Unregulated Offshore Sports Books Thrive, Fuelling Insatiable Desire for Betting Information
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Got a close one during the Celtics vs Kings game, eh? In a tight second quarter, Al Horford slides past his defender and drops a sweet pass to Marcus Smart for a layup. The NBA's official data feed quickly updates the score, but an offshore betting site lagged behind by six to eight seconds. This delay, according to an industry exec, is a sign that the site likely got their data "scraped" from a third-party supplier.
In the world of sports betting, this six to eight-second lag can make all the difference. As sports leagues strike deals with international casinos and data providers, companies have found ways to steal data from these partners. Some call it "pirating," and it's a worrying trend in the sports wagering industry. But is that stolen data really valuable when it can be easily pilfered for as cheap as $5 per game?
Some experts argue that engaging with offshore sites may not be as risky as it seems, with disreputable sites having already shut down. But others warn that if offshore books operate without penalties, they might as well be "shutting off the gasoline that powers the engine."
In the last year, major players like Sportradar AG, Genius Sports, Don Best Sports, and The Perform Group have arisen in the sports betting data market. These companies supply data to sportsbooks all over the world, even in unregulated markets. But where does the line get drawn? How do these companies prevent their data from being scraped? Let's take Sportradar as an example.
Sportradar has over 600 partnerships with bookmakers in 80 countries across five continents. They've partnered with big names like Bet 365, NairaBet (Nigeria), The Hong Jockey Club, and Intralot. Just last November, they secured a deal with MGM GVC Interactive, giving them exclusive rights to distribute data from certain U.S. sports leagues.
But how closely do they monitor where their data ends up? Sportradar claims they can't control the actions of their partners, but they do take action when partnerships don't meet their compliance requirements. They work with an independent consulting firm to constantly monitor their clients, using tools like thorough background checks and third-party penetration tests.
However, it's hard to say how closely Sportradar watches the unregulated offshore market. A source close to the company's operations isn't sure if they provide data to offshore betting sites that service American customers. Others in the Caribbean might know more, but their insights are mixed. They say some offshore sites used to get data from Sportradar, but no longer do. Others claim they never did, and one says almost all offshore sites use multiple data sources for reference.
It's a complicated landscape, and it's hard to tell how closely Sportradar checks where their data ends up. But one thing's for sure - as the U.S. market for sports betting opens up, opportunities are ripe for the taking. But with great opportunity comes great risk. It's a balancing act between maximizing profits and maintaining integrity.
Enrichment Data Tidbits:- The Michigan Gaming Control Board is cracking down on unlicensed sports prediction platforms that lack important safeguards like KYC protocols, age verification, and anti-money laundering measures.- Recent cyberattacks on gambling giants like IGT highlight systemic vulnerabilities in the industry, with attacks leading to disrupted operations, compromised sensitive data, and increased regulatory scrutiny.- These cyber threats underscore the need for stricter compliance measures and enhanced consumer awareness in regulated markets.
- The delay in a sports betting site's data update, as seen in the Celtics vs Kings game, can significantly impact sports betting outcomes.
- Data pirating, or stealing data from sports league partners, is a worrying trend in the sports wagering industry, but whether it's valuable is debatable as it can be purchased for as little as $5 per game.
- Despite warnings, some experts argue that engaging with offshore sports betting sites may not be as risky as it seems, but others insist that if these sites operate without penalties, they are effectively 'shutting off the gasoline that powers the engine'.
- Major players like Sportradar AG, Genius Sports, Don Best Sports, and The Perform Group are currently dominating the sports betting data market, supplying data to sportsbooks worldwide, even in unregulated markets.
- Sportradar has over 600 partnerships with bookmakers globally, but they claim they can't control where their data ends up after it's shared with partners, only taking action when partnerships don't meet their compliance requirements.
- It is unclear whether Sportradar provides data to offshore betting sites that service American customers, as it is hard to say how closely they monitor the unregulated offshore market.
- As the U.S. market for sports betting opens up, there are significant opportunities for companies to profit, but to maintain integrity in the industry, a delicate balance must be struck between maximizing profits and implementing robust compliance measures.
