LAST WORD 70
Sharon Singleton
Managing Editor, AGB
Time to move the regulatory goalposts There is no question that the global sports betting market is massive and growing fast. According to figures from respected statistics company, Statista, the global gross gaming yield now stands at about $400 billion, with the majority of that generated in Asia.
H
owever, given the lack of reliable reporting parliamentary bill passed in June. The legislation is in and extent of the illegal market, that figure its early days and there have been numerous complaints is likely to be a drop in the bucket of the about the lack of clarity and the limited scope of the real total, with some estimates running regulations, however, it’s a solid start and there has already been interest from foreign investors keen to participate into the trillions of dollars. So, we’ve said it before and we’ll say it again -- this in projects, such as building horse racing facilities. India is another highly promising market. The Law represents an enormous missed tax opportunity for Commission of India published a report earlier this year governments across Asia. Introducing regulations to legalize sports betting would suggesting regulation may be the most effective way to not only pad government coffers, it would help authorities stamp out rampant illegal gambling and the associated to combat match fixing by improving the visibility of money match-fixing scandals that have tarnished Indian cricket. The report, titled “Legal Framework: Gambling and changing hands. It should also generate employment opportunities if wagering companies were allowed to Sports Betting including Cricket in India,” leaves the final call to Parliament and the state legislatures, and recommends legally establish a presence in various jurisdictions. Many European sportsbooks are chomping at the bit various ways to regulate the betting market. The commission concludes that such a move will to get a slice of the Asian pie, but generate immense revenue which are prevented from doing so by can be used for social welfare, to the grey, if not downright black Introducing curb underworld influence, and nature of many of the markets. regulations to legalize restrict black money and money Some industry commentators laundering. are pointing to the U.S. Supreme sports betting However, political opposition Court’s decision to strike down would not only pad is strong and legal experts say a ban on sports betting as being don’t hold your breath while likely to unleash a tsunami of government coffers, it waiting for legislation. regulation in other jurisdictions. would help authorities Elsewhere in Asia, limited It is certainly a possibility, forms of sports betting are and in Asia there is already to combat match available, even in countries with some movement. fixing by improving a strict ban on gambling. China’s In the Philippines, sports sports lottery is thriving, despite betting is legal and is growing the visibility of money a ban on online sales, generating fast. Manila’s casinos have been changing hands. $32.8 billion last year, a gain of adding sports betting products to 11.4 percent. their mix due to popular demand The Hong Kong Jockey Club from clients. For example, earlier this year platform provider FSB, teamed with Paddy Power also reported a bumper year, with turnover up 8.1 percent and Jade Entertainment to provide over-the-counter sports to a record high of HK$234 billion ($29.8 billion) in 2017/2018. This meant a $22.6 billion boost to government betting facilities in Okada Manila. Basketball and boxing are hugely popular choices, coffers, while charitable donations hit a new record of $4.2 billion. Despite its strong performance, HKJC officials especially when home-grown players are involved. According to Grant Thornton, about 10 online have regularly complained about the impact of rampant sportsbooks had been given Philippine Offshore Gaming illegal gambling on their business. So, taking the old adage of if you can’t beat them, join Operator licenses as of the second quarter, with market regulator, PAGCOR, expecting to generate some P6 billion them. It may be time for Asian governments to follow in additional income this year from its 55 online licensees. the lead of the U.S. in legalizing sports betting to claw Vietnam has also moved to legalize sports betting, back some of the funds their citizens are funnelling into introducing a decree last year that was fleshed out by a illegal operators.
“
”
Asia Gaming Briefings | October 2018
