Archive for August, 2015

To think that problem gamblers could end up owing money to the agencies they have already lost all their money too is very disturbing to me. Like the growth in payday loan companies, problem punters can get drawn to the idea that they can bet today and pay it back tomorrow, especially if they have the belief they are going to win. The reality though is that the majority will lose, and the few that may win this time will no doubt lose the next week or the week after, for if this blog has taught you anything, you’ll know that winning consistently on sports betting is difficult, and it is never easy to turn a profit no matter how good a tipster or insightful a gambler you are. The lure of landing the big payoff bet is a false hope too, for again, as many punters that do pull this off once in a while, there are many more that try and fail and end up losing all their money chasing the big one.

I read about a punter who had a big bet on the EPL soccer last weekend (22nd August 2015), betting $15 000 on Swansea to beat Sunderland at 2 to 1. The match ended in a 1-1 draw. A quick analysis under the good bet theory shows that they were betting on a match with 3 possible outcomes while only getting a 2-1 return, which is not a good bet. If they’d bet on the draw, they would have got odds of about 3.30, which is a good return over the 3 outcomes. And I don’t care how big a favourite one team is over the other pre-match, on the ground anything can happen and there is no such thing as a sure thing in sport, and to bet on an event believing you can’t lose is always going to be reckless. And if one team is heavily favoured over another to win, then the odds will reflect this and the return will be so low it would not be worth gambling on, for the likelihood of a small return does not outweigh the risk of an upset result.

You would hope that the government and authorities will take steps to block this option for punters to get loans from sports betting agencies, but there is a conflict of interest too as any drop in gambling revenue will mean a drop in the amount of tax the governments collect. It is in the government’s best interest for their citizens to gamble at the current levels to maintain the expected income, which would also be factored into the yearly budgets. As has been discussed before, governments are now reliant on this stream of income. I’ve no doubt they do have a desire to help problem gamblers, but they are also more than happy for the rest of the population to gamble just enough, just below the threshold of what is classified as a problem gambler. Move along, nothing to see here…

Beaner

Sports betting: call to ban unsolicited credit offers as problem gambling rises
‘If this is the future of gambling, it is indeed frightening,’ says peak body for financial counsellors, concerned at tactics used to draw in punters

Michael Safi

Monday 17 August 2015

Sports betting agencies should be “urgently” banned from extending credit to punters, a new report has recommended, amid signs of a surge in gamblers seeking help for excessive online betting.
Inducements, unsolicited credit, tactically withholding payouts, and possible breaches of the Privacy Act are some of the alleged methods employed by sports betting agencies in a largely “uncontrolled” industry, according to the report by Financial Counselling Australia (FCA).

“If this is the future of gambling, it is indeed frightening,” the report said, arguing that if credit was not banned, bookmakers should at least be forced to comply with credit laws requiring them to formally assess whether a punter has any chance of repaying credit.

It also called for new punters to be required to nominate a maximum bet amount, a ban on advertising links between payday lenders and sports betting sites, and a national register for people who want to self-exclude (rather than each company keeping a separate register).

Betting revenues are thought to have surged since the proliferation of smart phones and legal changes allowing betting sites to advertise during sports broadcasts.

Just how much is being gambled online on sport is yet to be quantified, but the advertising spend by betting agencies increased fourfold between 2010 and 2013 to nearly $48m, according to monitoring firm Ebiquity.

Gambling help clinics in Melbourne and Sydney have reported a tripling and doubling respectively in the number of sports betting clients they have treated in the past few years, according to an investigation by ABC Radio’s Background Briefing.
Launching the report on Monday, the independent senator Nick Xenophon said he would introduce a bill shortly to ban betting on credit.

“[Online sports betting] turbocharges the risks of problem gambling. Internet sports betting firms are using aggressive, high-tech strategies to target young men, increasingly to the point of ruin,” he said.

One case study included in the report detailed how one man was offered up to $500 in free bets by one betting company, and went on to gamble away the proceeds of the sale of his home.

In another, a man attempted suicide due to his gambling debts and emerged from hospital to an offer by one company to take him to a boxing match.

At least one customer already in debt was encouraged to whittle down what he owed by betting more and was offered extra credit, according to an email obtained by FCA.

“We were also told by a former employee that sports betting companies swap customer account data, contrary to privacy legislation,” the report said.

“When a gambler ‘goes cold’ and stops betting with one company, the company swaps lists with another company, which then entices the person to resume gambling.”

The Australian Wagering Council (AWC), an industry group, said it would “carefully examine the issues” raised in the report, but said new regulations on the gambling operators were “unnecessary”.

“There is no evidence-based research to suggest that changes in consumer behaviour, including customers choosing sports betting in preference to other forms of gambling … has led to an increase in problem gambling,” it said.

“Wagering on sport comprises only 2.3% of Australia’s total annual gambling spend, with the vast majority, 52.4%, of Australia’s gambling happening on poker machines in pubs and clubs.”

The AWC said it agreed with the call for a national self-exclusion register and that credit – which it said had always been available from bookmakers – should never be offered unsolicited.

http://www.theguardian.com/australia-news/2015/aug/17/sports-betting-call-to-ban-unsolicited-credit-offers-as-problem-gambling-rises