Indeed, these multi-floor venues are now in a position to offer similar entertainment facilities to clubs with gambling facilities such as poker machines and sports bars.

But in terms of the bigger picture - the global gambling market - are land-based pubs, clubs and casinos, losing their gambling dollars to the internet?

For the time being, the Australian Federal Government has proposed a moratorium on all forms of internet gambling, so there's little chance of finding an Aussie club or pub offering a cybercasino in the near future.

The good news is that online gambling sites attract a different clientele to land-based operations. Internet gaming is not cannibalizing bricks and mortar properties, it's growing the market.

Lasseters Online went live in April 1999 to beat the Government temporary ban on interactive gambling, and is soon expected to equal performance with its land-based operation at Alice Springs in the Northern Territory. According to Managing Director Mr Peter Bridge, their internet casino has attracted a host of new players, the majority from North America. While the 18 table, 250 slot casino continues to be a "good solid earner", Lasseters Online has already achieved turnover of $150 million through 85,000 players from 210 countries around the globe.

The internet gambling market has exploded in growth since its inception in the mid 1990's. There are currently over 1300 internet gambling sites, comprising around 780 internet casinos and 450 sportsbooks (with many offering both options), 30 lottery, 50 race wagering, and 15 multi-player bingo sites.

Even though it's difficult to "guesstimate" the size of the market and forecasts for coming years, research company Datamonitor believes that online betting and gaming revenues will reach a staggering US$10 billion by 2002.

These interactive gambling services tend to attract a new audience - those that don't frequent gaming venues but are keen to have a flutter online. The two biggest potential growth markets are the middle classes and women.

According to the latest information from Greenfield Online, who conducted field studies with 1,000 American online gamblers in December 1999, the gambling profile, preferred games, frequency of visiting and amount spent differs significantly between online gamblers and those that bet at casinos.

Casino gambling is primarily a partnered or group activity, and respondents average six trips a year, spending an average of $300 each time. Seniors 55+ are thje most likely age group to gamble in a casino, and are most likely to belong to "frequent player" programmes.

Gambling online is anonymous, convenient, and you're not made to feel stupid because you don't understand how an each way bet works. Online gambling is essentially a solitary activity. Although online gambling occurs with greater frequency (on average 20 times a year), the spend is pocket change compared to land-based gambling, spending only $30 per visit.

Virtually all online gamblers play for free, with one in five opening an account to play for money. Females are the significant drivers of online gambling.

Results show that 9 out of 10 who gamble online also have "offline" gambling experience, gambling at casinos, slot venues, or with state-run lotteries. Venue gambling provides social interaction and the gratification of using real cash and receiving winnings on the spot. The experience is also enhanced by the atmosphere, and the sights and sounds of live action. Online gambling is perceived as offering no advantages, except that it can be done from home without the need to travel - any time day or night.

The majority of online gamblers play US-style three reel simple slot machines, with many casino sites offering "loose" poker machines with payouts as high as 98.5 %. This compares with land-based Australian venues offering between 85 - 93%. It doesn't take long for a regular player to realise that a "virtual" machine returning 98.5% is much more time-rewarding and profitable than one that returns only 90%.

While internet gambling sites currently pose no threat to pubs, clubs and casinos, in the long-term, the hold percentage could be critical to the future success of poker machine and casino gambling in venues.

Gaming & Entertainment
STOP PRESS

AS this issue goes to press, 'Hospitality' has learned that the Federal Government failed to have its 12 month moratorium on new internet gambling passed as law in the Senate.
Even though the Interactive Gambling (Moratorium) Bill has now lapsed, it has been suggested that it may not completely rule out a permanent ban on Internet gambling.
Under the proposed changes the Government sought to retrospectively ban new entrants to the interactive gambling industry from May 19, 2000.
Based on the current situation, Tattersalls and Kerry Packer's Publishing & Broadcasting Ltd are tipped to start internet gaming sites in the near future.