Quest to Legalize
Single game wagering is currently illegal in 49 states. The time to legalize our unofficial national past time is now. Gambling on sports has come under negative scrutiny recently amid match fixing allegations in tennis. The biggest misconception circulated by those against legalization is that creating a regulated environment somehow leads to more impropriety. This thought process is ridiculous and preposterous given that regulation of sports gambling in the States allows for better monitoring and policing like we have in other countries around the world.
Most match fixing scandals are identified as a byproduct of bookmakers working directly with law enforcement. I had the chance to talk to a prominent tennis trader David Pentland from Corals earlier this week. Corals has a full list of policies and procedures in place to identify harmful irregularities in the integrity of betting markets.
The majority of the matches we report are at the lowest level of the game (ITF). At this level there a number of players whom we will not price up, due to numerous irregular betting patterns on previous matches involving these players. This is the first step in protecting ourselves against corruption, unfortunately it is not just a few isolated players.
If a game is flagged up as being potentially suspicious, we will immediately cease betting on that match, and collate as much data as we can regarding the match and the customers that have bet on the match. We will then withhold payment pending a full inquiry.
After the data is collated (the data will include; markets affected, clients, bets, players, reasons for suspicion and any additional comments). A spreadsheet will then be sent to our compliance manager who will then forward the relevant information on to the Tennis Integrity Unit (Tennis Anti-Corruption Programme) who will then contact other bookmakers and start a formal investigation. We then wait for the investigation to be completed, and the TIU will forward on any findings.
While Pentland shared greater detail about how his book combats match fixing, his openness on the topic paints a vivid picture of how seriously books in legal jurisdictions treat even the slightest inkling of corruption. Betting is big business here and abroad; handling transactions in the light of day with transparency rather than through illegal channels means law enforcement can be proactive about righting any potential wrongs.
Sports betting is big business. In a press release issued yesterday by the American Gaming Association they revealed an estimate of $4.2B that’s expected to be wagered domestically on Superbowl 50. That’s a massive number…one that becomes more problematic when we realize roughly $4.1B of that total is bet illegally. Overall, AGA’s estimate found that Americans wagered $149 billion on sports in 2015, up from nearly $145 billion in 2014. This is a huge number that continues to grow each and every single year.
Back in 1999 the Nevada Gaming Control Board reported that $2.471 billion was wagered across all sports for the calendar year. The “Big Game” represented $75.99 Million, just over 3% of statewide betting handle. To place that number in perspective, the GCB reported statewide sports betting volume of $3.620 Billion in 2013 (46.5% increase over calendar year ’99) and a Big Game handle that swelled to $98.9 million, a growth rate of 30.2% in fourteen years. These figures are merely the tip of the wagering iceberg when the documented legal handle is believed to represent less than 1% of total moneys wagered. Estimates for illegal sports gambling taking place across the country range from the low end of $380 billion to upwards of $500 billion. Suffice to say, the numbers are staggering even if coming up with an absolute figure is impossible.
“As Americans celebrate a milestone Super Bowl, they’ll also bet a record amount on the Big Game,” said Geoff Freeman, president and CEO of the AGA. “Just like football, sports betting has never been more popular than it is today. The casino gaming industry is leading the conversation around a new approach to sports betting that enhances consumer protections, strengthens the integrity of games and recognizes fans’ desire for greater engagement with sports.”
As Freeman and his organization realize sports gambling isn’t going away. While Daily Fantasy may think of itself in a completely different class than sports wagering the reality is the two different forms of sports entertainment aren’t distant cousins…they’re actually siblings. While I don’t want to go on an entirely different tangent I remain of the mindset that sports gambling entities and daily fantasy operators need to bind together creating a unified front in a quest for legalization.
Instead of pretending sports gambling doesn’t take place in this country (outside the state of Nevada) we’ve reached a crossroads where lawmakers need to do the proper research required to better understand how important regulation is for transparency. Fortunately the American Gaming Association is currently attempting to champion that cause; working to educate the masses on why keeping money in the US economy is better than the dangerous alternatives. Legalization brings a very skill based game from the underground to above ground.
I’m very realistic in my assessment of where we’re currently at in the timeline of sports gambling domestically. It’s going to be a slow process that most likely won’t take hold until misinformation is eliminated from the dialogue. Gambling, specifically on sports, isn’t without it’s foibles or potential social ills but it’s no different than other vices that exist in this country. The time is now to educate, inform, and entertain people with a controlled environment of betting on sports. Single game wagering is taking place in living rooms across the country every single day of the week. It appears only politicians, religious groups, and Roger Goodell can ignore it’s existence. Gambling isn’t going away…the time to legalize is now taking our national past time out of the darkness bringing it into the light.
