ABSTRACT
Internet gambling has been seen as a ‘money machine’ by some entrepreneurs and investors; Steve Budin faxed the message ‘I just saw an Internet machine that can turn air into money!’ after seeing an early online casino demonstrated (Budin, 2007). Budin’s offshore telephone sportsbook ran from Central America until 1998 when he was arrested by the American authorities and the business was shut down. When closed, his offshore betting business was reported as generating $20m gross profits before expenses ($10m net). His business was poised to move online and was anticipating further significant growth. This old story illustrates both the opportunities and challenges of Internet gambling as a business. The market seems certain, yet the legal status of the industry is confused at best.
