FreedomAtStake's Blog

Betfair is hunting down the cheats

By FreedomAtStake | View all Posts
Posted Monday, May 26, 2008 10:24 AM   4 comments
The NY Times published a great article yesterday discussing the growing problem of gambling scandals in sports, and how Betfair has been on the frontlines trying to combat the problem.

Given the subject matter, I have to admit that it was a pretty balanced article as it stayed away from perpetuating the hysteria that generally arises whenever somebody discusses the possibility that sporting matches can be fixed.

Because, let's face it, it happens.

And as an industry fighting for the right to exist, this issue could very well prove to be the most important factor deciding whether or not online gambling ever achieves mainstream acceptance.

For too long, we gamblers have looked at the problem of game-fixing with a wink and a smirk. As if to say, "That's terrible. I wish I had gotten in on the right side of that bet." That's the wrong attitude. Not only did you NOT get in on that bet, but you might have actually been on the wrong side of it without knowing... and you are still not pissed?!?

Instead, we should be looking at these betting scandals as if they were our industry's version of Enron or Tyco. Examples of pure unadulterated greed gone berserk, and they should be rooted out and punished to the fullest extent of the law. That's the only way they are going to stop.

The majority of the people populating this industry still seem to have the attitude that we are existing in some sort of virtual reality version of Deadwood. Since everybody (ie. Americans) is technically breaking the law by gambling online, it's OK when somebody occasionally goes too far and breaks other laws too.

We've come to accept sportsbooks disappearing with customer deposits. We've come to expect online casinos to be rigged. How else could Absolute Poker suffer one of the most egregious examples of rigged betting - only 6 months ago - and yet the site is not only still in business, but it is still thriving. How does THAT situation make our industry look responsible? Actions apparently have no consequences in our isolated world. We forgive the cheats as if they are silly little children - you know that boys will be boys.

This attitude is harming us.

Our lives will all be a lot easier and less stressful if we didn't have to worry about all of the bullshit that comes with trying to simply place a few bets online. We would all benefit if we can get the government to ease up a bit and just let us do our thing.

But I can guarantee you that will never happen as long as these betting scandals keep happening - and our industry keeps laughing them off.

All it takes is a couple of politicians to browse sites like this and others, and see how lackadaisical our attitude really is about these issues. And that does nothing to help convince those politicians that we really are upstanding individuals forced into this underworld by their laws. All it does is convince them that we really are the cowboys and criminals they thought we were, so there is no reason for them to change their stance.

We bring it on ourselves.

The online gambling industry needs more companies like Betfair, who will do anything in their power to root out unethical and illegal behavior and bring it to light.

I'm calling on all online sportsbooks to start analyzing their usage the same way Betfair does. Don't let the bad guys win. It ain't helping the good guys.

4 comments
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K_Z_Z_A88 says:
05/26/08 12:04PM
Good story and nice idea..............in theory.  As long as Books don't use this as some excuse to take back winnings I have no problem with it .  But unless there is some serious watching of the Books then this will get outta hand just like the other issues like payouts and stuff like that.
RissyGold says:
05/26/08 11:48PM
I believe part of the problem is that the general public, the Squares - like me, don't "accept it", but we treat it more like the weather. We know something is brewing, however, we are not in a position to change it. Therefore we acquiesce (yield) to its existance and just hope that our game/wager hasn't been affected. A square can't prove tampering. Hell, most squares don't even understand the difference between a bad beat and bad wager! Let me ask: if an on-line does find a case of tampering, who is rebated....everyone? Only the players that complain? And in reality, how will I truly know if a game has been altered? I won't.

I have no idea who licensed/licenses Absolute Poker, but wouldn't it be beneficial to the whole industy to that license suspended for "X" amount of days or heavily fined? I understand that the site would still have the ability to be up and running (or not, I have no idea). Whatever the punishment, it would be bold and public. It would also give notice to the public-at-large that on-line gambling is being monitored and can be a safe and secure industry. By the way: what penalties, if any, did AP have to absorb??

FreedomAtStake says:
05/27/08 09:30AM
RG,

That is the problem with the current situation... nobody knows if or how often these suspicious situations arise.

Sportsbooks don't want to publicize it, because it's a lose-lose situation. If they void the winners, then honest bettors who followed the steam will get screwed. Plus, then the losers will want to be refunded too. So they just try to quietly void the suspicious bets and keep the matter as quiet as possible.

In other words, they treat the symptom, and ignore the cause.

This is where regulation or at least some sort of cooperation within the industry would help. If the sportsbooks had a place to share information and report issues, then these matters could be better investigated.

As for Absolute Poker, the Kahnawake Gaming Commission did stick them with a $500K fine and a number of other penalties. But really, for the scale of the event and the black mark it put on the entire online gaming industry, the punishment was pretty lame.

And that is another problem with this industry. This is not a slam against Kahnawake, but there are so many shady jurisdictions that would love to host these companies that it gets hard for honest ones to actually enact strong enforcement, because they know that these companies can easily jump ship to somewhere more lax.

RissyGold says:
05/28/08 12:57AM
Freedom,

Thanks for the info about AP.

I appreciate your views and research for the gaming industry. But (LOL), I can't get away from the feeling that there are benefits for the Sportsbook (SB) by bringing these items public - boldly and loud. SB's clearly announcing they have pulled a game off the board due to suspicious betting patterns or activity AND refunding immediately puts the cheaters on the alert that they have been spotted this time. The SB also issues a perceived security to bettors that they are watching things closely. A game can always go back up circled later in the week or not at all if an investigation doesn't totally clear the issue(s). I'd greatly apprecaite and understand seeing Texas/Oklahoma off the board due to strange betting patterns, then bet into it not knowing something bad was going on. I think most people who come to the 'net to wager would too. The SB doesn't have to be the watchdog, but they have to be the watchdog, ya know?

Oh, I truly believe that the major on-line SB's monitor each others lines and share some information. I'd even go so far to wager that major SB's have specific people or departments that are dedicated to just watching line changes on many other SB sites. For example, SB X and SB Y have the same football game posted at -4. SB Y's line jumps to -6 suddenly on Tuesday, SB X may consider a small adjustment in price to deter large bettors from following the steam until some research is done.

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