Betting On Data: Copyright, Algorithms, And The Future Of Sports Betting

BI
Barnard Inc.

Contributor

Barnard Inc is a full-service commercial law firm, with services covering corporate and compliance, intellectual property, construction, mining and engineering, property, fiduciary services commercial litigation, M&A, restructuring, insurance, and family law. Our attorneys advise listed and private companies, individuals, and local and foreign organisations across South Africa, Africa and internationally.
The success of most professional athletes is fuelled by a hyper-competitive spirit—an intense drive that transcends monetary rewards, much like when Herschelle Gibbs famously "klapped the ball so lekker."
South Africa Intellectual Property

How the Remote Gambling Bill and Copyright Law Impact Sports Betting

The success of most professional athletes is fuelled by a hyper-competitive spirit—an intense drive that transcends monetary rewards, much like when Herschelle Gibbs famously "klapped the ball so lekker." While athletes compete for glory, bookmakers have an entirely different goal: making money off that very same desire to win. How do these two worlds—sportsmanship and profit—intersect?

According to the National Gambling Board's latest annual report, online betting now accounts for more than 50% of all gambling activities in South Africa. The boom in online sports betting, especially post-pandemic, has grown so large that some betting companies are now sponsoring sports events, stadiums, and teams. For bookmakers, data is everything. While unethical data use and player manipulation have always been risks, the digital age has made these issues more pervasive.

On a popular sports enthusiast platform like Superbru (which is not a sports betting site), users predict scores across more than 80 annual tournaments. The 2.5 million "brus" worldwide are sports fans whose predictions are influenced by factors such as emotions, weather conditions, key player injuries, rivalries, and even time zones. The collective wisdom of these enthusiasts is something even Artificial Intelligence (AI) struggles to match. But what if a bookmaker gains access to this treasure trove of data? Could that give them an unfair advantage?

Here are some key questions to consider: Who owns this data? Can it be sold? Data holds immense value, and with AI and sophisticated algorithms, it can be analysed to predict outcomes that might not be obvious to the average fan.

Although data, even in its electronic form, falls under the protection of the Copyright Act 98 of 1978, users are also entitled to protections under various information compliance regulations.

The Remote Gambling Bill, 2024

The Remote Gambling Bill, 2024, introduced in Parliament before the recent elections, didn't get the attention it deserved. Some of its sections warrant a closer look.

Section 1 defines a "virtual gambling game" as an AI-generated depiction of an event, like a race, where outcomes are determined by a computer program. This category includes games like Gran Turismo (GT), which not only simulates famous racetracks but also gathers valuable data from online players. In fact, one such player, Jann Mardenborough, turned his virtual racing skills into a professional contract.

Section 2 of the bill seeks to ensure fair treatment of players and protect their privacy, while Section 48 addresses remote cheating. Section 50 strengthens these measures. However, the bill remains silent on protecting the data generated by gamers and how betting companies continuously refine their algorithms during gameplay.

This gap raises a question: Are the bookmakers cheating? The lack of provisions for data protection in the draft bill leaves room for further exploitation.

Once data is collected by sports betting platforms, it is typically governed by contract, with rights controlled by the platforms. These companies use advanced algorithms and machine learning to uncover patterns and trends that might not be obvious to the average person. For example, they might predict an underdog's chance of winning based on a combination of performance metrics and factors like home-field advantage or player fatigue.

By analysing the betting behaviours of users, betting platforms can tailor their offerings to maximize profits. They can identify which sports and bets are most popular (e.g., win vs. loss, number of scrums, or even who wins the coin toss). This data-driven approach not only boosts marketing strategies but also drives overall business growth.

In light of the draft bill's omission of data protection for gamers and the refinement of betting algorithms, there is a real risk that sports betting companies are gaining too much leverage. This calls for more robust regulations to ensure transparency and fairness for all involved.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More