Virtgame.com Launches 'eBorder Control'

Gambling on the Internet attracts players from around the world. Some operators, however, refuse American players or other groups either by necessity or preference. Finding a tool that can be relied upon to keep the wrong players off a site can be tough because Internet border controls are difficult to implement and can frequently be subverted. Technology developers at Virtgame.com say they have the answer in a new product called "eBorder Control."

"For some sites, the Internet needs 'cyber-borders' to overcome the problems the Internet has created for businesses, governments and consumers due to its inherent disregard for jurisdiction, authority and mandate," Virtgame.com COO and CFO Bruce Merati explained. "We have developed the technology to overcome these shortcomings."

The new technology from Virtgame works on two levels: The first is a macro technology that uses proprietary software developed by Virtgame to limit users from certain jurisdictions from doing e-business with a specific website. The Micro eBorder Control technology, meanwhile, uses a telephone caller origination identifier system along with the company's proprietary Active User Verification Software (AUVS). AUVS is a plug-in that uses a dial-up connection to restrict access to a specified jurisdiction, such as a single state.

The system is being tested for approval from the Nevada Gaming Board. "We're in the final stages of testing," Merati said, "and we're hoping for approval within the next few weeks." Testing is being done in four Nevada casinos owned by Coast Resorts.

Cyber-borders can be used for more than gambling purposes. "We believe, not just for gaming, but for many Internet applications you need a cyber-border," Merati explained. For example, state lotteries could use Virtgame's cyber-border product for selling tickets over the Internet.

"We believe that Internet gaming will be a state-by-state issue," added Virtgame.com president Joseph Paravia, "and our eBorder Control technology can be a viable solution for each state's permitted games whether it is pari-mutuel sports betting or a state lottery product."

Paravia said that by using Virtgame's cyber-border technology, states could sell Internet lottery tickets and products within their borders without violating the 1961 Wire Act.