LAST WORD 78
Change in the air? Sharon Singleton
Managing Editor, AGB
The FIFA World Cup will trigger football frenzy across the globe and a sports betting bonanza along with it, but governments in Asia are still not benefiting, seeking to crackdown on gambling activity rather than regulate and reel in the tax revenue.
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he last event was held in 2014 in Brazil and Sports Lottery, although online betting was outlawed generated a record volumes of bets. It also in March 2015 due to rampant abuse. In theory, the triggered a massive crackdown across Asia, government is drawing up new regulation, but it has been with governments showing a rare degree of a long time in the works. Still, the idea that they may open the door a crack collaboration to stamp out black market gambling. Interpol teamed with nine countries, including China, is an interesting one and will likely be viewed with Malaysia, Thailand and Vietnam to shut down illegal interest elsewhere. In India, another giant potential market, the Law gambling rings, arresting about 1,400 people who were estimated to have handled more than $2.2 billion in wagers. Commission has been asked to analyse the potential impact In reality, given the growth levels in the region, that’s of legalizing gambling and to provide a recommendation likely to have been the tip of the iceberg. For example, to the federal government. The country has been dogged the amount bet on a game by game basis during the by sporting scandals involving its prized cricket team and European Championship in 2016 was 50 percent higher proper regulation has been touted as one way of cleaning up sport as well as providing a significant revenue stream. than during Euro 2012. The Commission is expected to provide its response This year the World Cup will be in Russia, kicking before July, however, industry off in Moscow on June 14th, and participants are concerned that Asian authorities are once again even if it does returns a favorable expected to gear up to stamp out Operators in verdict, its recommendation will illegal activity. Vietnam already include a considerable number has announced major busts, with Macau would love one involving a former highto introduce sports of restrictions. Vietnam last year introduced ranking police officer. betting lounges, new rules that will allow betting However, there are glimmers on soccer, horses and greyhounds. of hope around the region that but are prevented The rules were far from perfect the regulator y tide may be from doing so and didn’t go as far as the industry beginning to turn. would have liked -- they don’t allow Before the end of June, the under the law. online gambling for example and U.S. Supreme Court is expected to restrict football betting to a handful rule in a case brought by the state of FIFA-recognized matches -- but of New Jersey, which could result in the lifting of a ban that prevents betting on sports in it is another step in the right direction. In some jurisdictions around Asia, such as the all but a handful of states. The American Gaming Association estimates the Philippines and Cambodia, casinos are able to offer sports illegal market there at $150 billion. According to Global betting options to their clients and they are proving highly Market Advisors those figures could potentially translate popular. Okada Manila recently expanded its sports book to $8.25 billion in taxable gaming revenue, assuming an offering though an accord with platform provider FSB (UK), Paddy Power and Jade Entertainment and Gaming average 5.5 percent hold for sports books. Although not necessarily directly relevant to Asia, it’s a Technologies to take advantage of strong demand. Operators in Macau would love to introduce sports major domino to fall and some experts have speculated that it will ultimately hasten the advent of regulation elsewhere. betting lounges, but are prevented from doing so under One interesting recent development was China’s the law. Macau Slot, an affiliate of SJM Holdings, holds announcement that it was exploring the possibility of the monopoly on sports betting and provides a far from more sports betting on the southern island of Hainan modern experience for punters. At G2E Asia in 2017, MGM China chief operating amongst other options to boost tourism numbers. Few details are available, but the government has said it will officer, gaming, John Shigley acknowledged the wide support horse racing and “explore the development of desire to bet on sports in Asia. “We would love to have sports lottery and instant lottery on large-scale international a piece of it and pay a whatever tax rate is most relevant to develop reinvestment and pay the best salary for our games,” the state news agency Xinhua reported. The country does allow betting through its state-run employees,” he said.
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Asia Gaming Briefings | May 2018
