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Structural Risks in Sports Betting and What Users Can Do To Protect Themselves

Structural Risks in Sports Betting and What Users Can Do To Protect Themselves

One warm spring night, a Japanese sports enthusiast, Teru, hit the jackpot on a Premier League bet on a bookmaker, finishing one of the most exciting nights of his life. The next day, he requested the withdrawal of several hundred thousand yen, although his excitement did not last long. After a few days, his winnings were never deposited into his account. When he contacted the customer support, all he got back was a template text and an unclear “under investigation” reply. The reason given was “suspicious betting behavior,” but he never received a specific explanation.

Such cases are not uncommon. Especially in Japan, it is illegal, with a few exceptions,  to engage in betting run by a domestic entity, and almost all bookmakers that accept Japanese users are offshore sites from overseas. These bookmakers often have Japanese-language sites but operate in territories like Malta, Curacao, or other locations that don’t have to comply with the Japanese legal system. This inevitably puts Japanese users in a very weak position without any legal protection.

The Often-Neglected Quality Of Customer Support In Betting Sites

Nowadays, it is almost impossible not to see a bookmaker’s logo at popular sports matches. While some bookmakers sponsor renowned sports teams competing in these games and are considered to be legitimate, there is no end to reports of trouble on the part of users surrounding betting sites.

Customer support is the first line of communication between users and betting sites when problems occur, but the quality of customer support is often not high, which causes even further frustration for users. It is not uncommon for customer support not only to fail to provide satisfactory answers to users’ questions but also to close chats unilaterally, or, in the case of some bookmakers, to give users outdated or false information in response to their questions.

While a certain level of quality customer service should be expected at a bookmaker where large sums of money are at stake, this is not always the case in the gambling industry. Why is customer support so neglected? And how should we, as users, face this challenge?

Legal Structures Surrounding Sports Betting That Disadvantage Users

Many betting sites operate with minimal legal risk by locating their entities in jurisdictions with less stringent consumer protection regulations, such as Curaçao, Malta, and Gibraltar. Under this “regulatory avoidance model,” investments in support systems are often reduced as a non-profitable cost. Customer service is outsourced with no good training or, worse, only with an AI chatbot. And with no penalties, delays in customer service are not a “loss” for the company.

Additionally, what makes the situation even more complicated is the bookmaker’s business model itself. Since betting sites make their profit from their customers’ losses, frequent winners can become their financial risk. Freezing accounts with high winnings is considered a legitimate and important risk hedge for bookmakers, and the criteria for doing so are often unclear. This means that users can win and still be denied winnings at the discretion of the company. This is less like gambling and more like structural exploitation established by contractual imbalance.

What Can Users Do To Protect Themselves?

Even under these circumstances, users are not completely helpless. The first and most important thing is to choose a reliable betting site. It is possible to make certain judgments by examining not the advertisements or the quality of the UI, but the ratings on third-party review sites such as Trustpilot, the history of past troubleshooting, as well as the type of license.

At the same time, when registering with a new bookmaker, be sure to read the terms of service, especially the conditions on withdrawal and bonus usage. Many problems arise from overlooking these complicated and tricky conditions, as they may have strict wagering requirements.

It is also useful to keep a record of the history of correspondence as a form of self-defense. Even if a complaint is made to an outside organization like Gambling Commission, a timeline of evidence can be used as a bargaining chip.

The growth of the betting industry has been accelerated by the evolution of technology and UX. Now that with a smartphone, anyone can easily access betting sites, the question is who sets the rules and who makes sure they are followed.

Today, the number of bookmakers continues to grow rapidly as one of the most competitive businesses, but we must not forget that behind the convenience and excitement brought by technology lurks an invisible risk. And that risk sometimes turns even victory inside out.

Especially in countries and regions with complex laws and regulations, individual users must have the knowledge and perspective to protect their own safety.

Disclaimer:

CBD:

Qrius does not provide medical advice.

The Narcotic Drugs and Psychotropic Substances Act, 1985 (NDPS Act) outlaws the recreational use of cannabis products in India. CBD oil, manufactured under a license issued by the Drugs and Cosmetics Act, 1940, can be legally used in India for medicinal purposes only with a prescription, subject to specific conditions. Kindly refer to the legalities here.

The information on this website is for informational purposes only and is not a substitute for professional medical advice, diagnosis, or treatment. Always seek the advice of your physician or another qualified health provider with any questions regarding a medical condition or treatment. Never disregard professional medical advice or delay seeking it because of something you have read on this website.

Gambling:

As per the Public Gambling Act of 1867, all Indian states, except Goa, Daman, and Sikkim, prohibit gambling. Land-based casinos are legalized in Goa and Daman under the Goa, Daman and Diu Public Gambling Act 1976. In Sikkim, land-based casinos, online gambling, and e-gaming (games of chance) are legalized under the Sikkim Online Gaming (Regulation) Rules 2009. Only some Indian states have legalized online/regular lotteries, subject to state laws. Refer to the legalities here. Horse racing and betting on horse racing, including online betting, is permitted only in licensed premises in select states. Refer to the 1996 Supreme Court judgment for more information.

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About Author

Bhumish Sheth

Bhumish Sheth is a writer for Qrius.com. He brings clarity and insight to topics in Technology, Culture, Science & Automobiles. His articles make complex ideas easy to understand. He focuses on practical insights readers can use in their daily lives.

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