Shawn R. ReidNevada Gaming Control

Board

Match FixingIs it the biggest threat to the gambling industry in the 21st century?

October 29, 2014

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As of June 30, 2014 there were a total of 183 licensed sports pools in Nevada

Over the last ten years Sports Pool Win has averaged 1.4% of total gaming win in Nevada (FY 2014: 6.08%)

Nevada Sports Betting

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Total Sports Pool Win(FY ‘14: $227,488,533)

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 $-

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%Fiscal Year Total Sports Pool Win FY05-FY14

Sports Pool Win Linear (Sports Pool Win) Percentage Change

Foot

ball

Betti

ng W

IN

Perc

enta

ge C

hang

e

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Nevada Sports Pool Volume(FY ’14: $3,739,467,788)

Win %: 6.08%

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 -

500,000,000

1,000,000,000

1,500,000,000

2,000,000,000

2,500,000,000

3,000,000,000

3,500,000,000

4,000,000,000

-5%

0%

5%

10%

15%

20%Fiscal Year Total Sports Pool Volume

FY05-FY14

Sports Pool Volume Linear (Sports Pool Volume)Percentage Change

Sport

s P

ool

Volu

me

Per

centa

ge

Change

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Increase in handle/Increase in hold – Licensees were luckier in Football

Attempts to increase handleMobile Apps (smartphones) – IntrastateMore betting options (small portion in-running

wagering)

Reasons for Increase

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Nevada’s goals are similar to the goals of the IOC, NGCB signed an MOU with IOC in January 2014 and is a member of the IOC’s Integrity Betting Intelligence System (IBIS).

Create a framework for transparency, confidentiality and trust between stakeholders Safeguard sports from any negative influence connected to sports betting

Work closely with law enforcement (Federal/State/Local) Work closely with licensees Work closely with sports governing bodies

NRS 465.070 Fraudulent Acts. It is unlawful for any person:

(8) To offer, promise or give anything of value to anyone for the purpose of influencing the outcome of a race, sporting event, contest or game upon which a wager may be made

NGC Regulation 22 Governs wagers on Athletic Sports Events Details prohibited Wagers on professional and collegiate sport or athletic event Process for approval/denial of wagers on non-sporting event Burden on licensee to “prevent the circumvention of this regulation”

Reports of suspicious wagers Know your customer Internal Controls

NEVADA What is in place to deal with potential “match fixing” issues?

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Match fixing is a risk. Regulated sports betting framework helps to minimize:

Risk to the gambling industryRisk to patronsRisk to State/Country/JurisdictionRisk to sport

Unregulated/Illegal wagering on sports makes these risks greater

NRS 463.160 Unlawful to expose for play in Nevada a sports pool without first being licensed

Off-Shore sports betting site exposing sports wagering in Nevada Jurisdiction issues and remedies

Cease and desist Letters? Prosecution (Local/State/Federal)?

Is Match Fixing the biggest threat to the gambling industry in the 21st Century?