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A Short History of Online Gambling
Casino gaming is a fairly recent practice, yet still very controversial. Its history began in the 90s, as the internet began experiencing a rise in popularity. A foreshadowing event took place when the government of a small island country in the Caribbean, Antigua and Barbados, passed a law in 1994 allowing on line casinos to license. This was called the Free Trade and Processing Act. Realizing the almost endless possibilities of making money through Internet gambling, several entrepreneurs jumped at the then, and now, legal chance to start this new venture.
Many different companies were formed that same year, and more followed in the years after. Some of these companies created on line casinos, and others designed the gaming software needed to run the financial transactions and develop new games. As on line casinos increased in number and became financially lucrative, with reported revenues of nearly 835 million dollars in 1998 alone, different layers of the U.S government began to take notice.
In the US Senate, a Republican from Arizona, Senator Jon Kyl, introduced the Internet Gambling Prohibition Act in an attempt to restrict such activity in the United States. The bill failed to pass Congress, and casinos online continued to flourish. As internet betting continued to gain popularity, a few companies created software packages that could be leased by Internet betting sites in exchange for a percentage of their earnings. This helped many new betting sites appear. Around this time, Canada also began to curb betting activities, raiding offices and eventually levying a fine against one of the largest web servers.
In 1999, Senator Kyl presented a revised version of his Prohibition Act bill, and once again, it failed to gain the support needed in order to pass. Meanwhile, Australia allows the creation of an Internet casino, which in the end became the only one allowed. Although many more would-be casinos attempted to obtain licenses in Australia, their government quickly formed a law preventing any new operations.
In the year 2000, Republican Senator Bob Goodlatte of Virginia introduced in Congress, a revised Prohibition Act, and it was also turned away. The following year (2001), two bills that would help cut wagering were passed in Congress. One was an updated version of the Wire Act, which makes it unlawful to be involved in a business of betting or wagering. The other bill attempted to prevent payment to casinos by prohibiting institutions, based in the USA., from handling such payments. This made it more difficult for U.S. residents to engage in Internet betting.
A few lawsuits were filed in years that followed, and in 2006, several arrests of top CEOs were made. At the same time, the U.S imposed sanctions on offshore companies, resulting in Antigua and Barbados filing a case with the World Trade Organization, which rules that U.S. actions are discriminatory and unlawful. Nevertheless, in October, 2006, the Unlawful Internet Gambling Enforcement Act (UIGEA) was approved by congress, as a Rider bill attached to the Port Security Act. Ports never, to this day, became secure. Instead, many trustworty casinos, along with software makers, closed shop, withdrew combined Tens of Millions of US Dollars from US Banks, and fled the country.
Today, casinos online continue operating. Many U.S. states are attempting to change laws to their favor. Meanwhile, some honest, trustworthy, casinos are still operating offshore. You can discover who they are by visiting review sites such as this one. Despite all the many inconveniences to be endured, U.S.A. residents make up a large part of their clientele.
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