Gambling in the United States

Gambling, often referred to as "gaming", had 2005 gross revenues of $84.65 billion, and thrives in the United States despite being restricted.

Proponents of gambling in the United States say it provides valuable tax revenue and job opportunities. Commercial casinos provided over 354,000 jobs, and yearly state and local tax revenue of $5.2 billion as of 2006. Some community groups oppose gambling because they say it leads to corruption, compulsive gambling, and higher crime rates.

Authorized forms

Many levels of government have authorized multiple forms of gambling: everything from bingo games in church basements, to multi-million dollar poker tournaments. The American Gaming Association breaks gambling down into the following categories:

• Card Rooms, both public and private
• Commercial Casinos
• Charitable Games and Bingo
• Indian Casinos
• Legal Bookmaking
• Lotteries
• Pari-mutuel Wagering

Legality

Gambling is legal under US federal law, but the states are free to regulate or prohibit it. If state-run lotteries are included, almost every state can be said to allow some form of gambling. However, casino-style gambling is much less widespread.

Nevada is the only state where casino-style gambling is legal statewide, although the state and local governments both impose licensing and zoning restrictions. All other states that allow casino-style gambling restrict it to small geographic areas (e.g., Atlantic City, New Jersey or Tunica, Mississippi) or to Native American reservations (some of which are conveniently located in or near large cities). As sovereign nations, Native American tribes have used legal protection to open casinos, which has been a contentious political issue in California and other states. In some states, casinos are restricted to "riverboats", large multistory barges that more often than not are permanently moored in a body of water.

One notable exception to US policy is in the area of online gambling. The Federal Wire Act of 1961 outlawed interstate wagering on sports but did not address other forms of gambling and has been the subject of court challenges. The Unlawful Internet Gambling Enforcement Act of 2006 (part of the SAFE Port Act) did not specifically prohibit online gambling; instead, it outlawed financial transactions involving online gambling service providers. Offshore gambling providers reacted by shutting down their services for US customers.

Gambling in South Africa

History of gambling in South Africa

Most forms of gambling was banned or restricted from as early as 1673, with the Gambling Act of 1965 officially banning all forms except betting on horse racing. In the late 1970s casinos started operating in the bantustans of Bophuthatswana, Ciskei, Transkei and Venda. By 1995 an estimated 2 000 illegal casinos were believed to be operating within the country. In 1996 the National Gambling Act instituted a system of licensed casinos and a single national lottery.

Some scholars have argued that illegal gambling was at least tacitly supported by mining companies in order to keep black African workers locked in poverty and available as a cheap source of labour.

Prevalence and value

According to a 2006 study the most popular forms of gambling in South Africa were the National Lottery (86.9% participation), slots (27.7% participation), scratchcards (22.7% participation), charity jackpot competitions (11.6% participation) and horse racing betting (11.5% participation). 8.3% of respondents said they never gambled and a further 5.5% characterised themselves as occasional game players with no regular forms of gambling.

In the 2006/2007 financial year licensed gross gambling revenue as monitored by the National Gambling Board totaled R13.52 billion, from R11.4 billion the previous year. 86.2 percent of that revenue was derived in casinos. In the same period the Board reported a total of 455 raids on and closures of presumed illegal gambling operations.

Types of gambling

South African National Lottery

The South African National Lottery was established in 2000 and has been in continuous operation since, apart from a suspension between April 2007 and October 2007. In its last year of operation transaction values totaled R3.972 billion, with an average of five million transactions per week, making it the most popular form of gambling in South Africa.

Casinos:Casinos operate in all metropolitan areas in South Africa.

Horse racing

On-track betting on horse races lost its monopoly on legal South African betting in 1996 and, due to its complexity and the difficulty of developing new players, did not effectively compete with the National Lottery or casino games.

Betting on horse races is controlled by Saftote and operated by Gold Circle in KwaZulu-Natal and the Western Cape and by Phumelela in the remainder of the country.

Gambling in the United Kingdom

Gambling in the United Kingdom is regulated by the Gambling Commission on behalf of the government's Department for Culture, Media and Sport (DCMS) under the Gambling Act 2005. This Act of Parliament significantly updated the UK's gambling laws, including the introduction of a new structure of protections for children and vulnerable adults, as well as bringing the burgeoning Internet gaming sector within British regulation for the first time.

Gambling forms

Bingo and casinos

The game of Bingo was popularised in the armed forces in the Second World War and brought back to Britain after the end. The Betting and Gaming Act 1960 allowed commercial bingo halls to be set up, provided they were established as members-only clubs and had to get their take from membership fees and charges rather than as a percentage of the entry fees.

Casinos had a similar history, with requirement for licensing from the Gaming Board of Great Britain and for casinos to be members-only. The number of gaming machines in casinos was limited at 10.

In part due to the difficulty of enforcing this, the Gaming Act 1968 liberalised the law, by allowing true commercial casinos.

The 2005 Act paved the way for larger resort style casinos to be built, albeit in a controlled manner with one being built every few years until the Act is fully implemented. Many towns and cities bid to host one of these so-called "super casinos", which will be similar to those found in Las Vegas. On 30th January 2007, Manchester was announced as the winning bid and will be the location of the first 'super-casino'. The House of Lords urged on 29 March 2007 the Government to review plans for the massive "super-casino" in Manchester. Instead it supported plans for 16 smaller casinos, including ones in Solihull and Wolverhampton.

Gaming machines have two categories depending upon the stakes and payouts involved. The former were limited to casinos, bingo halls and clubs, and the latter also permitted in pubs, cafes, arcades, etc.

Gambling on sports

Sports gambling has a long history in the United Kingdom, having been controlled for many decades, and more recently relaxed. The 1960 Act legalised off-course bookmakers. Pool betting on horses is a monopoly of the state-owned Tote.

There is a large market in the UK for gambling on competitive sports at bookmakers, particularly for horse, greyhound racing and association football (soccer). The latter also has an associated form of gambling known as the football pools, in which players win by correctly predicting the outcome of each week's matches.

Lottery

The UK's largest lottery is known as the National Lottery, which was set up under government licence in 1993.

A statute of 1698 provided that in England lotteries were by default illegal unless specifically authorised by statute. An 1934 Act legalised small lotteries, which was further liberalised in 1956 and 1976. There could be no big national lottery until the Government established one, however.

Several games are run under this brand, including Lotto and Thunderball. As with other lotteries players choose a set of numbers, say 6 from 50, with six numbers then being drawn at random. Players win cash prizes depending on how many numbers they match.

The national lottery launched a pan-European "super-lottery", called EuroMillions in 2004. Currently 9 countries contribute.

In the UK the national lottery has so far raised several billions of pounds for Good Causes, a programme which distributes money via grants. 28% of lottery revenue goes towards the fund, along with all unclaimed prizes. Additionally, 12% goes to the state. The prize fund is 45% of revenue, with the remaining 15% going towards running costs and profits for the lottery organisers and ticket sellers.

The odds of specific combinations occurring in the UK national lottery are as follows:

6 Numbers 1 in 13,983,816
5 Numbers & Bonus Ball 1 in 2,330,636
5 Numbers 1 in 54,201
4 Numbers 1 in 1,032
3 Numbers 1 in 57
2 Numbers 1 in 8
1 Number 1 in 2

Scratchcards

Gambling forms

[edit] Bingo and casinos

The game of Bingo was popularised in the armed forces in the Second World War and brought back to Britain after the end. The Betting and Gaming Act 1960 allowed commercial bingo halls to be set up, provided they were established as members-only clubs and had to get their take from membership fees and charges rather than as a percentage of the entry fees.

Casinos had a similar history, with requirement for licensing from the Gaming Board of Great Britain and for casinos to be members-only. The number of gaming machines in casinos was limited at 10.

In part due to the difficulty of enforcing this, the Gaming Act 1968 liberalised the law, by allowing true commercial casinos.

The 2005 Act paved the way for larger resort style casinos to be built, albeit in a controlled manner with one being built every few years until the Act is fully implemented. Many towns and cities bid to host one of these so-called "super casinos", which will be similar to those found in Las Vegas. On 30th January 2007, Manchester was announced as the winning bid and will be the location of the first 'super-casino'. The House of Lords urged on 29 March 2007 the Government to review plans for the massive "super-casino" in Manchester. Instead it supported plans for 16 smaller casinos, including ones in Solihull and Wolverhampton.[1]

Gaming machines have two categories depending upon the stakes and payouts involved. The former were limited to casinos, bingo halls and clubs, and the latter also permitted in pubs, cafes, arcades, etc.

[edit] Gambling on sports

Sports gambling has a long history in the United Kingdom, having been controlled for many decades, and more recently relaxed. The 1960 Act legalised off-course bookmakers. Pool betting on horses is a monopoly of the state-owned Tote.

There is a large market in the UK for gambling on competitive sports at bookmakers, particularly for horse, greyhound racing and association football (soccer). The latter also has an associated form of gambling known as the football pools, in which players win by correctly predicting the outcome of each week's matches.

[edit] Lottery

The UK's largest lottery is known as the National Lottery, which was set up under government licence in 1993.

A statute of 1698 provided that in England lotteries were by default illegal unless specifically authorised by statute. An 1934 Act legalised small lotteries, which was further liberalised in 1956 and 1976. There could be no big national lottery until the Government established one, however.

Several games are run under this brand, including Lotto and Thunderball. As with other lotteries players choose a set of numbers, say 6 from 50, with six numbers then being drawn at random. Players win cash prizes depending on how many numbers they match.

The national lottery launched a pan-European "super-lottery", called EuroMillions in 2004. Currently 9 countries contribute.

In the UK the national lottery has so far raised several billions of pounds for Good Causes, a programme which distributes money via grants. 28% of lottery revenue goes towards the fund, along with all unclaimed prizes. Additionally, 12% goes to the state. The prize fund is 45% of revenue, with the remaining 15% going towards running costs and profits for the lottery organisers and ticket sellers.

The odds of specific combinations occurring in the UK national lottery are as follows:

6 Numbers 1 in 13,983,816
5 Numbers & Bonus Ball 1 in 2,330,636
5 Numbers 1 in 54,201
4 Numbers 1 in 1,032
3 Numbers 1 in 57
2 Numbers 1 in 8
1 Number 1 in 2

Scratchcards

Scratchcards are a very popular form of gambling in the UK, due to their easy availability and cheap price. These are small pieces of card where an area has been covered by a substance that cannot be seen through, but can be scratched off. Under this area are concealed the items/pictures that must be 'found' in order to win.

are a very popular form of gambling in the UK, due to their easy availability and cheap price. These are small pieces of card where an area has been covered by a substance that cannot be seen through, but can be scratched off. Under this area are concealed the items/pictures that must be 'found' in order to win.

Gambling in Japan

Gambling in Japan is banned by the Criminal Code chapter 23, however there are several exceptions.

Public sports, lottery, and toto are held under special laws in order to increase the income of national and local governments, as well as to offer a form of entertainment for many people.

Forms of Gambling

Public Sports

Kōei kyōgi (公営競技, public sports) are public races that people in Japan can gamble on legally. There are four different types of kōei kyōgi: Keiba (horse racing), Keirin (bicycle racing), Kyotei (motorboat racing), and Auto Race (motorcycle racing). They are allowed by special laws and are regulated by local governments or governmental corporations.

The prize pool for the gamblers of these races are about 75-80% of total sales. Betting tickets are available at countless circuits and ticket booths within many cities, namely Tokyo, Osaka, Yokohama, and Nagoya.

Lottery

Takarakuji (宝くじ), i.e. lotteries, are held by prefectures or large cities on a regular basis all throughout the calendar year.

There are three main types of lotteries: unique number lotteries, selected number lotteries, and scratch cards. Each lottery ticket is sold at 100 yen to 500 yen, and the top cash prizes are usually 100 million yen or more.

The takarakuji law stipulates that the entire prize pool for any given lottery is to be less than 50% of total sales, with the rest going to local government organizations and charities. Takarakuji tickets are available at takarakuji booth and stores in many cities. Tickets for selected number lotteries can be also bought at some ATMs.

Toto

Toto is a soccer lottery (サッカーくじ, soccer betting) that is held over weekly J-League games and is regulated by the government. With toto, people bet on the outcomes of J. League games, and the size of the top cash prize depends on the number of people who bet correctly. The name toto comes from totocalcio, an Italian word for soccer betting.

Pachinko

Pachinko is a pinball-like slot machine game. It is officially not considered gambling because Japanese laws regard pachinko as an exception to the criminal code on gambling for historical, monetary, and cultural reasons. Pachinko parlours can be found all over Japan, and they are operated by private companies, most of which have Korean connections.

In pachinko, when a player's ball makes it into a special hole to activate the slot machine and a jackpot is made, they are rewarded with a lot more. Players can then exchange the balls into prizes at a booth in the parlour. Money cannot be awarded at pachinko parlors as it is a violation of the criminal code. However, players almost always exchange pachinko balls into prizes, usually slits of gold encased in plastic, and then "sell" them at a neighboring shop for cash.

Gambling in Macau

Gambling in Macau has been legal since the 1850s when the Portuguese government legalized the activity in the colony. Since then, Macau has become known worldwide as the "Monte Carlo of the Orient", and gambling has become a significant part of the city's economy. Until Western-style casino games were introduced in the 20th century, only Chinese games were played, the most popular being Fan-Tan. Now, with all the casinos built in the territory including a few number of new ones (some of them are Las Vegas giant companies) opening up soon, Macau is also known as East Las Vegas.

Gambling in Macau plays an important role in the economy of the city. Many Hong Kong and mainland tourists like gambling there. Few local people in Macau visit casinos, though. Generally, gambling in Macau can be divided into three different categories: casino games, horse racing and greyhound racing. There is also sports betting and a number of lotteries. At the present time, Macau does not license online gaming operations.

Parimutuel betting

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Betting on the Favorite, an 1870 engraving

Parimutuel betting (from the French language: pari mutuel, mutual betting) is a betting system in which all bets of a particular type are placed together in a pool; taxes and a house "take" or "vig" are removed, and payoff odds are calculated by sharing the pool among all winning bets.

The parimutuel system is used in gambling on horse racing, greyhound racing, jai alai, and all sporting events of relatively short duration in which participants finish in a ranked order. A modified parimutuel system is also used in some lottery games.

Parimutuel gambling is frequently state-regulated, and offered in many places where gambling is otherwise illegal. Parimutuel gambling is often also offered at "off track" facilities, where players may bet on the events without actually being present to observe them in person.

Parimutuel betting differs from fixed odds betting in that the final payout is not determined until the pool is closed – in fixed odds betting, the payout is agreed at the time the bet is sold.

Sports betting

Sports betting is the general activity of predicting sports results by making a wager on the outcome of a sporting event. Perhaps more so than other forms of gambling, the legality and general acceptance of sports betting varies from nation to nation. In the United States, the Professional and Amateur Sports Protection Act of 1994 makes illegal to operate a "betting, gambling or wagering scheme", except for in the states of Delaware, Nevada, and Oregon. Nevada, however, is the only state currently allowing sports gambling, while in many European nations bookmaking (the profession of accepting sports wagers) is highly regulated but not criminalized. Proponents of legalized sports betting generally regard it as a hobby for sports fans that increases their interest in particular sporting events, thus benefiting the leagues, teams and players they bet on through higher attendances and television audiences. Opponents fear that, over and above the general ramifications of gambling, it threatens the integrity of amateur and professional sport, the history of which includes numerous attempts by sports gamblers to fix matches, although proponents counter that legitimate bookmakers will invariably fight corruption just as fiercely as governing bodies and law enforcement do. Most sports bettors are overall losers as the bookmakers odds are fairly efficient. However, there are professional sports bettors that make a good income betting sports.