Gaming regulators discuss security of Internet gambling

[InfoSec News <isn () c4i org>]

http://www.siliconvalley.com/docs/news/tech/081912.htm

Tuesday, July 31, 2001 

LAS VEGAS (AP) -- Nevada gaming regulators trying to decide whether to
regulate Internet gambling weren't exactly convinced the state is
ready for cybercasinos after hearing Tuesday that technology can't yet
provide total security.

``There's no such thing as an absolutely secure site,'' said James
Sargent, senior consultant for BMM Australia, a consulting company
that helped write Australia's Internet gaming regulations.

Nevada lawmakers recently approved a bill allowing the state Gaming
Commission to develop rules to let Nevada casino operators operate Web
gambling sites.

Since the legislation says Internet gambling must be secure and
reliable, gambling regulators began a two-day seminar Tuesday to let
technology experts offer their tips.

But the news wasn't encouraging for regulators who would like
assurance they are on the right track.

Sargent said Web casinos are constantly at risk for money laundering,
identity and credit card theft. Hackers and even countries who may
have a problem with Internet gambling could sabotage sites, he said.

``It sounds like constant warfare,'' Commission Chairman Brian
Sandoval said.

In land casinos, it's the eye in the sky that does the cheating
patrol. Overhead cameras capture nearly every inch of the casino,
making nabbing cheaters pretty cut and dry. Some casinos even use
facial recognition technology that takes pictures of players, then
tries to match them to known cheaters.

But Internet gambling is a whole new world, even to the state that
first legalized gambling. How do you keep minors from playing? How do
you keep out gamblers from countries and states where Internet
gambling is illegal?

``Technology does not exist in its current state to provide 100
percent protection,'' Sargent said.

Sargent gave suggestions for setting up security points for Web
casinos and how to react to an attack, but that did nothing to advance
Nevada's entry into cybercasinos.

``Certainly that causes me some concern,'' Sandoval said after hearing
Sargent's presentation. He said he wasn't comfortable that the level
of security needed exists.

The U.S. Justice Department has considered Internet gambling to be
illegal from within the United States because of a 40-year-old federal
law banning betting on the telephone.

But Nevada lawmakers believe the legalization of online betting is
inevitable, especially if federal restrictions are changed by pending
court challenges, including one in Louisiana.

MGM Mirage, the largest owner of hotel-casinos in Las Vegas, decided
not to wait to see if Nevada regulates Web casinos. The company has
applied for a cybercasino license from the Isle of Man, a small
semi-independent island located in the center of the British Isles.

Nevada regulations don't prohibit casinos from operating Internet
casinos regulated by foreign jurisdictions.

The world's largest gambling company -- Park Place Entertainment Corp.
-- is choosing the wait-and-see attitude.

``Until the public and the gaming industry feels confident with
Internet controls and safeguards, we should focus on those issues
rather than pushing casino-style gambling into millions of homes that
may not want it,'' Tom Gallagher, Park Place president and chief
executive officer, said during the seminar.



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