Online casino gambling has many advantages in relation to land-based gaming; but where there are advantages, there are also risks. However, through increased awareness a player can minimize the risks of online casino gambling, and cash in on the substantial rewards offered by today’s online casinos.

The online casino industry has seen an explosive growth since the introduction of the World Wide Web, and currently there are more than 1,300 online casinos, compared to slightly more than 2,000 land-based casinos worldwide. As a result of the Internet breaking the geographical barriers faced by land-based casinos, online casinos compete fiercely to attract the same worldwide target market. This is an advantage to players, because online casinos have been forced to offer competitive bonus programs to attract them.

Bonuses and Profitability

Most online casinos offer sign-up bonuses in the form of credit to the player’s account in order to attract them and maintain their loyalty. These bonuses generally range from 10-50% of the initial deposit, but sometimes they can be as much as 100%.

Along with the bonus, comes some betting requirements; but, by only playing games with a low house edge the intelligent online casino gambler can realistically go from casino to casino and expect to make a profit frequently. At a land-based casino, a player may receive other perks such as complimentary hotel rooms, meals, tickets to shows or events and even corporate jet transportation services for high rollers; however, the promotional chips and comp services do not compare monetarily to the bonuses offered by online casinos.

An online casino generally has a minimum betting requirement that states a player must bet at least 2-10 times their initial deposit plus the bonus, prior to cashing out. If a player makes an initial deposit of $200 and receives a $100 bonus he will be required to bet a minimum of $600-$3000 before cashing out. Assuming that the player is playing Blackjack, using basic strategy under Atlantic City rules with a low house edge of 0.43%, his expected value (or EV) is to lose between $2.58 and $12.90 before he would be allowed cash out. Because of the $100 bonus offered by the online casino, he could walk away with a profit ranging between $87.10 and $97.42. However, the casinos consider this type of behaviour “bonus abuse”, and to avoid any trouble we recommend that you bet at least 2-3 times more than the stated minimum, before attempting to cash out with a win if you have taken advantage of any bonus offer from the casino. Even if the player in the example above played $9000 in total before cashing out, (thirty times his initial deposit and bonus), he would still be able to walk away with a minimum profit of $61.30. Further, he would not be considered a “bonus abuser” and would be welcome back to the same casino.

The actual amount the player ends up cashing out will vary depending upon the standard deviation the player is willing to accept, which is determined by size of bets. If the player makes many small bets to reach his betting requirements he will be more certain to end up close to his expected EV, and if he makes larger bets he is more likely to lose money or make a larger profit. However, in the long-run, the expected value (EV) remains the same assuming that the player is correctly using basic strategy and is playing at an honest casino. We recommend that you bet reasonably high, and are willing to accept a fairly high standard deviation in order to not make the casino your enemy. If you were to deposit $200 for a $100 bonus and then bet $1 per hand for 9000 hand of blackjack to reach your minimum you would certainly never be welcome back to that casino! By accepting that at some casinos you will lose your initial deposit and at others you will win big, you are making sure to give the casino a “fair shot at your money”, and this is what they expect. Remember that you will still come out ahead once you have played many casinos.

This expected value of a bonus can be applied to any casino game, assuming that the house edge is known. With the same conditions, (a $200 initial deposit, a $100 bonus and a $600 betting requirement), playing single-zero roulette with a house edge of 2.7%, the EV is a loss of $16.20 resulting in a profit of $83.80 taking the $100 bonus into account. Once again, we strongly recommend that you play several times the minimum requirement before attempting to cash out.

These bonuses are what make online casino gambling a much better deal than land-based casinos.

Additional Advantages of Online Casino Gambling

As stated previously, an online casino will surpass a land-based casino in terms of bonuses and payouts. In addition an online casino generally has more favourable rules than a land based casino. Your total costs are decreased in the online sector because there is no obligation to tip, and there are now travel expenses required to play at an online casino.

The atmosphere of online casino gaming is more conducive to concentration because of decreased distractions. Gamblers often get caught up in the sounds and effects of the land-based casinos, which are purposely designed to encourage players to spend more money. The excitement of hearing jackpot signals, seeing flashing lights and observing other players winning, drives players to continue playing rather than cashing out. The calm environment of online gambling reduces the temptations and allows for a more strategic approach.

The Risks Involved in Online Casino Selection

Although the potential of walking away with a profit from an online casino is higher than in a land- based casino, the risks of online casino gambling are also much higher for the unaware player.

In evaluating an online casino, there are several things to be taken into consideration. The biggest bonus does not necessarily mean the best choice. What good is it to get a $500 bonus if the casino does not pay its winners? Of the 1800 or so casinos on the Internet, our estimate is that at least 50% defraud their players in one way or another.

1. Licensing

The land based casino industry in the US is one of the most heavily regulated industries in the nation. Land based casinos have to comply with state restrictions, licensing requirements and regulations, and are subject to numerous stringent federal laws. They are required to comply with federal corporate taxation, Securities and Exchange Commission rules and are required to file information reports on large winnings with the IRS, while withholding federal taxes on certain winnings as well as adhering to the anti-money laundering statutes and regulations of the US Treasury Department. The Gaming Control Board is responsible for enforcement and consists of gaming agents who review and control the amount of payouts and payout settings on slot machines. The Board has the authority to investigate and resolve disputes and in effect, keep the US land-based casinos honest.

None of this is true in the world of Internet casinos. Offshore operators engaged in online gambling are not subject to state or federal requirements, and as the industry stands today, unlicensed, untaxed and unsupervised casino operators can engage in taking bets from unsuspecting players without any controls to ensure honesty, integrity and fairness. Unscrupulous operators who are undercapitalised, and without experience from the casino industry frequently take advantage of players, by defaulting on winnings or using fraudulent software that cheat the players.

Unprofessional individuals, who are not fit to operate a casino, or any business for that matter, run many of the online casinos available on the Internet today. Even larger operations without proper business ethics are known to change the rules of bonuses and promotions at their leisure, or withhold payments to players who win large amounts. In addition, some casinos will just steal a player’s money outright, and the majority of operators lack decent customer service. We only recommend online casinos that are licensed in territories with stringent regulations, and that have control systems in place to protect player’s winnings. An example is the Isle of Man where casinos are required to deposit a minimum of two million US dollars with the government in order to receive a casino license, and to protect player’s winnings.

2. Cheating

A surprisingly large number of online casinos use software that makes it possible for them to cheat players at will. They set their own payout schedules and manually decide who wins and who loses. We only recommend casinos that operate with software of highest reliability and trustworthiness, and were the casino operator cannot cheat a player by simply clicking a button.

3. Customer Service

A large number of online casinos have appalling or non-existent customer service, and this is true for many large as well as small casino operators. It is always advisable to search for a customer service number on the casino web site, and to call and confirm that it is a functional number before registering. We only recommend online casinos that have a proven track record of great customer service, and we would never recommend a casino that does not have the courtesy to offer a phone number for their players to call.

How to play safe