookies.

References:

Sports Betting, Corner Bookie or Online Sportsbook, viewed at 22 September 2010,
http://www.ehow.com/how_5096962_bet-online-vs-local-bookmakers.html

Frank Belanger, Bookie Buster, How To earn more money, viewed at 22 September 2010,
http://www.golden-systems.com/

Sport Betting, Corner Bookie Or Online Sports book, viewed at 22 September 2010, http://www.sportsbetting3.com/corner_bookie_online_sportsbook.php
Ezine Articles, The Advantages Of Online Gambling, viewed at 22 September 2010, http://ezinearticles.com/?The-Advantages-of-Online-Gambling&id=99468
Peter Portero, Ezine Articles, 5 Benefit of Online Gambling, viewed at 22 September 2010, http://ezinearticles.com/?Five-Benefits-of-Online-Gambling&id=166103

Allen Moody, About.com, Dealing With Local Bookies, viewed at 22 September 2010, http://sportsgambling.about.com/od/experiencedbettorsonly/a/localbooks.html
SBGGlobal.com Online Sports Book Advantages, viewed at 22 September 2010, http://www.sbgglobal.com/sportsbook/online-sportsbook-advantages
Fight Identity Theft, Avoid Fraud And Scams, viewed at 22 September 2010, http://www.fightidentitytheft.com/sucker.html