Slashing Conflicts in Ontario's iGaming and Sports Betting Market
Ontario Adopts Balanced Strategy for Monitoring Integrity Standards in Sports Betting
In a move to keep the freshly minted private iGaming and sports betting market in Ontario squeaky clean, the Alcohol and Gaming Commission of Ontario (AGCO) has set the stage for an unbiased, unyielding watchdog squad. Top-dog sportsbook operators must now partner with Independent Integrity Monitors (IIMs) to spot questionable betting patterns and safeguard the gambling field.
Gearing up for the MLB regular season, the AGCO's regs keep a low profile, but one vital provision remains hidden in the shadows. Sportsbook operators are on the hook for teaming up with IIMs to assess suspicious betting alerts. These Straight-Shooters, without even a hint of perceived or real conflicts of interest, rule out jobs like sportsbook operator or oddsmaker.
Sports betting integrity experts across North America give the stipulation a thumbs-up, deeming it a smart step in the right direction. Since the 2018 PASPA decision, leagues, sportsbooks, and data providers have woven an intricate dance of lucrative partnerships in the U.S. But when providers find themselves juggling the dual roles of supplying betting data to sportsbooks while sniffing out fishy activity for the leagues, conflicts of interest can rear their ugly heads.
With a common-sense approach, the AGCO consulted industry experts before putting their definitive regulations on integrity monitoring on the books. According to Canadian Gaming Association CEO Paul Burns, operators seemed pleasantly surprised with the AGCO standards and haven't voiced any concerns thus far.
By the end of Wednesday morning, three companies had registered with the AGCO as IIMs: the International Betting Integrity Association (IBIA), Las Vegas-based U.S. Integrity, and the Global Lottery Monitoring System. The IBIA, which debuted an integrity monitoring service in the U.S. earlier this year, inked a Memorandum of Understanding with the Canadian Gaming Association just last month. The agreement aims to create a framework for collaboration between the two associations, while keeping Ontario's market corruption-free.
"The IBIA firmly believes that markets where operators are a part of a broader integrity network enjoy a higher level of protection," stated IBIA CEO Khalid Ali.
The IBIA boasts that they can help jurisdictions protect integrity in various ways:
- Spotting and shouting out dubious betting activity
- Using detailed market data to probe and punish crookedness
- Establishing education activities to shield players and sporting events from filthy tactics
- Assisting sports bodies, law enforcement, and regulatory authorities in their fight against skullduggery
- Guiding consumers to the regulated onshore market
Burns added that the protection of athletes and the integrity of sports betting is a top priority for the CGA.
A recent incident that U.S. Integrity uncovered last week underscores the necessity of thorough integrity monitoring across the market. While FuboTV advertised a Professional Fighters League event as live, the fights, in fact, were pre-recorded seven days earlier, according to an alert sent to sportsbooks by U.S. Integrity. Several sportsbooks are now looking into the situation, according to ESPN.com reports.
"Despite the monitored fraud detection efforts, sportsbook operators have expressed concern with potential conflicts of interest that may arise when the same companies that supply leagues with official data are responsible for monitoring suspicious activity," wrote one media outlet.
Suspicious betting patterns in Ontario's market are defined as activities that deviate from what players are likely to wager on, and suspicious patterns arise when there are red flags of event manipulation, match-fixing, or the use of inside info.
In the '90s, a Las Vegas sportsbooks unmasked a clever scheme involving former Arizona State guard Stevin "Hedake" Smith, who conspired to fix several Arizona State games during the college basketball season. The entire ruse unraveled when an oddsmaker at the Barbary Coast Hotel and Casino tipped off Caesars Palace officials about the potential suspicious activity.
Data providers like Sportradar and Genius Sports practically own the global market, covering approximately 85% of worldwide activity. Last spring, Genius signed a historic partnership with the NFL worth over $1 billion. Compared to Sportradar, who scored a similar deal with the NBA just a few months later, these companies are renowned for their sophisticated algorithms that help speed up in-game betting and their impressive fraud detection capabilities.
In a significant move, the Sportradar Integrity Exchange launched as a two-way channel enabling bookmakers to report and share suspicions anonymously. Genius Sports, meanwhile, has been credited with spotting several wagers by Atlanta Falcons Wide Receiver Calvin Ridley during the 2021 NFL regular season, resulting in the NFL suspending Ridley for the remainder of the 2022 season.
While potential conflicts of interest remain a concern, the regulatory landscape in Ontario sets a firm foundation for transparency and fairness in its iGaming and sports betting markets.
- The Independent Integrity Monitors (IIMs) partner with top-dog sportsbook operators to identify questionable betting patterns and maintain gambling fairness.
- Sportsbook operators in Ontario are tasked with teaming up with IIMs to evaluate suspicious betting alerts, ensuring no conflicts of interest.
- vast majority of global sports betting data is controlled by providers like Sportradar and Genius Sports, using advanced algorithms for quicker in-game betting and robust fraud detection.
- The AGCO's regulations on integrity monitoring aim to safeguard Ontario's market from corruption, following consultation with industry experts.
- IBIA, U.S. Integrity, and the Global Lottery Monitoring System have all registered as IIMs to maintain Ontario's market integrity and tackle suspicious activities.
- IBIA helps jurisdictions protect sports betting integrity through various methods, including detecting suspicious betting activity, thorough investigations, education, collaboration with sports bodies, and guiding consumers.
- Sportsbook operators are apprehensive about potential conflicts of interest when the same companies that supply leagues with official data are responsible for monitoring suspicious activity.
- Suspicious betting patterns in Ontario are identified as activities deviating from expected player wagers, along with red flags of event manipulation, match-fixing, or insider information use.
- In the 1990s, a Las Vegas sportsbook revealed a basketball game-fixing scheme involving Stevin "Hedake" Smith after an oddsmaker reported potential suspicious activity.
- Stakeholders in the Ontario sports-betting business emphasize athlete protection and ensuring the integrity of sports betting as key priorities, using technology and regulations to minimize risk and latency concerns in the finance and business sectors.
