Experts from the Asian Racing Federation (ARF) Council on Anti-Illegal Betting and Related Financial Crime addressed the growing threats of illegal wagering and gene doping in horse racing in a session at the 40th Asian Racing Conference (ARC) held in Sapporo, Japan.
The session, titled “Integrity: Tackling New-Age Threats,” highlighted how evolving technology has fueled the rapid expansion of the illegal betting market, now valued at approximately $1.7 trillion.
According to an announcement from the conference, Martin Purbrick, chairperson of the ARF Council, emphasized the critical role of integrity in horse racing, stating that a lack of trust could lead to diminished public confidence and financial support for the sport.
Purbrick noted that many customers are migrating from legal betting platforms to illegal ones, undermining funding for racing.
Meanwhile, Tom Chignell, from The Hong Kong Jockey Club, discussed the tactics used by illegal operators to attract customers through online platforms and cryptocurrency, making transactions difficult to trace. He warned that these operators face no regulatory oversight, allowing them to exploit technology without ethical considerations.
Chignell also advocated for a data-centric approach to uphold integrity in racing, utilizing computer models and machine learning to monitor betting activities effectively, stressing that racing authorities must proactively manage these threats to maintain public confidence.
Ronan O’Laoire from the United Nations Office on Drugs and Crime outlined the interconnections between sports-related corruption and organized crime, emphasizing the need for a holistic understanding of these issues.
The official described various forms of corruption, including money laundering and illegal betting, as significant challenges.
In a shift to another emerging threat, Natasha Hamilton, director of Racing Australia’s Equine Genetics Research Center, addressed the issue of gene doping. She explained that advancements in gene therapies could be misused for doping, posing risks to both integrity and equine welfare.
Hamilton highlighted ongoing global research efforts to detect gene doping and the collaborative initiatives among racing bodies to develop regulatory frameworks.
The 40th Asian Racing Conference (ARC) runs until September 1st in Sapporo, Japan, with an extensive program centered on racing breeding, business leaders and key stakeholders.
In a different session titled “Betting: How Innovation is Changing The Future,” attendees discussed how World Pool has become crucial for the sustainability of racing globally. However, many jurisdictions continue to face significant hurdles.
Michael Fitzsimons, Executive Director of Wagering Products at The Hong Kong Jockey Club, emphasized the need to tackle the illegal wagering market. He suggested that racing could learn from the music industry’s successful collaboration against piracy.
“We must innovate together in a manner more compelling than the illegal alternative”, Fitzsimons stated, advocating for World Pool to cover the International Federation of Horseracing Authorities’ top 100 races.
Fitzsimons believes that by leveraging international Group 1 races, World Pool can help mitigate illegal gambling concerns. “We can’t and won’t stop until we have a convenient product with all the world’s best races in one place”.
The session also addressed the evolving regulatory landscape. Lachlan Fitt, CFO and Deputy CEO of Entain Australia and New Zealand, warned that his company may need to adjust its wagering offerings if further government regulations and taxes are implemented.
“We’re at a tipping point in Australia where our margins are already very thin,” he noted, predicting a potential decline in wagering turnover of 15 percent to 40 percent due to new advertising regulations.
Jason Scott, CEO of Racing Queensland, stressed the importance of understanding why customers are turning to illegal and offshore operators. “We need to learn from the illegal markets; they are growing because they can offer greater returns through lower takeouts and taxes,” he explained.
Meanwhile, Alex Frost, Co-Chair of the World Tote Association, called World Pool “the most significant innovation in pool betting” since its inception, noting a staggering turnover increase of over 400 percent since its launch.
