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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
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
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
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
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
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
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
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
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 XtendGame® is a new and advanced platform for electronic games of chance that reduces underage gaming, money laundering and unwarranted access to your games without reducing the fun of them. XtendGame® is a SaaS platform with cutting edge architecture that can be easily integrated with existing systems and products to enable horizontal user management and compliance. Launching new and innovative games as well as running legacy games can all be easily combined through one platform with XtendGame®. contact@xtendgame.com “Methods for certain functions described herein are patented. United States patent number 11,011,027.” WLA MAGAZINE No. 57 / SPRING 2022 9
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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