It is decidedly more realistic. The direct route is quicker and simpler and is much easier to use. If you are able to install and deal with sometimes balky software, and think the extra realism is worth it, go for the download. A really bad actor would have some trouble with this step. An operator who was in the habit of defrauding people or issuing phoney credit card debits would soon be denied credit card privledges.
Most internet casinos are 'licensed' in the jurisdiction where they are physically located.
However, in reality no one really regulates online gambling. Just like Al Gore's fundraising efforts there is no controlling legal authority. Before you open an account, look around. Check out some gambling review sites like my Virtual Gambling Sites List , Rolling Good Times, or Where to Bet. Casinos that are advertised on these sites are more reputable.