US prepares for more online gambling

22 November 2013 Last updated at 09:39 ET By Dave Lee Technology reporter, BBC News

Online gambling has been launched in the state of New Jersey, a sign that the US may slowly be opening up to the multibillion-dollar industry.

Unlike in many countries, online gambling remains prohibited by the US government because of legislation passed in 1961.

Individual states may allow online gambling if it does not cross borders.

A test is under way in New Jersey to make sure only people within the state can play.

Until now, only two of the country's 50 states, Nevada and Delaware, allowed online gambling and heavy restrictions are in place.

Geolocation technology, which checks where a person is logging on, is typically used to lock out gamblers from further afield.

In New Jersey, people taking part in the test have suggested the restrictions have been overbearing.

One user told the Associated Press news agency that he drove 30 miles further into the state to log on, but was still getting locked out because the system failed to recognise he was within New Jersey.

Despite these troubles, gambling in the state is expected to launch in full next week, with 14 websites on offer.

State-to-state

Although the US gave the world the glitz of Las Vegas and the bright lights of Atlantic City, the federal government has for the most part rejected the online gambling industry.

Continue reading the main story

The estimates for the New Jersey [gambling market] alone run somewhere between $250m and $1.2bn"

End Quote Mark Jordan PricewaterhouseCoopers

The 1961 Wire Act means a state can decide to allow online gambling, but only if sites and players are based within its borders.

The gambling industry is pressing for the federal government to greatly relax its stance, bringing it into line with other markets, such as the UK.

"A federal law, should it come in the future, would allow for a customer in California to play poker against a citizen in New Jersey," said Mark Jordan, a director at accountancy firm PricewaterhouseCoopers, who has researched the online gaming market extensively.

"At the moment you cannot do that. That's prohibited. What a lot of the operators are hoping is that as the states prove this can be done, and that it's safe, that the federal laws will change to allow state-to-state gaming."

Massive potential

The UK's online gambling industry is far less restricted, Mr Jordan told the BBC, and is envied by those looking to expand into the US.

"The UK gaming industry is one of the market leaders in the world," he said. "We are very well serviced here."

The value of the UK industry is put at around the $2bn (£1.2bn) mark. The US offers staggering possibilities in comparison.

"The estimates for New Jersey alone run somewhere between $250m and $1.2bn," Mr Jordan said.

"That market has got a huge broad range - it all depends on customer uptake and the quality of the product."

Illegal sites

Despite the illegality, some websites operating offshore have been able to offer gambling to people in the US.

Technology-savvy users have got around location restrictions by using proxy servers, which can fabricate a user's location.

But difficulties in receiving winnings have meant online gambling with offshore sites is too troublesome for all but a few determined users.

Furthermore, major innovations to create more sophisticated and life-like gaming environments are mostly the preserve of the major companies that do business in the UK.

Follow Dave Lee on Twitter @DaveLeeBBC

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NSA malware 'hit 50,000 networks'

25 November 2013 Last updated at 07:05 ET

The US National Security Agency (NSA) infected 50,000 networks with malware, Dutch newspaper NRC has reported.

The Tailored Access Operations department used it to steal sensitive information, according to a censored slide leaked by former NSA contractor Edward Snowden.

NRC said 20,000 networks had been hit in 2008, with the program recently expanded to include others in Rome, Berlin, Pristina, Kinshasa, Rangoon.

The NSA declined to comment.

The malware could be pit in a "sleeper" mode and activated with a click of a button, the paper said.

"Clearly, conventional criminal gangs aren't the only people interested in breaking into computer networks anymore," wrote computer security expert Graham Cluley in a blogpost.

"All organisations need to ask themselves the question of whether they could be at risk."

The reports come as Twitter introduces technology it says will help protect people's messages from unwanted scrutiny.

It has employed a system known as "forward secrecy" that makes it harder for eavesdroppers to access the keys used to encrypt data passing between Twitter's servers and users' phones, tablets and PCs.

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Global launch for Microsoft Xbox One

21 November 2013 Last updated at 19:22 ET

Microsoft's Xbox One game console went on sale in the UK at midnight.

About 300 game shops and 100 Tesco stores across the UK stayed open so gamers could buy the device.

Microsoft held launch events in London, New York and Los Angeles to mark the arrival of the successor to the Xbox 360.

The launch comes a week after the US launch of Sony's PlayStation 4 and sees the two start their fight for dominance during the key Christmas season.

Continue reading the main story

Both consoles seem destined to do well - but neither is likely to replace all the other boxes under the TV in most homes. Whatever the industry may tell you about the ever widening audience for games in all their forms, many people just won't want an Xbox or Playstation controller to be their route into a night in front of the telly. And having tried the Xbox One's voice control, it is clever, but in my view not quite intuitive enough to persuade an older person like me to throw away the remote control.

No advantage

Although the PS4 launched first in the US, it will not go on sale in the UK and Europe until 29 November. By contrast the Xbox One went on sale in 13 countries on Friday, 22 November. Neither console is set to be available in Japan until 2014.

Marc Whitten - and chief producer officer, Xbox One, told the BBC Microsoft had experienced an unprecedented number of pre-orders for the Xbox, far exceeding those of the Xbox 360. "I feel very very good about where we are. Today's launch is just the beginning of an amazing journey."

Launches are typically staggered so console makers keep manufacturing costs down, to give makers time to translate content into different languages, and to ensure deals covering what media can be seen on the gadget are in place.

In the UK the Xbox One is expected to cost about £429 (514 euros) and the PlayStation 4 £349 (418 euros).

The more expensive Xbox includes a bundled Kinect sensor that does a better job of spotting movement and hearing sounds than the first generation of the device.

Microsoft also has ambitions for its console to act as a hub for anything seen on a TV, and the device can act as a controller for cable and satellite set-top boxes. Microsoft's Skype net calling system is also integrated into the device.

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Xbox One chief producer officer Marc Whitten says the console is just at the beginning of its journey

The technical specifications of the two devices are broadly similar and the graphics on games are much improved on the preceding generation of consoles. Experts suggest that Sony's PS4 has the edge on graphics and early reports revealed that two games - Battlefield 4 and Call of Duty: Ghosts - would play in higher resolution on the PS4.

Both consoles attempt to round out the social side of gaming, giving owners tools and services that let them play with or against friends or find opponents online.

"If history has anything to say about it, core gamers tend to favour Sony," said Brian Blau, research director at analyst firm Gartner. "There is nothing I've seen to say that one platform is going to have an advantage over the other."

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The BBC's Rory Cellan-Jones reports on the gaming battle between PlayStation 4 and Xbox One

Rob Crossley, associate editor of ComputerAndVideoGames.com, called Microsoft's build up to the launch "luckless and calamitous" because it had had to drop features, such as restrictions on used games, that had been widely criticised.

"With Sony's PlayStation 4 being such a similar device and £80 cheaper, Microsoft will face significant challenges convincing shoppers that Xbox One is the smarter investment," he added.

In 2013, Microsoft and Sony face a very different games market than that seen when the Xbox 360 and PS3 were launched. The past few years have seen the rise of indie and casual games, a renaissance in PC gaming and the emergence of rivals such as Valve, which is preparing its own gaming gadget.

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Simon and Tim test out the new Sony and Microsoft consoles

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Opposition to mobile chat on planes

22 November 2013 Last updated at 11:25 ET

A proposal to allow mobile phone calls during commercial flights has met opposition.

The US Federal Communications Commission (FCC) has suggested that passengers should be allowed to make calls once a plane reaches 10,000 feet.

But one petition against the idea said it would "make an already cranky, uncomfortable travel experience exponentially worse".

Calls would not be allowed during take-off and landing.

But the rule change would be the latest relaxation of guidelines on device use at airports and on aircraft.

Last month the US Federal Aviation Administration (FAA) said it would permit passengers to use gadgets such as tablet computers and e-readers during take-off and landing.

That decision was made after a review committee determined that most commercial aircraft can tolerate radio interference signals from such devices.

The technological ability to make calls in the air has been possible for some time, but it has not been widely adopted, mostly because of regulations not being updated.

Virgin Atlantic announced it would allow passengers to make calls on its flights between London and New York. However, calls would have to be ended within 250 miles of US airspace.

'Inane'

FCC chairman Tom Wheeler said it was time to bring regulations about making calls up-to-date as well.

"Modern technologies can deliver mobile services in the air safely and reliably, and the time is right to review our outdated and restrictive rules," he said in a statement.

He heralded "new mobile opportunities for consumers".

But others do not see it that way. The Washington Post reported that "hundreds" of emails had been sent to an FCC commissioner after the announcement.

The petition, posted on the White House website, began building momentum on Friday morning.

"During flights, passengers are forced into a restricted space, often for long periods," the petition reads.

"Forcing them to listen to the inane, loud, private, personal conversations of a stranger is perhaps the worst idea the FCC has come up with to date."

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Web inventor in surveillance warning

21 November 2013 Last updated at 19:24 ET

Web creator Sir Tim Berners-Lee has warned that the democratic nature of the net is threatened by a "growing tide of surveillance and censorship".

The warning came as he launched his World Wide Web Foundation's annual web index report, tracking global censorship.

It suggests that 94% of the countries in the index do not adequately monitor government internet interception.

Thirty per cent of countries block or filter political content, it indicates.

The report concludes that the current legal framework on government snooping needs urgent review.

"One of the most encouraging findings of this year's web index is how the web and social media are increasingly spurring people to organise, take action and try to expose wrongdoing in every region of the world," said Sir Tim.

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"But some governments are threatened by this, and a growing tide of surveillance and censorship now threatens the future of democracy.

Bold steps are needed now to protect our fundamental rights to privacy and freedom of opinion and association online," he added.

'Appalling and foolish'

Sir Tim has been an outspoken critic of government surveillance following the revelations from whistle-blower Edward Snowden.

He described attempts by the spy agencies to crack encryption as "appalling and foolish".

He has previously said that the checks and balances to oversee GCHQ and its US counterpart, the National Security Agency (NSA), have failed.

It is a view shared by digital forensic expert Professor Peter Sommer.

"GCHQ is a spying agency. It needs to produce good results. But how far anyone understands the techniques they are using is more unclear."

"The things they are doing need a ministerial warrant but the ministers have a lot of other things to do. Did they have sufficient understanding of the technology? Who is doing the risk analysis?"

A Cabinet Office spokesperson told the BBC: "The success of our intelligence agencies relies on secrecy. But secrecy does not mean lack of accountability. The United Kingdom's intelligence agencies operate under the tightest of controls and oversights.

"Our agencies only act in line with their strict legal mission, above all keeping people safe from harm.

"There is a triple lock to ensure every action is lawful, necessary and proportionate - interception underpinned by Ministerial warrants, world class internal controls and three safety nets of outside scrutiny by the Interception Commissioner, the Intelligence and Security Committee of Parliament and the Investigatory Powers Tribunal."

Measure of influence

The report compiled by Sir Tim's World Wide Web Foundation ranks countries in terms of the social and political impact of the web.

Sweden tops the annual web index, ahead of Norway, and followed by the UK, US and New Zealand.

It found that in 80% of the countries studied, the web and social media played a role in mobilising the public on a range of issues.

It also found that rich countries did not necessarily rank higher in the index. The Philippines, with a per-capita income of $4,410 per year, is more than 10 places ahead of Qatar, the world's richest country.

Meanwhile Saudi Arabia is outperformed by 10 sub-Saharan African countries, and Switzerland, the third wealthiest nation, is only one place ahead of Estonia.

But in poorer countries the digital divide is growing ever more marked, according to the report.

"Ten years after world leaders committed to harnessing technology to build an inclusive information society, parents in 48% of countries can't use the web to compare school performances and budgets, women in over 60% of countries can't use the web to help them make informed choices about their bodies, and over half the population in developing countries can't use the web at all," said Anne Jellema, the foundation's chief executive.

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Google patents social media helper

22 November 2013 Last updated at 07:08 ET

If maintaining your presence on social media is becoming a burden, Google may be able to help.

The search giant has patented plans for software which slowly learns how you react on social networks.

The software can mimic your usual responses to updates and messages from friends and relations to help cope with the daily data deluge.

The software also analyses continuing interaction and flags messages that demand a more personal response.

Life lessons

"The popularity and use of social networks and other types of electronic communication has grown dramatically in recent years," wrote Google software engineer Ashish Bhatia in the patent. "It is often difficult for users to keep up with and reply to all the messages they are receiving."

In a bid to help people cope Mr Bhatia envisions a sophisticated system that collects information about all the different social networks someone has joined. This logs what they do and notes how they respond to the different types of messages, notifications, status changes, videos, images and links sent to them.

The system analyses these responses so it can eventually start making suggestions of its own that, ideally, should be indistinguishable from those of an actual person.

The suggested system should also be flexible enough to cope with many different types of event, use data culled from other interactions with a person and shape the responses to match the style demanded by different social networks. For instance, suggested responses to events on professional social networks should be more formal than those on services where someone interacts with friends and family.

Instead of writing every response individually or clicking buttons to "like" or forward messages, the software would generate suggested responses which a person could simply agree to be posted on their behalf.

Despite its potential sophistication, examples provided in the patent suggest it still needs refinement.

In response to learning that an acquaintance called David has changed jobs, the system might suggest: "Hey David, I am fine, You were in ABC corp for 3 years and you recently moved to XYZ corp, how do you feel about the difference, enjoying your new workplace?"

Social media technologist Hadley Beeman said the subtleties of human interaction might undermine the ability of Google's suggested system to pick out what matters most and flag it appropriately. A calendar appointment for lunch might look unimportant but loom large in someone's life for reasons the software cannot spot.

"The problem is that the 'important stuff' (or the trivial) depends on what our relationship is," said Ms Beeman. "If I had lunch with you, for example, then your message about hating that terrible sandwich is actually relevant to me."

Prof Shaun Lawson from the University of Lincoln who studies social computing wondered who would be compelled to use such a service.

"Are we really so concerned with posting messages to every friend or follower that we feel compelled to have to automate that process?" he said.

Google's system seemed to underline the common misconception that social media was reducing contact between people, he said.

"The fabulous thing about social media is the reverse," said Prof Lawson. "It facilitates human-to-human interaction in ways that were impossible even a few years ago."

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Racing Post site in security breach

24 November 2013 Last updated at 11:24 ET

The Racing Post is promising "stringent" new measures to prevent a repeat of a security breach on its website, racingpost.com.

The site was hit by a "sophisticated, sustained and aggressive" attack on Friday and Saturday.

During the raid, a database was accessed and customer details stolen.

The Racing Post is advising users to change their password on other sites, if it is the same as the one they use on its site.

It says customers who had forgotten their password should be aware these are encrypted "and we are therefore unable to tell them what the password is".

"Our advice, if in doubt, is to change passwords on other sites as a precaution as we cannot be confident that the hackers will be unable to break the encryption."

Information

It says credit and debit card details are not stored on the site and have therefore not been accessed and are not at risk.

It also advises that the website is completely safe to use as it has removed all log-in and registration functionality.

The information at risk from the database that was compromised will vary in the case of each customer, depending on how much information they gave when they registered.

Racing Post editor Bruce Millington said: "Security is an area we take extremely seriously and our website has not been compromised previously. As soon as we were aware of the situation we did everything in our power to halt the breach.

"As part of our efforts to resolve the issue, we have turned off the ability to register/log-on to racingpost.com. You will still be able to access the site safely.

"We are extremely sorry that this unfortunate incident has occurred. We believe it may be part of a wider attack on a number of companies. We thank you for your patience and understanding."

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Amazon workers face ‘illness risk’

24 November 2013 Last updated at 21:17 ET

A BBC investigation into a UK-based Amazon warehouse has found conditions that a stress expert said could cause "mental and physical illness".

Prof Michael Marmot was shown secret filming of night shifts involving up to 11 miles of walking - where an undercover worker was expected to collect orders every 33 seconds.

It comes as the company employs 15,000 extra staff to cater for Christmas.

Amazon said the safety of its workers was its "number one priority."

Undercover reporter Adam Littler, 23, got an agency job at Amazon's Swansea warehouse. He took a hidden camera inside for BBC Panorama to record what happened on his shifts.

He was employed as a "picker", collecting orders from 800,000 sq ft of storage.

A handset told him what to collect and put on his trolley. It allotted him a set number of seconds to find each product and counted down. If he made a mistake the scanner beeped.

"We are machines, we are robots, we plug our scanner in, we're holding it, but we might as well be plugging it into ourselves", he said.

"We don't think for ourselves, maybe they don't trust us to think for ourselves as human beings, I don't know."

Prof Marmot, one of Britain's leading experts on stress at work, said the working conditions at the warehouse are "all the bad stuff at once".

He said: "The characteristics of this type of job, the evidence shows increased risk of mental illness and physical illness."

"There are always going to be menial jobs, but we can make them better or worse. And it seems to me the demands of efficiency at the cost of individual's health and wellbeing - it's got to be balanced."

Amazon said that official safety inspections had not raised any concerns and that an independent expert appointed by the company advised that the picking job is "similar to jobs in many other industries and does not increase the risk of mental and physical illness".

The scanner tracked Mr Littler's picking rate and sent his performance to managers. If it was too low, he was told he could face disciplinary action.

When Mr Littler worked night shifts his pay rose from the daily rate of £6.50 per hour to £8.25 per hour.

After experiencing a ten-and-a-half-hour night shift, he said: "I managed to walk or hobble nearly 11 miles, just short of 11 miles last night. I'm absolutely shattered. My feet are the thing that are bothering me the most to be honest."

Amazon said new recruits are warned some positions are physically demanding and that some workers seek these positions as they enjoy the active nature of the work. The company said productivity targets are set objectively, based on previous performance levels achieved by the workforce.

Those on the night shift work a four-day week with an hour's break per shift.

Experts have told Panorama these ten-and-a-half-hour night shifts could breach the working time regulations because of the long hours and the strenuous nature of the work.

Barrister Giles Bedloe said: "If the work involves heavy physical and, or, mental strain then that night worker should not work more than eight hours in any 24-hour period.

But Amazon said its night shift is lawful. They said they sought expert advice to ensure the shifts "comply with all relevant legal requirements".

Amazon said it had invested £1bn in the UK and created 5,000 permanent jobs.

It added that it relied on the good judgement of thousands of employees. The company said: "Together we're working hard to make sure we're better tomorrow than we are today."

Panorama: The Truth Behind The Click, BBC One, Monday 25 November at 20:30 GMT and then available in the UK on the BBC iPlayer.

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Apple buys motion sensor-making firm

24 November 2013 Last updated at 23:19 ET

Apple has purchased PrimeSense, an Israeli firm that specialises in making 3D motion detection technology.

PrimeSense is best known for developing gesture control for Microsoft's Kinect sensor, and has made strides towards bringing the technology to mobile.

Apple's deal is likely to spark speculation about its plans to develop new products such as Apple TV.

PrimeSense confirmed the deal with Apple in a statement to the BBC but said they could not comment further.

Apple did not disclose the financial details of the deal but said it had taken place. Some reports claimed it had paid $360m (£222m).

"Apple buys smaller technology companies from time to time, and we generally do not discuss our purpose or plans," said an Apple spokesman.

'Mega trend'

The deal comes at a time when firms are increasingly experimenting with gesture control.

Continue reading the main story

Usage of gesture-based, touch-less control of devices is one of the big mega trends in the industry right now"

End Quote Nitin Bhat Frost & Sullivan

In October 2011, Apple filed for a patent for new ways to control devices that do not involve physical contact.

Its filing, entitled Real Time Video Process Control Using Gestures, talked about allowing users to "throw" content - the ability to transfer it from one of the firm's products to another - using contact-free hand movements.

Analysts said that acquiring a firm that specialises in making motion sensor technology could help Apple offer such features.

"Usage of gesture-based, touch-less control of devices is one of the big mega trends in the industry right now," Nitin Bhat, a partner with consulting firm Frost & Sullivan told the BBC.

"From Apple's perspective it looks like an attempt to make its current gadgets a lot more attractive by offering such a feature on them.

"It could also look to incorporate this technology in future portfolio of devices which could include an Apple TV," he added.

'Ability to observe'

Earlier this year, PrimeSense unveiled the advances it has made in incorporating its technology in mobile devices.

By shrinking down the sensor used in the Kinect, the firm showed it working with a Nexus 10 tablet at a Google developers' conference in May.

According to PrimeSense, its 3D sensing technology gives digital devices "the ability to observe a scene in three dimensions".

It said that once it has observed the movements, it translates them into a "synchronized image stream... just like humans do".

The firm's technology then processes these images and translates them into information such as:

• Identification of people, their body properties, movements and gestures
• Classification of objects such as furniture
• Location of walls and floor

The firm has also launched a 3D scanner which, it says, allows "anyone to scan items in their own environment and print them out on a 3D printer".

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Microsoft acknowledges Xbox problem

25 November 2013 Last updated at 07:17 ET

Microsoft has acknowledged that owners of its new Xbox One console are experiencing problems with the disc drive.

Some users say the drive is making very loud noises when they try to insert a disc and in some cases is not reading discs at all.

Microsoft says only a very small number of users are affected.

The Xbox One was launched on Friday and sold more than one million units in the first 24 hours.

More than 150 people contacted Kotaku, a gaming news website, claiming their new consoles were faulty. Other users uploaded videos apparently showing the problem to the gaming forum NeoGAF.

"The issue is affecting a very small number of Xbox One customers," said Microsoft in a statement.

"We're working directly with those affected to get a replacement console to them as soon as possible through our advance exchange programme."

The Xbox One is the first new console from Microsoft in eight years and it broke all previous Xbox first-day sales records when it went on sale in the UK and 12 other countries last week.

The company said it had now sold out at most retailers and it was working to replenish stock as fast as possible.

Shipping damage

This is not the first time Microsoft has experienced problems with the launch of an Xbox console. When the Xbox 360 was launched in 2005 some users reported faults with the hardware which led to three red lights flashing on the front of the device and the console becoming unusable. The problem became known as the "red ring of death".

"Microsoft suffered very significant quality control problems with the early Xbox 360 consoles and has put significant effort into its hardware design and manufacturing process to minimise faults," Spencer Izard, an analyst with IDC told the BBC.

"For launches over multiple countries the volume of manufacturing required by both Microsoft and Sony will always unfortunately yield a minor amount of hardware failures, in one form or another, and we are seeing this with this launch cycle," he added.

The launch of the Xbox One came a week after the US launch of Sony's PlayStation 4. The two consoles are set to go head-to-head in the crucial Christmas season.

The PlayStation 4 will go on sale in the UK and Europe on 29 November.

The PS4 also experienced technical issues after its launch with users complaining that a blue light continually flashed on the console affecting its operation and others reporting that sometimes the unit suddenly turned itself off.

In its latest statement Sony said several issues had been reported.

"[This] leads us to believe there isn't a singular problem that could impact a broader percentage of PS4 units," Satoshi Nakajima, a spokesman for Sony, told Bloomberg.

"We also understand that some units were reportedly damaged during shipping."

Mr Nakajima said fewer than 1% of the consoles sold were affected.

Amazon said it shipped more PlayStation 4 units than any other gaming console in its history and confirmed it was working with Sony to assist the "small percentage of customers who reported issues".

Mr Izard said more people were becoming aware of problems with the new consoles than before because of postings on social networking sites.

"Overall, I do not believe we will see significant manufacturing problems with either the Microsoft or Sony console but due to social media the relatively few that do occur will become more apparent to those looking to purchase over this holiday season," he said.

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