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MAGAZINE - World Lottery Association
MAGAZINE
   No. 57 / SPRING 2022

                                           INSIGHT

                                           The data revolution
                                           in sports betting

SPOTLIGHT              ILLEGAL BETTING     WEBINARS
New opportunities      WLA scales up       Taking stock of 2021
for lotteries in the   the fight against   – from digitalization
metaverse              illegal betting     to responsible
                                           gaming
MAGAZINE - World Lottery Association
Find inspiration
                                             inside and out.
                             LEADING THE     We are looking forward to coming together again in
                                JOURNEY.     person for an unforgettable World Lottery Summit
                           INSPIRING THE     2022 in the breathtaking, forward-thinking,
                                  FUTURE .   eye-opening city of Vancouver, Canada.
                                             In this perfect location, our informative agenda and
                                             excellent line up of speakers will allow us to reconnect,
                                             learn and engage in important conversations on
                                             trends, technologies and topics that continue to
                                             shape our global community as we look to the future.
                                             With the ocean, forests and coastal mountains close
                                             at hand, you’ll wake up every day refreshed and ready
                                             to be inspired.
                                             Oct 16-20, 2022

2   WLA MAGAZINE
    No. 57 / SPRING 2022
MAGAZINE - World Lottery Association
EDITORIAL
                           The key role of data
                          in sports betting
                         and the lotteries
                             n our information age, data is key to almost     its members around the world protect their
                             everything that we do. We create more            interests and better serve their respective
                             than 2.5 quintillion bytes on a daily basis,     communities.
                             according to SG Analytics, a company that
                         provides data-centric research and contextual        The WLA Illegal Lotteries and Betting
                         analytics services. Some reasons for this growth     Committee (ILBC) produced the brochure,
                         are : Increased use of smart devices ; digital       Combatting illegal betting to protect the
                         media platforms ; improved connectivity ; and        integrity of sports, which considers the Council
                         the global pandemic, which accelerated the use       of Europe Convention on the Manipulation
                         of technology to live, study, and work remotely      of Sports Competitions, also known as the
                         from home.                                           Macolin Convention, examines trends and
                                                                              technologies that have abetted the global
                         Across diverse industries, from finance and          expansion of illegal betting operators, and the
       Luca Esposito     healthcare to manufacturing and retail, data         WLA’s collaboration with other organizations
                         analytics offers insights that enable making         to help curb this illicit expansion. The sports
WLA Executive Director   better decisions, finding solutions, improving       group of the WLA Betting Integrity on Sports &
                         products and services and enhancing global           Horse Racing Committee (BISHRC) developed
                         supply chain processes.                              the brochure, Sports Betting Marketing Best
                                                                              Practices, which provides state lotteries with
                         Data has never been more important for the           guidelines on how to market safe and responsible
                         sports betting and lottery sector. In this issue,    sports betting products and also speaks about
                         an article on the data revolution in sports          why the fight against illegal betting is important
                         betting delves into the kinds of data gathered       for preserving the integrity of sports.
                         from athletes, how they are used, and some of
                         the legal and ethical issues that still need to be   The WLA also produced a brief guide to the
                         resolved. For many sports betting operators,         Macolin Convention, which highlights its key
                         data is the life blood that punters require to       provisions. Among these provisions are the
                         place their bets ; we also learn how lotteries       establishment of national platforms, which allow
                         can use data in other ways to enhance product        all stakeholders to pool their forces in a central
                         offerings and ensure customers a responsible         hub and exchange information essential in the
                         gaming environment.                                  fight against sports competition manipulation.

                         Over the past two years, digital technologies        WLA cooperates closely with the Global Lottery
                         have helped the world get through the global         Monitoring System (GLMS), an international
                         pandemic virtually rather than face to face.         association of state lotteries that aims to
                         As many turned to online entertainment, online       safeguard the integrity and core values of sports
                         betting boomed. Additionally, online sports          from corruption and from the manipulation of
                         betting has exploded in the US, following the US     sports competitions, for which I took up the role
                         Supreme Court decision in 2018 to overturn the       of General Secretary at the start of 2022.
                         Professional and Amateur Sports Protection Act,
                         which outlawed sports betting nationwide,            This opportunity to work in both organizations
                         with the exception of four states.                   will enable us to share resources and strengthen
                                                                              our resolve in this important fight against sports
                         According to Statista, leading provider of market    competition manipulation and illegal betting,
                         and consumer data, worldwide online gambling,        to maintain sports integrity.
                         including sports betting via the Internet, is
                         expected to double in value and be worth             Finally, the lottery and sports betting sector
                         more than USD 92.9 billion in 2023. Given this       follows technology trends that drive customer
                         growth, it is paramount to protect the integrity     behavior and preferences and enable innovative
                         of the sports betting and lottery sector, from the   products and services. The media continues
                         dubious activities of illegal betting operators.     to cover the metaverse, a future version of the
                         In this issue we look at how WLA has been            Internet or 3D virtual space, which some say will
                         scaling up the fight against illegal betting         revolutionize work, socializing, and gaming in the
                         through increased information exchange and           coming years. In this issue we learn about some
                         collaboration with other organizations, to help      new opportunities for the lotteries in this area.

                                                                                                        WLA MAGAZINE
                                                                                                        No. 57 / SPRING 2022   3
MAGAZINE - World Lottery Association
CONTENTS

 6 Interview with                       has had a profound effect        new possibilities for
   WLA President                        in the world of sports and       enhancing their products
   Rebecca Paul                         the sports betting sector.       and enriching the player
                                        Tracking athlete’s proficiency   experience.
		In an informal interview              and bio data has led to
   with the WLA President               improved performance
   Rebecca Paul, we learn                                                 WEBINARS
                                        on the individual as well as
   how the lottery sector is            the team level and has been 24 WLA scales up the fight
   exploring opportunities in           a boon for the sports betting    against illegal betting
   the metaverse and the way            industry.
   big data is being used to
                                                                         In 2021, the WLA ramped up
   enhance player experiences.                                           its efforts in the fight against
   We also speak about the         21		 New opportunities for            illegal and unauthorized
   long-awaited World Lottery                                            lottery and betting
                                        lotteries in the metaverse       operations. Collaborating
   Summit, and why this is an
   event not to be missed for      		   The metaverse is the latest      with the Global Lottery
   the world lottery community.         innovation to emerge out         Monitoring System, the WLA
                                        of the tech sector. It brings    increased awareness raising
    INSIGHT                             together    such  technologies   initiatives to the world lottery
                                        as artificial intelligence,      community, in an effort to
10 The data revolution                  augmented reality, 5G,           help its members around the
   in sports betting                    and 3D-modeling to create        globe protect their interests
		 The data revolution has              a  virtual world  for consumers  and better serve their
   touched every aspect of              in many    sectors   of the      respective communities.
   our daily lives. In recently it      economy.     This  innovation
                                        offers WLA member lotteries

4     WLA MAGAZINE
      No. 57 / SPRING 2022
MAGAZINE - World Lottery Association
21

 10                                               24                                                          27

27		 Taking stock of 2021 –        		 Leveraging the familiarity            technologies unlike any
     from digitalization                of your players’ favorite           other in the industry. The
     to responsible gaming              games with new and exciting         technology opens a new
                                        features can effectively            world of opportunity for
		 Unhindered by the pan-               boost sales. Whether it’s by        designers and lottery product
     demic lockdowns in 2021,           imparting more value with           managers to create game
     the WLA was determined             a digital play component,           mechanics and customized
     to maintain its educational        enhancing a ticket with a           graphics as never before
     program. Webinars replaced         dazzling print innovation,          possible.
     live events and were highly        or revitalizing a longstanding
     successful, attracting more        game with a new format,
     than 1,500 participants from       Pollard Banknote can show      36		 Instant Games :
     around the globe. In this          you how to energize your
     issue of the WLA magazine,                                             An Evolving Love Story
                                        instant ticket portfolios.
     we recap the highlights of an                                     		   Chris Allen, VP of Marketing
     outstanding year in lottery                                            and Strategy at Scientific
     education.                    32		 Introducing                         Games, compares the history
                                                                            of instant lottery games to a
                                        Infinity Instants™
      CORPORATE NEWS                                                        love story. In his 15 years at
                                        Discover a whole new                the company, he has focused
30		 Instant tickets worth              categoryof instant games            on evolving product and
     launching : Refresh your      		   IGT’s new Infinity Instants™        marketing strategies, driving
     instant ticket line-up             games advance the                   insights for innovation, and
     and engage with players            instant-play experience             combining a wide variety
     TODAY                              by leaps and bounds with            of technology solutions to
                                        patented digital printing           empower growth for lotteries.

                                                                                       WLA MAGAZINE
                                                                                       No. 57 / SPRING 2022        5
MAGAZINE - World Lottery Association
INTERVIEW
                               Digitalization offers new
                               opportunities for lotteries
                               Interview with WLA President, Rebecca Paul

Digitalization of the lottery and sports betting world continues to be a hot topic, as technology advances
are increasingly deployed in our products and services. In an interview with the WLA President Rebecca
Paul, we learn how our industry is exploring opportunities in the metaverse and the way big data is being
used to enhance player experiences. We also hear about the long-awaited World Lottery Summit taking
place in Vancouver, Canada this October, and why this is an event not to be missed for the world lottery
community.

Technology continues to play an            as an eyeglasses company that allows        to include an even deeper experience
important role in how lotteries and        customers to “try on” glasses virtually.    for the player. Augmented reality
sports betting operations run their        Home improvement businesses offer           (AR), which combines the physical
businesses and serve their players.        customers a chance to see a paint           world with the digital one, is seen
This is most evident in the large          color or item in their home, and at least   in interactive instant games and will
growth in online sports betting and        one car company puts prospective            continue to develop. Virtual reality
the reliance in online sales channels      buyers in the virtual driver’s seat         (VR) has become quite popular within
that helped many lottery operations        without visiting the dealership.            the gaming community, offering a
weather the COVID-19 pandemic                                                          computer-generated world in which
lockdown. What innovative technol-         These capabilities are seen in our          the player can actually participate.
ogies are driving the evolution of the     industry, where some lotteries              VR has made tremendous headway
lotteries' products and services ?         allow customers the online chance to        with the creation of virtual casinos,
                                           purchase tickets, creatively play and       and there is competition from outside
It’s no secret we live in a world of       win games and make wagers from              of the lottery community. Depending
ever-evolving technology, and our          their smart phones, computers or            on the hardware, virtual casinos can
industry can’t be left behind. Our         even a smart television. With nearly        provide an entertaining experience by
methods of working, communicating          80 percent of the global population         receiving input in the form of gestures
and interacting with each other            using a smart phone, the demand for         and verbal commands.
changed dramatically with the onset of     connections to those devices is clear.
the pandemic, many of which are here       As always, it’s important to understand     Other popular trends include the ability
to stay. Digital formats are a must, and   players and their expectations and aim      to allow a player to develop his or her
most lotteries have begun to embrace       to incorporate modern technology            own visual and/or audio identity — an
this trend to provide a convenient,        in developing new engagement                avatar — to use for gaming. Also
innovative and entertaining experience.    programs.                                   growing are omnichannel solutions
                                                                                       to strengthen the retail experience,
Taking a cue from each other and           Which technologies should the               such as allowing players to virtually
companies outside of our industry,         lotteries be considering for future         chat with sales and support teams.
allowing players to insert themselves      development for the next generation         And finally, tracking digital currencies
into the “metaverse” where they can        of customers, for both their physical       to understand the capabilities and
interact with a computer-generated         and online channels ?                       potential is always on our radar.
environment is becoming quite pop-
ular. This capability for gaming allows    In the coming years, the scope of the
us to stay on par with companies such      metaverse will undoubtedly broaden

6       WLA MAGAZINE
        No. 57 / SPRING 2022
MAGAZINE - World Lottery Association
In the coming
                                                                                           years, the scope
                                                                                           of the metaverse
                                                                                           will undoubtedly
                                                                                           broaden to include
                                                                                           an even deeper
                                                                                           experience for the
                                                                                           player.

Lotteries gain very useful insights on      based on their play. Additionally, many      provides a framework to grow and
customer preferences from the data          lotteries are using information gleaned      enhance RG programs. There is also a
of registered players. As digital lottery   from customer preferences to send            support base from certified lotteries,
offerings continue to grow, data is         customized emails, carefully develop         who are eager to assist.
key to business operations, to better       social messaging and better direct
understand customers and deliver            their product development.                   A recent UK report, on Cyber security
the products they want. During the                                                       in the gambling and lottery sector,
WLA marketing webinar in February,          How can lotteries best use customer          highlighted a number of key aspects to
we heard many examples of what              data insights to ensure they can             consider, including potential threats,
lotteries around the world are doing        provide their players a responsible          level of preparedness, and third party
to improve customer experience. How         gaming environment ?                         and supply chain management.
can lotteries best use customer data                                                     In the face of growing cyber security
to enhance the player’s experience ?        Players who opt in to receive marketing      threats, what can lotteries do to
                                            and other information from lotteries are     continue to ensure their player data
Understanding players and putting their     a captive audience open to such mes-         and operations (software, hardware
needs at the forefront of developing        saging, which can include responsible        and personnel) are secure and how is
our products is vital. For those who        gaming (RG) tips and reminders. Other        the WLA Security Control Standard
tuned in to the February webinar, it was    strategies, such as one we use here in       useful in achieving this ?
an excellent look into how marketing        Tennessee, can incorporate QR code
has evolved over the past 20 years.         technology to direct players to digital      As always, the WLA is a valuable
Not only were technological advances        information about RG. A digital audience     resource for our collective education
beginning to present new opportunities      is also an excellent method of surveying     and exchange of best practices by
years ago, but the pandemic accelerated     players about their knowledge of their       utilizing the knowledge and experience
that development due to the change          lottery’s RG strategies. Such survey         of subject experts. The WLA Security
in customer behavior. Understanding         results assist in ongoing enhancements       Control Standard is a globally recognized
and harnessing those behavior patterns      to RG programs and provide a way to          foundation for assisting lotteries in
greatly assists in customizing messaging    track progress.                              obtaining a level of management by
and developing products and promotions                                                   implementing structures designed to
based on this data.                         The design itself of online gaming           maintain the confidentiality and integrity
                                            can also encourage responsible play.         of information — a vital key to success
And that’s where big data steps in.         Accounts may include the ability to set      and trust among our audiences.
The ability to collect and analyze          thresholds and automatic reminders to
patterns, trends and interactions is        limit the time spent playing. Profile data
a tremendous resource that may be           may also include the history of play for
underutilized—but that must be used         the user’s review.
wisely. For example, one thing we have
learned is that a player desires recogni-   Another excellent tool for further
tion and upward movement associated         developing a responsible gaming
with player affinity clubs. Achievements    program and utilizing data is the WLA
that earn ascending levels such as          RG certification program. I encourage
from “gold” to “platinum” status can        those lotteries who have not partic-
be exciting, as is a reward program         ipated in this process to do so, as it

                                                                                                            WLA MAGAZINE
                                                                                                            No. 57 / SPRING 2022   7
MAGAZINE - World Lottery Association
We know that illegal sports betting            ever to offer transparent, secure and        way to go. What are some of the key
operations and sport competition               entertaining products marketed in a          challenges facing the states that have
manipulations occur in many coun-              responsible manner. Additionally, when       yet to legalize sports betting ?
tries around the world. The Global             possible, lotteries can join with national
Lottery Monitoring System GLMS)                platforms designed to combat illegal         The path to legalization of sports
annual activity report, noted that             betting. These strategies are excellent      betting in these remaining US states
over 1000 alerts related to potential          points of discussion and education           moves in different directions based
sport competition manipulation were            among peers, and I look forward to           on how their governments operate.
sent to members in 2021. Why is it             the ongoing exchange of ideas and            Some may require legalization by
so important for all stakeholders in           implementation of resulting strategies.      statute or at the polls, while others may
the sports and lottery worlds to work                                                       require a constitutional amendment.
together to address these issues ?
                                                 It’s important to                          Referendum, legislation action,
                                                                                            tribal action or a combination of these
The combined strength of our collabo-            understand players                         requirements, could determine the
ration about such issues is vital to the
integrity and success of our industry.
                                                 and their expectations                     success of sports betting proponents.

Sharing experiences and success                  and aim to incorporate                     Around the globe it has become
stories is invaluable and especially             modern technology                          increasingly important for companies
beneficial to those jurisdictions who do                                                    to ensure their Corporate Social
not offer legal sports gaming. In those          in developing new                          Responsibility (CSR) activities create
areas, the risk of illegal betting is likely     engagement programs.                       a fair, inclusive, diverse, and ethical
to be more prevalent since no legal                                                         workplace for all and to work towards
options exist.                                                                              achieving environmentally sustaina-
                                               In 2018, the US Supreme Court over-          ble businesses. In your opinion, what
That said, potential strategies to             turned the Professional and Amateur          can lotteries do to enhance their CSR
protect players can be complicated by          Sports Protection Act, which outlawed        activities, to create a fair and diverse
the different mechanisms offered by            sports betting nationwide, with the ex-      workplace and to best protect the
various jurisdictions and regulations          ception of Delaware, Montana, Nevada         environment ?
that can vary. However, as we continue         and Oregon. While more than half of
to address practices that are unfair to        the states have already legalized            You’re absolutely correct about the
customers, it’s more important than            sports betting, others still have a          importance of Corporate Social

8        WLA MAGAZINE
         No. 57 / SPRING 2022
MAGAZINE - World Lottery Association
Responsibility (CSR) in our industry. It’s       and greenspace programs. Many                          I’m pleased that we will be joining
  vital that we instill in our core mission        lotteries also offer staff the chance to               forces with the North American
  a commitment to community, diversity             volunteer for projects such as clean-up                Association of State and Provincial
  and inclusion, helping the environment           or helping a food bank.                                Lotteries (NASPL) as we did in
  and providing an enriching workplace.                                                                   2012, which was truly a world-class
  Those pillars, along with our mainstay           The 2020 World Lottery Summit was                      gathering. And to top it off will be the
  of responsible gaming practices, help            postponed until 2022 due to the                        amazing setting—the vibrant, scenic
  us play a vital part in our community            COVID-19 pandemic. This year, the                      and diverse city of Vancouver, Canada.
  even beyond offering entertainment               WLS2022 is scheduled to take place                     My extended appreciation goes to our
  and generating billions of dollars for           in Vancouver, Canada from October                      gracious host, the British Columbia
  good causes.                                     16 – 20. What can members of the                       Lottery Corporation, from whom we
                                                   world lottery community expect to                      continue to learn.
  As we work to further develop CSR                see at this event and why is it impor-
  programs, we can learn from each                 tant for them to attend ?                              At this year’s Summit, we’ll reinforce
  other and from the guidance and                                                                         the theme that aptly describes our
  case studies offered by WLA. Just                This invaluable event will offer network-              work : Leading the journey. Inspiring
  a few examples include exploring                 ing for suppliers, lottery professionals,              the future.
  new recruiting strategies, expanding             and other experts passionate about
  internship or other programs that offer          the lottery sector, in a professional                  See you there !
  hands-on industry experience, and                environment. It will allow for the
  implementing policies and procedures             exchange of best practices, innovative
  that provide a supportive work environ-          ideas, and strategies for addressing
  ment. Additionally, I’ve been impressed          challenges we face as an industry and
  with the variety of lottery programs             enable participants to find colleagues
  that contribute to sustainability,               and collaborative partners for future
  including recycling in the workplace,            projects. We’ll also learn about the
  using recycled materials for tickets,            advancement of technology in our
  offering digital playslips, anti-litter          industry and have the chance to meet
  programs, supporting vendors who                 those shaping and changing the field
  operate in a sustainable fashion, and            and the world in general.
  designating funds to environmental

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                                                                                                                                   WLA MAGAZINE
                                                                                                                                   No. 57 / SPRING 2022   9
MAGAZINE - World Lottery Association
INSIGHT

10   WLA MAGAZINE
     No. 57 / SPRING 2022
INSIGHT

        The data
        revolution in
        sports betting
The data revolution is akin to the industrial revolution of the 1800s. Whereas the industrial revolution
was fueled by coal, everything we do today is fueled by data.

Over the past decade, technology           punters bet on aspects of a game once       However, important questions are
advances have disrupted many               it has begun – they require the delivery    raised when a product or service uses
industries and changed the way they        of accurate, detailed data, to quickly be   personal data. For instance, what
operate. Advances in broadcasting,         able to place their bets.                   kind of data can be collected and by
live-streaming, improved connectivity                                                  whom ? Who owns and controls it ?
with the Internet of Things, and more        The global sports                         Who can access it ? Where and how is
recently 5G and cloud computing                                                        it stored, who might it be shared with
services have offered new opportunities
                                             analytics market is                       and on what terms ?
and platforms for doing business.            expected to surpass
                                                                                       As online sports betting grows at a
Technology continues to change how
                                             USD 10 billion                            pace and generates billions of dollars,
we live. We use our smart phones             by 2028.                                  these questions will need to be
to access information whenever we                                                      answered rapidly. It will be paramount
need it, wherever we are. Many daily       The evolution of artificial intelligence    to develop international norms for
activities are carried out online, such    (AI) technologies such as machine           ensuring the protection of the punters’
as communication, banking and              learning (ML) and neural networks have      data, and that players and sports also
purchasing items.                          resulted in data analytics changing the     benefit from their own data.
                                           nature of business intelligence across
During the global pandemic, millions of    diverse industries, including sports and
people studied and worked remotely,        the lotteries.                              Data collection, analysis,
thanks to these technologies. Confined                                                 and use in sports and sports
to home during the lockdowns, many         Other technologies such as virtual and      betting
turned to the online world for             augmented reality are enabling further
entertainment.                             developments for sports betting in          Data collection and analysis plays a
                                           the next generation of the Internet in      significant role in the world of sports by
Online sports betting boomed. In fact,     the so-called metaverse, which is in        helping athletes and teams hone their
the global online gambling market –        its early stages of development, and        performance. It has also changed the
including playing casino games, poker      requires data.                              way the media covers sporting events
and/or sports betting – is expected to                                                 and facilitated the growing popularity
reach more than USD 92.9 billion in        Whatever the online format, integrating     of sports betting.
2023, according to Statista, a leading     and automating data collection and
provider of market and consumer            analytics into operational processes        A booming trend
data. Improved mobile access and           offers the vital, more detailed and
use, accelerated digitalization, and the   comprehensive information required for      According to Statista, the global sports
legalization of sports betting by the US   making rapid and informed decisions         analytics market is expected to surpass
Supreme Court in 2018 are some of the      for the different stakeholders of the       USD 10 billion by 2028, achieving a
reasons for this growth.                   sports world, including : athletes,         compound annual growth rate of 21.8
                                           coaches, teams, leagues and fans,           percent between 2021 and 2028.
As online sports betting evolves to        as well as sports bettors (punters)
include in-game betting – where            and online betting operators.

                                                                                                          WLA MAGAZINE
                                                                                                          No. 57 / SPRING 2022   11
INSIGHT

Athlete data                                 after a major match or tournament,         arena and after they have left. It could
                                             owing to wearable sensors worn by          help teams better market events and
Technology is changing how athletes          players and optical trackers positioned    provide fans with targeted messages
train, compete, and minimize injury          at various angles throughout the           relating to upcoming matches.
risk. It is also helping to manage their     sporting environment. Coaches receive
careers, improve their performance, and      real-time data on the performance of       Monitoring punter behavior for
enable them to be more aware of the          their players and analyze it later with    enhanced experiences
factors that can have an influence on        the team.
their game, such as fatigue, stress, and                                                The demands and requirements of
their biological processes. Enhancing        Tracking fans                              punters drive the development of
the world of sports, innovative tech-                                                   products and services offered by
nologies have broadened the scope of         Data analytics in the sports arena has     gaming operators. In addition to betting
what athlete data can be collected and       moved beyond the athletes’ perfor-         odds, tech-savvy punters want fast,
analyzed.                                    mance to track the fans movement,          accurate data that helps them make
                                             behavior, and purchase habits. This        their decisions.
For instance, the body can be                helps sports teams predict everything
monitored for its location on the field,     from ticket pricing, to staffing on game   Betting operators analyze punter habits
motion, skin temperature and muscle          day, on through to improving parking       and preferences through their data, to
fatigue, eye movement and head               lot congestion at the stadium.             enhance the betting experience, and
impact. Sensors also monitor arm                                                        tailor products and bet suggestions
speed, elbow stress, ball touches to the     This information enables the mapping       based on their preferences, such as
feet, and for the legs, distance covered,    of a fans’ broader behavior outside        which sport, location, odds ranges, times
stride length, acceleration,                 the stadium to better understand their     or day, a particular market and whether
and deceleration.                            preferences before they arrive at the      the betting is for pre- or in-game.

Some personal biometric data readings
include heart and respiration rate, blood
oxygen, and/or glucose levels, core
body temperature and sleep patterns.

Improving individual and team
performances

For years, important decisions in team
sports, such as which players to draft, to
trade, or to develop, and what coaching
strategies to take, were made by either
a gut feeling or through adherence
to past traditions, without the help of
digital tools.

Now, coaching regimes have been
greatly improved before, during, and

12      WLA MAGAZINE
        No. 57 / SPRING 2022
INSIGHT

Ensuring responsible gaming                 Soccer                                        Soccer goal predictor

As industry increases pressure on oper-     The automated analytics platform              Sportradar, a leading provider of
ators to create safe, responsible gaming    Track160 is powered by computer               real-time sports data, and the Amazon
sites and applications, punter behavior     vision and deep learning models               ML Solutions Lab, have collaborated
data helps operators decide which           that allow soccer leagues and clubs           to develop a computer vision-based
measures to implement, to ensure            to gather comprehensive data and              Soccer Goal Predictor that uses
punter safety, such as a self-exclusion     insights into individual players, groups      machine learning which incorporates
options, playing time or spending limits.   of players or the entire team.                more fine-grained information at pixel
                                                                                          level to develop a solution that predicts
                                            This technology is non-invasive.              goals with high confidence, a couple of
                                            Players do not wear a GPS tracking            seconds before they happen.
  Enhancing the world                       device, and no human operators
  of sports, innovative                     or infrastructure are required. The           Australian football
  technologies have                         platform can extract the data from a
                                            single viewpoint recording of a match.        The Australian Football League (AFL)
  broadened the scope                                                                     app provides statistics for every match,
  of what athlete data                      It works by automatically identifying
                                            and tagging all the events (passes,
                                                                                          as well as real-time scores and leader-
                                                                                          board, player data on ball possession,
  can be collected and                      corners, goal kicks etc.) and generating      speed and ground coverage.
  analyzed.                                 a single video clip for each one using
                                            a single viewpoint camera, advanced           Cricket
                                            AI optical tracking, and deep learning
                                            technologies.                                 Cricket21 is an end-to-end match
Game-changing tracking                                                                    analysis engine which offers team
solutions behind data analysis              Performance analysis and reports for          performance analysis and opposition
                                            individual players, groups or the team,       scouting. Covering batters, bowlers,
Technology-based sports betting has         are produced on the fly. Data insights on     fielders and umpires, the data gathered
emerged that allows for tracking of         player moves can be used to develop           is compared to past games and used
advanced, real-time athlete performance     strategies, study dangerous points of         by coaches to improve performance
(biometrics and biomechanics) in            the game, and better understand the           and develop game strategies. It is
sports competitions.                        opponents.                                    possible to see how a specific batter
                                                                                          played against a specific bowler, the
Many stakeholders in the sports             The sports science section records all        types of shots scored, dismissals, and
world – data collectors, sports             physical data pertaining to all players. It   balls bowled.
betting operators, teams, coaches and       covers fitness data, distances covered,
athletes – use solutions developed          acceleration and deceleration,
with wearable devices, and optical          sprinting actions, as well as detailed
tracking solutions that deploy artificial   passing information, which can be
intelligence with enhanced features.        downloaded or exported.

                                                                                                            WLA MAGAZINE
                                                                                                            No. 57 / SPRING 2022   13
INSIGHT

Team sports – American football,           How sports betting operators                 Different types of data used in
hockey, lacrosse                           use data                                     different scenarios
Athletes may experience head               With the expansion of data in sports,        On and off the court or field, player and
impact during team sports, such as         sports betting operators are capitalizing    game statistics, such as the number of
football, hockey or lacrosse. Athlete      on its value by offering punters             goals or passes made can be collected
Intelligence provides head-impact          in-game betting, providing tools that        by anyone watching the game,
monitoring and performance tracking        create attractive odds, and increase         whereas biometric data – or any kind
solutions for team sports, that help       bet volume and frequency.                    of biological information which can
coaches and trainers improve athlete                                                    be obtained from an individual player
safety and performance.                    Within the last ten years, in-play betting   – must be gathered using sensors
Connected mouth guard and helmet or        has surged across many different             placed somewhere on the athlete.
headband devices monitor and gather        types of competitions and requires
data such as impact count, severity,       bookmakers to change their odds on           As innovative AI technologies pervade
and location on the head. This real-time   the fly during a competition, with the       the sports sector, they enable new
data is then transmitted and reported      flux of the relevant data and changing       platforms that rapidly package this data
directly to mobile phones, tablets, or     probabilities. Digital streams show          for use in different ways. Legal betting
apple watches.                             live games that include a data suite         operators use sports data feeds to
                                           by diverse providers, but this requires      provide their punters with the insights
State-of-the-art stadium                   quality data and speedy delivery.            they need to bet on sporting events.
infrastructure
                                           The use of real-time athlete data            Fantasy sports have been around for
The UK Tottenham Hotspur stadium,          to track and adjust predications is          decades, the modern era developed
modeled on US equivalents, uses            fundamentally changing the sports            in the 1980s with baseball, using real
cloud-based communication and              betting industry. Work is now being          player data. In 2022, top sites offer
collaboration systems to connect fans      done to combine collected data with          American football, baseball, cricket,
to the club with a more personalized       AI technologies that will take data          golf, hockey, NASCAR, and soccer.
service when ordering tickets, getting     analytics to the next level.                 Participants assemble imaginary or
information about injuries, stadium                                                     virtual teams composed of proxies
directions and kick-off times via          Real-time digital wagering has created       using real player data from professional
multiple channels, including telephone,    betting opportunities that don’t rely        sport. The competition is based on the
online, social media, and email. It is a   on score. Instead, spectators create         statistical performance of those players
prime example of how event promoters       their own narrative tension by betting       in real games. This performance is
can also take advantage of data            on individual pieces of the action,          then converted into points collated by
insights to drive fan interest.            heightening the entertainment value          the team manager. Like the real world,
                                           of the game. They are betting on             fantasy baseball has a league where
Customer data can be accessed instantly    something that is going to happen in         team owners can draft, trade, and drop
from any device connected to the           the next few seconds, such as a ball         players.
same service. The idea is to enhance       or strike in a baseball pitch, or if the
the fan experience wherever they are       next tennis serve will be an ace, or
in the world so that useful information    a field goal being made or missed in
about the team, matches and athletes is    American football.
tailored and provided to fans.

14      WLA MAGAZINE
        No. 57 / SPRING 2022
INSIGHT

Data raises questions
One of the main challenges in sports
is to think on your feet, that is, quickly
process information and react to it
decisively and effectively. This is an
instinctual gift of great coaches and
talented players.

The data revolution has democratized
this instinctual ability and shifted who
holds the analytical advantage in
sports competitions. But this revolution
has brought with it some new ethical
questions. For instance, some would
argue that the data revolution is taking
the human element out of the game,
making it a competition among data
analysts rather than athletes.

Ownership, use, and privacy
A number of interesting challenges
face the sports betting world.
Concerns regarding athlete data
ownership, interpretation, privacy,
confidentiality, and use have emerged.
The commercialization of sport is a
lucrative business in which diverse
player data is used in products
(physical and digital) and advertising.      different jurisdictions have different       The deal completed between the NFL
                                             concepts of the copyright infringement.      and Genius Sports was followed by two
Even if players do not own their data,       Burton also emphasized that where            important deals involving Sportradar,
they are beginning to question who can       sports have data or video rights, there      including an extension of its existing deal
access and use it and why they are not       needs to be a proper legal framework         with the National Basketball Association
benefitting from all its subsequent uses.    for them to be allowed to exploit those      (NBA) and new arrangements
                                             and derive commercial revenues.              with Union of European Football
While impressive statistics may help                                                      Associations (UEFA), the International
players during contract negotiations,                                                     Tennis Federation (ITF) and the Asian
many are concerned that biometric            Navigating the sports data                   Football Confederation (AFC).
and performance data might be                ecosystem                                    This UEFA deal has a specific
used against them if it demonstrates                                                      importance within the current debate.
diminished performance.                      The commercial use of data makes it a        For the first time, Europe’s governing
                                             valuable asset for bookmakers, sports        body has sold the data rights to all its
                                             clubs, managers, and individual players.     competitions.
   The use of real-                          Whatever the use case, its value comes
   time athlete data                         from its confidential nature and any         Unlike observable event data, athlete
                                             exclusive rights to utilize or analyze it.   data derived from sensor technologies
   to track and adjust                                                                    require sports data providers such as
   predications is                           For the sports betting world, the value      Sportradar or Genius Sports to have
                                             of data analytics continues to grow as       access to team or league data. For
   fundamentally                             seen in the contract signed by sports        some years, profitable agreements have
   changing the sports                       data provider Genius Sports, which           been made that enable sports data
                                             became exclusive data partner for the        providers to access and use athlete
   betting industry.                         US National Football League (NFL) in         data from sports leagues. However,
                                             2021. This partnership was reported to       cases continue to arise where athletes
In a podcast interview with Steven           be worth USD 120 million per annum.          believe that they should have more
Burton, CEO of Genius Sports, during                                                      control over their data, and be remunerated
his former role as Director of Integrity,    Until recently, sports leagues generally     for its use.
Governance and Sports Partnerships,          only saw a small fraction of the revenue
he highlighted a key challenge faced         generated from sports betting, and
by sport and sports betting – which          athletes saw even less. Historically, data
is still the case today – that there is      collected from sports competitions has
a patchwork of intellectual property         not been seen as property of sports
(IP) rights around data in sport and         teams, leagues, or federations.

                                                                                                             WLA MAGAZINE
                                                                                                             No. 57 / SPRING 2022   15
INSIGHT

Unknown territories                           Europe                                      The Court of Appeal accepted that
                                                                                          these rights could potentially be used to
Data rights can be complex and may            Horse racing                                protect data, and therefore exclude third
vary in different jurisdictions. The sports   The licensing of real-time sports data      parties from extracting value from it in
world continues to learn about this           has been subject to litigation at the       certain circumstances. Unfortunately
subject on a case-by-case basis.              highest levels. In the early months of      for The Racing Partnership, none of the
                                              2020, the European Court of Appeal          legal rights they claimed were deemed
Australia                                     overturned a previous ruling on a case      to have infringed on their exclusivity.
                                              involving horse racing data and its use     It was found that the data had not been
A number of laws come into play with          for the creation of odds by "off-course"    imparted in circumstances importing
regard to data rights in Australia. When      sports bookmakers.                          an obligation of confidence, because
data is collected in wearables, such as                                                   the relevant contracts did not provide
heartbeat or other vital signs, the person    The claim was brought by The Racing         for any express restrictions on the
wearing the device that collected this raw    Partnership Ltd to protect the exclusive    dissemination of data. Here, the lack of
data does not own the data. Australian        rights it had been granted by racecourses   operational management of the data in
copyright exists for original works, which    to collect, aggregate, and export           question through contractual restriction
means that the data would need to fulfill     racecourse data obtained on-course          proved fatal to a claim for breach of
certain requirements before it could be       to off-course bookmakers, for those         confidence.
protected – for instance, by using the data   off-course bookmakers to update, and
to conduct research in the production of a    ensure the accuracy of the odds they        Soccer
literary work or scientific report.           offered. The Racing Partnership claimed     In the case of soccer data rights, three
                                              that Sports Information Services Ltd, a     key companies vie for contracts with
As for data use, the Privacy Act 1988, may    former exclusive licensee that had been     the top competitions in the sport. Stats
limit the way biometric data can be used      succeeded by The Racing Partnership,        Perform, Genius Sports, and Sportradar,
or disclosed, giving the player certain       had encroached upon that exclusivity.       which aim to own rights to different
control. However, collective agreements                                                   competitions within the top tiers of the
between players and sports leagues may        The Racing Partnership's claim to data      sport. Two of those firms are embroiled
require athletes to agree to their data       exclusivity was based on a pastiche         in a court case with each other regarding
being collected and left in the control       of legal rights that included copyright,    the present structure around the licensing
of the league, as is the case with the        database rights, contract law, and the      and distribution of live data from
Australian Football League.                   law of confidence.                          football leagues for betting purposes.
                                                                                          The dispute effectively revolves around

16      WLA MAGAZINE
        No. 57 / SPRING 2022
INSIGHT

the difference between official data and       entertainment and data collection firms,     Many industry stakeholders are waiting to
exclusive data. Exclusivity can also be        regarding the trading of their               see what happens with Project Red Card.
seen as being monopolistic, denying            performance data over the last six years.    If successful, this could lead to a
competitors access to stop them                The players believe that they should         fundamental shift in the way sports
providing competitive offerings.               have greater control over how their          player data is collected and used.
                                               data is collected and that they should
   Data rights can be                          benefit from how it is commercialized.       United States

   complex and may                             Their argument is that the unlicensed        Similarly in the US, it is considered that
   vary in different                           usage of their personal data by third
                                               parties, contravenes the European
                                                                                            generating sports data usually requires
                                                                                            mechanical collection and labeling
   jurisdictions.                              Union General Data Protection                only, rather than involving specialized
   The sports world                            Regulation (GDPR). GDPR defines              knowledge to create original content.
                                               “personal data” as any data relating to an   For this reason, the copyright infringement
   continues to learn                          identified or identifiable individual (the   claim brought by the NBA in National
   about this subject on                       data subject). Under this Regulation,        Basketball Assn’ v Motorola, Inc. did
                                               athletes have the right to access their      not succeed, because the court said
   a case-by-case basis.                       data, request rectifications, and have       the NBA did not own copyright in live
                                               the right to erasure.                        game statistics. Since statistics are
United Kingdom                                                                              an element of the sports event that
                                               They claim that they did not consent to,     anyone in the public could obtain from
The Global Sports Data Technology              nor did they receive payment for the use     attending the game, the game itself
consultancy provides leading                   of their data, which they believe to be      could not be copyrighted.
technology, legal advice and opinion           personal data. They have not had the
in the area of sports data governance,         chance to correct data they feel
smart contracts and fan engagement.            misrepresents them and finally, they
In October 2021, it began the Project          want to know that they will be
Red Card initiative. A group of 850            compensated for subsequent use of
current and former UK and Scottish             their data, for instance by betting and
professional footballers – sent                gaming companies who may have
pre-action litigation letters to at least 17   contracts with the football league that
data companies, including betting,             gathers their data in the first place.

                                                                                                               WLA MAGAZINE
                                                                                                               No. 57 / SPRING 2022   17
INSIGHT

Ensuring sports data privacy
and security
Like any personal data, security and
privacy of sports data must be ensured.
This protects the players whose data is
being used, the data owners, such as
leagues or teams and the third parties
who have the right to access and used
it, such as sports data providers and
their customers.

In his aforementioned podcast
interview, Steve Burton explained how
controlling access to data was key to
maintaining sports integrity. Since most   A brief history of online sports betting
data collected that is valuable must be
                                           Until the mid-1990s sports betting was a static affair. You made
done so quickly and accurately from
                                           your bet, paid the bookie, and got a slip of paper authenticating the
sports venues, it is important to work
                                           bet. Then you waited for the outcome. In 1995, three option traders
with sports leagues and federations
                                           – Haden Ware, Steve Schillinger, and Jay Cohen – moved from the
around access to venues, ticket
                                           US to Antigua and established the World Sports Exchange (WSEX),
conditions and ground regulations to
                                           probably the first online sports betting platform. WSEX was unique
prevent access to the data or ability to
                                           in that it was run like a commodities market, allowing punters to
collect it.
                                           buy and sell options on team A or team B throughout the course of
                                           a match. WSEX betting was modeled after the futures market, with
Burton also noted that if data is
                                           individual bets seeing probabilities fluctuate as the outcome of the
unofficial, fast, and accurate it, also
                                           game came into focus. This form of betting became widely popular
has value and could be used by illegal
                                           as it was engaging and fun for punters around the globe. It became
operators if they can access it. Since
                                           a point of reference for sports betting operations as we know them
sports betting (legal and illegal) will
                                           today. At the apex of WSEX’s success Cohen stated that the future
continue to occur worldwide, it is in
                                           of sports gambling would be totally interactive wagering during the
the interests of the sports and betting
                                           game.
worlds to work together to protect this
data and maintain sports integrity.        Despite the popularity of WSEX, the platform was in violation of the
                                           US Wire Act, which forbid the use of telephone lines for inter-state
Some sports (American football,            betting. Ware, Cohen, and Schillinger, being American citizens were
baseball, racing, and soccer) use AI       all charged with Wire Act violations in 1998. Cohen flew back to
and machine learning solutions and         the US to face charges. He proclaimed his innocence stating that
blockchain authentication technologies     WSEX could not be illegal owing to the fact that it was located in
for processing and analyzing sports        Antigua where online betting was legal. Cohen was found guilty and
data to protect data, applications, and    sentenced to 18 months in federal prison. On April 19, 2013, WSEX
systems, while optimizing game and         ceased operations. Shortly after WSEX went out of business, Steve
business operations.                       Schillinger was found dead in his home in the Antiguan capital of
                                           St. John’s with a single gunshot wound to the head, victim of an
                                           apparent suicide. After spending 13 years as a fugitive, Haden Ware
                                           returned to the US in 2016 to face charges. He received a lenient
                                           sentence and was spared prison time.
                                           After Cohen’s conviction, Antigua, angered by one of its licensees
                                           being jailed, and its loss of access to the US market, filed a complaint
                                           with the World Trade Organization (WTO) on March 21, 2003.
                                           Antigua claimed that the US had violated its General Agreement on
                                           Trade in Services (GATS) commitment to free trade in recreational
                                           services. The WTO ultimately ruled in favor of Antigua and awarded
                                           Antigua the right to suspend USD 21 million annually in intellectual
                                           property rights held by US firms.
                                           Since the demise of WSEX, sports betting has proliferated around
                                           the globe, owing largely to online and mobile sports betting
                                           platforms. Although Haden Ware, Steve Schillinger, and Jay Cohen
                                           were seen by the US authorities as criminals, in many ways they are
                                           pioneers of modern-day sports betting.

18      WLA MAGAZINE
        No. 57 / SPRING 2022
INSIGHT

A San Francisco Examiner article from May 5, 2013 announcing the death
of Steve Schillinger.

                                                                         The World Sports Exchange website, shortly
                                                                         before they went out of business in 2013.

                                                                                                           WLA MAGAZINE
                                                                                                           No. 57 / SPRING 2022   19
INSIGHT

 Sports betting and the media
 In the 1960s, television began changing the way that fans experience
 sports, through highlights, instant replays, and nationwide telecasts.
 Today sports betting is proving to have an equally transformative effect
 on how we view sports. It has increased the entertainment value of
 sporting events and as such has increased the profit potential for media
 organizations.
 The boom in sports betting, particularly in the US has had a profound
 influence on the media, and how the public perceives and consumes
 sporting events.
 The major betting companies feature live streaming in their apps.
 This is putting pressure on network broadcasting of sporting events.
 The increase in podcasts dedicated to sports betting is attracting sports
 journalists away from traditional sports media.
 Media companies are increasingly becoming involved in the sports
 betting as they begin to see its enormous profit potential. They are find-
 ing that punters are greater consumers of sports media than non-punters.
 According to the Bleacher Report, an online news portal dedicated to the
 intersection of sports and culture, punters are five times more engaged
 with their app than other spectators.
                                     Bill Simmons is a notable sports
                                     media personality. He is CEO
                                     of The Ringer, the media company he
                                     sold to Spotify last year for
                                     USD 196 million, and an avid sports
                                     bettor. On his popular podcast
                                     (the Bill Simmons Podcast),
                                     he provides sports analysis with an
                                     occasional tale of his most recent
                                     sports betting exploits. According
                                     to Simmons, gambling is part of
                                     sports and we may as well accept it.

20    WLA MAGAZINE
      No. 57 / SPRING 2022
METAVERSE

   New opportunities for lotteries
   in the metaverse
Artificial intelligence, virtual    The digital world is ubiquitous and         or entertainment. Additionally, almost a
and augmented reality, 3-D          constantly evolving. With over 80% of       third of global businesses are projected
                                    the world owning a smart phone and          to have products and services ready for
modelling, 5G, and edge             ever-improving connectivity, it is at our   the metaverse by then.
computing are some of the           fingertips most of the time.
                                                                                As the number of digital consumers
extended reality technologies       The metaverse or meta universe,             continues to grow in the lottery and
that make the metaverse             referred to by some as the Internet’s       sports betting sector, and the number
                                    next frontier, focuses on virtual and       of users of virtual platforms continues
possible. As this space rapidly     augmented reality technologies              to grow worldwide, the metaverse
evolves, the lotteries have begun   within the current and future digital       offers opportunities to develop and
                                    platforms. Virtual Reality (VR) head-       enhance lottery products for players.
to explore how they can enhance     sets, Augmented Reality (AR) glasses,
their products and services         smart phones, and other devices
                                    allow users to enter 3-D environments       Digital world
to enrich connected virtual         where they can interact, work, visit
experiences for their players       remote locations, and learn in new and      There are many examples of how the
                                    immersive ways.                             real and virtual worlds blend in our
and ensure their presence in the                                                lives. Throughout the global health
metaverse.                          According to Statista, a global provider    crisis, VR meetings have saved the
                                    of market and consumer data, it is          workplace through platforms like Zoom
                                    estimated that by 2026 one quarter          and Teams. But as the world gradually
                                    of the world’s population will spend at     reopens, hybrid options will accom-
                                    least one hour a day in the metaverse       modate all workers. Some tech giants
                                    for digital activities including work,      are already developing VR business
                                    shopping, education, social interaction,    meetings in the metaverse.

                                                                                                  WLA MAGAZINE
                                                                                                  No. 57 / SPRING 2022   21
METAVERSE

The idea is that your avatar – a figure    Staying on top of trends                    Lotteries, omnichannel, and the
that normally represents a person in a                                                 metaverse
video game – sits at the table, enabling   According to the Foresight Factory
you to work from anywhere and still        Trending 2022 report, though                In a recent webinar on marketing trends
feel present with your colleagues.         consumers have long sought ways to          held by the WLA and EL, speakers from
In the coming years, the scope of the      create digital identities through online    the industry discussed their marketing
metaverse will likely broaden to include   platforms such as Facebook, gaming          strategies and how they are developing
socializing, shopping, and gaming.         has taken this concept to another level     products that enhance player experiences
                                           with avatars that allow players to create   in retail and digital channels.
                                           their online identities to appear the way
Understanding changing                     that they want. They can be enhanced        Educating in the metaverse
consumer habits                            using filters and gaming skins. A skin
                                           is a graphic or audio download which        Sharon Duncalf, Vice President, Global
Over the past two years, the global        changes the appearance and character        Insights and Planning at IGT, talked
pandemic’s restrictive lockdown            of avatars in video games.                  about recent consumer trends and
measures forced people to work,                                                        what they could mean for the lotteries.
study, and spend a lot of time at                                                      Quoting the Trending 2022 report, she
home. It accelerated digitalization                                                    noted that 50% of consumers have
and redefined how we live our lives.                                                   bought, or are interested in buying, in-
As people looked to the online world         It is estimated that                      game items such as skins or characters.
for entertainment, businesses had to
rethink operations and develop online
                                             by 2026 one quarter                       As lotteries work towards achieving
products and services for people to          of the world’s                            seamless omnichannel offerings,
enjoy from home.                             population will spend                     Duncalf stressed the importance of
                                                                                       “embracing the metaverse as a channel
Lotteries also found new ways to             at least one hour a                       for engagement and exploring how
reach customers and continue their           day in the metaverse                      games and virtual worlds can help
work of supporting good causes. As                                                     the lotteries engage with customers on
we enter the post-pandemic era it will       for digital activities                    a deeper more interactive level.”
be interesting to see what new habits        including work,
are here to stay and what else is on                                                   She added that a ‘did you know’ ad that
the horizon. However, one thing the          shopping, education,                      promotes good causes in the virtual
industry agrees on, is the importance        social interaction,                       world, provides lotteries with a unique
of understanding players and putting                                                   platform to market their corporate
their needs and wishes first.                or entertainment.                         social responsibility initiatives and win
                                                                                       new customers.
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