The AFL has admitted its integrity system for on-line playing is severely poor and struggles to id whether or not gamers, coaches and employees are utilizing inside data to govern betting markets, in breach of their contracts.
Leaked paperwork seen by Guardian Australia reveal executives have expressed alarm about an “unprecedented” enhance in “integrity risks” posed by the wagering trade, which has exploded in recognition for the reason that pandemic with greater than 80 bookmakers now taking bets on its video games.
The paperwork reveal the AFL lacks “visibility across a broad cross section of betting turnover” and solely sees the “tip of the iceberg”. It has additionally raised concern about a number of “bottlenecks” and “blindspots” which have prevented it from rapidly detecting if gamers, coaches and employees are betting on video games or sharing delicate data.
These considerations, which haven’t been spoken about publicly, have been utilized by the AFL to justify a marketing campaign to grab a good greater share of the cash Australians gamble on its video games. That is regardless of sustained criticism for its shut affiliation with the wagering sector and its playing promoting being considered by impressionable kids.
The AFL’s proposed resolution is to utterly overhaul its integrity framework and power greater than 80 bookmakers to supply playing information to a brand new centralised database, managed by an exterior AI firm, which might permit it to detect suspicious transactions in close to actual time.
It’s an costly repair, and the AFL needs bookmakers to pay for it.
An e-mail outlining this plan, despatched by the AFL’s authorized group on the top of summer time, has triggered a bitter battle over playing income, a flurry of authorized letters, hard-ball negotiation ways, threats to name within the regulator, exasperation from public well being officers, and a broader questioning of the AFL’s social licence.
‘Increase in integrity threats’
A December 2024 inner doc seen by Guardian Australia reveals the AFL has raised concern about “mounting integrity threats” posed by the playing sector which might be “evolving at an unprecedented rate”.
The league has cited three examples that display “shortcomings in the AFL’s current integrity monitoring framework”. The primary entails the case of an AFL umpire allegedly offering advance discover of outcomes to individuals who place bets.
“The AFL relied on one bookmaker to identify the betting of interest and the connection with a specific umpire, with bets of interest only flagged due to a significant loss being made on the market,” the doc stated.
“The AFL then had to request further information from all wage service providers, substantially delaying investigation and mitigating steps.”
Based on the AFL, bookmakers have been too sluggish to supply transaction information when requested to take action. The knowledge equipped over e-mail have to be cleaned and collated earlier than it may be analysed by integrity groups, creating additional delays.
The AFL additionally referred to a participant allegedly offering inside details about video games to somebody who positioned 5 bets with totally different bookmakers.
The participant had been instructed to start out his subsequent recreation in a special place from his common one. This data was not public and the betting markets didn’t mirror it. The gambler positioned bets on him kicking the primary aim of the sport.
One other instance cited concerned a well being skilled at an AFLW group, who just isn’t allowed to gamble on matches. The doc describes them betting from their companion’s account, primarily based on private details about accidents. The bets had been small.
“Within existing integrity monitoring framework, the wage service provider does not report the activity due to the size of the bets, and their own checks into the partner do not identify any links between her and any AFL player/official,” the doc stated.
The AFL’s resolution to those issues is to create a centralised database that ingests each playing transaction from bookmakers. This would come with gambler names. AI software program would then establish suspicious transactions.
The brand new system is described as a approach for the AFL to “keep up with the increase in digital betting”, which it’s partly answerable for, having promoted betting adverts at its stadiums and on social media, whereas itemizing odds on its app.
The AFL didn’t reply to a request for remark.
‘Unprecedented and unnecessary’
Many giant bookmakers are strongly against the AFL’s proposed database and have declined to enroll. They describe it as an overreach and lift considerations about private data being misused or compromised.
One wagering supply, who declined to be named so they may converse freely, stated the brand new monitoring system could be “an unprecedented and unnecessary intervention” that may trigger “more problems” than it solved.
after e-newsletter promotion
Transaction information despatched to the brand new system would come with a gambler’s full title, date of delivery, full handle, e-mail handle, house and cell phone numbers, and the amount of their bets.
Inner AFL paperwork acknowledged the database would comprise “sensitive” private data, however careworn “additional security measures would be implemented over and above normal data security controls”.
Others within the wagering trade have famous that no comparable database exists for monetary crime businesses to wade via non-suspicious transactions within the seek for cash laundering, corruption or terrorism financing.
A number of sources have instructed Guardian Australia that the AFL has determined to postpone the introduction of the brand new system, within the face of sturdy opposition from bookmakers.
‘This agreement must be kept confidential’
Whereas unknown to most followers, the AFL has a monetary stake in its followers’ playing habits. It receives a lower of every guess positioned on its video games, or a share of a playing firm’s turnover.
This association, together with broadcast income and ticket gross sales, has turn into the engine that powers the AFL’s income stream. It was launched by the league’s former CEO Andrew Demetriou, who watched playing firms money in on the game. This cash has supported the AFL’s integrity efforts ever since.
Lower than two months earlier than spherical one, the AFL wrote to playing firms outlining its plan to obtain a minimal $20,000 share of income annually. It had already prolonged session in December and demanded a solution by the top of February.
This minimal price would apply to all bookmakers, no matter how a lot cash they generated.
A proposed settlement despatched to bookmakers required them “keep confidential and not allow, make or cause any disclosure” associated to “the terms of this agreement” with out the written consent of the AFL.
Greater than 30 smaller bookmakers involved by the rise in charges engaged the regulation agency Pat Brown Authorized to hunt a greater deal.
Final week, after negotiations, the AFL provided a revised supply. As a substitute of the annual $20,000 minimal fee, smaller bookmakers could be charged at the very least $3,000 in 2025, $5,000 in 2026 and $7,000 in 2027. However some believed this was nonetheless too excessive.
Whereas all events imagine the deadlock might be resolved, Pat Brown Authorized has flagged the potential for Victoria’s playing regulator to behave as an unbiased arbiter. Court docket challenges and an enchantment for ministerial intervention are additionally potential choices.
The AFL Gamers Affiliation, which has warned gamers are being handled as playing merchandise that trigger group hurt, can be following the negotiations. It continues to push for gamers to get a much bigger share of income made on their efficiency.
Public well being consultants, together with the Australian Medical Affiliation, imagine the AFL’s push for a much bigger share of wagering income reveals it relationship with the playing trade is firmly entrenched.
The previous AFL commissioner Colin Carter says that should change. “Surveys show that football fans resent the massive levels of gambling advertising and some AFL clubs have even exited their very profitable pokies businesses because they don’t fit their values,” he instructed Guardian Australia.
“But the AFL is silent on this one and even seems opposed to restricting the level of advertising, which is terribly disappointing.”
The AFL season begins on Thursday. The stakes have been raised.
