Safer Online Gambling in 2012

January 3, 2012

Just a few short weeks ago the US Government indicted both Pokerstars and Full Tilt Poker for money laundering and bank fraud amongst other less serious charges. This caused both sites to withdraw from the US online gambling marketplace. Although this is old news, the repercussions of this dramatic event are not. It seems that many major online casinos are planning some form of player protection plan as a direct result of these happeniengs.

OK this all sounds good, but what is a player protection plan? Is it just another new buzz phrase which does very little? Actually no it isn’t it is a very real attempt by the larger online casinos to ensure that their player base is secure should something detrimental happen to the online casino operator.

The kind of player protection plan which online casinos are beginning to discuss is twofold. Firstly some form of hedged fund will be set up, a secure fund that keeps players stake money entirely safe and separate from the companies working capital. Secondly, the fund will be monitored by a regulated body such as the Financial Services Authority.

All this sounds a little complicated right? So let’s explain it a little more simply. Players stake money will be put into a special pot, which the online casino cannot dip its fingers into and spend. This pot is watched by a government sanctioned agency to ensure fair play.

Why is this important? Well consider the large online slots casinos, and the sheer amount of funds they hold which players have deposited. What’s to stop them spending this money, and then not being able to pay out on wins? Right now nothing. Or what happens if the company is sued, and has to cease trading? Currently, customers with funds deposited would have no way to claim them back. Under the new system their cash balance is protected.

Overall, this kind of change is exactly what western governments have been trying to bring about by coming down hard on some of the big online casinos. Whilst this lead to a shaky couple of months at the end of 2011 for the online casino industry, this is a good thing to start 2012 off with. Safer online gambling for everyone.

Other Recent News Added to 777 Online Slots