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Internet Gambling May Have Hazards
Thu Apr 18,10:12 PM ET
By BRENDAN RILEY, Associated Press Writer
CARSON CITY, Nev. - Nevada's gaming regulators were warned about numerous high-tech hazards in trying to monitor Internet gambling activity if it's ever legalized in Nevada.
Marc McDermott, chief of the electronics division for the Gaming Control Board, said Thursday that there are so many ways to make online bets that stating such bets are secure is "just a guess to make people happy for the most part."
Nevada regulators are devising regulations that make it the first state to start legalized Internet gambling — provided there's no conflict with the Justice Department (news - web sites) or Congress.
A major concern is by Nevada authorities is that online gambling occur only in jurisdictions where it's approved, but McDermott said, "There's no way to be absolutely certain where a person is on the Internet."
Nevada-based Control Board staffers testing security of existing Internet gambling, largely conducted offshore because of the U.S. ban, easily made it look like they were making online contacts from Canada, he said.
McDermott also said one of the major problems with Internet gambling is maintaining adequate internal controls to keep out hackers or block in-house cheating.
He said a recent scam in England cost an Internet gambling operation about $1.6 million before a rigged online blackjack game was spotted.
Hackers trying to get into online casinos' computers can "basically run amok in your computer" with e-mail viruses and other techniques, he said.
Elaborate security measures such as electronic fingerprint or facial recognition systems also help — but McDermott said they're expensive and still susceptible to breakdown due to simple things like "the dirt and crud factor" in such systems.
The report to the commission follows a Nevada attorney general's analysis last month that also provided no easy answers to questions about legality of Internet gambling — "absent congressional guidance."
While acknowledging there are many hurdles, casino executives have said they see a huge untapped market for licensed Internet gambling.
Experts estimate that revenues from Internet gambling will hit $4 billion this year, and could reach $6 billion by 2003.
Thu Apr 18,10:12 PM ET
By BRENDAN RILEY, Associated Press Writer
CARSON CITY, Nev. - Nevada's gaming regulators were warned about numerous high-tech hazards in trying to monitor Internet gambling activity if it's ever legalized in Nevada.
Marc McDermott, chief of the electronics division for the Gaming Control Board, said Thursday that there are so many ways to make online bets that stating such bets are secure is "just a guess to make people happy for the most part."
Nevada regulators are devising regulations that make it the first state to start legalized Internet gambling — provided there's no conflict with the Justice Department (news - web sites) or Congress.
A major concern is by Nevada authorities is that online gambling occur only in jurisdictions where it's approved, but McDermott said, "There's no way to be absolutely certain where a person is on the Internet."
Nevada-based Control Board staffers testing security of existing Internet gambling, largely conducted offshore because of the U.S. ban, easily made it look like they were making online contacts from Canada, he said.
McDermott also said one of the major problems with Internet gambling is maintaining adequate internal controls to keep out hackers or block in-house cheating.
He said a recent scam in England cost an Internet gambling operation about $1.6 million before a rigged online blackjack game was spotted.
Hackers trying to get into online casinos' computers can "basically run amok in your computer" with e-mail viruses and other techniques, he said.
Elaborate security measures such as electronic fingerprint or facial recognition systems also help — but McDermott said they're expensive and still susceptible to breakdown due to simple things like "the dirt and crud factor" in such systems.
The report to the commission follows a Nevada attorney general's analysis last month that also provided no easy answers to questions about legality of Internet gambling — "absent congressional guidance."
While acknowledging there are many hurdles, casino executives have said they see a huge untapped market for licensed Internet gambling.
Experts estimate that revenues from Internet gambling will hit $4 billion this year, and could reach $6 billion by 2003.