A $US187 billion monster – The looming challenge as over 50 crypto-betting platforms offer Australian and New Zealand racing

[Murray Fish]

A $US187 billion monster – The looming challenge as over 50 crypto-betting platforms offer Australian and New Zealand racing

The sheer size of the unregulated gambling market and the fact that over 50 crypto operators are willing to offer markets on Australian and New Zealand racing present a huge integrity challenge to local racing authorities, a new report has found.

By Bren O'Brien 

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A new report, published by the International Federation of Horseracing Authorities, reveals the number of crypto-casinos operating on Australian and New Zeland racing. (Photo: Getty Images)

An internationally commissioned report has found betting on Australian and New Zealand horse racing is accessible across over 50 cryptocurrency-enabled platforms globally, presenting major threats to the integrity and funding of the industry.

The report was published by the International Federation of Horseracing Authorities and outlines the challenges faced by integrity authorities in monitoring bets in the rapidly evolving global wagering landscape.  

It was led by Dr Elliot Forbes, as well as being a member of the IFHA Council on Anti-Illegal Betting and Related Crime, is also the chief executive of the Racing Integrity Board.  

As well as examining the integrity landscape in New Zealand, where betting by Kiwis accounts for only one-third of the combined Australasian betting on New Zealand races, the report also examined the global impact of illegal offshore betting.

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Specifically, the report analysed deposits from the largest offshore crypto casinos and sportsbooks and found that across a 12-month period there was more than $US187 billion in identifiable crypto deposits across 4.4 million combined customers.

It also found that seven of the top 10 crypto casinos in the world now offer racing as a product and four of the top 5 operate on Australian and New Zealand racing.

The IFHA study detailed that Australian and New Zealand racing content now appears almost universally on over 50 of these grey market-operated sites, which are licensed in places like Curacao, Anjouan (Comoros), Estonia, Costa Rica, British Virgin Islands and St Vincent.

“Offshore operators offer fixed-odds and derivative products on New Zealand races that do not exist domestically,” the NZ-focused report said.

“These operators also advertise sign-up inducements such as deposit matches and bonuses with rollover requirements no longer legal in regulated domestic markets.

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“Alongside the large crypto-enabled sportsbooks, New Zealand races are also offered on illegal betting exchanges, crypto casinos and sports prediction markets, alongside political events and esports.”

Forbes said the threat for a smaller jurisdiction like New Zealand was clear.

“It is a fundamentally parasitic model: they extract value from New Zealand and other jurisdictions’ racing product while contributing nothing to the integrity systems or financial framework that sustain the sport,” he said.

The report also raised concerns about player safeguards and consumer protections, while highlighting the integrity challenges of monitoring betting patterns in regulated environments.

“For bad actors, the opportunities are considerable. Crypto-based racebooks and exchanges, with anonymous wallets, rapid settlement and opaque ownership structures, are attractive to individuals seeking to move or disguise illicit activity,” it said.

“When betting takes place in environments with no reporting obligations, the risk of corrupted outcomes being used for money laundering increases significantly.”

Forbes said the RIB was committed to continuing to map and monitor offshore coverage, engaging with more jurisdictions to seek integrity agreements, information sharing, and supporting policy development.

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“From a New Zealand perspective we intend to strengthen our domestic oversight, build a clearer picture of offshore activity, advocate for coherent policy settings and contribute meaningfully to international cooperation,” he said.

“We will continue working with policy-makers, sporting bodies, regulators and government agencies to ensure our collective capability keeps pace with the environment.

“In a wagering landscape that is more complex and fast-moving than at any point in recent memory, that foundation is essential to protecting the integrity and financial sustainability of New Zealand racing.”

A report late last year commissioned by Responsible Wagering Australia’s into the growth of the illegal offshore gambling market revealed that 14 per cent of betting on racing by Australians is with unlicensed overseas operators.

[Murray Fish]

2 minutes ago, Murray Fish said:

“It is a fundamentally parasitic model: they extract value from New Zealand and other jurisdictions’ racing product while contributing nothing to the integrity systems or financial framework that sustain the sport,” he said.

hence,  'our' lot will just increase  their take out % from the locals the still have betting with them! 

[curious]

38 minutes ago, Murray Fish said:

hence,  'our' lot will just increase  their take out % from the locals the still have betting with them! 

That is their usual strategy and has been for a long time when they should have offered a competitive model.