Who’s Your Money On? The Growing Epidemic of Mobile Sports Betting
By Mark Cooper (Sports Editor)
As an avid sports fan (and enthusiastic sports writer), it was a true joy to enjoy a spellbinding winter of sport. From the fairytale of Lionel Messi in Qatar, to the exploits of Jack Kennedy at the Leopardstown Christmas Festival through to the heroics of Michael Smith at the recent World Darts Championship, there never seemed a dull moment. However, when all was said and done, discussing the December of sport with colleagues, friends and teammates often did not focus on the stories, performances or personalities of our sporting heroes. In fact, far more time was spent dissecting the many winning (or more often losing) bets which had been placed on their choice of mobile betting app over the course of the various tournaments. The sheer scale of the online betting world had never personally seemed as apparent as this past Christmas, and it prompted this editor to take a step back to determine whether what was taking place was simply harmless entertainment or something far more sinister.
GAMBLING REVOLUTION
When the Betting Act of 1854 standardised the English and Irish laws of “Races, Sport, Games, or Exercises”, it is unlikely that the legislators of the time could have envisioned the behemoth that modern sports betting would have become. The modern gambling world has grown to much more than simple games of cards and horse racing. With the emergence of the digital age, a 24-hour cycle of sporting (and gambling) activity has emerged, not just in Ireland but across the world. To take one of the most powerful consumer bases in the world, the US market is one important indicator of global trends. In spite of restrictive laws across half of the country, our trans-Atlantic neighbours are still expected to see 8 billion dollars wagered in online sports betting in 2023, with New York only opening its doors to the web-based sportsbooks in this past year. Closer to home, the Irish betting industry is booming, with the 2019 figures suggesting the Irish gambling market sees wagers of between 6 and 7.5 billion euro. Considering the relatively small population of the country, this statistic seems deeply unsettling. However, this figure appears less surprising when one learns that Ireland has been a leader in developing the global sports betting industry for decades. Irish companies have even outgrown Ireland, pushing its gambling products into emerging markets such as North America and Eastern Europe. ‘Flutter’ is registered in Dublin, and owns such brands as ‘Paddy Power’, the European ‘PokerStars’ and US focused ‘FanDuel’, making it one of the most powerful betting firms in the world.
The fact that such a powerful company as Flutter is headquartered within our borders may explain why updated legislation such as the proposed Gambling Regulation Act has taken so long to be adopted.There have been few changes in the last twenty years since authoritative legislation was first proposed.
THE NUMBERS
National newspapers have covered many stories of high-profile problem gamblers such as GAA player Oisín McConville, soccer player Aaron Traynor and postman Tony O’Reilly (who stole over 1.75 million euro from An Post to feed his addiction). Nevertheless, a damning 2022 report by the government’s Health Research Board concluded that only 1.2% of those who gamble are considered at moderate to severe risk from gambling. While this is generally accepted by the international research community, the figure is misleading in that it considers those who purchased lotto tickets, scratch cards or play the occasional game of bingo once over the course of a year “gamblers”. Amongst the younger population, who are more likely to engage in online sports betting, the estimate of those who become “problem gamblers” rises to almost 10%. The most concerning recent revelation revolves around Irish youths, and the manner in which they are being targeted by betting companies on social media, on television and at sporting events.
A study conducted by the Economic and Social Research Institute (ESRI) found that one in ten people today will open and use an online betting account before the age of twenty. The point of particular concern arises in relation to young males, 8% of whom are considered active online gamblers, placing at least one bet a month over a twelve-month period. In fact, this number rises to 12% if that young man plays a team sport. These statistics do not make for pretty reading, but would appear on the low end based on the personal experiences of this editor. Having been an avid sports person throughout school and into young adulthood, one would be far more likely to find a young peer with an active betting account than without.
TRIALS AND TIPSTERS
Take the recent World Cup held in Qatar for example. A great variety of online sports betting sites offered so-called “No-deposit sign up bonuses”, which essentially amounted to free, no risk bets for new customers. These bets ranged from five to twenty-euro stakes, and allowed the user to take a free punt at any World Cup match. Customers could bet on match results, first goal scorer or even the number of throw-ins awarded. This incentive to take on an obvious good deal was taken up by a great number of other non-gamblers, who presumably did not simply cash out their accounts after their free bets had long been won or lost.
Likewise, the recent PDC World Darts Championship saw similar sign-up offers and promotions, all the way through to the thrilling final between Michael Van Gerwen and Michael Smith. In-play bets were advertised on social media, meaning punters could even make bets once the match had already started. However, these promotions and offers are not a new phenomenon, and while effective, are largely understood and controlled. A new trend has emerged which appears far more harmful to the youth of today; The Professional Tipster.
Across social media, in particular Instagram and Tiktok, a variety of personalities have begun to garner large followings by offering a series of free tips on horses, soccer and darts, encouraging people to make large bets in order to “Beat the bookies”. One such Irish tipster, (who will not be named for legal reasons) claims to be the largest tipster in the world, and produces a series of over-the-top videos on the short video platform Tiktok. These often go viral, in particular if the suggested bet turned out to be successful. However, the crux of these tipsters turned influencers is that they offer a paid service through which would-be bettors can chase their fortunes in a "safer” manner. Based on the comments of these tipsters’ videos, there is undoubtedly a skew towards young males, the very group identified as most vulnerable to problem gambling by the ESRI.
The concern in relation to this emerging industry is that it is viewed as a secure way to make money. With traditional online sports betting companies, there is no implied guarantee of success or financial gain. While there may be underhanded tactics used to try to addict consumers, most prudent users will understand that the betting firms will likely come out on top in the end and wager with that knowledge in mind. However, with the overwhelming confidence of these social media sports tipsters, people may be lulled into a false sense of security and bet beyond their means.
One fears that the younger, more vulnerable demographic of those digesting the content of these personalities will create more young problem gamblers, at a time when governmental regulations seek to curb the influence of betting firms on those very same people.
WHERE ARE WE HEADED?
So, what can be done? Well, governmental regulation is coming, and is supported by the independent lobbying group ‘Extern Problem Gambling’. Under the proposed Act, social media advertising will be prohibited unless users ‘opt-in’. Sponsorship by betting companies of sports clubs will be prohibited if said club has juvenile members. Incentives such as “free bets”, loyalty schemes, free credit, and free hospitality will be outlawed. A “watershed” ban on TV and online advertising between 5.30am and 9pm is also proposed as well as a ban on children being in gambling premises. Credit card betting will be banned, in a bid to curb gamblers putting themselves into debt. There will be a national exclusion register established. If a problem gambler “opts out”, every licensed gambling company must ensure that gambler does not have access to that service.
However, unless the laws are implemented (with harsh penalties), they may not amount to much more than governmental posturing. With the strong presence of gambling giants in Ireland, as well as industries backboned by the betting industry such as horse racing, there may be too much political pressure to fully implement the proposals. Irish gamblers lost approximately €1.36 billion in 2020, with that figure likely to have risen greatly in the past two years. There is great importance that the regulations are not watered down, so as to protect those most vulnerable to addiction. As a society, we must decide if we truly wish to protect our young people from the perils of online gambling. The alternative is to allow them to become the next national headline, stealing from their family or employer, ending up bankrupt or in prison. This may be the only chance the government has to “Beat the Bookies”, the only question is whether they will take the punt.