Latest News
Illegal gambling sees Russian punters pouring over $1 billion per year into offshore shell accounts
At least $1 billion a year is believed to be pouring into offshore accounts of Russian shell companies linked to just one semi-legal but blossoming industry: online gambling.
This poses a new challenge for Russia as it prepares to host the World Cup in June and July — the country has already been plagued for decades by allegations of match-fixing in its domestic soccer.
No one expects illicit betting to play a role on the pitch when soccer’s most celebrated competition kicks off in 100 days.
But it represents another dark corner of Russia’s economy that the authorities have struggled to police.
“The total turnover volume of the legal and offshore online bookmaking market is more than $2 billion (€1.6 billion) a year,” Anton Rozhkovsky, the director of the government-mandated TsUPIS online betting payment system, said.
“We do not pretend to know if the actual figure is $2.5 billion or $4 billion,” he said. “Around 70 percent of that is illegal, offshore business.”
Pent-up demand for organized gambling was unleashed with the collapse of the Soviet Union and led to glitzy casinos and seedy slot machine halls opening across Russia.
They skirted paying taxes but were not strictly illegal.
The government tried to impose order by shutting them all down in 2009 and allowing bookies to open sport betting shops that instantly gravitated toward soccer.
Improved internet access pushed most of these punters online and produced a legal vacuum filled by scores of anonymous websites with no licenses but burgeoning business.
Russia’s Bookmakers Rating gambling analysis center pegged the entire industry’s annual turnover at $11.8 billion in May 2017, 65 percent of it made in illegal online bets.
It also expected the market to triple in the next five years thanks to high-profile events such as the World Cup.
“We expect colossal interest in the World Cup,” said Alena Sheyanova, spokeswoman for the legally registered bookmaker Leon. “The legal online betting industry is developing at phenomenal rates.”
TsUPIS took its first registered bet in February 2016 and is servicing 15 authorized bookmakers.
One of these is an established Austrian brand that jumped through the hoops to obtain a license last year.
But popular Irish and British bookies do not take Russian bets and the other 14 bookmakers are local startups.
“Most of the rest are small offshore companies registered in the Netherlands Antilles, Costa Rica or European jurisdictions such as Malta and Gibraltar,” said Rozhkovsky.
Bettors going the legal route are required to pay a tax and submit identity papers in person with both TsUPIS and each bookie they use.
The laborious process can take weeks and is simply evaded by illegal websites appearing under the .com rather than Russia’s national .ru domain.
People skirt sporadic bans on such sites by using a virtual private network (VPN) to access the unfiltered internet.
“Because of these technicalities, our business is not developing as quickly as it could,” Leon’s Sheyanova said.
Analysts further worry that “gray money” placed in offshore accounts may allow fixers to illegally profit off Russian soccer undetected.
Anzor Kavazashvili is a former Soviet goalkeeper who played in the 1966 and 1970 World Cups and more recently tried stamping out match fixing after being encouraged by former UEFA boss Michel Platini, who was deposed in 2015 for ethical breaches.
It was 2011 and “Platini told us we were the only country in Europe without an agency in charge of match fixing,” the 77-year-old said in an interview.
“We knew games could be fixed by players, trainers, player agents and referees. So we took on a comprehensive approach.”
Kavazashvili did not last long. A scandal over a refereeing decision led to his independent council being disbanded in 2012.
Suspicious results in games were a staple of Russian soccer from the 1990s into the early 2000s. The most glaring involved smaller teams owned by local governments or businesses and playing far from the glare of the national media.
Kavazashvili said sarcastically that “our respected bookies” often played a leading role.
Some betting houses were especially fond of spreading match fixing rumors to get officials to annul results of clean matches where they were due to pay out on big bets.
The situation in the Premier League seems to have improved with time because teams are increasingly being treated like businesses.
“Clean clubs have appeared whose owners see no profit in fixed results,” said Echo of Moscow radio sport commentator Anton Orekh.
But the lower leagues remain unmonitored and they, pointedly, receive an estimated one-fifth of all soccer bets.
Source: japantimes.co.jp
Latest News
7-Eleven selects Jackpot.com as their official lottery partner
Online Lottery Courier Service Jackpot.com Announces Exclusive Collaboration with 7-Eleven, Inc.
Jackpot.com will serve as the official lottery courier service of 7-Eleven, Inc., initially launching in Ohio and Massachusetts
Jackpot.com – the online lottery courier service that allows consumers to purchase official state lottery tickets on their phone, tablet, or computer – announced today an exclusive collaboration with 7-Eleven Inc., the largest convenience store chain in the world, to serve as their official lottery courier service.
As part of the collaboration, 7-Eleven customers in Ohio and Massachusetts will be able to sign up and play lottery games and scratchers on the Jackpot.com app or website. The program will initially be launched in over 600 7-Eleven and Speedway stores in Ohio and Massachusetts, with a special launch promotion that gives 7-Eleven customers a free lottery ticket on their first deposit by using promo code, “7Eleven”.
“We’re thrilled to work with 7-Eleven, the leading retailer of lottery tickets in the country,” said Akshay Khanna, CEO and co-founder of Jackpot.com. “Leveraging our technology and innovation, we can provide additional convenience for their customers, while adding an additional source of revenue. A true win-win relationship for all.”
By launching in Ohio and Massachusetts in 2023 and 2024, respectively, Jackpot.com aims at adding another avenue for player convenience with one of the most widely recognized brands in the convenience-retailing space. With a presence in Ohio, the nation’s seventh-largest lottery market, and Massachusetts, whose state lottery produced $1.2 billion in net profit for the Commonwealth during the 2024 fiscal year, Jackpot.com’s collaboration with 7-Eleven represents an added layer of accessibility for players.
Jackpot.com remains committed to responsible play and has significantly invested in protocols by allowing customers of legal age to set spend limits and limits on daily deposits, all while providing access to local and national responsible gambling resources, self-exclusion, self-suspension and automated notifications that offer help should problematic behavior be detected. Jackpot.com is also the only lottery courier service to launch with an iCap certification from the National Council on Problem Gambling.
To learn more, visit jackpot.com. First-time users can also download the official Jackpot.com Lottery App on the iOS or Android App Stores, where available.
eSports
The World Esports Summit 2024 Is Here!
The IESF World Esports Summit returns this December to Busan, South Korea. Hosted at the Busan Esports Arena (BRENA) from December 5-6, the Summit will bring together prominent figures from Esports, global brands, government officials, and sports executives for a deep dive into the current Esports trends, its rapid transformations, and future challenges.
This year’s theme, “Building Bridges, Not Barriers, Through the Power of Esports,” will highlight the role of Esports in uniting cultures, ideas, and industries. Under the slogan “We Empower Success,” the
Summit provides a great platform for Esports experts to engage in meaningful discussions and sessions, sharing their insights on trends and presenting forward-looking ideas for our industry.
The event, strategically timed at the close of the competitive season, presents a perfect environment for reflection on the year’s biggest events, industry shifts, and the next steps for Esports. Attendees can follow the expert’s perspectives on topics like:
- (R)Evolution in Esports
- East Meets West
- Esports Integrity: The Role of Referees
- The Rise of International Esports Competitions
- (In Korean) Korea’s Secret Sauce etc.
Also, featured at this year’s event are the IESF World Esports Training Camp and the World Esports Referee Academy.
These are very important IESF programs that are aimed at advancing the skills and professional standards of the next generation of Esports leaders.
Join us in Busan for two days designed to inspire, connect, and empower the international Esports community.
Registration for the World Esports Summit is free and open to all interested attendees.
To register, please complete our online registration form: iesf.formstack.com/forms/wes2024_participation_registration
See you in Busan!
eSports
Akhil Sarin CMO at Easygo named as key note at ICE Esports Conference
Clarion Gaming has confirmed that Akhil Sarin CMO at Easygo, the technology powerhouse behind the success of global brands Stake and Kick will headline the Esports & Games Conference (EGC) taking place on 21 January as part of the ICE Barcelona experience. As a key member of the executive team, Akhil Sarin has been instrumental in securing the high-profile partnerships that have accelerated Stake’s growth, including the Stake F1 team, UFC, Drake, and Premier League Everton FC.
Through these strategic alliances he has amplified Stake’s brand presence at the same time as creating unique, immersive player experiences, in the process setting new industry benchmarks.
Announcing the high profile speaker Will Harding, Head of Esports at Clarion Gaming said: “Securing Akhil Sarin as EGC key note at ICE Barcelona represents a remarkable opportunity for our attendees to gain invaluable insight into cutting-edge strategies in digital and influencer marketing .
“Akhil’s expertise with Stake and Kick.com embodies the forward-thinking, innovative approach that defines the digital marketing landscapes. His participation underscores the calibre of knowledge-sharing that we are committed to delivering at ICE and he is sure to both inspire our attendees and elevate their strategic perspective.”
Looking ahead to ICE Barcelona, Akhil Sarin stated: “Collaborating with Clarion Gaming at ICE Barcelona is an exciting opportunity to showcase Stake’s journey and continued focus on bold partnerships and creative marketing strategies that resonate with audiences.”
He added “The EGC is a vital platform for exchanging transformative ideas and shaping the future of gaming and entertainment. I look forward to discussing Stake’s vision and collaborating with industry leaders to inspire growth and innovation across the sector.”
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