that would get one tossed out of a regular casino. Blackjack players can very easily count cards, or even consult odds charts; the Kennyrogerscasino.com site actually has a printable chart showing the best strategy for every possible hand of blackjack. And for sports bettors - who make up a majority of online gamblers, according to industry insiders - the ease of using cyberbookies can't be beat. "I use the service because it's convenient and I have access to it when I want," says one online gambler. "I wager on football games and usually bet in the neighborhood of $1,000 every weekend. I've not had problems being paid."
If such gamblers are not satisfied by options available to U.S. citizens, it will be increasingly tempting for them to turn to locations abroad. One Australian state, Queensland, is already awarding licenses for online gambling, and others may follow soon. That makes for an Internet gambling environment too porous for U.S law enforcement to plug.
All the sites indicted by the U.S. attorney's office theoretically operate out of the Caribbean. (However, an HBO sports program attempted to locate one of these ventures in Aruba, and ultimately found that the genuine server was in a residential neighborhood in Bethlehem, Pa.) And the Caribbean nations would like to keep their haven status. Aruba, for one, is refusing to extradite any indicted individuals to the U.S., and thus far the U.S. has had little cooperation from any other nation.
Does the seeming invincibility of online gambling make it an enticing business? Jason Ader of Bear Stearns, urges caution. "Since there are no controls at present regarding Internet wagering, I would urge investors to shun these firms at present," he says. Even the firms that have enjoyed some stock-price popularity - such as Youbet.com - have shaky fundamentals. But as more and more traditional firms become involved, the consumer will look for the brand name. Says Sinclair of Christiansen/Cummings: "You are going to feel more comfortable wagering with a Hilton than you will with Joe's Casino."
Internet Gambling Worldwide, Past and Future
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Source: Deutsche Bank; Christiansen/Cummings Associates
