Editing Online Gambling (section)

====Issues Applicable to the Philippine Setting: Ethical, Business and Legal====

:The lure of easy money is what attracts many to gambling, while the prospect of losing money fast is what deters most of people from it.  However, when the prize becomes obscenely large in proportion to the amount that one has to bet, the attraction becomes too great that almost everybody is magnetized. The lure is that gambling can already be compared and associated to human nature. People are generally drawn to excitement and adventure, yet are risk-averse. Therefore, they are limited only by the fear of ruination.  There are also some who are more recklessly adventurous than others, often to their unending grief.  Because of the deleterious effects of gambling in general, it is essentially illegal.  Our law prohibits gambling because many people become poorer and poorer and more miserable by waging their hard-earned money rather than by using it for their family’s needs. Yet, since it is recognized as a profit-generator, legislations fight for its legitimacy. Despite its widespread practice and long history, any form of gambling is often considered a controversial issue with strong advocates on both sides. 

:The influence and positive externality effect of modern technology continues to grow at a rapid pace.  This growth subsequently forced the field of gambling innovation to expand continuously and to broaden its reach by making it instantly accessible. However, the growth of modern technology, as much as people are enjoying the benefits it reaps, continues to pose debatable issues and problems that are raised time and again. 

:While the Church opposes all forms of gambling, the Philippine government continues to push the limits as to publicly legalize gambling in our country since gambling as an industry is notably profit-generating.  That is why online gambling still remains a sensitive topic of dispute in the Philippines. Perhaps, the most common arguments for the protagonists of online gambling are focused on its accompanying economic benefits, especially in disadvantaged communities which rely on gambling as a source of livelihood. Its advocates see its many economic benefits such as the notable increase in the rates of research and productivity, employment, cash flow and income for the company providers of these games.  As with employment, gambling provides a temporary source of money for supposedly jobless people.  According to the National Statistics Office, unemployment of the country rose to 8% last April 2008, and the worldwide recession that we are witnessing today has tremendously increased the unemployment data.  This high rate of joblessness may be pacified as these formerly jobless people are hired by e-Games cafés that offer online gambling games to serve as gaming assistants and cashiers. 

:At the end of 2007, there are already more than 90 of these e-Games cafes. The proliferation of these cafes is solid proof that these are gaining popularity in the Philippine gambling market. This is not to say, though, that this is the only possible source of work the industry has to offer, but it nevertheless provides an additional job opportunity.  Others would also claim that online gambling helps generate more revenues and funds for the company provider in the form of collectible taxes that prove useful for the government for financing its projects and similar undertakings. The overall advantage in this is hard to measure since the focus of this veers away from the concern of the rest of the community’s majority.  Whatever the concrete ‘benefits’ that online gambling in general may bring about, if there are any, there have been endless disputes and refusals as whether to accept and declare  it as a general legal undertaking. 

:A firm statement by the Roman Catholic Church headed by Balanga Bishop Socrates Villegas, "desiring to become wealthy through gambling is sign of indolence," is reflective of how the Church naturally opposes gambling because gambling in the most simplistic form is defined as “risking money in an attempt to multiply the money on something that is against the odds.” The Philippines, being a predominantly Christian country, is home to religious conservatives who believe that the operators of gambling platforms are taking advantage of our human nature to succumb to materialism. It is widely acknowledged that gambling often leads to or incites greed.  This is important to Christians, for the Bible strongly condemns “greediness.” The Church is firm in its stand against the legalization of gambling just as it is firm in its stand against abortion.  "The Church does not approve of gambling and strongly condemns it as morally wrong, and classes also with this gambling, games of chance and lottery, of all kinds, and earnestly disapproves of any of its members engaging therein" For the religious authorities, gambling in any form is much too worldly, is corruptive of the moral fiber, especially that of the youth, and it devotes money to improper use and does away with its potential allocation to more productive endeavors.

:When the market is unregulated, the probability that a cheater or a fraud would get apprehended is very slim. This results to a gratifying incentive to cheat – not only for the gamblers, but for the operators, as well.  This is the very reason why regulators want to terminate the operations of Internet gambling. For one, the Internet gamblers cannot be assured that the games they play are legitimate and there is no guarantee that they could collect their winnings. Some gambling sites generally operate on building up a secure gambling environment yet turn out to be scams by stealing credit card information from the naïve gamblers. On the other hand, some gamblers charge handsome debts for their bets onto countless credit card accounts which turn out to be illegitimate or non-existent.  These gambling sites have become a haven for hackers and scammers alike, and this has been made possible partly because the Internet lacks sufficient consumer protection.  The Internet could not be blamed, though, for these players voluntarily plunged themselves into these ventures.  Modern technology is too technical that regulating online gaming becomes very difficult, and our government has not shown technical competence to do so.  At the same time, the government is said to be “missing out” on taxes because it is unable to properly tax online gamblers unless it regulates online casino operators.  
 
:Aside from the fact that online gambling blurs and further confuses the issue of legality mentioned above, it ultimately breeds addiction.  While it serves as a form of hobby or recreation for many, the introduction of gambling through the World Wide Web gives access to much more people, probably millions, who otherwise would not have access to it.  The more gamblers there are ultimately translates into more potential addicts.  Also, because gambling is now quick and accessible, it is more likely for a person to gamble more frequently.  Backing up this assertion, statistics have shown that if you have to get up and travel to go to a casino, you would not play as much.  Adding to the dilemma of online gambling, it makes it easier for people to cheat.  While dishonesty constitutes a major breach in ethics, it also costs casinos millions or billions.  In walk-in casinos, there are a myriad of spy cameras to monitor cheating on site. However, it is almost impossible to monitor someone who bets online in the privacy of his own house.  

:Another problem is the existence of the high degree of suspicion among the players.  More than security and legitimacy concerns, it is also becoming alarming how dangerous gambling is becoming especially to the young and addicted.  These young people are often underage and are easily distracted from their studies, which should be their primary concern for securing a better future.  However, with gambling becoming more and more rampant online, it is easy to see its bad effects to our country, more so to teenagers, (reportedly the highest-ranking in number) who by traversing the web, could easily be lured because of the prizes the winning bet could promise, such as fancy cars, luxurious vacation getaways, and big fat cash which even a college degree could not guarantee so quickly.  Also, more often than not these scams not only trick the money out of people’s pockets but it can even be used for money laundering.  Let us not lull ourselves into thinking that the underage are supposedly banned in all gambling sites - but this is precisely one of the negative features of online gambling, as it enables minors to gamble undetected. There is simply no way to know the ages of people visiting their gambling site. This is where the exclusion limits of online gambling concerning the young get out of hand. The ability to restrict access certain website operations is very much dependent on the technical capability of the users. Since the Internet excludes no one from enjoying its benefits, most of the times the Internet is misused and abused. 

:The following is a situation involving a concrete online gambling issue.  Last Jan.17,2004, the Supreme Court has unanimously declared null and void a franchise for online gambling that was given to a private firm by the Philippine Amusement and Gaming Corporation (hereinafter referred to as PAGCOR) .  In its ten page decision, the high tribunal said that PAGCOR acted beyond the borders of its authority when it allowed Sports and Games and Entertainment Corporation (SAGE) to permit sports betting and Internet gaming stations.  The Court said that Internet gambling does not fall under any of the categories of the authorized gambling activities enumerated under PD 1869, the legislative franchise of PAGCOR, which grants to it the right and privilege to operate and maintain gambling casinos, clubs, and other amusement or recreation places.  The High Court went on to say further that an institution like PAGCOR is allowed only to provide just the physical structures where people who intend to gamble go to play.  Moreover, the decree could not have possibly contemplated internet gambling, since at the time of its enactment on July 11, 1983, the internet was still nonexistent and that gambling activities were then confined to real space.

:The Internet has been dubbed as the information superhighway.  As such, it is not surprising that indeed, the cons go along with the pros.  In the Philippine scenario regarding the ongoing debate as to the issue of the legality of online gambling, Narciso Santiago of the minority Alliance for Rural Concerns party has proposed that gambling on the Internet be made illegal.  He noted in his proposed legislation that there are basically no existing regulations on Internet gambling.  The bill asserts that it should be made illegal for people running a gambling operation to use the Internet, “ or for any other interactive computer service to place, receive, or otherwise make a bet or wager; or send, receive, or invite information that may assist in the placing of a bet or wager.”  However, this bill, called House Bill No. 5613 or the "Internet Gambling Prohibition Act of 2008," exempts, among other things, the situation when the bet placed on an interactive computer service that uses a private network and if the person making the wager is physically in a place open to the general public, as in the case of Internet cafes.  As proposed, those found violating the proposed law would be fined with appropriate amounts or sentenced to jail for up to four years.  

:In sum, even as the intendment and efforts of legislators and lawmakers to completely regulate gambling through the Internet are evident in the concrete and tangible laws that they have proposed, the problem lies in the inherent difficulty in its enforcement.  For an online gambling ban to achieve effectiveness, the support must come internationally. However, such is highly unlikely to happen.  Any effort to ban online gambling is worthless when the big operators, which are the First World countries, are targeting the Philippines as a profitable market.  It may perhaps be appropriate and realistic to simply regulate, because its complete eradication seem to be infeasible and idealistic.  After all, legislators and law enforcers have not been successful in completely stamping out other attempts such as illegal sports betting.