Online gambling systems bypass the Internet

Two new online gaming systems bypass the Internet and include safeguards against addictive gambling, officials announced at last week's 12th National Conference on Problem Gaming.

Alliance Gaming Corp. of Las Vegas is developing an on-line sports wagering system using a "closed loop, subscriber-based system." It will provide a legal option to the unregulated Internet gaming currently under attack by the federal government, said Tony Fontaine, vice president of subsidiary Bally Applied Technologies.

A full compliment of betting options will be available by logging on to the network linking the gambler directly to a casino sports book, Fontaine said.

Fontaine described the "Sportsmaker" system as regulated and an extension of the current practice of legal telephone betting.

An account must be opened directly at the casino with cash. A special smart card and password will be necessary to access the network and make wagers through the system. Limits on bets will be placed by the casino.

The network is closed so people on the Internet do not have access, and people on the network cannot reach the Internet, Fontaine said.

All winnings will be claimed directly at the casino after showing proper identification. Fontaine said there are plans to advertise and even provide problem gambling information and directly on the network.

Separately, Television Games Network plans to unveil a 24-hour "interactive horse racing channel" later this year. Bill Sanders, director of government affairs for the Colorado company, said the channel is being tested in Louisville, Ky., and will be expanded state by state as the company obtains regulatory approval.

The TVG project will allow cable subscribers to tune in for programming that Sanders describes as "entertainment and education driven." The real draw will be wagering on races using a special interactive remote control.

Wagers may be placed on races all over the country at any time, but only races run at local tracks will be broadcast, Sanders said. The pace is deliberately slow -- with four to six races running per hour -- in order to eliminate the impulsiveness associated with problem gambling.

TVG began the project with a commitment to working toward responsible gambling, said Kevin O'Neill deputy director of the Council on Compulsive Gambling of New Jersey. It formed a responsible wagering advisory council bringing together a variety of problem gaming experts and asking them to examine the program.

Several safeguards against underage and compulsive gambling are now included as a result of TVG's efforts, officials said.

Individuals must subscribe with their local cable companies and use a pin number to make bets. Also, they must show proof of residency and age according to state law. An account at the local race track must be established with cash up front, no credit will be accepted.

A cooling-off period is also being considered. It would deny access for up to 24 hours to funds placed on an account that has reached zero.

Responsible gambling has even been worked into the logo with the slogan "Bet Safe and Bet Smart" prominently displayed.

Both Sanders and O'Neill see the channel as an option for existing gamblers rather than a means of creating new ones.

O'Neill said one strength of the system is that users must look at the screen, which will display information about problem gaming.

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