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GameMaster,

Responding to the letter from Dave,(see next letter down) I disagree with him about getting a fair game from internet casinos, they have shareholders to answer to and would not risk their entire operation trying to cheat anyone.

I do agree however that casinos in other countries should setup live video feeds to their actual gaming tables in their physical casino, so that the regulated game can be bet on by internet users. This would be a 100% legitimate and fully regulated method of allowing internet users to play on live gaming tables with other live plaers in that same casino, and anyone could watch or play the game as the internet user is playing and verify it is legitimate.

On certain games (roulette, baccarat & craps) this would be easy, just take additional bets on the next outcome, and wait for all players to finish betting. In games like 21 where decision making is allowed, it would take more terminals so that actual cards can be dealt to each terminal player.

It would run 24 hours and allow live gaming in a live casino, thats the best way to prove that a true game is being dealt for doubters, but i see no reason you should not endorse computer game casinos as well. It would be like Consumer Reports reccomending a best vendor, because the customers are happy, the product is quality and the company can be trusted. to reach this goal it should at least be a public company with over 10 million in assets with a good regulating body.

The point may soon be moot if Australia goes ahead with plans to license Internet casinos, then there would be no doubt because it would be state run and regulated by a major USA commerce partner.

Brad

Dear Brad,

Thanks for your comments. The 'real' and Internet casino combination is an interesting idea and certainly could be created. That would be a good way to get some of the 'big boys' like Harrah's, etc. into 'Net gaming.

I appreciate your comments and suggestions regarding the endorsement of internet casinos. Time will tell if I do it or not.

Yours for winning,
The GameMaster
1/18/98




Dear Gamemaster,

Its no secret you have one of the best gambling magazines on or off the net! However, when you said you were CONSIDERING endorsing River Belle Online Casino, I got so upset, I hit the wall. You know better than to endorse ANY online casino. YES, River Belle is one of the most professional operations of its kind, and it does use excellent software. However this does not mean its legitimate or dishonest. There's simply no way to know. There are a lot of professionally run scams in existence, profesionally designed to bankrupt you. Virtual casinos are completely unregulated. I disagree with Sue Schneider - SELF REGULATION IS NOT THE ANSWER. Try asking the cigarette industry to regulate itself.

A code of conduct is no more than a piece of paper with a seal on it. At least when you walk into a real casino, you know the games are completely fair and above board. But, an internet casino can phony up the software, and deliberately screw with the odds. Even if you think the odds in BJ are -1% (basic strategy), if an online casino operator screws with the server enough, he can rig it to be -8%, and the player has no way of telling, except seeing that all his hard earned money is ... GONE ...! Its a fact that most online casino operators have the source code to thier back door server. Even if the front end user software is usually honest, if the back end server is messed with, the games can be made to be dishonest.

Remember, I am just using River Belle as an example, so I will assume its completely honest. River Belle uses software produced by Microgaming Systems, Inc., which is the 2nd largest internet gaming software developer. The following casinos also use Microgaming software, and thats why they're very similar to River Belle. Carribean Cybercasino (C3), Gaming Club, Casino Fortune, and Golden Palace. They all use a variation OF THE SAME BACK END SERVER SOFTWARE. Anyway, if an independent, competant, third party tested the software for randomness, and did a complete audit, there's still no guarantee its honest. After the 3rd party audit is complete, the company can change from its HONEST server software to its DISHONEST software. And the player is still screwed.

The only thing ANY casino could do to prove its honesty to me is have a live video feed of all operations. Maybe, just maybe, then, the player will come out a winner.

Respectfully yours,
Dave

Dear Dave,

Thanks for your comments. I don't now if I'll end up endorsing www.riverboat.com because I've developed a rigid set of standards, but I do know that the folks there are doing their best to comply and that attitude is a good sign.

It's true that a casino could open themselves for inspection, pass muster and then begin cheating, but I know that too. That's why one of my primary concerns is that the games remain honest. I have a way of measuring that (I think), but don't want to publish it for obvious reasons. Consider this: any casino, online or not, can cheat for a while. In 'real life' they usually won't because of the huge investment they've made. Online casinos do not make such a large investment, so their risk from being caught as cheats has little impact, UNLESS the jurisdiction in which they operate requires a very big performance bond. Any casino which I endorse will have such a bond.

Will I ever endorse any online casinos? At this point, I don't know, but I do know that I WANT to endorse some, because I'd like to see a place where all of us can play, knowing that we're getting a fair shot for our $$$.

The GameMaster
January 8th, 1998

Editor's Note: I passed Dave's and The GameMaster's comments to Spencer McNally the Captain and CEO of The River Belle. I'm sure you would be interested in his response.

Dear GameMaster

As CEO and Captain of The River Belle, I’m obviously very happy that you are considering endorsing our casino and are thus giving us the chance to prove our honesty and integrity. We’re therefore very keen to do whatever is necessary to win your approval and that of the online gaming community at large. We hope that our attempts to make our web site (http://www.riverbelle.com) as informative as possible will be seen as a positive step in that direction.

As online casino operators, we’re acutely aware that probably the biggest obstacle in the way of the success of the online gaming industry is that of credibility. Players quite understandably want to know that they are dealing with reputable operations that pay their winners and that don’t manipulate the results of their games.

That many players believe that there are casinos out there which are guilty of non-payment and / or rigged games is somewhat frustrating to honest operators, since there is a tendency for people to tar all the online casinos with the same brush. The River Belle hopes to overcome such perceptions by offering games that are obviously fair (such as full pay video pokers, generous keno payoffs and single zero roulette) and ensuring the prompt payment of winners (for example, we are in the process of introducing a means of payment whereby we can have winnings deposited directly into players’ bank accounts, often as soon as the next business day).

Your reader, Dave, is largely correct when he states that there is currently no real way to verify the honesty of an online casino before playing there. This will continue to be the case until some form of effective regulation is established, whether this is governmental or self-imposed. However, there are ways of checking honesty once you have played for a while. While it’s a laborious process, it’s something skeptical players might want to consider. All you have to do is keep a complete (and careful) record of all your transactions and play at the casino, and then ask the casino for an audit trail to match. Not only should you then compare what they supply with your own version, but you can also refer the results to an independent statistician for verification that the gaming outcomes were indeed random. Provided you accumulate enough transactions for a statistically valid examination, this should ensure a relatively accurate assessment of the casino’s honesty.

In addition, we think that there is one point which Dave overlooks that, certainly for us, serves to ensure the honesty of online casinos. This, quite simply, is the profit motive. As casino operators, we can state quite clearly that it is far more profitable for a casino *NOT* to cheat its customers. The rather healthy profits earned by the Vegas and other casinos bear eloquent testimony to this, and online casinos are no different in this regard. To turn Dave’s example around, as far as we are concerned it makes far more sense for a casino to earn 1% from a Blackjack player who will return time and again than to earn 8% for at most a week or two by ripping off a customer who will never return and who will also tell all his friends about his bad experience. Why would any casino, online or otherwise, want to scare away customers like that? This is especially true on the internet, where angry Usenet postings and negative reviews on any of a multitude of commercial and amateur web sites can destroy the reputation of a casino in the space of a few days.

While self-regulation is not an optimal solution, we do believe that it can be made to work if properly implemented and strictly controlled by the industry. For example, a measure that we would welcome is that of an ongoing audit requirement, whereby an online operator would have to submit to regular audits (by a reputable and independent third party) of both their games and their payouts to winners. Provided the interval between audits is short enough, this would go a long way towards providing players with the confidence that the casinos involved are honest. The River Belle would have no problem with audits that are as frequent as quarterly or even monthly, even though such a frequency is likely to represent significant expense and administrative inconvenience for us.

The River Belle has in fact already approached some of the “Big 6” auditing firms for the purpose of arranging an independent audit. Thus far, political pressure from the USA (given the unanswered questions as to the legality of online gambling in that jurisdiction) and other vested interests (such as those of the big terrestrial casinos which are already major clients of the big auditing firms and which, if only for the moment, are a more significant source of fees than we are) has prevented this from coming to fruition. If anyone who reads this is able to refer us to a reputable third party with recognized casino auditing skills which is willing to audit an internet casino, we would very much appreciate it if they would contact me with further details, at captain@riverbelle.com.

As to the other points Dave makes, the following is relevant:

-- The River Belle does not have access to the source code of the software licensed from MicroGAMING Systems, and nor do any of MGS’s other clients, as far as we are aware. The whole point of licensing the software instead of developing it ourselves is so that we don’t have to worry about the underlying code, since writing code is not our organization’s area of expertise. Anyway, why would MGS give away their code? If they did, they’d only be risking their good name (their customers could then mess up the software and blame MGS) and giving away their own hard work for free, which is unlikely to prove a particularly effective business model.

-- To assume that a casino can just change its games back to “cheat” mode once the 3rd party auditor has left their premises ignores the fact that any reputable casino will have a full audit trail of all their transactions. Contrary to popular opinion, it isn’t practically possible to manufacture a proper audit trail, since manufactured results are by definition not random, and statistical analysis will reveal this quite easily. Further, regular audits will also make this sort of practice impractical, if not impossible.

-- Online video streaming isn’t going to provide players with any more security than they have now. Technologically, there’s no reason why the video that a player sees can’t be manipulated to change the results. Again, it is the profit motive that will in practice serve to protect the player from being unfairly treated, whether they are playing via a video interface or a GUI.

If I have any advice for people who want to gamble from the comfort of their own homes but who are wary of the honesty of online casinos, it is this:

First and foremost, have a careful look at what the casino is offering you. In particular,

-- Has their random number generator been independently certified? Are they prepared to provide an audit trail of gaming transactions on request?

-- Are their games obviously fair, or could you get better odds elsewhere? For example, don’t settle for double zero roulette or 8/5 Jacks or Better when single zero roulette and 9/6 Jacks are readily available elsewhere.

-- Do they have a 24 hour help desk? A reputable and service-oriented organization should have one. Take the time to call them, and ask them a few searching questions.

-- How much time and effort has gone into their software and their web site? Speaking from experience, the more time and effort that is evident, the more likely it is that the casino will want to protect its investment and long term profitability by treating its customers in a way that will ensure that they continue to play there.

Secondly, check out the newsgroups and the various gambling sites. You can’t always be sure that the positive reviews aren’t simply paid advertorials or shills, but some sites and commentators are obviously impartial and critical where necessary. As for the newsgroups, dodge the spam, but keep a lookout for genuine sounding postings. More than a couple of negative stories should ring alarm bells, particularly if the casino concerned hasn’t even taken the time to respond to negative newsgroup postings.

Finally, when you find an operation that you feel comfortable with, don’t dive in too deep. Play for less than you normally would, so that you minimize your risk until you are happy that the casino is a fair one that will offer you proper odds and prompt payouts. After that you might become comfortable enough to play for the amounts you normally would.

I’d like to thank the GameMaster for an informative, interesting and impartial site. I hope that GameMasterOnline.com will continue to give both criticism and praise where it is due, so that the online gaming industry as a whole will benefit from the weeding out of any fly-by-night operators that remain. I’d also like to thank Dave for bringing all of the above issues up in the first place. If Dave or anybody else would like to discuss this further, I would be happy to enter into personal correspondence via email at captain@riverbelle.com. Comments can also be posted to me via the Captain’s Cabin on The River Belle’s web site, at http://www.riverbelle.com/captain/.

Yours sincerely,
Spencer McNally
Captain and CEO of The River Belle







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