Steep, rising curve for bets
COMMENT
By LOURDES CHARLES
When the Fifa World Cup begins next month in South Africa, one sure bet is that millions of ringgit will be raked in by local betting syndicates. In the absence of regulated sports betting, illegal bookies will be laughing all the way to the bank.IT IS estimated that billions of ringgit will change hands worldwide during this one football season alone.
Gambling is a thorny moral issue which elicits intense response from both sides of the divide.
However, the reality is that without regulated sports betting, the ones who benefit the most are illegal bookies.
Another reality is that Malaysians love to bet, and they bet heavily on the world's top three football leagues – the English Premier League, La Liga (Spain) and the Serie A (Italy).
Not to be spared are the Thomas and Uber Cup matches. Bookies are already accepting bets, and they make it so very easy for punters.
Bookies have gone hi-tech and punters don't need to make tedious trips to their outlets.
All one needs is ready money and a computer. Create an Internet account and you are set to go.
With so much money involved, the biggest loser currently is the Government, as hundreds of millions in taxes can be collected if betting is legalised.
Just take a look at Singapore. For years, the Singapore government refused to give in to regulated gambling, even when Malaysia had allowed a casino to be operated in Genting Highlands.
After several decades, the island republic changed its stand. Now it allows not one but two integrated resorts and casinos to be built on a grand scale in Marina Bay and on Sentosa Island.
The government there had also earlier faced strong opposition; views on how gambling would tear the moral fibre of society were hotly debated.
The Singapore government paid heed and locked in several measures to placate fears.
As for sports betting, it has exploded in tandem with technological advances in broadcasting and the popularity of the Internet.
The introduction of mobile phones and 3G has enabled punters to place bets anywhere and any time from the comfort of their homes or even offices.
The flip side of such technological advances is that they have invariably helped illegal bookmaking syndicates spread their operations.
Online betting is almost impossible to detect compared to the “old ways,” where one has to be physically present to place one's bets or fax in the bets.
From the police point of view, regulated sports betting would not eliminate the activities of illegal bookmaking syndicates in the country.
However, Inspector-General of Police Tan Sri Musa Hassan has said that it could, to a certain level, help deprive organised crime syndicates of having full control of such activities.
“Maybe regulating sports betting could be an efficient way of fighting the underground economy, as proceeds from illegal sports betting are used to fuel organised crime and support harmful criminal activities,” he said.
It is estimated that Malaysians splurge almost RM8bil on sports betting annually with various online betting syndicates as well as with local bookies.
The police have their hands full trying to nab those involved in the underground economy, and have enlisted the help of the Malaysian Communications and Multimedia Commission to track the activities of illegal bookies.
They have been quite successful and have managed to shut down the operations of several syndicates with international links. Quite a number of those arrested under the Emergency Ordinance have also been banished under the Restricted Residence Act.
Police also announced recently that they have set up a special task force to monitor online betting syndicates, especially those hoping to make a killing during the World Cup football tournament.
What is argued as a positive aspect of sports betting is its capacity to raise money for the development of sports.
If more sports facilities can be built and more coaches hired as a result of more money being raised, the beneficiary of that will surely be Malaysia's sportsmen and women.
Better athletes can then translate into better attendances at the various sporting events in the country.
Regulated gambling in sports is not a new idea; almost all Western countries have done it.
The authorities should also consider allowing Internet or online betting to be hosted in Malaysia, on the condition that punters must open an account with a minimum amount before they start placing bets.
There are certainly advantages to legalising sports betting. And like Singapore, measures can be introduced to limit its influence.
The Government will be wise to keep its options open. With the vast amounts of money from taxes in this sector, this is one game too rich for us not to play.
Legalising sports betting makes fiscal sense
Making a Point - By Jagdev Singh Sidhu
·Deputy news editor Jagdev Singh Sidhu is eagerly awaiting to see the World Cup in high definition.
ABOUT 11 years ago during my holiday in Britain, Liverpool was to play Manchester United at Anfield. Being a fan of the most decorated soccer club in British history, I decided that I would have a punt on the game and walked into one sports-betting establishment to place a small wager on Liverpool winning the game 3 to 2.
It was a storming match which saw Liverpool claw back to level the score at 2-2. In the dying minutes of the game, Jamie Carragher had an opportunity to head in the winner but sadly he missed and the game ended in a draw. Had he scored, which would have been a minor miracle considering his goal-scoring record, a chunk of my holiday would have been paid for.
My experience with betting is no different than what many a sports fan would do from time to time if given the opportunity. It's a choice people will make but sports betting is nowadays a thriving industry globally.
Be it in Las Vegas, Britain, Hong Kong, Singapore or other countries, bets on sports can be made over a counter at an outlet, online or over the phone.
In Hong Kong, the sports-betting industry is large. A check with analysts puts the size of the market close to HK$60bil. In Singapore, it is slightly less than S$2bil.
The difference is generally due to how open the market is between both countries. Limiting the reach of sports betting will curtail the contribution that the industry will make to government coffers and in that is a lesson where the distribution channels and potentially a larger number of players is needed for the industry to significantly contribute to government revenue.
White-collar workers and fans of sports, thanks to the proliferation of Internet services and mobile services in the country, have had the opportunity to bet on games and events abroad through international players.
Whether sports betting cannibalises the number forecast operators (NFOs) is yet to be determined but it will certainly appeal to a different segment of punters who may not find betting on four-digit numbers exciting.
In Malaysia, NFOs are still the king of the hill when it comes to the general betting public.
The margin from the NFO business is seen to be more lucrative than sports betting where the payout ratio is normally higher.
The industry, although having seen its growth track GDP, churns out a steady stream of tax revenue for the Government which, based on estimates, amounts to around 5% of total government revenue.
Taxes the Government collects from other “sin taxes” such as the casino in Genting, the lottery, alcohol and the tobacco boys will bump up their overall contribution to a much more significant level.
Allowing a sports-betting licensee to operate therefore makes fiscal sense to the Government. The budget deficit has spiralled beyond healthy levels and more needs to be done to find new sources of revenue.
While there is no arguing over the moral issues a new betting licence will bring, it also bears to keep in mind that Malaysia is a country where its population is already exposed for decades to a number of gambling channels.
While I doubt anyone will advocate letting the gaming industry flourish, people have to be realistic in knowing that there is already a number of betting avenues available in the country and overseas.
Suppressing the legalisation of sports betting will only cement the industry digging its heels underground and will only benefit the black economy.
By legalising sports betting, it's an opportunity for the Government to maybe exert some sort of control on the industry and the money collected will go a long way in funding social, sports and development programmes.
Beyond sports betting, maybe the Government should also consider allowing a new integrated resort casino. Genting has long held a firm grip over the casino licence in Malaysia but, in today's world, just taking South-East Asia as an example, casinos have sprouted all over the map and have brought tremendous benefits to tourism and GDP if done professionally and on a large scale.
A Vegas-type casino, like the ones Singapore has allowed to be built, is a big asset to the island's economy and there is certainly room for one to be built in another part of Malaysia that is closer to one of the economic business centres.
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