Chattanooga Times/Free Press
By Susan Pierce, Chattanooga Times/Free Press, Tenn.
May 21--Nielsen Media Research reports 28.9 million viewers watched last week's No. 1-ranked television program, "American Idol." Here's a less-publicized number: As many as 5 million Americans may be betting on the Fox show's eventual outcome, according to online gaming experts.
Betting on winners of reality television shows has become gambling's newest craze, says Matt Ross, an online gambling industry analyst and spokesman for BetUS.com.
"The interest in reality TV has just exploded since the 'Survivor' franchise," Mr.
Ross said. "It increases every year because people identify with the stars of the program.
Right now, 'American Idol' gets more notice than even 'Survivor.' 'Apprentice' is third most-popular (for entertainment wagers)."
Christiansen Capital marketing research firm estimates there are 12 million online gamblers, and 5.3 million are Americans.
The research company reports that revenue for online gambling worldwide totaled $12 billion last year, with Internet poker alone generating $2.4 billion.
The Center for Policy Initiatives said in an online report that Internet gambling grew from 30 sites and bets of $17 million in 1996 to $3 billion in wagers in 2000. "In just four years the Internet reached penetration rates that took television 13 years to reach and radio more than 30 years," said the report.
The Hollywood image of placing bets in smoke-filled back rooms has been replaced by the comfort of your own home's living room.
"Online betting in a variety of types is definitely on the increase," said Dr. H. James Meginley, a local counselor with Alternatives Counseling and the local chapter of Gamblers Anonymous. "It's more accessible. It's private, in your home. It's an easy addiction to get hooked into."
Ease of access is what Terry (who asked that his last name be withheld in keeping with policies of Gamblers Anonymous ) said enticed him into online betting.
Terry estimates he lost "at least $90,000 over three years" in Internet gambling.
"I started gambling online with Texas Hold 'Em (poker). I bet on sports, reality shows, just anything. I played anywhere from six to 12 hours a day," Terry said.
"When I'd watch television, there was the anticipation, the excitement and the adrenaline rush. When you win, it's pretty awesome. When you lose, you feel like 'I'm so stupid,' but that lasts about 10 minutes and then you're figuring out ways to win that money back," he said.
Opening an account at one of more than 53,000 online gaming sites is comparable to starting a PayPal account with eBay, according to those familiar with online gambling. Gamblers register at the Web site, then open accounts by depositing funds using accepted options such as credit cards, electronic checks, NETeller, bank wires.
"Online gambling is not really expensive," Gambling magazine reported in an article on online gaming. "At many sites, players can open an account for the same cost as filling up with gas for a drive to the nearest casino."
Once registered, the gambler chooses his "props" (short for propositions/categories of wagering). Each Web site's oddsmakers have predetermined odds for every contestant in a reality-show prop, and these are posted.
Odds for the underdog, or less-favored contestants, are shown with a plus sign. BetUS. com had odds on Katharine McPhee at +220 and Elliott Yamin (who was eliminated from "American Idol" Wednesday night) at +280 this week.
"Everything is based on $100," said Mr. Ross. "When you see the figure +160, that means 1.6 to 1. So if you wager $100, you'd get $160 back."
So for a $100 bet, Mr. Yamin would return $280 had he won, said Mr. Ross.
Mr. Ross explained that the earlier a bet is placed on a field of reality TV show contestants, the higher the winner's payout.
"The odds go down as there are less contestants, so the payout is less. If you place a bet earlier, you're taking a chance on a larger field and you'll win a higher payout."
It's that game of chance, the rush of beating the odds, that causes losers to go deeper into debt, said Terry.
"When you lose, you get the idea you've got to play again to get back what you've lost, only you never do. You can't convince a gambler his ideas won't work and he can't beat the system.
"But you're not going to beat the system," said the recovering gambler.
Terry said in addition to "blowing $90,000," he lost the savings in his 401(k) retirement account and two certificates of deposits. He also pawned his truck and car.
But it was the risk of losing his fiance that forced him to seek help, he said. Terry said he drove to Atlanta to meet with a Gamblers Anonymous group, began professional counseling and has since helped found a Chattanooga chapter of GA.
"It got bad three years before I hit bottom, but I haven't gambled in two years now," he said. "It's the idea of being held accountable. You have to grow up and change your way of thinking and your character."
While the U.S. Justice Department contends that Internet gambling is illegal, prosecution of online gamblers has been sparse, and efforts to pass federal laws to specifically regulate online gambling have proved difficult, according to various news reports and online legal affairs Web sites.
Many of the gambling Web sites are based offshore, making enforcement of existing U.S. gambling laws difficult, experts say.
E-mail Susan Pierce at spierce@timesfreepress.com HELP FOR GAMBLERS A Chattanooga chapter of Gamblers Anonymous meets each Thursday from 7:30 to 9 p.m. at 2002 Oak St. It is a closed meeting to protect anonymity.
"Sometimes the room is full, sometimes it's just me," said Terry, a founder of the group. "I would hope anybody who has a gambling problem or who is interested would come in and listen."
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