Internet gambling illegal, popular

By Gina Hamadey

Daily Staff Reporter

It's illegal, but Business senior Ron Gershoni said he will continue to gamble on line, switching from betting on college football to professional football and basketball teams.

"It's just so easy to do," said Gershoni, "I'm on the computer anyway, and it takes me five minutes to make all my bets for the week."

But in Michigan "it's unlawful," said Terry Berg, chief of the High Tech Crime Unit at the Michigan Attorney General's Office.

Although he maintains that the only legal gambling is in regulated casinos, Berg admits that his department had not yet worked on many of these cases. "There is just no way to tell if someone is placing a bet."

Gershoni and most of his friends are currently making sports bets online on a weekly basis. Gershoni said he bets an average of $30 a week, though he has bet up to $150. His profits have reached $80 in a week.

Gershoni said he would even place bets for some of his friends during the football season who had not gambled before and didn't want to open up their own accounts.

Despite state laws prohibiting online gambling, it is increasing in Michigan. Gambling Magazine estimated there to be more than 400 gambling sites on the Internet this year. The magazine also estimates that college students are believed to make up a sizable percentage of the online gambling population.

Berg said the state is targeting gambling site operators instead of the individual gamblers. But that has not been easy, since most Internet casinos are offshore, many headquartered in the Caribbean. Some are being operated legally, like the Kenny Rogers' online casino at www.kennyrogerscasino.com, which operates out of the Netherlands Antilles. Rogers' site is legal because of the disclaimer posted on the site: "This site does not allow for gambling for money by persons within the United States."

Of the illegal sites, Berg said "there have been cases where they have been successfully prosecuted." In fact, co-owner of Internet sports gambling operation World Sports Exchange Jay Cohen was the first person to be convicted on federal charges of running an illegal offshore gambling operation, and was sentenced to nearly two years in prison.

Cohen, along with 21 other people, was arrested for involvement in 11 Internet sports betting firms in March 1998.

The cases were brought under the 1961 federal Wire Wagner Act, which prohibits the use of a telephone in interstate or foreign commerce to place sports bets.

U.S. Attorney Mary Jo White said "Internet communication is no different than a telephone call for purpose of liability under the Wire Wagner Act."

Berg indicated that student gamblers should not only be worried about the possibility of getting cheated out of their money when gambling online, they should also be aware that it is illegal, at least in Michigan. Although the American Gaming Association supports passing a federal law against online gambling, enforcement depends on state law.

Moreover, online gambling, like betting in a casino, can be addicting. Telephone hotlines like the Michigan Gambling Helpline are adjusting to the changing face of gambling. Virginia Pironi, coordinator of the helpline, said "there are calls about Internet gambling."

Gershoni said he got into online betting because his friend did it regularly, and the Website he used, www.sportingbetsusa.com, had proven to be reliable.

But Gershoni said he is still apprehensive about giving his credit card online. "You never know how shady it could be."

Photo illustration by ALEX WOLK/Daily

Although illegal in the state of Michigan, online gambling is popular among college students.