Editing Online Gambling (section)

===Assessment of Online Gambling===

====SWOT (Strengths, Weaknesses, Opportunities, Threats)====

=====The Strengths of Online Gambling=====

:Online gambling’s attractiveness takes pride on the nature of the technology’s ability to address convenience and accessibility. Online gambling takes away the travel time, the hassle of following a dress code and the confines of the establishment’s operating hours. The only prerequisite of online gambling is access to the Internet. This does not, however limit the disadvantaged sector of the digital divide. Not only can it be accessed by people who have Internet, but it can also be played by those who have no internet connection through the e-games cafes established by PAGCOR. These are played in Internet Casino Stations (ICS) available nationwide for those who do not have Internet access.  Second, gambling online offers a multitude of games for users to choose from. Not only can users choose the online casino they prefer, they can also select virtual rooms offering not just an assortment of games, but also a variety of one specific game. To expound further, virtual rooms provide customers with different types of poker, blackjack, and even specialty games. Online, a lot of games are provided to suit a horde of preferences. Since there are a lot of game providers, online casinos sometimes offer bonuses to their customers.  Cash prizes or credit bonuses are just some of the additional perks casinos offer in order to attract more users. Bonuses are also made available among games online. For example, bonus rounds are provided for slot machine users, as well as free spin to increase even more one’s take home money.  Also, online casino operators allow free trials for those who are interested to play but are not willing to shell out cash. Gamblers can use this to their advantage and figure out the type of game that suits their preference. Security wise, participating in casinos online is safer than most people think. Contrary to the belief that it is unsafe, most virtual gambling businesses are as secure as land-based casinos. In fact, one’s winnings can be snail mailed to one’s home address or transferred directly to one’s bank account. However, certain caution should be considered when signing agreements. 

=====The Weaknesses of Online Gambling=====

:The major loophole of online gambling as an industry is centered on the issue of legality. The group couldn’t overemphasize the issue further. However, with the introduction of online gambling market into the gambling industry, it blurred out further the boundaries of legitimacy. At present, only those regulated under PAGCOR are considered legal. All other games or gambling activities outside the jurisdiction of PAGCOR are considered illegal. However, even if the boundary of legality has been set, the proliferation of illegal gambling activities still exists online.  

=====The Opportunities of Online Gambling=====

:Revenue from online gambling is relatively high. In an article released by GMANews.TV, operating income increased from P23.1 million in 2006 to P121.2 million in 2007. This is a 100 million increase in revenues in a span of only 1 year.  Lastly, online gambling tends to offer its users more revenue in return for their deposit or bet. It usually has higher payout percentage than normal gambling establishments.

=====The Threats of Online Gambling=====

:Although the revenues generated by the online gambling industry are remarkably high, the social repercussions the industry imposes on its consumers are if not understated, unrecognized. The opponents of online gambling counter that the legalization of this industry would further elevate the social ills which damage the society. As the bets are getting higher and higher by the minute, it becomes more difficult to oppose the urge to gamble. The gambler becomes progressively unable to resist the impulse. This behavioral disorder known as Pathological Gambling is brought about by the intensity of the gamble. Since it is rooted in every firm to maximize their profits, the objective of these online gambling operators is to bind gamblers into games which are addictive so that they will continuously bet again and again.  Since the Internet brings the compulsive gambler closer to the opportunity to gamble with just a few clicks of the mouse, it smoothens out the path to addiction.  Online gambling games are like mouse traps and the gamblers don’t actually get the “cheese.”  

:Another weakness of participating in online casinos is the threat of fraud and cheating. As was said earlier, certain precautions should be taken when agreeing to terms and conditions because online gambling sites have constantly been a target of hackers, as well as con-artists. The usual modus operandi of these con-artists is to hack the system and acquire the credit card numbers. However, under the Philippines’ e-commerce act, this problem is being addressed. Chapter II Declaration of Principles for Electronic Commerce Promotion, a section is provided specifically addressing the protection of users. This is to protect the users’ privacy, confidentiality, anonymity and content control. Users should be given the right to exercise their freedom of choice, as well as right to privacy, anonymity, confidentiality and content control. However, although a specific section was provided for this issue, it cannot be fully resolved because according to the e-commerce act, the Internet system was not designed to accommodate these restrictions. Sec 48 of e-commerce act also addresses the problem of hacking. The law states that:

<blockquote>
Section 48.   Hacking.  Hacking or cracking which refers to unauthorized access into or interference in a computer system server or information and communication system; or any access in order to corrupt, alter, steal, or destroy using a computer or other similar information and communication devices, without the knowledge and consent of the owner of the computer or information and communications system, including the introduction of computer viruses and the like, resulting in the corruption, destruction, alteration, theft or loss of electronic data messages or electronic document shall be punished by a minimum fine of one hundred thousand pesos (P100,000.00) and a maximum commensurate to the damage incurred and a mandatory imprisonment of six (6) months to three (3) years.
</blockquote> 

====Alternatives/Substitutes of Online Gambling====

:Given the game set-up, there are issues concerning the assumption that online gambling sites are not as well-regulated as their land-based counterparts. There have been instances where online gambling sites have apparently not paid appropriate winnings, have cheated players with unfair games, or have absconded with player deposits. There are also reports that players get away with cheating online.

:According to a site called ''Problem Gambling Prevention'', there are risks involved in gambling online that can be avoided when gambling in a casino for an instance. Online gambling is more addictive because first, there is no limitation on availability. A user can play anytime and anywhere he pleases with a laptop as long as he can access the Internet. There is no need to search for the nearest gambling establishment because the convenience of playing in the comforts of one’s one home is now available through online gambling. Second, there is no limitation on time. The unlimited time available in playing makes it more addictive. Users can play for hours in any time of day or night. Third, there is little limitation on money. Being able to pay on credit, users have the tendency to forget that they are spending real money. Thus, they play to their satisfaction and because they are spending on credit, they have decreased perception of the value of cash. Also, gambling online enables an accelerated speed of play. Users can play faster and can therefore spend more money through credit card faster. As an alternative, gambling “on-land” has certain advantages over gambling online, given the aforementioned ones, which clearly leads to gambling addiction. In a gambling establishment, time and money are limited. Because of these, players can control their resources better. This clearly shows that online gambling is a very wise and effective way to gain profits from players because it is highly addictive compared to “on-land” gambling.

:As substitute for online gambling, people can resort to playing downloadable online games instead of betting their money on online gambling. Entertainment need not be highly dependent on the hopes of acquiring more money. There are a myriad of money games online that do not require the betting of money. 

:Also, since social networking sites dominate the general public’s web browsers, one particular social networking site offers a close alternative to online gambling. Facebook revolutionized the social networking platforms by providing a framework for software developers to utilize its interface by creating applications which are enjoyed by millions of registered Facebook users. The Zyngas Game Network offers a Facebook Texas Hold 'Em application that allows you to play a friendly round of poker against your friends or random Facebook users. Unlike online poker platforms online, this is free of charge and there is no real money on the line. New batch of chips are awarded for the player every day and bonus chips are rewarded when you invite your friends to play. If you want to hone your online poker skills, all you need is a Facebook account and a basic grasp of rules of Texas Hold ‘Em. 

====Feasibility and Justification of Online Gambling====

=====More Profits, Revenues, Tax Payments and Better Economic Growth=====

:Internet gambling represents a very large potentially untapped market in our country. Recent news report that online gambling companies enjoyed their best year in 2008, posting healthy revenue and profit increases despite the fiscal crisis and slowing world economy. A rational reason why Filipinos embrace the gambling tradition so much is poverty. The win of a gamble can blind a prospective gambler because it promises fast and easy money. It is because of this false hope that the future of online gambling in the Philippine society continues to be promising. 

:According to Dennis Valdes, the President of PhilWeb Corporation, “The company did not only sustain its meteoric growth of 2007, it actually accelerated that growth last year.” As a result PhilWeb Revenue totaled P457.2 million in 2008, 71% higher than the previous year. Net income increased more than half and this is driven by the excellent growth in the company’s investment in the market of Internet gambling gaming business. This revenue growth was fueled by the operations of PAGCOR’s e-game cafés coupled with the Filipino’s enthusiastic response to sports betting games and mobile gaming operations. With this continuing trend, there is optimism that this growth would accelerate in 2009 especially with the introduction of newer and more updated games.

=====Growth and Expansion of Online Gambling=====

:With the proven success of gambling as a recreational tradition, especially heightened by the Filipino’s welcoming response to online gambling, it is not surprising that gambling operators would accordingly tap the market of the mobile community. 

:According to the data collected by The National Telecommunications Commission, about 70 percent of Filipinos have and are using mobile phones. NTC commissioner Ruel Canobas noted that out of the 88,542,991 population last year, only 32 million are not using mobile phones. This translates to about two out of three cell phone users. This double-digit growth of penetration is because of the ‘text’ phenomenon. Similarly, this is also the reason why the SMS content sector of the industry continues to grow. This includes ringtones, downloadable applications, daily quotations, etc. 

:Gambling operators successfully tapped this market by exploiting the given demographics. In so doing, online gambling operators have foreseen success in penetrating the mobile industry and therefore took advantage of it by introducing mobile gambling. The Filipinos’ love and enthusiasm for entertainment resulted to the growth of mobile gambling. Since more Filipinos are connected through cellular phones rather than the Internet, it brought gambling more accessible to the masses. Also because more Filipinos have cellular phones in handy, the appeal of mobile gambling overwhelmingly cites convenience as a benefit. The estimated growth of mobile gambling is promising because its target market is already built-in.

:The Online Casino Archives Website claimed that Asia is the place for all present-day and future online gambling developments. Experts and industry professionals prove that Asian nations constitute the majority of the online gambling market. Gaming analysts at Christiansen Capital Advisers attest that the online gambling market in Asia has grown faster than all other established markets, making developments of new gambling technologies possible such as mobile gambling.  Today, there is an overwhelming public response to online gambling services. Business and investment opportunities have also been offered. PAGCOR online gambling services are also open for franchising. A company named Star Games Services offers different investment options or packages to choose from. The initial investment is as low as thirty thousand pesos. With this, the growth of online gambling as an industry is reflected in the revenues it generates.