Segregation – it’s Not a Bad Word at Online Casinos

Three reasons segregation is good for the online gambling community.

3 Ways Segregation Benefits Online Gambling CommunityIn today’s modern society, “segregation” is a bad word. Many cultures spent years fighting to put an end to segregation. Now, in every major geography, people are equals, with equal opportunities for all. But for online casinos, you’ll soon learn how segregation is not a bad word. It is, in fact, the backbone of every major, reputable, properly-regulated gambling site.

3 Reasons Segregation is Good for Online Gambling

As you’ve hopefully guessed by now, I’m not referring to the segregation of minorities. What I’m referring to is different ways that online casinos, poker rooms, sportsbooks, bingo sites and lottery operators separate different aspects of their business. There are three areas where segregation is key to running a distinguished, long-lasting operation.

#1 Segregation of Players’ Account Balances

This is the most important of all, so we’ll start here. In years past, online gaming sites did not bother to separate player accounts from all other revenue. Operators held one bank account, depositing all sources of funds into it. They would use this money for myriad purposes, from marketing, to updating their services, paying licencing fees, operational costs, and, of course, to pay out winnings.

In 2011, online gamblers – especially members of Full Tilt Poker – learned just how bad that idea was. When the US government went after that operator for illegally accepting American players, it was discovered that Full Tilt didn’t have enough money to pay its members their account balances. The same has happened at many operations over the years. The Full Tilt scandal is only the most memorable among them.

Now, every upright iGaming operation is required by regulatory law to segregate player account balances from all other revenue. By depositing players’ money into a separate account, if the worst should happen and the company goes belly-up, those players are guaranteed to get their money back.

#2 Segregating Players by Legal Gambling Jurisdictions

This is another area where players should pay close attention. There are two ways to classify an internet gambling operation. There are those that only accept players from regions where online wagering is legal, and those that accept players from illegal, or both legal and illegal, regions.

The first classification is the safest. These operators are in compliance with the regulatory laws of jurisdictions that enforce the highest standards. To accept players from illegal territories, such as the US, means they’re operating under very lax regulation. Thus players in Canada and other legal iGaming countries should only play at websites that do not accept players from illegal jurisdictions.

#3 Segregation of Real Money from Bonus Credits

Last but not least, in order to present players with the best possible promotions, online gaming sites must keep their players’ real money account balances separate from their bonus balances. This works in favor of the operator, as well as their players.

Years ago, casinos failed to do this, and the result was a very difficult experience for players trying to clear wagering requirements (WR). By separating the accounts, players are now able to see exactly what they have left in cash and bonus credits. Poker players, in particular, benefit from this, since most of their bonuses release incrementally as they complete WR.

All in all, the online gambling community has seen multiple benefits from introducing segregation. As with many emerging industries, it takes time to discover what works, and what doesn’t. Before these measures came about, the industry was a very chaotic place.

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