Horizons Spring/Summer 2019

Sports Wagering Integrity Monitoring Association

The Sports Wagering Integrity Monitoring Association (SWIMA) is an organization created by members of MGM Resorts International and Caesars Entertainment to promote and monitor fair sports betting contests through investigation and analytical research to detect fraud and corruption. SWIMA was formed in November 2018, and was originally designed to mirror the European Sports Security Association. SWIMA helps aid sports betting operators investigate potential allegations of fraud and corruption as it relates to sports betting contests being offered within the U.S. Any findings of fraud or corruption are to be reported by both SWIMA and the operator to regulating bodies to ensure proper corrective actions and legal proceedings take place. Once regulating bodies have been notified, SWIMA may further assist in research and data analytics within these legal proceedings. As of December 2018, other members involved with SWIMA have not been confirmed, but multiple reports state major players within the sports betting industry are expected to play a key role within the organization and help support SWIMA’s objectives. Increased Business Opportunities for Other Industries The benefits provided by sports betting will expand beyond the sports betting operators. Sports organizations can see an increase in attendance, additional revenue from allowing sports betting onsite and can expect to keep audiences in the stands longer, particularly during blow out or lopsided games. Sports betting operators can help increase an individual’s desire to attend a sporting event by offering contests only available within the stadium, arena or dome. This Updates and developments on SWIMA are expected to come later in 2019.

Mobile Online ID Verification As technology continues to develop within gaming industries, it can provide new ways for operators to accept bets. Traditionally, bets on sporting events have been placed in person at sports books, but within the coming years we could see the use of mobile phones, tablets, personal computers and even kiosks at physical sporting events become the primary way to place a bet. Today 77% of Americans own a smartphone, a number that has continued to spike in the past few years. Citizens of all ages now have smartphones ready to use at a moment’s notice. If the primary method of placing bets was to evolve to use smartphones or other electronic devices, this would create a challenge for operators to demonstrate to regulators that players are of legal age. To help combat this issue, sports betting operators could call on the help of third- party ID verification providers to ensure contestants are at least the age of the majority when placing bets online. This is a practice already employed by other industries and a real risk as witnessed in New Jersey when Rush Street Interactive was fined by the Division of Gaming Enforcement for an underage gambling incident.

Rapid Gains in Sports Betting

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