| | |  | | | | Online Gambling
Online gambling is growing in an unbelievable speed, while the history of the industry is still as new as the Internet itself. The world's first virtual online casino started operating on August 18, 1995 with 18 different casino games, online access to the National Indian Lottery, and plans to launch an Internet sports book. In all, according to Rolling Good Times Online gambling magazine, there are 452 gambling-related sites on the web and more are up and running every day.
Most of the online gambling companies are located outside of the U.S. to avoid government prosecution. ICI operates out of the Turks and Caicos Islands and Wager Net is based in Belize. Site users can either send cash through one of the companies offering secure payment methods for the Internet or open an offshore account, a requirement for Americans to use some sites. Bets can be as low as a nickel for certain slot machines and go into the thousands of dollars.
The economics of the industry are incredible. While it may cost up to $300 million to build a new resort casino, some virtual casinos were developed for only $1.5 million and employ only few individuals as opposed to thousands at traditional casinos. ICI approximates that the company averages about a twenty four (24%) profit margin, versus the typical U.S. casino, which ranges between eight percent (8%) to sixteen (16%) of each dollar wagered. Interactive Gaming & Communications' Sports International handled $48 million dollars in its first year of 800 telephone line operations and made an astounding profit.
In total, around twenty million people are currently on line with a prospect of 160 million online gamblers by the year 2020. ICI has received over 40,000 registrations for its service since its beginning and registers over 7,000,000 visits per month at its site. With over $500 billion spent on legal and illegal gambling in the U.S. alone in 1993, it's estimated that over ninety percent (90%) of adults participate in some form of gambling. The overall market for online gambling is appraised at $49 billion worldwide. |
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