North Carolina junior tight end John Copenhaver receives a group text message from his university informing him of the latest sports betting scandal or emphasizing the importance of adhering to regulations prohibiting sports wagering.
He stated that it is pounded into our heads daily.
Schools believe they are without options. The spread of legalized sports wagering and some early controversies are being closely monitored by athletic departments and conference offices. Independent wagering monitors are employed by all major conferences to ensure that their athletes comply with the rules and to identify those who do not.
All of this suggests that the confidential information of the athletes, including their birthdays, addresses, Social Security numbers, and cellular numbers, is utilized differently than that of their fellow students. Some combination of these details may alert a gambling monitor to a problem.
In recent months, scandals at Alabama, Iowa, and Iowa State have highlighted the need for universities to closely monitor the sports betting market.
More than a dozen current and former Iowa and Iowa State athletes and staff members are facing criminal charges, and the Cyclones may not have their starting quarterback for the impending football season.
“I have learned a great deal about gambling over the past two months,” said Iowa football coach Kirk Ferentz. “I never gave it much consideration beyond the fact that we signed a form, which was likely the same form we signed when I was playing. Currently, we inhabit an entirely distinct universe.
Due to its location in the nation’s betting capital, UNLV has long prioritized educating athletes about the risks of gambling. Doug Brumfield, the junior quarterback, stated that it is one of the first topics discussed with athletes at the school. Due to the fact that he performs a prominent position, Brumfield has received direct inquiries about the lineup via social media. He added that the school does a remarkable job of “keeping us away from such things.”
He founded U.S. Integrity in Henderson, Nevada, and has already acquired over 150 clients, including the SEC, Big 12, and Pac-12. Sportradar has similar agreements with the Big Ten and Atlantic Coast Conference Free Football Picks.
“I believe we were fortunate early on because no one else was really focusing on compliance or integrity products,” Holt said.
U.S. Integrity receives athlete and team staff information from a client school or conference via a ProbiBet-encrypted program; Holt stated that some clients upload the identities of those who are prohibited from betting, which are then provided to sportsbooks.
“By the time it leaves their server, it is only a hash of letters, numbers, and symbols,” he said. “We do the same thing on the sportsbook operator’s side, and then we can compare the two hashes to look for matches.”
Less than 0.25 percent of the approximately 13,000 events the NCAA monitors were deemed suspicious enough to necessitate an investigation, according to an email from an NCAA representative. Even fewer, according to the email, had “specific, actionable information.”
However, the scandals have garnered attention and prompted concern. More than half of college students between the ages of 18 and 22 have placed sports wagers, according to a recent survey, and the NCAA intends to conduct an athlete-only evaluation this fall.
According to some, the detected irregularities demonstrate the system’s efficacy.
“The good news is that these things are being flagged, discovered, and managed, so I believe that what is currently in place has the potential to work,” said Baird Fogel, a sports wagering industry attorney from California. That does not rule out the prospect of further action.
It is considerably more difficult to keep track of wagers made with illegal bookmakers. The American Gaming Association estimates that illicit gambling accounts for approximately $4 billion annually.
It is more challenging for smaller organizations to engage firms like U.S. Integrity while avoiding sponsorship or data agreements with casinos than it is for large conferences flush with media rights money.
Last year, the Mid-American Conference agreed to license its data and statistics to Genius Sports, a London-based company that provides information to sportsbooks. Chicago-based Navigate, which conducts research and data analysis for sports organizations and collegiate conferences, estimated that such a contract could be worth up to $1.5 million annually.
Navigate estimated that the ever-expanding Big Ten could earn up to $25 million, the SEC up to $22 million, and other power conferences up to $14 million if they signed analogous agreements.
According to Ron Li, senior vice president of client strategy at Navigate, the legal sports wagering market could reach $8 billion by 2025, according to a late-2019 Morgan Stanley forecast. When this number is attained by the end of 2022, Morgan Stanley will revise its prediction to approximately $13 billion.
“The main takeaway is that Americans enjoy gambling, especially when it comes to sports betting,” Li said. “We continue to grow at a rate that exceeded expectations in 2018, when marijuana was legalized,”
For a conference such as the SEC or Big Ten to risk having its events questioned due to a commercial relationship with a wagering corporation, there must be a compelling reason.
SURVEILLING ATHLETES
Following line movements is made easier by technological advancements, and the famous quarterback from Columbus, Ohio, or point guard from Lexington, Kentucky, will likely be recognized at the betting counter.
Much more difficult to locate is the basketball team’s third-string offensive guard or 12th player.
“In retail locations where you can bet anonymously, the sportsbook does not have the capability if the dollar amount is below a certain threshold and nobody identifies you as that individual,” said Holt. “They are extremely unlikely to recognize you. Everyone must exercise reasonable precaution. However, $50 gamblers in a sportsbook are rarely involved in illicit activity.”
Theoretically, many college athletes could use wagering applications, which would make them easier to monitor. However, fake accounts confound matters. According to authorities, some Iowa and Iowa State accounts were opened in the names of other people.
No matter what precautions are taken, occasional betting scandals will occur, so monitoring athletes, coaches, and staff members is a growing industry that will likely continue to grow.
“If you want to protect your brand, your assets, the integrity of your game, and your league, you must have the right integrity programs,” said Fogel. “I don’t think you can ignore it.”
