Match Fixing Is it the biggest threat to the gambling industry in the 21st century? October 29, 2014 Shawn R. Reid Nevada Gaming Control Board As of June 30, 2014 there were a total of 183 licensed sports pools in Nevada Over the last ten years Sports Pool Win has averaged 1.4% of total gaming win in Nevada (FY 2014: 6.08%) 2 Fiscal Year Total Sports Pool Win FY05-FY14 $250 60% $200 $150 20% 10% $100 0% PERCENTAGE CHANGE 40% 30% MILLIONS FOOTBALL BETTING WIN 50% -10% $50 -20% $- -30% FY05 FY06 Sports Pool Win FY07 FY08 FY09 FY10 Percentage Change FY11 FY12 FY13 FY14 Linear (Sports Pool Win) 3 Fiscal Year Total Sports Pool Volume FY05-FY14 4,000 16% 14% 3,500 3,000 10% 2,500 8% 6% 2,000 4% 1,500 2% 1,000 0% -2% 500 PERCENTAGE CHANGE BILLIONS SPORTS POOL VOLUME 12% -4% - -6% FY05 FY06 FY07 FY08 FY09 FY10 Sports Pool Volume Percentage Change FY11 FY12 FY13 FY14 Linear (Sports Pool Volume) 4 Increase in handle/Increase in hold – Licensees were luckier in Football Attempts to increase handle Mobile Apps (smartphones) – Intrastate More betting options (small portion in-running wagering) 5 Nevada’s goals are similar to the goals of the IOC, NGCB signed an MOU with IOC in January 2014 and is a member of the IOC’s Integrity Betting Intelligence System (IBIS). Create a framework for transparency, confidentiality and trust between stakeholders Safeguard sports from any negative influence connected to sports betting Work closely with law enforcement (Federal/State/Local) Work closely with licensees Work closely with sports governing bodies NRS 465.070 Fraudulent Acts. It is unlawful for any person: (8) To offer, promise or give anything of value to anyone for the purpose of influencing the outcome of a race, sporting event, contest or game upon which a wager may be made NGC Regulation 22 Governs wagers on Athletic Sports Events Details prohibited Wagers on professional and collegiate sport or athletic event Process for approval/denial of wagers on non-sporting event Burden on licensee to “prevent the circumvention of this regulation” Reports of suspicious wagers Know your customer Internal Controls 6 Match fixing is a risk. Regulated sports betting framework helps to minimize: Risk to the gambling industry Risk to patrons Risk to State/Country/Jurisdiction Risk to sport Unregulated/Illegal wagering on sports makes these risks greater NRS 463.160 Unlawful to expose for play in Nevada a sports pool without first being licensed Off-Shore sports betting site exposing sports wagering in Nevada Jurisdiction issues and remedies Cease and desist Letters? Prosecution (Local/State/Federal)? 7