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Online casinos, also known as virtual casinos or Internet casinos, are online versions of traditional ("
brick and mortar Brick and mortar (also bricks and mortar or B&M) refers to a physical presence of an organization or business in a building or other structure. The term ''brick-and-mortar business'' is often used to refer to a company that possesses or leases r ...
")
casino A casino is a facility for certain types of gambling. Casinos are often built near or combined with hotels, resorts, restaurants, retail shopping, cruise ships, and other tourist attractions. Some casinos are also known for hosting live entertai ...
s. Online casinos enable
gamblers Gambling (also known as betting or gaming) is the wagering of something of value ("the stakes") on a random event with the intent of winning something else of value, where instances of strategy are discounted. Gambling thus requires three elem ...
to play and wager on
casino game Games available in most casinos are commonly called casino games. In a casino game, the players gamble cash or casino chips on various possible random outcomes or combinations of outcomes. Casino games are also available in online casinos, wher ...
s through the
Internet The Internet (or internet) is the global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices. It is a '' network of networks'' that consists of private, pub ...
. It is a prolific form of
online gambling Online gambling is any kind of gambling conducted on the internet. This includes virtual poker, casinos and sports betting. The first online gambling venue opened to the general public was ticketing for the Liechtenstein International Lottery i ...
. Some online casinos claim higher payback percentages for
slot machine A slot machine (American English), fruit machine (British English) or poker machine (Australian English and New Zealand English) is a gambling machine that creates a game of chance for its customers. Slot machines are also known pejoratively a ...
games, and some publish payout percentage audits on their
website A website (also written as a web site) is a collection of web pages and related content that is identified by a common domain name and published on at least one web server. Examples of notable websites are Google Search, Google, Facebook, Amaz ...
s. Assuming that the online casino is using an appropriately programmed
random number generator Random number generation is a process by which, often by means of a random number generator (RNG), a sequence of numbers or symbols that cannot be reasonably predicted better than by random chance is generated. This means that the particular outc ...
,
table game Table game may refer to: * Table game (casino), games of chance that are played against the casino and operated by one or more live dealers * Tables game, a class of board game that includes backgammon * Tabletop game, games that are normally play ...
s like blackjack have an established house edge. The payout percentage for these games are established by the rules of the game.


Types

Online casinos are broadly divided into two categories based on the software they use: web-based and download-only casinos. Traditionally, online casinos would include only one of the two platforms. However, with advanced technological changes, an online casino can now accommodate both.


Web-based

Web-based online casinos (also known as no-download casinos) are websites where users may play casino games without downloading software to their local computer. A stable internet connection is required to have a seamless gaming experience as all graphics, sounds, and animations are loaded through the web. Most online casinos allow gameplay through an
HTML The HyperText Markup Language or HTML is the standard markup language for documents designed to be displayed in a web browser. It can be assisted by technologies such as Cascading Style Sheets (CSS) and scripting languages such as JavaSc ...
interface, previously this was done through browser plugins, such as
Flash Player Adobe Flash Player (known in Internet Explorer, Firefox, and Google Chrome as Shockwave Flash) is computer software for viewing multimedia contents, executing rich Internet applications, and streaming audio and video content created on the ...
,
Shockwave Player Adobe Shockwave Player (formerly Macromedia Shockwave Player, and also known as Shockwave for Director) is a discontinued freeware software plug-in for viewing multimedia and video games created on the Adobe Shockwave platform in web pages. Co ...
, or
Java Java (; id, Jawa, ; jv, ꦗꦮ; su, ) is one of the Greater Sunda Islands in Indonesia. It is bordered by the Indian Ocean to the south and the Java Sea to the north. With a population of 151.6 million people, Java is the world's List ...
.


Download-based

Download-based online casinos require the download of the software client in order to play and wager on the casino games offered. The online casino software connects to the casino service provider and handles contact without browser support. Download-based online casinos generally run faster than web-based online casinos since the graphics and sound programs are cached by the software client, rather than having to be loaded from the Internet. On the other hand, the initial download and installation of the casino's software take time. As with any download from the Internet, the risk of the program containing malware exists, which makes it less popular among skeptical casino players.


Games


Virtual

Also known as software-based online casino games, the outcome of these games is determined using a
pseudorandom number generator A pseudorandom number generator (PRNG), also known as a deterministic random bit generator (DRBG), is an algorithm for generating a sequence of numbers whose properties approximate the properties of sequences of random numbers. The PRNG-generate ...
(PRNG) software. This software ensures that every deal of the card, the outcome of a dice throw, or the results produced by the spinning of a slot machine or roulette wheel is totally random and unpredictable. PRNGs use a set of mathematical instructions known as an algorithm to generate a long stream of numbers that give the impression of true randomness. While this is not the same as true random number generation (computers are incapable of this without an external input source), it provides results that satisfy all but the most stringent requirements for true randomness. When implemented correctly, a PRNG algorithm such as the
Mersenne Twister The Mersenne Twister is a general-purpose pseudorandom number generator (PRNG) developed in 1997 by and . Its name derives from the fact that its period length is chosen to be a Mersenne prime. The Mersenne Twister was designed specifically to re ...
will ensure that the games are both fair and unpredictable. However, usually, the player has to trust that the software has not been rigged to increase the house edge, as its inner workings are invisible to the user. Properly regulated online casinos are audited externally by independent regulators to ensure that their win percentages are in line with the stated odds, and this can provide a degree of assurance to the player that the games are fair, assuming the player trusts the regulator.


Live dealer

Live dealer casino games are the complete opposite of software-based games. Instead of depending on software to determine the outcome of the roulette spin, dice throw, or deal of a card, these games depend on real-time results. This is possible as the games are streamed in real-time from a land-based casino or a studio recreated to mimic a land-based casino. To ensure that players have an easy time playing these games and that the land-based environment is fully recreated, software developers include innovative features such as the chat feature. This enables the player to type your message to the dealer and they can respond back verbally. The live chat feature can also be used to communicate with other players seated at the table following a set of rules laid down by the casino. The results of the physical transactions by the dealer, such as the outcome of the roulette wheel spin or the dealing of cards, are translated into data that can be utilized by the software by means of
optical character recognition Optical character recognition or optical character reader (OCR) is the electronic or mechanical conversion of images of typed, handwritten or printed text into machine-encoded text, whether from a scanned document, a photo of a document, a sc ...
(OCR) technology. This enables the player to interact with the game in much the same way as they would with a virtual casino game, except for the fact that the results are determined by real-life actions rather than automated processes. These games are a lot more expensive for websites to host than virtual games, as they involve a heavier investment in technology and staffing. A live casino studio typically employs one or more cameramen, several croupiers running the various games, an
information technology Information technology (IT) is the use of computers to create, process, store, retrieve, and exchange all kinds of Data (computing), data . and information. IT forms part of information and communications technology (ICT). An information te ...
manager to ensure that any technical hitches are dealt with swiftly, and a pit boss that acts as an adjudicator in case of disputes between players and croupiers. In most cases, this requires at least a three-room setup, comprising a live studio, a server/software room, and an analyst’s room. The configuration of these rooms varies from casino to casino, with some having several gaming tables in one room, and some having a single table in each room. The high running costs involved with operating live dealer games is the reason why online casinos only tend to offer a handful of the most popular games in this format, such as
roulette Roulette is a casino game named after the French word meaning ''little wheel'' which was likely developed from the Italian game Biribi''.'' In the game, a player may choose to place a bet on a single number, various groupings of numbers, the ...
, blackjack, sic bo, and
baccarat Baccarat or baccara (; ) is a card game played at casinos. It is a comparing card game played between two hands, the "player" and the "banker". Each baccarat coup (round of play) has three possible outcomes: "player" (player has the higher score ...
. In comparison, the running costs associated with virtual games are very low, and it is not uncommon for online casinos to offer hundreds of different virtual casino games to players on their site. Online casinos vary in their approach to the hosting of live games, with some providing live games via their own
television channel A television channel is a terrestrial frequency or virtual number over which a television station or television network is distributed. For example, in North America, "channel 2" refers to the terrestrial or cable band of 54 to 60 MHz, with ...
, and others offering the games exclusively via their website. In the case of televised games, players can often use their
mobile phone A mobile phone, cellular phone, cell phone, cellphone, handphone, hand phone or pocket phone, sometimes shortened to simply mobile, cell, or just phone, is a portable telephone that can make and receive calls over a radio frequency link whil ...
or television remote controls to place bets instead of doing so via a computer connected to the internet. The most common live dealer games offered at online casinos are baccarat, blackjack, and roulette.


Examples

A typical selection of gambling games offered at an online casino might include: *
Baccarat Baccarat or baccara (; ) is a card game played at casinos. It is a comparing card game played between two hands, the "player" and the "banker". Each baccarat coup (round of play) has three possible outcomes: "player" (player has the higher score ...
* Blackjack *
Craps Craps is a dice game in which players bet on the outcomes of the roll of a pair of dice. Players can wager money against each other (playing "street craps") or against a bank ("casino craps"). Because it requires little equipment, "street ...
*
Roulette Roulette is a casino game named after the French word meaning ''little wheel'' which was likely developed from the Italian game Biribi''.'' In the game, a player may choose to place a bet on a single number, various groupings of numbers, the ...
* Sic bo *
Slot machines A slot machine (American English), fruit machine (British English) or poker machine ( Australian English and New Zealand English) is a gambling machine that creates a game of chance for its customers. Slot machines are also known pejoratively ...
*
Poker Poker is a family of comparing card games in which players wager over which hand is best according to that specific game's rules. It is played worldwide, however in some places the rules may vary. While the earliest known form of the game w ...
*
Keno Keno is a lottery-like gambling game often played at modern casinos, and also offered as a game in some lotteries. Players wager by choosing numbers ranging from 1 through (usually) 80. After all players make their wagers, 20 numbers (some va ...
*
Bingo Bingo or B-I-N-G-O may refer to: Arts and entertainment Gaming * Bingo, a game using a printed card of numbers ** Bingo (British version), a game using a printed card of 15 numbers on three lines; most commonly played in the UK and Ireland ** Bi ...


Bonuses

Many online casinos offer sign-up bonuses to new players making their first deposit, and often on subsequent play as well. These bonuses are a form of
marketing Marketing is the process of exploring, creating, and delivering value to meet the needs of a target market in terms of goods and services; potentially including selection of a target audience; selection of certain attributes or themes to emph ...
that may incur a cost (potentially justifiable in order to attract a new player who may return and deposit many more times), since the casino is essentially giving away money in return for a commitment from the player to wager a certain minimum amount before they are allowed to withdraw. Since all casino games have a house edge, the wagering requirements ensure that the player cannot simply walk away with the casino's money immediately after claiming the bonus. These wagering requirements are commonly set to be sufficiently high that the player has a negative expectation, exactly as if they had deposited and not claimed a bonus. Casinos may choose to restrict certain games from fulfilling the wagering requirements, either to restrict players from playing low-edge games or to restrict 'risk-free' play (betting for instance both red and black on roulette), thereby completing the wagering requirement with a guaranteed profit after the bonus is taken into account.


Welcome

The Welcome bonus is a deposit match bonus on the first deposit ever made in the casino or casino group. Welcome bonuses sometimes come in packages and may be given to match the first two or three deposits (First Deposit Welcome Bonus, Second Deposit Welcome Bonus, etc.). They can also be tied to specific games, such as the Welcome Slots Bonus or the Welcome Table Games Bonus. The casino may also offer Welcome bonuses for high rollers who make an initial deposit above the standard amount limit.


Referral

There are two types of Referral bonuses: one for the Referee and one for the Referrer. The Referee gets a bonus when he or she registers an account at the casino and mentions the Referrer. The Referrer gets a bonus when the Referee completes all the requirements, such as making the deposit and wagering it a certain number of times.


Cashback or insurance

Cashback or Insurance bonuses are offered as a percentage of all losses in the player’s previous gaming activity. Typically, only deposits that were not matched with bonuses count towards this bonus. You can additionally find websites that offer casino cashback payments based on your losses encountered while playing with one or more online casinos. Those types of cashback deals are usually paid back to players by the casino portal that offers those special cashback offers.


No-deposit

The most popular form of bonus is one that can be claimed without the need to deposit any of the player's own money - known as a no deposit bonus. These bonuses are used as acquisition tools by casinos wishing to attract new players. No deposit bonuses don't always take the form of real cash, as exemplified below.


Non-cashable

Non-cashable bonuses may be called "sticky" or "phantom" bonuses. In both cases, the bonus forms a part of the player's balance, but cannot be cashed out. The difference between cash-able and phantom bonuses comes at cashout time. A phantom bonus is deducted from the player's balance at the moment he places his withdrawal request. For example: if you deposited $100, received $100, played, and finished the wagering at $150. If the bonus is sticky, the player will be able to withdraw just $50. If the bonus is cash-able, then the whole balance is available for withdrawal.


Comp points

Comps are commonly available at land-based casinos, but also exist online. Comp points can usually be exchanged for cash, prizes, or other comps. The amount of cash given per wager is usually very small and often varies with game selection. A casino might offer three comp points for each $10 wagered on slots and one comp point for each $10 wagered on blackjack. The casino might give $1 for each 100 comp points. This example is equivalent to returning 0.3% of wagers on slots and 0.1% of wagers on blackjack. In addition, online casinos may offer comps such as free tickets to online
tournament A tournament is a competition involving at least three competitors, all participating in a sport or game. More specifically, the term may be used in either of two overlapping senses: # One or more competitions held at a single venue and concentr ...
s, free slots online, tickets to other special events, extra bonuses, souvenirs, and payback.


Hunting

Bonus hunting (also known as bonus bagging or bonus whoring) is a type of
advantage gambling Advantage gambling, or advantage play, refers to legal methods used to gain an advantage while gambling, in contrast to cheating. The term usually refers to house-banked casino games, but can also refer to games played against other players, suc ...
where turning a profit from casino,
sportsbook In the United States, a sportsbook or a race and sports book (sometimes abbreviated as book) is a place where a gambler can wager on various sports competitions, including golf, football, basketball, baseball, ice hockey, soccer, horse racing, ...
and
poker Poker is a family of comparing card games in which players wager over which hand is best according to that specific game's rules. It is played worldwide, however in some places the rules may vary. While the earliest known form of the game w ...
room bonus situations is mathematically possible. For example, the house edge in blackjack is roughly 0.5%. If a player is offered a $100 cashable bonus requiring $5000 in wagering on blackjack with a house edge of 0.5%, the expected loss is $25. Therefore, the player has an expected gain of $75 after claiming the $100 bonus.


Disputes

A large portion of online casino disputes relates to bonuses. Casinos may label players who win using bonuses as "bonus abusers." Both players and casinos may commit fraud. An example of player fraud is creating multiple accounts and using the accounts to claim a sign-up bonus several times. An example of casino fraud is changing terms of a bonus after a player has completed the wagering requirements, then requiring the player to meet the new bonus terms.


Legality

Online gambling legislation often has loopholes that result from the rapid development of the technology underpinning the development of the industry. Some countries, including Belgium, Canada, Finland, and Sweden have state gambling monopolies and do not grant licenses to foreign casino operators. According to their law, operators licensed on the territory of these countries can only be considered legal. At the same time, they can't prosecute foreign casino operators and only block their sites. Players in these countries can't be punished and can gamble at any site they can access.


Australia

The Australian
Interactive Gambling Act The Interactive Gambling Act (IGA) was passed in June 2001 by the Australian Government with the purpose of protecting the Australian public from the detrimental effects of online gambling. Act The Interactive Gambling Act (2001) was passed by ...
2001 (IGA) criminalizes the supply of online casino games by an operator anywhere in the world to persons located in Australia. It only targets operators of online gambling sites, resulting in the curious situation that it is not illegal for a player in Australia to access and gamble at an online casino. No operator has even been charged with an offense under the IGA and many online casinos accept Australian customers. In June 2016, the South Australian Government became the first state or territory in the world to introduce a 15% Place Of Consumption Tax (POCT) modeled on the 2014 UK POCT.


Belgium

The Belgian Gaming Act went into effect in January 2011 and allows online gambling, but only under very strict conditions and surveillance.


Canada

The Canadian criminal code states that only provincial governments and charitable organizations licensed by provincial governments may operate a casino in Canada. It also prohibits residents from participating in any lottery scheme, the game of chance, or gambling activity not licensed or operated by a provincial government. In 2010, the
British Columbia Lottery Corporation The British Columbia Lottery Corporation is a Canadian Crown corporation offering a range of gambling (AKA gaming) products including lottery tickets, casinos and legal online gambling. It is based in Kamloops, with a secondary office in Vanco ...
launched Canada’s first legal online casino, PlayNow, which is available to residents of
British Columbia British Columbia (commonly abbreviated as BC) is the westernmost province of Canada, situated between the Pacific Ocean and the Rocky Mountains. It has a diverse geography, with rugged landscapes that include rocky coastlines, sandy beaches, ...
, and later expanded to
Manitoba Manitoba ( ) is a Provinces and territories of Canada, province of Canada at the Centre of Canada, longitudinal centre of the country. It is Canada's Population of Canada by province and territory, fifth-most populous province, with a population o ...
and
Saskatchewan Saskatchewan ( ; ) is a Provinces and territories of Canada, province in Western Canada, western Canada, bordered on the west by Alberta, on the north by the Northwest Territories, on the east by Manitoba, to the northeast by Nunavut, and on t ...
. The province of
Quebec Quebec ( ; )According to the Canadian government, ''Québec'' (with the acute accent) is the official name in Canadian French and ''Quebec'' (without the accent) is the province's official name in Canadian English is one of the thirtee ...
operates the similar Espacejeux via
Loto-Québec Loto-Québec is a crown corporation in the Canadian province of Quebec. Established in 1969, it is responsible for overseeing lottery and gaming in the province. The corporation operates lottery games such as draw games and scratch cards, casi ...
, while
Ontario Ontario ( ; ) is one of the thirteen provinces and territories of Canada.Ontario is located in the geographic eastern half of Canada, but it has historically and politically been considered to be part of Central Canada. Located in Central Ca ...
operates PlayOLG via
Ontario Lottery and Gaming Corporation Ontario Lottery and Gaming Corporation, known for corporate branding purposes simply as OLG since 2006, is a Crown corporation owned by the Government of Ontario, Canada. It is responsible for the province's lotteries, charity and Aboriginal c ...
(OLG). The
Kahnawake The Kahnawake Mohawk Territory (french: Territoire Mohawk de Kahnawake, in the Mohawk language, ''Kahnawáˀkye'' in Tuscarora) is a First Nations reserve of the Mohawks of Kahnawá:ke on the south shore of the Saint Lawrence River in Queb ...
First Nation in Quebec has operated its own gaming commission since 1996 under the ''Kahnawake Gaming Law''. It has asserted jurisdiction to enact the law as part of Mohawk or "aboriginal rights" that have existed since
time immemorial Time immemorial ( la, Ab immemorabili) is a phrase meaning time extending beyond the reach of memory, record, or tradition, indefinitely ancient, "ancient beyond memory or record". The phrase is used in legally significant contexts as well as ...
, most recently recognized and affirmed in subsection 35(1) of Canada's
Constitution Act, 1982 The ''Constitution Act, 1982'' (french: link=no, Loi constitutionnelle de 1982) is a part of the Constitution of Canada.Formally enacted as Schedule B of the ''Canada Act 1982'', enacted by the Parliament of the United Kingdom. Section 60 of t ...
. As of 2010, it had licensed and hosted nearly 350 gambling websites, and its activities had never been challenged under the laws of Canada or any other jurisdiction.


Germany

A German state contract about gambling (German: ') between all 16 German states was ratified in 2008 and has been adopted in 2012. It regulates restrictive handling of online-gambling, including a basic state monopoly on public gambling with limited exceptions for a few commercial providers. Online gambling, and other forms of public gambling, against these regulations is illegal in Germany. The state contract, its implementation in contrast to the more lenient EU legislation, and possible further changes have been controversially discussed in the public, politics, and courts.


India

Online gambling is illegal in the state of
Maharashtra Maharashtra (; , abbr. MH or Maha) is a states and union territories of India, state in the western India, western peninsular region of India occupying a substantial portion of the Deccan Plateau. Maharashtra is the List of states and union te ...
under the "
Bombay Wager Act Mumbai (, ; also known as Bombay — List of renamed Indian cities and states#Maharashtra, the official name until 1995) is the capital city of the Indian States and union territories of India, state of Maharashtra and the ''de facto'' fin ...
". The most recent law to address gambling online was the Federal Information Technology Rules where such illegal activities may be blocked by Internet providers within India. Another act is the Public Gaming Act of 1867. However, the Act makes no specific mention of “online casinos.” States tend to operate on their own authority. Online casinos active in India are run by international operators. Online gambling legal issues in India are complicated in nature as
Gambling in India Gambling in India varies by state; states in India are entitled to formulate their own laws for gambling activities. Some states like Goa have legalised casinos. Common gambling activities like organized betting are restricted except for selectiv ...
is regulated by different states laws and online gambling is a central subject. To ascertain the position of Indian government, the Supreme Court of India sought the opinion of central government in this regard but the same was declined by the central government. This has made playing of online cards games like rummy, poker, etc. legally risky.


United Kingdom

In the United Kingdom, the
Gambling Act 2005 The Gambling Act 2005 (2005 c 19) is an Act of the Parliament of the United Kingdom. It mainly applies to England and Wales, and to Scotland, and is designed to control all forms of gambling. It transfers authority for licensing gambling from t ...
governs all matters of online gambling, permitting online betting sites to have a Remote Gambling Licence in order to offer online betting to UK citizens. In 2014, the UK government put into law the Gambling Act of 2014 which in addition to the original 2005 law, required offshore online gambling operators catering to UK players to obtain a UK license. The new regulation required operators to pay a 15% Place of Consumption Tax (POCT), something that triggered an exodus of sorts of some operators from the UK Isles. However, this exodus did not last long in most cases as the benefits outweighed the stumbling blocks, due to the UK being a major market for online gambling. In 2019 the United Kingdom Gambling Commission (UKGC) announced a series of new measures that apply to online and mobile casinos to reduce underage gambling with the aim of increasing fairness and transparency. The new measures will require casinos to have users verify their identity and age in order to gamble.


United States

In the United States, the legality of online gambling is debated and can vary from state to state. The
Unlawful Internet Gambling Enforcement Act of 2006 The Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA) is United States legislation regulating online gambling. It was added as Title VIII to the SAFE Port Act (found at ) which otherwise regulated port security. The UIGEA prohibits gam ...
(UIGEA) limits the ability of banks and payment processors to transact with internet gambling sites that are unlawful under any federal or state law. However, it does not define the legality or otherwise of an internet-based gambling site. It was commonly assumed that the
Federal Wire Act The Interstate Wire Act of 1961, often called the Federal Wire Act, is a United States federal law prohibiting the operation of certain types of betting businesses in the United States. It begins with the text: Several legal opinions and rulings ...
prohibited all forms of online gambling. However, in December 2011, the United States Department of Justice released a statement clarifying that the Wire Act applied only to sports betting sites and not to online casinos, poker, or lottery sites, leaving the definition of legality up to individual states. Certain states such as Nevada, Delaware, and New Jersey have started the process of legalizing and regulating online gambling and it is expected that regulation will continue on a state by state basis.


See also

*
Problem gambling Problem gambling or ludomania is repetitive gambling behavior despite harm and negative consequences. Problem gambling may be diagnosed as a mental disorder according to ''DSM-5'' if certain diagnostic criteria are met. Pathological gambling is ...
*
eCOGRA eCOGRA (eCommerce Online Gaming Regulation and Assurance) is a London-based testing agency and standards organisation in the realm of online gambling. The company was established in 2003 in the United Kingdom at the behest of the online gaming in ...
*
Online gambling Online gambling is any kind of gambling conducted on the internet. This includes virtual poker, casinos and sports betting. The first online gambling venue opened to the general public was ticketing for the Liechtenstein International Lottery i ...


Notes

{{DEFAULTSORT:Online Casino Casinos
Casino A casino is a facility for certain types of gambling. Casinos are often built near or combined with hotels, resorts, restaurants, retail shopping, cruise ships, and other tourist attractions. Some casinos are also known for hosting live entertai ...