Hello,
I need some feedback from you guys who are familiar with online gambling with bitcoins.
I'm doing a paper for my Thesis and part of it deals with this new type of gambling.
This paper is a pretty serious thing to me so please answer only if you have a good knowledge on the topic.
- Apparently the law about bitcoin gambling is not very precise or clear. I also found that few of those websites are registered as an actual company. If they are, the company is not always created in the same place : Texas (US), Ireland, Deutschland, etc...
Do you know if those company risk something ? Does the law apply on where the company was created, or on were they host their info (i'm not very good in IT, but I mean their "servers" for their site) ? - I see a lot scripts for bitcoin. Apparently it's very valuable in this world of online gambling and I see a lot of people trying to find those. I guess it has to do something with the game "algorithm". Are the games really that hard to recreate ? Or maybe it does more than just the games ?
- By looking a little bit on what "chances" you had to win, I found they often refers to "hashtag". For instance on this website https://www.moneypot.com/faq#fair I'm not sure what a "hash" means. They claim it's a proof to show you they are not changing the odds.
But still, I don't understand : does this system is 100% sure for the user ? Is there anyway for the website to corrupt this data and choose their own odds ?
Finally, I see a lot of "mee-too" websites when it comes to bitcoin gambling. As some of you said on this forum, a lot of them are scam. I understand that. What I don't understand is how you can make money fast with this type of "scam". - Let's consider you have 100 games played on your website for a day. Statistically, it's very possible that players win more than 60 games during this day. That would mean that with the 40 last games you don't have enough to pay the 60 other back.
It seems to me you need a heck lot of money to make sure the "bank" is not gonna go bankrupt for the first couple of weeks or months. How do they manage to deal with this potential loss ?
Thank you very much in advance for your answers.
If you are interested I can pm you the final paper once it's finished.
For the US, most of the online gambling laws are state based. Sports betting is the only federal law against online gambling. Some states prohibit offshore/foreign hosting of gambling sites. As an example, if you live in Texas but have your server in Ireland for gambling, that's against the state law. For your research you would need to look at case law and cite examples.
The scripts are typically scams to steal wallet or redirect deposits to another wallet. They're offered as a way to cheat or do repetitive tasks to help players, but often turn out to be scams.
The "#" in a URL is just a fragment identifier for html, it's use is governed somewhere in RFC 3986. It has nothing to do with gambling, it just has to do with navigation on a webpage.
Odds are typically determined by the game-rules and what site operators call provably fair, in which a random number is chosen by a cryptographic algorithm. Some inputs for choosing that number is taken from the server and the player, then that data is put through a one-way hash and displayed to the user. After the round is played, the round data (dice roll, etc) can be played back through the algorithm and "verified" that the round was not tampered with. You can research this on the internet, there's a good article on reddit about a method to subvert provably-fair somewhere.
As for the me-too websites, it all comes down to blind trust. You place some amount of trust when doing a deposit, the person/people are either interested in running a fair and trustworthy site or they aren't. You can really tell, you just have to go with it. Anyone can buy a casino game and setup a casino site with a little IT knowledge. Most scams seems to start out as legit as possible by getting community support then running away after the house balance reaches a large sum.
For you stats question, you need to research statistics in gaming and game theory, which will address your question.
Sites employ a max bet to ensure the house has enough funds to pay winning players on what the house has in the bank. Typically in the form of a ratio, say 20:1 to ensure that winning players can get paid. It's still possible for the house to lose, so setting the odds on the game and making sure your have a solid house account is an ongoing process.
