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Friday, June 30, 2000
Copyright © Las Vegas Review-Journal
Sports books face state probe
Regulators are investigating possible phone betting system abuse by sports bookmakers.
By Jeff Simpson
lasvegas.com Gaming Wire
State gaming regulators have begun a criminal investigation into the possible abuse of phone betting systems by sports book operators who have failed to properly enforce state gaming rules, regulators said Thursday.
The Nevada Gaming Control Board also disclosed that out-of-state phone bets can be placed illegally with Nevada casinos.
Control board enforcement agents were able to make out-of-state wagers on all seven types of casino phone betting systems, although no evidence of such illegal betting has been found, said Keith Copher, chief of the board's enforcement division.
Gaming regulators used equipment that cost as little as a few thousand dollars to mask the origin of the calls, Copher said.
"We have a telephone wagering system that doesn't work," argued control board member Bobby Siller. "We could just say `We're going to stop telephone wagering.' But we don't want to do that."
Phone betting from outside of Nevada is not only illegal under federal law, but is mainly used by illegal bookmakers, noted Siller, a former FBI special agent.
Regulators met with Nevada sports book directors to propose solutions to the problem.
Siller and Copher recommended a cap of $330 per sporting event on telephone wagers. There is no current limit, except the ones imposed by each sports book. They also asked that sports books increase their efforts to prevent illegal wagering.
Establishing limits, Siller said, would eliminate the incentive for out-of-state bookmakers to invest in the technology that allows them to place phone bets in Nevada.
It would also force Nevada-based illegal bookmakers to place their bets in person, making it easier for casino officials and law enforcement to identify them, he said.
"It's only the wise guys that are betting thousands of dollars," Siller explained.
The enforcement division conducted a study to determine betting limits to discourage wiseguy, or bookie, action while allowing most of the books' legal bettors to wager.
The division tabulated wagers made with four telephone betting systems on one day -- June 3. They found that 1,267 separate wagers were made.
The average wager was $236, and the average bettor wagered a total of $800 on all of his bets that day. Enforcement Division Deputy Chief Jerry Markling said that 76 percent of the wagers were less than $300; 91 percent were less than $1,000.
He suggested a cap of $330 per sporting event with a daily betting limit of $1,320 per phone account.
Sports book managers from Coast Resorts, Station Casinos, and several Strip properties questioned regulators about the necessity of daily account limits, suggesting that an event limit would accomplish the board's goal of restricting wiseguy wagers. Regulators agreed.
Sports book managers also asked for some flexibility regarding event limits during football season. Siller said he was willing to be flexible, but asked the books to resubmit their telephone wagering system applications, incorporating the $330 per-event betting limits for now.
Siller acknowledged the measure will not prevent out-of-state wagers, but said the betting cap removes the incentive for illegal bookmakers to purchase the technology to allow them to wager from outside of Nevada.
"We strongly suggest you review your internal controls," Copher said.
He added that the division's ongoing criminal investigation reveals that several sports books -- some represented in the meeting room -- have not diligently enforced telephone system safeguards.
For example, some betting systems are required to return phone calls to confirm the origin of each bet.
"There will probably be some industry people prosecuted," Copher warned, noting that his division will continue to test sports book enforcement efforts.
Segundo here: I did not know that a wise guy was an illegal bookmaker. This is a joke. I bet a couple thousand dollars a game, I am not a bookmaker, but if I go into a casino they are going to try and identify me as being a bookie? The party is over guys...
Also, now we know why the Hilton ended phone wagering. Hey Art, here's your new nickname: Superillegalbookie, because it seems that you might have been in bed with these out of state bookies, oops, I meant to say in bed with your manager Chuckie.
[This message has been edited by Segundo (edited 06-30-2000).]
Copyright © Las Vegas Review-Journal
Sports books face state probe
Regulators are investigating possible phone betting system abuse by sports bookmakers.
By Jeff Simpson
lasvegas.com Gaming Wire
State gaming regulators have begun a criminal investigation into the possible abuse of phone betting systems by sports book operators who have failed to properly enforce state gaming rules, regulators said Thursday.
The Nevada Gaming Control Board also disclosed that out-of-state phone bets can be placed illegally with Nevada casinos.
Control board enforcement agents were able to make out-of-state wagers on all seven types of casino phone betting systems, although no evidence of such illegal betting has been found, said Keith Copher, chief of the board's enforcement division.
Gaming regulators used equipment that cost as little as a few thousand dollars to mask the origin of the calls, Copher said.
"We have a telephone wagering system that doesn't work," argued control board member Bobby Siller. "We could just say `We're going to stop telephone wagering.' But we don't want to do that."
Phone betting from outside of Nevada is not only illegal under federal law, but is mainly used by illegal bookmakers, noted Siller, a former FBI special agent.
Regulators met with Nevada sports book directors to propose solutions to the problem.
Siller and Copher recommended a cap of $330 per sporting event on telephone wagers. There is no current limit, except the ones imposed by each sports book. They also asked that sports books increase their efforts to prevent illegal wagering.
Establishing limits, Siller said, would eliminate the incentive for out-of-state bookmakers to invest in the technology that allows them to place phone bets in Nevada.
It would also force Nevada-based illegal bookmakers to place their bets in person, making it easier for casino officials and law enforcement to identify them, he said.
"It's only the wise guys that are betting thousands of dollars," Siller explained.
The enforcement division conducted a study to determine betting limits to discourage wiseguy, or bookie, action while allowing most of the books' legal bettors to wager.
The division tabulated wagers made with four telephone betting systems on one day -- June 3. They found that 1,267 separate wagers were made.
The average wager was $236, and the average bettor wagered a total of $800 on all of his bets that day. Enforcement Division Deputy Chief Jerry Markling said that 76 percent of the wagers were less than $300; 91 percent were less than $1,000.
He suggested a cap of $330 per sporting event with a daily betting limit of $1,320 per phone account.
Sports book managers from Coast Resorts, Station Casinos, and several Strip properties questioned regulators about the necessity of daily account limits, suggesting that an event limit would accomplish the board's goal of restricting wiseguy wagers. Regulators agreed.
Sports book managers also asked for some flexibility regarding event limits during football season. Siller said he was willing to be flexible, but asked the books to resubmit their telephone wagering system applications, incorporating the $330 per-event betting limits for now.
Siller acknowledged the measure will not prevent out-of-state wagers, but said the betting cap removes the incentive for illegal bookmakers to purchase the technology to allow them to wager from outside of Nevada.
"We strongly suggest you review your internal controls," Copher said.
He added that the division's ongoing criminal investigation reveals that several sports books -- some represented in the meeting room -- have not diligently enforced telephone system safeguards.
For example, some betting systems are required to return phone calls to confirm the origin of each bet.
"There will probably be some industry people prosecuted," Copher warned, noting that his division will continue to test sports book enforcement efforts.
Segundo here: I did not know that a wise guy was an illegal bookmaker. This is a joke. I bet a couple thousand dollars a game, I am not a bookmaker, but if I go into a casino they are going to try and identify me as being a bookie? The party is over guys...
Also, now we know why the Hilton ended phone wagering. Hey Art, here's your new nickname: Superillegalbookie, because it seems that you might have been in bed with these out of state bookies, oops, I meant to say in bed with your manager Chuckie.
[This message has been edited by Segundo (edited 06-30-2000).]
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