Casino News: Facebook Casino leaving players out of pocket

Unsuspecting punters playing at a Facebook casino are being left out of pocket. A loophole in Australian federal gambling legislation means that the online casino, called DoubleDown, can take money from players, but not pay out any cash prizes. Free chips are giving out to players, but once these have ran out, the option to buy chips is presented. This allows members to continue playing online games such as blackjack and poker. However, whatever they win remains a ‘virtual currency,’ and cash withdrawals are not possible.

This fact is stated in the fine print -- the terms and conditions say, “regardless of the terminology used, Virtual Currency and Virtual Goods may never be redeemed for "real world" money, goods or other items of monetary value from the Site or any other party."

Nick Xenophon, a state senator, has received an amount of complaints from disillusioned players, and a Facebook page has been set up warning players against the perils of playing at DoubleDown Casino. One constituent contacted Senator Xenophon after being blocked from the casino site when he tried to withdraw his chips.

DoubleDown Casino is based in North America, and its behaviour prompted the Senator to contact the Australian Communications and Media Authority. He claimed that the website was in breach of gaming laws, and misleading.

However, the Australian Communications and Media Authority counted the Senator’s claim, as it is not actually a gambling website, and it is not possible to win ‘money or anything else of value'

Xenophon said, "People are paying real money to gamble on these sites,  but because these gamblers are forbidden by the sites from converting that virtual money back into real money, the sites aren't technically breaking any laws. This needs to change.”

He wrote to the Communications Minister Stephen Conroy, in which he demanded an urgent meeting. The meeting will discuss "a loophole in the Interactive Gambling Act 2001 which has allowed hundreds of Australians to lose money".

Online casino games are banned in Australia, and a review of the laws began in early 2011.

However, a spokesperson for DoubleDown said the organisation was proud to have built the world's largest Facebook casino.

He claimed, "There are hundreds if not thousands of games on Facebook which accept virtual currency in the form of Facebook credits and we're proud to be one of Facebook's top 12 game partners. We couldn't have done that without the millions of customers who return every day to enjoy free chips and our entertaining game. Casual gamers can play every day for free and it is entirely up to the user to decide if they wish to purchase virtual chips to play longer,"