For the most part - no - online casinos do not cheat, especially if they hope to stay in business for any reasonable amount of time. Given that gambling over the Internet is such a new phenomenon and people are still hesitant about transferring money, when it comes to building trust, any company intent on long-term success must develop - and maintain - a reputation for being on the up and up. But unfortunately there are always those individuals, in any industry, out to make a fast and dishonest buck. The overwhelming majority of online casino operators do not play with the odds and are believed to pay players their winnings promptly.
Internet casino operators automatically enjoy a house advantage from which they draw their profits. Therefore they need not cheat to make money. Also, because not all players employ effective gambling strategies, this also works to a casino's advantage.
Operating a legitimate online casino can be a very lucrative venture. Those few fraudulent sites, on the other hand, wind up getting less and less business as bad news travels across the Internet at lightning speed. Still, one should exercise caution when selecting a casino as some have been known to use rigged software.
You're best off playing at online casinos that license their software from major gaming software developers like Microgaming, Playtech, Cryptologic, Boss Media etc. Also, because lots of people are skeptical about gambling online, some casinos hire independent accounting firms to carry out regular monthly audits of their data to confirm fair and honest business practices. While these audits do not guarantee fair gaming, they are a good indication that an establishment is at least concerned about their reputation.
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