Australian Sports Leagues in Trouble Over ‘Secret’ Betting Claims

Australian sports leagues in hot water over 'secret' betting claims

As if the Australian gambling ecosystem doesn’t already have enough headaches from money laundering scandals at casino sites, sports sites are making things even worse. Exposes by Australian media ABC News confirmed that the country’s sports leagues make money from betting on all sports, including football matches involving youth players.

Sportsbooks around the world can expand their betting offerings with the help of sports data scouting at live events. Scouts collect data which is then returned to the sports betting provider. Scouts can only attend games if allowed by the league.

This practice, which is set out in contracts and applied globally, is harmless and does not sufficiently draw attention to possible misconduct. However, there are also "secret" contracts that almost no one knows about in Australian sport.

Make Big Money with Secret Deals

Earn up to 17.5% off sports betting on Australian sports leagues including the Australian Football League, National Rugby League (NRL), Cricket Australia and more. According to ABC News and its Four Corners division, the revenue stream comes from commissions paid by sportsbooks to these organizations. Four Corners aims to "expose scandals, spark investigations, spark debate and fight taboos," according to its website.

The NRL has confirmed it receives around A$50 million (US$33.74 million) a year in revenue from its agreements with the sports betting ecosystem. The Australian Rugby League reportedly earns as much as A$40 million ($27 million).

The leagues use the money to ensure their respective sports maintain the highest levels of integrity. Part of the funds go to "integrity services" and non-profit football development projects. The NRL said the revenue stream from sports betting was "relatively small".

There are people all over the world who can bet on our games without knowing who we are. There has to be a limit,” South Springville Football Club President Jim Simos said.

Football Australia will reportedly receive 1 per cent of every football bet placed in Australia or 15 per cent of bookmaker winnings, whichever is higher. Even if sportsbooks have to pay out specific bets and take losses, the league still wins.

Where the story gets interesting is at a recent match played by South Springvale Football Club in the Victorian Division One competition. It is part of the Australian Semi-Professional Football League, with teams consisting mainly of "plumbers, electricians and doctors". According to ABC News.

Last month, Springville South played a game with data scouts on hand. He apparently works for Sportradar and is one of 5,000 scouts employed globally by the sports data company.

Mad Money for Unknown Teams

This is not just a professional or semi-professional league.ABC News singled out Bet365, saying the sportsbook offered bets on 146 Australian football matches over the weekend in May. Among them, there is a U20 competition, and the young players of the participating teams are only 15 years old.

Even clubs don't like the idea of seeing scouts at games. South Springville President Jim Simos called it "disturbing." He rejected the idea of allowing people around the world to bet on teams they knew nothing about, claiming Football Australia had never raised the issue with clubs.

Lower level sports leagues hire players for the love of the game, not for the money. Many of these institutions around the world do not provide salaries or compensation to players.

This presents a problem because, as former Bet365 trader Prasad Kanitkar puts it, each of these games can attract “thousands of bets per minute.” With “up to $1 million” being bet on a single game, the stakes are high for bettors. This gives them an incentive to offer players money to help them win their bets. Bet365 disputes the claim and the amount earned.

The problem is already being studied on the other side of the world. A recent match-fixing scandal in Brazil has caused trouble for the football community around the world. The new disclosures in Australia are likely to trigger greater scrutiny.