Technology is increasing the threat of illegal betting, HKJC manager says
James Porteous says technology “means that it is easier than ever to become an illegal bettor”.
Hong Kong.- Speaking at the second day of the 40th Asian Racing Conference Hong Kong Jockey Club (HKJC) senior manager for due diligence and research James Porteous raised concerns about the impact of new technology in illegal gambling operations connected to organised crime.
Porteous said: “Technology means that it is easier than ever to become an illegal bettor. The customer recruitment commissions for illegal betting agents are now so potentially lucrative that they are massively incentivised financially to exploit every technological platform.
“Illegal betting is a pillar of which these organised crime groups depend on funding. The Asian Racing Federation (ARF) was one of the first to highlight how the exact same organised crime groups in illegal betting are also behind the global epidemic of cyber fraud.
“Through Covid-19 we saw a surge in illegal betting and now, in 2024, it’s clear that the surge in illegal betting was not temporary – that has been sustained. Unlicensed illegal betting platforms, which are highly competitive on price and product, have massively expanded through technology.”
Martin Purbrick, chairperson of the ARF Council on Anti-Illegal Betting and Related Financial Crime, stressed the importance of integrity in horse racing, warning that the migration of customers to illegal markets undermines the financial contributions to the sport.
Tom Chignell, HKJC executive manager, racing integrity and betting analysis, commented: “One of the largest threats is that the illegal market becomes normalised for the average racing punter. We’re talking about the recreational market, we’re not looking at the high-end professional syndicate, who is dedicated to maximising their profit.
“There are a number of key factors driving this movement from the regulated market to the illegal market or stopping betting on racing all together. The illegal market is growing far greater in jurisdictions where there is the demand but not the supply, and supply is under threat by greater regulations and costs.”
Meanwhile, in another session, Michael Fitzsimons, executive director of wagering products at the HKJC addressed the issue of late odds fluctuations in parimutuel wagering, proposing innovations to enhance the World Pool’s operation and improve customer experience.
“For the first time, we are proposing this year to work on the World Pool professional hubs, where we come together with operators to agree on the rules and through our smart contracts technology, we will enforce these rules no matter where the professional enters the pool,” he said.
