2019 MONITORING & INTELLIGENCE REPORT

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1. PRESIDENT’S MESSAGE 3

2. 2019 HIGHLIGHTS 4

3. MONITORING REPORT 6

4. THE VIEWS OF OUR PARTNERS 12

5. THE ASSOCIATE MEMBERS' CORNER 19

TABLE OF CONTENTS

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PRESIDENT’S MESSAGE

Dear friends and colleagues,

I wish you all a happy new year 2020, full of prosperity and integrity!

On behalf of the GLMS Executive Committee and team, I am pleased to present you the results of the GLMS monitoring and intelligence activities for the year 2019. The

attached report provides key facts and figures about the ongoing rigorous monitoring activities which GLMS carried out over the course of last year.

GLMS global network and local capabilities served as a key factor in the quality of the intelligence work produced and these results would not have been possible without the strategic input and feedback from all our members. I would like to take this opportunity to sincerely thank each and every one of our 33 members for contributing to the credibility of our integrity and monitoring activities.

 Looking back to the year 2019, we are proud to have so many achievements added to our track record. The year saw growth in the

GLMS membership base, new key partnerships, the organization of an important educational event in Lausanne, as well as a General Assembly during

which we had the opportunity to update our members on the progress of our work. We also further enhanced our communication channels, notably via the creation of a new website, which we invite you to regularly visit at www.glms-sport.org. In 2019, we were also excited to see the long-awaited Council of Europe Convention on Sport Competition Manipulations come into force. As you will read from our report, we were quite operationally active throughout the year, flagging early warning signs based on evidence and data related to sporting events across countless categories to our partners; as well as collaborating and delivering critical analysis and intelligence in our reports to our GLMS stakeholders, upon request.

 As we look ahead to 2020, we will continue in our effort to expand our global membership base. We are also planning to open a new Integrity Hub in Canada, following Hong Kong to further consolidate the process of globalization of GLMS targeting North American jurisdictions. A sports integrity conference is planned for April 28-29 in Lausanne while we are working with several public stakeholders on a number of education and integrity projects. We also look forward to further supporting the Council of Europe with the promotion and implementation of the Macolin Convention, which is clearly the most comprehensive and global legal instrument acting against the manipulation of sport competitions world-wide.    

Follow us for the latest news on our new GLMS digital channels: www.glms-sport.org !

Yours in Integrity,

Ludovico Calvi

MESSAGE FROM THE PRESIDENT

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GLMS ADDRESSES US SPORTS BETTING REGULATORS AT THE 33RD NCPG CONFERENCE IN DENVER IN JULY 2019

GLMS CONTRIBUTES TO HEARING OF THE COE PARLIAMENTARY COMMITTEE IN VIEW OF UPCOMING PACE REPORT

IN STRASBOURG IN OCTOBER 2019

GLMS PARTICIPATES IN THE BRAZILIAN SPORTS INTEGRITY SUMMIT ORGANISED BY THE INTERNATIONAL GOVERNANCE AND RISK INSTITUTE (GOVRISK) IN OCTOBER 2019

Giancarlo Sergi addressed the participants of the Hearing of the

Committee on Culture, Science, Education and Media of the

Parliamentary Assembly of the Council of Europe.

2019 HIGHLIGHTSJuly – December 2019

GLMS presented and took part in the Roundtable that brought together regulators and industry leaders to exchange perspectives on leading best practices to promote responsible gambling and sports integrity.

GLMS President underlines the importance of cooperative sharing of best practices among Regulators, Private and Public Stakeholders.

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GLMS PRESIDENT ADDRESSES LATIN AMERICAN LOTTERIES AND STAKEHOLDERS AT THE 17TH CIBELAE CONGRESS IN NOVEMBER 2019 IN SAN JOSE, COSTA RICA

Ludovico Calvi presented the mission and vision of GLMS and urged Latin American Lotteries to join the GLMS, showing their commitment to the safeguard of sport ethics, fully in line with their core lottery values.

GLMS ACTIVELY CONTRIBUTES TO THE EL/WLA SPORTS BETTING SEMINAR IN NOVEMBER 2019 IN MADRID

GLMS CONTRIBUTES TO THE 11TH INTERPOL MATCH-FIXING TASK

FORCE MEETING IN DECEMBER 2019 IN

SINGAPORE

GLMS President, Ludovico Calvi, took part in the panel discussion “US Market Regulatory Situation & Challenges for Lotteries

GLMS Intelligence Analyst, Daniel Chan, participated in this important event and presented how the GLMS

intelligence system works.

2019 HIGHLIGHTSJuly – December 2019

MONITORING REPORT

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REPORTING TO PARTNERS

Over the year of 2019, GLMS has alerted 157 matches* to its partners. The vast majority of the alerts went to our football partners FIFA and UEFA (98 alerts).

The rest of the alerts were sent to the International Olympic Committee (IOC), Tennis Integrity Unit (TIU), the Esports Integrity Commission (ESIC), Law Enforcement Authorities or Local Gaming Authorities or regulators. A good number of detailed analysis reports have been also prepared on request by members or partners.

*Some matches are alerted to more than one partner.

157 ALERTS TO PARTNERS

76

78

22

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UEFAFIFAIOCOthers

DETAILED ANALYSIS

Directly or upon request of a Partner/Member, GLMS Operations Team prepares a detailed analysisof a given match. Reports from the GLMS Operations team to the relevant partners and membersmay include the following information:

Total number of matches analyzed

Total number of analysis reports have been developed

11269

GLMS Members & Partners can feel encouraged to request a detailed analysis in relation to matches that cause concerns

(directly or upon request by Members/Partners)

(directly or upon request by Members/Partners)

• Irregularities, including suspicious bets received or abnormal trading patterns experienced reported by GLMS members without breaching the data privacy law such as geographic area of the bets

• Analysis of the pre-match and In-play odds movements from international betting markets, including Asian markets. Presenting with GLMS invented terminology, GLMS Basis of Handicap or Goals (GIBH, GIBG) to illustrate the irregular in-play trading patterns comparing to the sampling to all audience, including non-betting industry

• Analysis of any other possible evidence, including Betting Exchanges via our proprietary software powered by TXODDS, suspicious gameplay on pitch, motivation, team related news, betting moves win etc.

• Analysis of any possible evidence to oppose the concern of manipulation.

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787 ALERTS SENT TO MEMBERS

32 NORTH AMERICAFootball 11 Basketball 2 Tennis 4 E-Sport 1 Ice-hockey 8American Football 6

65 SOUTH AMERICAFootball 59 Basketball 5 Tennis 1

570 EUROPEFootball 450Basketball 62Tennis 16E-Sport 3 Volleyball 7Handball 4Ice hockey 22Table Tennis 4 Badminton 2

18 AFRICAFootball 16Tennis 2

88 ASIAFootball 67 Basketball 16 Tennis 4 Badminton 1

12 INTERNATIONAL Football 9Basketball 2 Tennis 1

2 OCEANIAFootball 2

ALERTS TO MEMBERS

22 RED ALERTS WERE SHARED PRE LIVE/IN-PLAY

64%

4%32%

End as expected: 14 With no result to confirm the odds movement: 7 Postponed/Cancelled: 1

In order to reach a report, GLMS first generates an alert, each time an irregularity in terms of betting patterns is detected – the alert generated leads to thorough consultation with the GLMS Members

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ALERTS TO MEMBERS

GENERATION OF ALERT - TIMING

Out of these 787 alerts that were created over 2019, 583 were created before the match start while 18 alerts were based on in-play odds changes. 186 alerts were triggered after matches had ended.

ALERTS COLOR DISTRIBUTION

Out of these 787 alerts, 50 were code red and 22 of them were generated in pre-match or during live. There were 160 yellow alerts and 420 green alerts. The rest 157 alerts were a result of a request or information provided from our Members or Partners.

18 583

186

Pre-livePost-matchIn-play

Red YellowGreenOthers (Request, Member info)

50420

160

157

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ALERTS TO MEMBERS

ALERTS SPORTS TYPE

REASONS TRIGGER ALERTS

73

19410

65

64

553

34

Significant Odds change Suspicious Odds changeOdds changes that need further investigationTeam related newsStructure of TournamentWrong opening priceMember infoRequestMotivationRumors of match fixingBetfair volumeSame Owner of the clubPartner Information

Football

Basketball

Tennis

E-Sport

Volleyball

Handball

Ice hockey

Table Tennis

Badminton

American Football

43

136

137

01 00 200 300 400 500 600 700

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GLMS ALERTS METHODOLOGY & CLASSIFICATION

In order to reach a report, GLMS first generates an alert, each time an irregularity in terms of betting patterns is detected. An alert generated leads to thorough consultation with the GLMS Members, as well as a deep investigation on potential grounds that could justify the irregularity detected in the odds changes.

When the irregularity cannot be justified on objective grounds and also the information received from GLMS Members (also regarding the money flows) further indicate an irregularity, then GLMS issues a report

Green Alert Yellow Alert Red Alert

• Team related news

• Motivation

• Same owner/sponsor of the club

• Farmer club

• Member info

• Minor odds changes that need further investigation - could be justified by info

• Wrong starting prices

• Member info

• Betfair volume

• Unexplainable odds changes

• Structure of tournament

• Rumors of matchfixing - from social media, betting forums, news etc.

• Suspicious odds changes

• Member info

• Rumors of matchfixing from a named source

• Betfair volume/patterns

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Interview

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VIEWS OF OUR PARTNERS

1 / Can you explain the role of EUROPOL in the fight against sport competition manipulations as well as its most significant achievements so far

Europol is the European Union Agency for Law Enforcement Cooperation and our mission is to make the European Union more secure. We fight serious international and organised crime by acting as the main information hub for the exchange of criminal intelligence at EU level. We deliver agile operational support and provide European policing solutions jointly with our partners. In 2018 we have supported 1 748 cases of serious, and organised international crime.

S corruption is a profitable serious crime that attracts the interest of organised crime groups from inside and outside the EU. This crime has a significant impact on the EU and requires a robust and consistent response from law enforcement level.

The fight against sport competition manipulations is often a challenge for law enforcement agencies across the EU, due to several elements that feature this type of criminality such as: the high-transnational nature of the crime, and the perceived picture of low-risk-high profit crime, which attracts many organised crime groups to exploit sport as a tool to gain high illegal profits.

On top of this, relevant information to counter criminal groups involved in sports corruption are to be searched in different contexts, such as the affected sporting competitions, the external environment and the betting markets that are very often exploited by criminals to profit from manipulated competitions.

Against this complex background, Europol has created in 2014 a dedicated operational project, the Analysis Project Sports Corruption, which has the specific role to provide the best analytical and operational support to Member States’ major cross-border investigations related to all forms of corruption in sport, including competition manipulations.

Europol is using a unique set of services and products for the analytical and operational support the agency offers to Member States and operational partners. →

AN INTERVIEW WITH SERGIO D’ORSI, TEAM LEADER. ANALYSIS PROJECT SPORTS CORRUPTION, EUROPEAN SERIOUS AND ORGANISED CRIME CENTRE (ESOCC), EUROPOL

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“Europol’s Analysis Project Sports Corruption has recorded a substantial increase of information flow on sports corruption cases”

Due to its state-of-art intelligence and analytical capabilities, Europol is able to ‘collect and connect’ a huge quantity of information and data, and to shape it in a broader and actionable intelligence to the benefit of Member States and operational partners engaged in the fight of sports corruption and competitions manipulation.

In terms of concrete achievements, Europol’s Analysis Project Sports Corruption has recorded a substantial increase of information flow on sports corruption cases compared to the previous two years. This has been positively reflected in an increased number of major operations supported

in different Member States, resulting in the disruption of several Organised Crime Groups operating in the EU and beyond and severely affecting the integrity of many sport competitions of different professional sports, especially football and tennis.

VIEWS OF OUR PARTNERS

AN INTERVIEW WITH SERGIO D’ORSI, TEAM LEADER. ANALYSIS PROJECT SPORTS CORRUPTION, EUROPEAN SERIOUS AND ORGANISED CRIME CENTRE (ESOCC), EUROPOL

Interview

with

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On a more strategic level, Europol’s Analysis Project Sports Corruption has recorded new trends and modus operandi associated with OCGs involved in sports corruption and has issued Early Warning Notifications to Member States to keep them abreast of new trends and developments in this crime area in order to allow a prompt operational response. Europol has also expanded its partnerships with the Private Sector by engaging in Memorandum of Understandings with important external stakeholders such as UEFA, TIU, SPORTRADAR, GLMS and, more recently with the IOC.

Finally, Europol’s AP Sports Corruption has designed and implemented the so called Europol Platform of Expert (EPE) - under the name of ‘SCORNET” - on sports corruption, as a unique online tool in its kind in the EU with the purpose to facilitate a proactive exchange of information (non-personal data), news and best practices between a large community of Experts, including law enforcement, private sector and academia who are active in this field of work.

2 / How can monitoring reports can support / trigger a law enforcement investigations? What are the opportunities and challenges from your own experience?

Europol’s operational experience shows that a large number of matches are manipulated for betting-related purposes and criminals target betting markets in Asia as well as in Europe.

It is therefore critical to keep a high level of alert and a global overview on matches of different sports that may have been targeted by organised crime groups for this purpose. In this perspective, reports produced by monitoring companies that have a global reach may allow to spot a suspicious match, which otherwise might go unnoticed to sports organisations and law enforcement agencies. These type of monitoring reports may trigger an intelligence gathering activity or even a criminal investigation if corroborated by other meaningful elements that point at the suspicious nature of a match.

If from one hand such monitoring reports do represent an opportunity to spot possible wrongdoings in sporting competitions, they also feature the common challenge of not being enough, as standing alone pieces of information, to allow prosecutions of competitions manipulations cases. However, they can be considered as valuable hints for law enforcement to engage in further and more in-depth investigations on suspicious cases of match manipulation.

VIEWS OF OUR PARTNERS

AN INTERVIEW WITH SERGIO D’ORSI, TEAM LEADER. ANALYSIS PROJECT SPORTS CORRUPTION, EUROPEAN SERIOUS AND ORGANISED CRIME CENTRE (ESOCC), EUROPOL

Interview

with

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3 / EUROPOL last year concluded an MoU with GLMS? How can GLMS support and add value to your work?

As we know from operational experience gained so far in this field of work, there are several tools and best practices that are beneficial for developing effective investigations into sports corruption. Among them are I see good cooperation with all actors involved, especially with main stakeholders from the sports environment and with organisations actively involved in monitoring irregular/suspicious betting patterns, such as GLMS.

This multi-stakeholder approach allows to collect all possible pieces of information, which may be useful to assist law enforcement investigations, thus contributing to establish a structured way of exploiting, in a systematic manner, such information for intelligence and investigation purposes.

Due to its extended and global monitoring capabilities, GLMS can contribute to provide such useful information through the alerts and reports generated to the benefit of Europol and the EU Member States.

In this perspective, Europol is continuing to enhance the value of its network by providing Member States with access to a growing number of partners and sources of information, also forming new Coalitions with private partners such as in the case with GLMS. This approach remains in line with Europol’s high level of commitment in combating organised crime involved in sports corruption.

”Due to its extended and global monitoring capabilities , GLMS can contribute to provide such useful information through the alerts and reports generated to the benefit of Europol and the EU Member States”

VIEWS OF OUR PARTNERS

Interview

withAN INTERVIEW WITH SERGIO D’ORSI, TEAM LEADER. ANALYSIS PROJECT SPORTS CORRUPTION, EUROPEAN SERIOUS AND ORGANISED CRIME CENTRE (ESOCC), EUROPOL

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Interview

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VIEWS OF OUR PARTNERS

“The sports betting market has been growing rapidly since 2001”

1 / Can you describe the sports betting market in Korea and the sports betting operations of KTOTO

Ilho: The sports betting business in S. Korea was introduced in Oct. 2001 in accordance with the National Sports Promotion Act. It was a public service project aimed to successfully host the 2002 FIFA World Cup Korea/Japan and for the development of national sports fund.

The sports betting market has been growing rapidly since 2001 and in 2018, the share volume of sports betting in the gambling market of S. Korea was 17.8% (Gross Gambling yield) and the turnover was 3.63 bil. €

Ktoto, the 2nd operator, manages all of sports betting operation and handles 6,500 nationwide offline stores and one internet site since Jul. 2015.

Using in-house developed system, Ktoto offers both pari-mutuel (9% of turnover) and fixed odds games (91% of turnover) in the domestic and foreign matches of football, baseball, basketball, volleyball and golf (mainly top tier games).

For fixed odds games, Ktoto only offers pre-match (no live games) and does not offer single (only 2 to 10 combinations allowed) due to the heavy regulation from the government.

AN INTERVIEW WITH ILHO LEE, MANAGER OF ODDS COMPILING TEAM, KTOTO AND GLMS EXCO MEMBER

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Interview

with

VIEWS OF OUR PARTNERS

2 / Lotteries all over the world have always supported society and good causes. Could you inform of how KTOTO has been supporting sport of all levels in Korea? And how has KTOTO been involved in the last edition of the Winter Olympics

Ilho: Like other lotteries, the ultimate goal of this business is strengthening S. Korea’s base as a strong sports country by forming an environment in which everyone can enjoy the benefits of sport welfare.

Although Ktoto does not help any kind of sports directly except running Skating club (speed skating and short track, Olympic athletes) and women professional football team, but all profits of the business are distributed to the national sports promotion fund which is used for “sport for all” such as the construction of public sports center and the gyms in schools, supporting sports organizations, grass-root programs and the hosting of the international competitions. For your information, the revenue of the sports betting consists 83.1% of national sports promotion fund and 16.9% of the national budget for the sports.

Regarding the 2018 Winter Olympic, Ktoto are not allowed to sell the product of Winter Olympic game due to the government regulations. However, Ktoto tried to engage 5 circles with the Olympic (please see below)

AN INTERVIEW WITH ILHO LEE, MANAGER OF ODDS COMPILING TEAM, KTOTO AND GLMS EXCO MEMBER

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Interview

with

VIEWS OF OUR PARTNERS

For Venue construction, Ktoto contributed to raise funds for constructing Olympic stadiums. Also, Ktoto sold another special product called “SPECIAL+” to contribute to host the 2018 Winter Olympics from 2011 and raised 674 mil. €.

Also, Ktoto found “Sportstoto Skating Club” (speed skating and short track team) to help best players.

Pyeongchang Olympic Stadium

Spectator on-site marketing ad.

Speed skating & Short track team Speed skating & Short track team

Gangneung Hockey Center

AN INTERVIEW WITH ILHO LEE, MANAGER OF ODDS COMPILING TEAM, KTOTO AND GLMS EXCO MEMBER

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THE ASSOCIATE MEMBERS' CORNER

OPEN TO YOU. TO YOUR PLAYERS.TO ALL SPORTS, FOR EVERY CHANNEL.OPEN TO POSSIBILITIES OF VICTORY, RISK AND REWARD.

MAKING IT MORE FUN, ABSORBING ANDREWARDING. EDGE OF THE SEAT EXCITEMENTFOR EVERYONE WHO PLAYS.

OPEN TO YOUR IDEAS, OPEN WHEREVERYOU ARE. WITH SEARING TECHNOLOGYAND SOARING CREATIVITY TO PRODUCEUNMATCHED SPORTS BETTING EXPERIENCESFOR YOUR PLAYERS.

MEMORABLE PLAYER EXPERIENCES. NO ONE GETS YOU CLOSER.

FIND OUT MORE AT: www.sgdigital.com/opensports

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THE ASSOCIATE MEMBERS' CORNER

Innovation & Integrity in the Sports Betting Industry by Spasov Hristo, Online Trading Director, INTRALOT SA

Technological advancements have brought a fundamental shift in sports betting practices affecting the way customers interact and the offering of products’ portfolios. In our digitalized era, the vast volume and granularity of the data that are being collected during the sporting events and detailed live events statistics have enabled Lotteries to offer new and exciting sports betting markets to their punters. In-play is one of the most successful forms of sports betting in the recent years.

The extensive players performance data and sophisticated pricing models allow to predict the individual player’s next action, the next incident event, and to quantify the teams and players’ performance at every minute of a sporting event. Punters can now bet on the next action of their favorite football Team or individual Player in a series of instances: whether it is going to be a shot or a pass, a throw in or an offside, etc.

All these new opportunities can increase engagement and offer a high entertaining value for the punters, however they also bear a huge integrity risk, since effectively bets are for the individual player’s actions in every minute of the event. Those actions may not directly impact the overall match outcome; however, they oppose a significant performance integrity issue, creating a great challenge for the sports integrity units and data providers.

The quality and trustworthiness of data is becoming a major prerequisite for the seamless and safe operation. Only the official data can provide an accurate performance estimation to calculate the odds and correctly result the markets. Working closely with the operators to monitor and react on every suspicious betting alert is crucial for the integrity units to stay on top of the game.

This new era in sports betting offering sophisticated and engaging betting products require new higher standards in quality and accuracy and improved performance pricing models. This in return provides an enhanced player betting experience and quality of the betting product which enables bettors to play in a safe, engaging, and entertaining environment. Therefore, it is imperative for Lotteries to ensure a fair and safe gaming experience for Players and to offer customers the highest standards of responsible gaming operation.

INTRALOT as a long-standing and active member of World Lottery Association, European Lotteries and the Global Lottery Monitoring System (GLMS) has adopted and applied the highest standards of Responsible Gaming throughout its business functions and global operations, with an emphasis on player protection, integrity and security. Building a solid corporate culture driven by ethical commitment to society is a fundamental element of INTRALOT’s strategic plan to continue to be an industry leader in innovation and performance excellence.

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THE ASSOCIATE MEMBERS' CORNER

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GLMS is the state lotteries’ mutualized monitoring system on sports betting. It aims at detecting and analyzing suspicious betting activities that could question the integrity of a sport competition. Building on six years of experience with the establishment in 2009 of ELMS with European Lotteries, GLMS went global in January 2015 extending the network to other continents. GLMS facilitates the sharing of sports betting information as part of the collective efforts of its members in ensuring sports integrity globally, and is dedicated to effective cooperation with all key stakeholders: regulators, law enforcement authorities, sports organizations.

ABOUT GLMS

INDIVIDUAL MEMBERS

COLLECTIVE MEMBERS

ASSOCIATE MEMBERS

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