The object of online casino technology is both to replicate the experience of actual casino gambling and to utilize the advantages that the internet has to offer. How do online casinos work? They require three major components: technological, legal, and financial.
The first hurdle online gaming had to overcome was the technological one. The crux of the issue was creating a game that is both fun to play and impossible to predict. With a real deck of cards, aside from card counting, there is no real way to predict what card is next. However, the computer software uses algorithms to generate random orders of cards. If someone theoretically could figure out the algorithm, they could calculate what cards everyone has. This led to the creation of a random number generator (RNG). An RNG creates card orders that cannot be predicted, ensuring fair game play for all parties involved.
The next technological hurdle was communication. If you want multiple players to be able to play together, then their computers have to be able to communicate. The amazing advances in internet technology over the last decade have been a major factor in the development of online gaming. Modern technologies even enable people to play together “face-to-face” with video chat (even with dealers).
The legal issue of online gambling is an ever changing issue. Shortly after online gambling was developed, it was made illegal in many countries. Shortly thereafter, however, many of those countries turned around and legalized it. There are two main reasons. One, because the internet is so open, the fact that online casinos can operate from anywhere in the world made legal enforcement close to impossible. Two, the tax revenue from casinos is so great most places would rather have it legal.
In order to run an online casino, the casino must have a lot of financial liquidity. The advancements in money transfer technology as well as the advancements in online security have assisted the online casinos greatly. These new technologies enable them to collect deposits around the world, pay out winnings around the world, and transfer money between players smoothly (in games like poker and the like).
Do you think online casinos succeeded in recreating the “brick & mortar” casino experience? Do you think they exceeded it? Where does the online casino community have room to improve?