Gambling Companies Find Online Loopholes

NEW YORK – As reported by the New York Times: "For United States companies locked out of the lucrative global industry in Internet gambling, there is still money to be made - as long as they don't call it gambling.

"So-called games of skill like Spades, 8-ball and Solitaire are attracting more players online than ever, thanks partly to the growing pool of prize money available to winners and the tightening noose of federal regulation around online games of chance.

"Although revenues are small compared to those reaped by pure gambling sites, some in the industry believe this can change.

"…'We refer to this as competitive entertainment,' said Mr Stephen Killeen, chief executive of WorldWinner, which runs a game site that charges tournament players and head-to-head challengers about US$1.50 for every game they play, while awarding winners roughly US$3.20.

"…The generally accepted standard for legal gaming is that it must involve a contest in which skill is the predominant factor in winning or losing. If a game is too easy or too hard for participants, skill is less a factor in the outcome than luck.

"…WorldWinner has more than 10 million registered users, which places the site near the top of its category.

"…However, the crackdown on illegal gambling has turned the market in a more favourable direction, said Mr Killeen.

"…Still, purveyors of skill-based Internet games have not emerged unscathed from online gambling's legal hassles. Companies like WorldWinner and others continue to lobby Congress, lest they be included in legislation barring all types of games with cash or prize awards…"