Regulating Sports Betting in India: Challenges and Opportunities

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Regulating Sports Betting in India: Challenges and Opportunities

  1. 1. Regulating Sports Betting in India: Challenges and Opportunities • Sujit Panigrahi Sequoia Fitness and Sports Technology (I) Pvt. Ltd.
  2. 2. Points 1. What is the difference between Gambling and Betting? 2. What is the difference between Sports Betting and Match Fixing? 3. Whether there should be blanket prohibition on sports betting? 4. How regulating sports betting will reduce match/ spot fixing? 5. How to address the issues related to addictive tendencies of vulnerable classes?
  3. 3. Online Bookmakers who service Indian customers • bet365 • William Hill • Ladbrokes • Betfair • Betfred • betinternet • Blue Square • Paddy Power • Stan James • Victor Chandler • Boylesports • Totesport • 888 Sport Typical Payment Method • Skrill (Moneybookers) • NETELLER • EntroPay • Debit Card • Credit Card • Wire Transfer
  4. 4. States Have Authority to Make Gambling Laws/ Legal Betting in India • Drafted in 1949, the Constitution of India explicitly gives states the right to legislate and make policies related to “gambling and betting”. It is quite clear in the Seventh Schedule Entry 34 List II that states could legalize gambling should they choose to do so. • To date most states have only made laws against gambling • 13 states have legalized lottery • 2 states (Goa and Sikkim) have legalized many other forms of gambling: • Sikkim Government has legalized sports betting, lottery and casino gambling • Goa has legal casinos
  5. 5. Online v/s Offline Betting • Different product profiles: • Revenues generated by traditional land based operators stem from long-established products, such as • Physical Betting Shops, Casinos and Bingo halls • Non sports related products like Scratch Cards and Lottery tickets. • Different customer profile: • There is a very low substitution level between the online and traditional land based sector because of the different player profiles (online players tend to be more educated and younger).
  6. 6. Cricket Betting • Basic Cricket Bets/Straight Bets • Match Betting • Tied Match • Series Winner • Outright Winner • Props which are not directly related to the final result of a cricket match, series or tournament • Cricket Team Propositions • Win Toss • Toss Combination • Odd or Even Run Scores • First Innings Score • Match Scores • Over/Under Scores • Team Innings Runs • Series Scores • Partnerships • Most Match Sixes • Total Fours • Most Run Outs • Highest 1st 15 Overs • Cricket Player Propositions • Top Batsman • Team of Top Batsman • Top Bowler • Individual Bowlers Series Wickets • Man of the Match • Batsman Matches • To Score 50 Runs • Century to Be Scored in the Match • Player Performances • Live Cricket Betting with In-Play Propositions • Batsman Runs • Runs Off Next Ball • Method of Dismissal • Over/Under Totals
  7. 7. Match fixing Scandal • 1998: Australian cricketers Shane Warne and Mark Waugh were penalized by the Australian Cricket Board for accepting money from an Indian bookmaker to reveal the weather and pitch information. • 2000: • Delhi police intercepting a conversation between an Indian bookmaker and Hansie Cronje, the South African Cricket Captain, which revealed that Cronje had accepted bribes from the bookmaker to lose matches against India in the India-South Africa One-Day series of 2000 • Salim Malik, Mohammad Azharuddin, Ajay Jadeja and Manoj Prabhakar were all named as having links to several bookmakers • 2001 • Some Indian players were penalized for tampering with the ball during the Test series against South Africa late 2001 • Few years back: • In the Tests that took place against England and Australia, Pak players, including Mohammad Asif, Kamran Akmal and Salman Butt were accused of match fixing • 2013: • RR players found guilty of spot fixing
  8. 8. European Gaming and Betting Association (EGBA) Standards • Principle 1: PROMOTE RESPONSIBLE GAMING AND BETTING • Providing customers with explicit info. about possible risks/harms of online gaming • Allowing customers to request the setting of betting/deposit limits • Offering customers the opportunity to self-exclude • Not providing credit to customers • Principle 2: KNOW-YOUR-CUSTOMER AND PREVENT UNDERAGE GAMING AND BETTING • Prominently displaying a „no under 18‟s‟ or „no under 21‟s‟ sign on the homepage of the members‟ websites, linking to a clear message about underage play • Advising parents regarding recognised filtering programmes, including a link to a recognised filtering programme to enable customers/parents to prevent minors from accessing gaming and betting sites • Principle 3: ZERO TOLERANCE OF FRAUDULENT AND CRIMINAL BEHAVIOUR • Introduce anti-money laundering policies and procedures to cater for the identification, escalation and reporting of unusual or suspicious activities, including investigating material or unusual deposits, withdrawals and customer accounts where little or no gaming or betting activity takes place • Logging of all information regarding changes to customer details and requesting appropriate verification documentation for significant changes (e.g. changes to customers‟ names and banking details)
  9. 9. European Gaming and Betting Association (EGBA) Standards • Principle 4: PROTECT CUSTOMER PRIVACY AND SAFEGUARD INFORMATION • Protect confidential customer information from unauthorised or unnecessary disclosure • Principle 5: PROMPT AND ACCURATE CUSTOMER PAYMENTS • Ensure prompt and accurate processing of payments subject to appropriate and necessary checks and verifications • Allowi customers to open only one account, by providing the following minimum information: name, age, address, unique username and password. • Principle 6: RIGOROUS INDEPENDENT ASSESSMENT OF PRODUCT FAIRNESS AND RANDOMNESS • Implement a product testing policy, approved and supported by the EGBA member‟s senior management, which will provide for the internal and external testing of all products for fairness and randomness • Principle 7: ETHICAL AND RESPONSIBLE MARKETING • Ensure that advertisements shall not entice the underage to bet, and shall not be displayed in media that is clearly targeted at the underage • Ensure that advertisements only contain factually correct information and avoid misleading information • Ensure that members do not knowingly engage in the distribution of unsolicited advertisements (i.e. SPAM) either directly or through a third party
  10. 10. European Gaming and Betting Association (EGBA) Standards • Principle 8: COMMITMENT TO CUSTOMER SATISFACTION AND SUPPORT • Giving customers the opportunity to log complaints and disputes on a 24/7 basis • Ensuring that an independent third party shall be available for mediation or resolution of disputes received from members or their customers • Principle 9: RESPONSIBLE PRACTICES UNDERPINNED BY A SECURE, SAFE AND RELIABLE ENVIRONMENT • Having a legal operating license from a reputable European regulatory authority • Having an independent third party assessing on an annual basis the EGBA members‟ compliance with the standards • Having EGBA members commit to an annual audit of financial statements and accounts performed by a reputable external audit firm Have an Agency like European Sports Security Association (ESSA) in India to monitor.
  11. 11. Code of Conduct on Sports Betting for Athletes: Guiding Principles 1. Know the rules 1. Club, federation or players association to explain what the rules on betting are in your sport and in your country before the start of each sporting season so that you are aware of your sport‟s most recent position regarding betting - you need to be aware of these – even if you don‟t bet. 2. To be explained to you in a way that is easy to understand, ideally through face-to- face meetings and supported by fact sheets and web based educational tools. 2. Don’t bet on yourself or the opponent 1.As a professional athlete, you must not bet on any match you or your team is involved in as it would trigger a potential conflict of interest not compatible with the integrity or ethics of your sport. This includes betting on yourself or your team to win, lose or draw as well as any of the different side-bets. These might not affect the result of the match but could nevertheless have an adverse effect on the public perception of both you and your sport and may breach national laws and/or sport specific regulations. 2.If you bet on yourself or your opponent you risk having your image and reputation tarnished, being sanctioned or banned by your sport (possibly for life), the possibility of losing your job and even being subject to a criminal investigation.
  12. 12. Code of Conduct on Sports Betting for Athletes: Guiding Principles 3. Don’t bet on other events within your sport 1.Do not bet on your sport until you have spoken to your governing body and/or players‟ association and you are happy that you are acting in accordance with your sport‟s rules. 2.Betting on other games within your sport may also raise questions and breach rules. You are likely to know and be friends with many athletes in your sport and you should therefore give very careful consideration before you involve yourself in any betting on your sport to avoid potential problems. 4. Be careful about handling sensitive information 1.As an athlete you will have access to information that is not yet available to the general public, such as knowing that your star player is injured or that the coach is putting out a weakened side. This is considered sensitive or inside information. This information could be sought by people who would then use that knowledge to secure an unfair advantage and to make a financial gain. 2.Most athletes know that they should not discuss important information with anyone outside of your club or coaching staff. The same is true of sensitive information. 3.You should never swap sensitive information on you, your team or your sport for reward, gifts or favours. 4.It looks suspicious if you pass on information to a person outside of your club or coaching staff, even if there is no obvious reward
  13. 13. Code of Conduct on Sports Betting for Athletes: Guiding Principles 5. Fixing an event, or part of an event: an absolute No-No 1. Whatever the reason, do not seek to fix any aspect of a competition, no matter how small. Do not put yourself in a situation which would bring you, or even force you, to adversely influence the natural course of a sporting event. 2. There is no such thing as a quick and easy win and your actions will undoubtedly result in severe consequences for you and your team. Fixing an event, or part of an event goes against the rules and ethics of sport and when caught may lead to a criminal prosecution and a lifetime ban from that sport. 3. So do not put yourself at risk: 4. Do not let yourself be manipulated - unscrupulous individuals might try to develop a relationship with you built on favours or fears that they will then try to exploit for their benefit in possibly fixing an event. This can include the offer of gifts, loans and support when athletes are young and trying to make it. 5. If you have any concerns about anyone making offers to you then it is crucial that you tell someone in a senior position within your sport such as your federation and/or player association. 6. Try not to fall into too much debt to anyone or allow anyone to develop a hold over you. This may be a trigger for unscrupulous individuals to target you to fix competitions in return for money or support. .
  14. 14. Code of Conduct on Sports Betting for Athletes: Guiding Principles 6. Report any approaches 1. If anyone approaches you to ask about fixing any part of a match then you should tell your player association or federation straight away. If someone offers you money or favours for sensitive information then you should also tell your federation or player association. 2. Any threats should always be reported. The police and national laws are there to protect you. Your club, federation or player association will help. 3. Some sports have regulations that require athletes to inform them immediately of any approach to influence the outcome of a competition.
  15. 15. General Advice 1. Family and friends 1.Your family/friends‟ betting behaviour or relations with unscrupulous individuals could create problems for you. 2.If your partner is betting on you to win or lose this could be traced back to you and will raise suspicions and could lead to you being banned from your sport. 2. Detection 1.Remote betting operators (via internet, mobile phone or interactive television) use sophisticated security measures that mean that all suspicious bets, and identity of those placing those bets, can be traced and reported to sports federations or national authorities. 2.Security Agency can monitor any irregular betting patterns to provide an immediate early warning to sports and bookmakers. 3.Individual operators also have their own information sharing agreements in place which allow them to directly notify sports federations of any usual or suspicious betting patterns. 4.Modern IT allows regulated betting operators to record and trace your bets for fraud prevention purposes. 5.Land-based betting establishments can also have security measures and linked to betting companies‟ central integrity operations.
  16. 16. General Advice 3. c) Responsible betting 1.Underage betting is illegal. 2.Consider your financial situation beforehand and never wager more (money) than you can afford. If you need support or advice then ask your player association for help. Betting sites will also have details of a confidential helpline number. 4. d) If in doubt – tell someone 1.If you ever feel that something is not quite right then trust your instinct and tell someone in a senior position such as your federation or player association. And keep a record of this. 2.Finally, if you have any queries on sports betting issues then it is always better to ask for advice than risk falling foul of the laws. Your player association is there to help. 3.1 This does not include giving media interviews.
  17. 17. International Code of Conduct 1. UNDERAGE GAMBLING 2. PLAYER PROTECTION MEASURES 3. SELF EXCLUSION 4. DEPOSIT LIMITS 5. REALITY CHECKS 6. PLAYER ACCOUNTS 7. FREE PLAY 8. GAME FAIRNESS 9. CUSTOMER COMMUNICATION 10. PLAYER DISPUTES 11. TRAINING 12. ADVERTISING AND PROMOTION
  18. 18. Opportunities • Government • Sports Federations • Player Associations • Bookmakers • Lawmakers • Technology
  19. 19. ANY QUESTIONS? sujit@liveplus.in | +91-98102-59395

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