Investigation into Australian sports leagues reveals lucrative betting scheme
An investigation conducted by ABC News, an Australian media outlet, has revealed a lucrative arrangement within the country’s sports leagues that involves profiting from betting activities at all levels of sports, including soccer matches featuring teenage players.
How Australian sports leagues profit from sports betting
Global sportsbooks have been able to expand their range of betting options thanks to the assistance of sports data scouts who operate during live events. These scouts collect data, which is then shared with sportsbooks. However, their access is only possible because the leagues permit it, as outlined in contractual agreements that are commonly employed worldwide. This practice is generally considered harmless and does not raise suspicions of any illicit activities. However, the recent exposé has shed light on the existence of “secret” contracts within Australian sports, a revelation that was largely unknown until now.
These undisclosed contracts have enabled Australian sports leagues, such as Football Australia, the National Rugby League (NRL), and Cricket Australia, to generate significant revenue from sports betting. According to ABC News and its investigative branch Four Corners, these organisations receive commissions from sportsbooks, amounting to as much as 17.5%. Four Corners, as stated on its website, is dedicated to “uncovering scandals, prompting investigations, igniting debates, and challenging taboos.”
The NRL has openly acknowledged earning approximately AUD 50 million (US$33.74 million) annually through its involvement with the sports betting industry. Similarly, the Australian Football League reportedly accrues between AUD 30-40 million (US$20.24-27 million).
The leagues employ these funds to uphold the integrity of their respective sports. Some of the money is allocated to “integrity services” and non-profit developmental programs for soccer. Nonetheless, the NRL considers the revenue derived from sports betting to be relatively insignificant.
Jim Simos, President of the South Springvale Football Club, expressed concerns about the increasing influence of anonymous bettors on their games, stating, “There are people across the world that could be betting on our games that have got no idea who we are. There’s got to be a limit to it.”
Reportedly, Football Australia either receives 1% of every soccer bet placed in Australia or 15% of the bookmakers’ profits, whichever amount is higher. Even if a sportsbook incurs a loss due to a specific bet and is obligated to pay out, the league still emerges as a beneficiary.
Australia permits online sports betting, facilitated by a range of state-licensed sportsbooks. Licensing regulations differ across states, influencing the sign-up promotions available to customers based on both the bookmaker’s jurisdiction and the customer’s place of residence.
Betting frenzy in lower-tier leagues
The narrative takes an intriguing turn when examining a recent match involving the South Springvale Football Club within the Victorian State League 1, a semi-professional Australian soccer league. According to ABC News, the team comprises mostly plumbers, electricians, and a doctor.
Last month, during a game played by South Springvale, a data scout from Sportradar was reportedly in attendance. Sportradar, a sports data company, employs approximately 5,000 scouts worldwide.
The surge of betting activity extends beyond just professional and semi-professional leagues. Bet365, in particular, caught the attention of ABC News as they offered betting lines on 146 Australian soccer games over a single weekend in May. These games even included competitions involving under-20 teams with players as young as 15.
Even the clubs themselves are uneasy about the presence of scouts at their games. Jim Simos, the president of South Springvale, expressed his concerns, calling it a “disturbing” situation. He strongly opposes the idea of allowing individuals from around the world to place bets on a team they have no knowledge of. Furthermore, Simos claimed that Football Australia has never addressed this issue with the club.
Lower-tier sports leagues consist of players who participate out of love for the game rather than financial gain. In many cases, these players receive no salary or compensation for their efforts.
This scenario poses a problem. According to former Bet365 trader Prasad Kanitkar, each of these games can attract a significant number of bets, sometimes reaching thousands per minute. With substantial sums, up to $1 million, being wagered on a single game, there is a considerable amount of money at stake for bettors. This financial incentive may lead some individuals to approach players with offers of money in exchange for helping them secure their bets. However, Bet365 denies such allegations and disputes the revenue figures involved.
A similar issue has already been investigated in Brazil, resulting in a match-fixing scandal that continues to impact the world of soccer. The recent revelations emerging from Australia are likely to intensify scrutiny on the matter even further.
Embark on a journey to Manila with SiGMA Group
Experience the PAGCOR-endorsed SiGMA Asia Summit in Manila this July, as SiGMA Group invites you to immerse yourself in the vibrant Asian and Philippine gaming markets. Engage in insightful discussions on gaming regulation, industry trends, and future prospects.
Stay tuned for the upcoming edition of SiGMA Magazine, dedicated to the Asian markets. Get ready for exclusive interviews and brilliant insights from notable figures like Alejandro Tengco, Chairman of PAGCOR. This publication will provide unparalleled coverage of the ever-evolving gaming landscape in the region, ensuring you stay informed.
