July 07, 2017

This startup is building AI to bet on soccer games

Listen to Andreas Koukorinis, founder of UK sports betting company Stratagem, and you’d be forgiven for thinking that football games are some of the most predictable events on Earth. “They’re short duration, repeatable, with fixed rules, so if you observe 100,000 games, there are patterns there you can take out.”

The mission of Koukorinis’ company is simple: find these patterns and make money off them. Stratagem does this either by selling the data it collects to professional gamblers and bookmakers, or by keeping it and making its own wagers.To fund these wagers, the firm is raising money for a £25 million ($32 million) sports betting fund that it’s positioning as an investment alternative to traditional hedge funds. In other words, Stratagem hopes rich people will give Stratagem their money. The company will gamble with it using its proprietary data, and, if all goes to plan, everyone ends up just that little bit richer.

It’s a familiar story, but Stratagem is adding a little something extra to sweeten the pot: artificial intelligence.

At the moment, the company uses teams of human analysts spread out around the globe to report back on the various sporting leagues it bets on. This information is combined with detailed data about the odds available from various bookmakers to give Stratagem an edge over the average punter. But, in the future, it wants computers to do the analysis for it.It already uses machine learning to analyze some of its data (working out the best time to place a bet, for example), but it’s also developing AI tools that can analyze sporting events in real time, drawing out data that will help predict which team will win.

Stratagem is using deep neural networks to achieve this task — the same technology that’s enchanted Silicon Valley’s biggest firms. It’s a good fit, since this is a tool that’s well-suited for analyzing vast pots of data. As Koukorinis points out, when analyzing sports, there’s a hell of a lot data to learn from. The company’s software is currently absorbing thousands of hours of sporting fixtures to teach it patterns of failure and success, and the end goal is to create an AI that can watch a range of a half-dozen different sporting events simultaneously on live TV, extracting insights as it does.

At the moment, though, Stratagem is starting small. It’s focusing on just a few sports (football, basketball, and tennis) and a few metrics (like goal chances in football). At the company’s London offices, home to around 30 employees including ex-bankers and programmers, we’re shown the fledgling neural nets for football games in action. On-screen, the output is similar to what you might see from the live feed of a self-driving car. But instead of the computer highlighting stop signs and pedestrians as it scans the road ahead, it’s drawing a box around Zlatan Ibrahimović as he charges at the goal, dragging defenders in his wake.

Stratagem’s AI makes its calculations watching a standard, broadcast feed of the match. (Pro: it’s readily accessible. Con: it has to learn not to analyze the replays.) It tracks the ball and the players, identifying which team they’re on based on the color of their kits. The lines of the pitch are also highlighted, and all this data is transformed into a 2D map of the whole game. From this viewpoint, the software studies matches like an armchair general: it identifies what it thinks are goal-scoring chances, or the moments where the configuration of players looks right for someone to take a shot and score.

“Football is such a low-scoring game that you need to focus on these sorts of metrics to make predictions,” says Koukorinis. “If there’s a short on target from 30 yards with 11 people in front of the striker and that ends in a goal, yes, it looks spectacular on TV, but it’s not exciting for us. Because if you repeat it 100 times the outcomes won’t be the same. But if you have Lionel Messi running down the pitch and he’s one-on-one with the goalie, the conversion rate on that is 80 percent. We look at what created that situation. We try to take the randomness out, and look at how good the teams are at what they’re trying to do, which is generate goal-scoring opportunities.”

Whether or not counting goal-scoring opportunities is the best way to rank teams is difficult to say. Stratagem says it’s a metric that’s popular with professional gamblers, but they — and the company — weigh it with a lot of other factors before deciding how to bet. Stratagem also notes that the opportunities identified by its AI don’t consistently line up with those spotted by humans. Right now, the computer gets it correct about 50 percent of the time. Despite this, the company say its current betting models (which it develops for football, but also basketball and tennis) are right more than enough times for it to make a steady return, though they won’t share precise figures.

At the moment, Stratagem generates most of its data about goal-scoring opportunities and other metrics the old-fashioned way: using a team of 65 human analysts who write detailed match reports. The company’s AI would automate some of this process and speed it up significantly. (Each match report takes about three hours to write.) Some forms of data-gathering would still rely on humans, however.

A key task for the company’s agents is finding out a team’s starting lineup before it’s formally announced. (This is a major driver of pre-game betting odds, says Koukorinis, and knowing in advance helps you beat the market.) Acquiring this sort of information isn’t easy. It means finding sources at a club, building up a relationship, and knowing the right people to call on match day. Chatbots just aren’t up to the job yet.

Machine vision, though, is really just one element of Stratagem’s AI business plan. It already applies machine learning to more mundane facets of betting — like working out the best time to place a bet in any particular market. In this regard, what the company is doing is no different from many other hedge funds, which for decades have been using machine learning to come up with new ways to trade. Most funds blend human analysis with computer expertise, but at least one is run completely by decisions generated by artificial intelligence.

However, simply adding more computers to the mix isn’t always a recipe for success. There’s data showing that if you want to make the most out of your money, it’s better to just invest in the top-performing stocks of the S&P 500, rather than sign up for an AI hedge fund. That’s not the best sign that Stratagem’s sports-betting fund will offer good returns, especially when such funds are already controversial.

In 2012, a sports-betting fund set up by UK firm Centaur Holdings, collapsed just two years after it launched. It lost $2.5 million after promising investors returns of 15 to 20 percent. To critics, operations like this are just borrowing the trappings of traditional funds to make gambling look more like investing.

David Stevenson, director of finance research company AltFi, commented there’s nothing essentially wrong with these funds, but they need to be thought of as their own category. “I don’t particularly doubt it’s great fun [to invest in one] if you like sports and a bit of betting,” said Stevenson. “But don’t qualify it with the term ‘investment,’ because investment, by its nature, has to be something you can predict over the long run.”

Stevenson also notes that AI hedge funds that are successful — those that “torture the math within an inch of its life” to eek out small but predictable profits — tend not to seek outside investment at all. They prefer keeping the money to themselves. “I treat most things that combine the acronym ‘AI’ and the word ‘investing’ with an enormous dessert spoon of salt,” he said.

Whether or not Stratagem’s AI can deliver insights that make sporting events as predictable as the tides remains to be seen, but the company’s investment in artificial intelligence does have other uses. For starters, it can attract investors and customers looking for an edge in the world of gambling. It can also automate work that’s currently done by the company’s human employees and make it cheaper. As with other businesses that are using AI, it’s these smaller gains that might prove to be most reliable. After all, small, reliable gains make for a good investment.

June 28, 2017

Ladbrokes could face inquiry after betting addicts' details found in bin bag

Ladbrokes could face an investigation from the gambling regulator over an incident in which confidential information about betting addicts, including photos, names and addresses, was found in a bin bag on the street.

The Gambling Commission said it was looking into the bookmaker’s compliance with data protection laws after a passer-by found the sensitive documents outside a branch of Ladbrokes in Glasgow.

The data included personal details of customers who signed up for the betting industry’s multi-operator self-exclusion scheme (Moses), which allows problem gamblers to ban themselves from placing bets voluntarily.


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Bookmakers carry information about customers who have signed up to the Moses system to help shop staff identify customers who should not be allowed to bet.

The information includes their names, addresses, photographs and information about why they have chosen to exclude themselves but does not include bank account numbers or detailed information about their betting history.

The Gambling Commission said it was looking into why such sensitive data was not disposed of in a way that ensured customer’s personal information was protected.

“Customers trust that their personal data will be collected carefully and then protected properly,” said the Gambling Commission executive director, Tim Miller.

“We expect gambling operators to adhere to all data protection laws or regulations, which are enforced by the Information Commissioner’s Office (ICO).

“In an instance where personal data has been breached, we would expect operators to do whatever they can to mitigate any harm caused.”

Ladbrokes usually collects such data from its stores and disposes of it securely through a company-wide procedure.

A statement on the Moses website reads: “Your personal details are kept confidential and only shared with the participating bookmakers their group companies’ and the central team administrators.”

Ladbrokes did not say how the information ended up in a bin bag on the street. But a spokesperson said: “We are taking this extremely seriously and [are] undertaking a full investigation.”

Ladbrokes is understood to have written to all of its shops reminding them of the need to dispose of sensitive information in the right way.

It has also begun an internal investigation to be sure that its procedures are as watertight as possible, according to the Scottish Sun.

Marc Etches, chief executive of leading charity GambleAware, said: “We really hope this situation does not put anyone off using self-exclusion, as research we published in March found that 83% of those who have used it found the scheme to be effective, although we would always recommend professional treatment alongside such measures.

“Self-exclusion is often a last resort for those already suffering from a gambling addiction and it’s important we identify those who are at risk as early as possible and prevent problems developing.”

Individual bookmakers have their own self-exclusion scheme but also use the industry-wide scheme Moses, managed by a responsible-gambling body called the Senet Group, founded by four major bookmakers in 2014.

Gamblers can voluntarily self-exclude for a year, a binding decision that cannot be reversed during the period.

At the end of the year, the self-exclusion will remain in place automatically for six months, unless the customer requests otherwise.

Amaya investors approve ‘The Stars Group’ name change

Following this month’s Annual General Meeting, Amaya Inc shareholders have approved the corporate name change of the company to ‘The Stars Group’.

The name change proposition was put forward by Amaya governance last May following the firm’s Q1 2017 trading update. Following a shareholder vote, Amaya governance details that The Stars Group name change has gained outright stakeholder backing.

The The company will now move to implement a full corporate rebrand, with its new name and logo. Amaya leadership expects to unveil its new corporate identity by August of this year coinciding with the relocation to a new head office in Toronto Canada.

Further to the name change approval, company shareholders also voted to approve continuance under the Business Corporations Act (Ontario), with Amaya to become an Ontario corporation.

The online gambling group, detailed that it had proposed a name change to investors in order to better represent its corporate assets and future vision within the global gambling sector.

Following a busy Q2 2017 period in which Amaya has undertaken an executive team overhaul led by Chief Executive Rafi Ashkenazi. The company has confirmed the leadership appointments of Brian Kyle as new Financial Officer and the appointment of Dr Jerry Bowskill as new Chief Technology Officer.

June 27, 2017

William Hill shutting its online operations in Israel, laying off more than 200

Оnline gaming giant William Hill plc will be shutting its operation in Israel. More than 200 of the company’s approximately 250 Tel Aviv based employees will be laid off, and the company’s offices at the Azrieli Towers will be vacated.

A small number of William Hill Israel key employees will be offered relocation to head office in the UK or elsewhere in Europe.

Sources at the company were quoted as saying that representatives of William Hill had begun meeting individually with Tel Aviv based employees, explaining the company’s decision to consolidate the online portion of its business, which is what the Israel operation dealt mostly with.

Israel is a major center in the online gaming world as well as in areas such as online marketing and software development which are essential to the industry. However the strong Shekel, combined with rising real estate prices and low unemployment levels, has made Israel a much more expensive place in which to do business. Israeli technology companies have also been actively outsourcing to lower cost locations such as India and Eastern Europe.

William Hill began operating in Israel in 2008, when it created William Hill Online as a joint venture with Teddy Sagi’s Playtech PLC. Playtech transferred assets and technology into William Hill Online, including a large number of Israel-based employees, in return for a 30% interest in the venture. William Hill bought out Playtech’s holding in the JV in 2013 for £424 million.

June 23, 2017

Football Association ends links with all betting firms after review

The Football Association will no longer have a betting partner after terminating a contract with Ladbrokes worth around £4m a year following a string of high-profile gambling controversies in the sport.

The decision follows a three-month review by the governing body into how appropriate such a deal was when the FA is noticeably becoming stricter in enforcing its ban on those connected with the game gambling on football.


It also comes after Joey Barton, serving an 18-month ban for gambling offences, accused the FA of hypocrisy over the deal. It had three years of a four-year contract to run. The chief executive, Martin Glenn, said: “We would like to thank Ladbrokes for both being a valued partner over the last year and for their professionalism and understanding about our change of policy around gambling.”

The EFL said the FA decision had no bearing on its own partnership with Sky Bet, which is in its fifth year. A spokesman said: “The EFL is of the firm belief that there is no conflict in having a commercial relationship with the gaming industry, as it is the FA who have the ultimate responsibility of enforcing any breach of the existing betting rules that all those who participate in our competitions have to adhere to.”

The FA chairman, Greg Clarke, has led the move to put space between the governing body and bookmakers, although he insisted the review was not linked to the Barton case. The player, who was banned in April having placed 1,260 bets on matches between 2006 and 2013, claimed this amounted to “hush money” and that it might prevent the ruling body from discovering match-fixing.

He told The Sunday Times last week: “What are the FA going to do, march into Ladbrokes and say: ‘Show us everyone who’s had a bet on this game?’ Ladbrokes are going to say: ‘Eff off, we pay you £10m a year [sic], keep your mouth shut.’ Do the FA not understand that’s hush money? Because if they don’t do it to Ladbrokes, they can’t do it to Betfair, Paddy Power, William Hill.

“They’ve given me such a harsh sentence because they want to maintain to the world, to the people who buy TV rights, that this is a very high-integrity game here. People who work for betting companies have told me that’s the key issue. The FA have no actual interest in [tackling] betting. And they can’t solve the problem, especially when they’ve got Ladbrokes as a partner. Because the players are going: ‘I’m not doing anything wrong.’”

The EFL said it would not be reconsidering its title sponsorship with SkyBet in light of the FA’s decision, arguing there was no conflict of interest.

“The EFL (as a competition organiser) is of the firm belief that there is no conflict in having a commercial relationship with the gaming industry, as it is the FA who have the ultimate responsibility of enforcing any breach of the existing betting rules that all those who participate in our competitions have to adhere to,” said a spokesman.

June 07, 2017

Pagcor to limit Philippine online gaming licenses to 50

The Philippine Amusement and Gaming Corp. (Pagcor) said this week it is planning to initially trim the number of online gaming operators in the country to a maximum of 50. This measure is to prevent an oversupply of players in the industry.

Philippines flagJose Tria Jr., assistant vice president of Pagcor’s Offshore Gaming Licensing Department, said the regulator is eyeing to impose a moratorium to limit the number of Philippine offshore gaming operators (POGO) until it is sure that the increase in players is not overtaking the demand. “We need to evaluate first if the industry is already oversaturated,” Tria told in an interview.

However, the Pagcor official clarified that such moratorium could be lifted anytime. “It depends on the evaluation. The saturation of the market can be seen in the audit system. If the income of each operator goes down from the previously reported, this means there are too much operators,” Tria added.

Tria said an oversaturation means that additional operators do not bring in additional income to the industry. “They are just dividing between themselves [the income] instead of increasing it. That means it’s already saturated,” he said.

Pagcor has so far issued 42 licenses to offshore operators to date. Pending applications, meanwhile, have gone down to 12 from the initial list of 44, Tria said. “After we released the list, we wrote a letter to the pending applicants. A lot of them did not pursue their application.”

Should the moratorium be imposed, only eight new operators stand to get their license application approved.

May 16, 2017

Japanese tennis player banned for life over match-fixing charge

Japanese tennis player Junn Mitsuhashi has been banned for life for match-fixing and gambling offences.

The 25-year-old, who reached a career high of 295 in the world in 2009, has also been fined $50,000 (£39,000/€45,000) by the Tennis Integrity Unit (TIU).

He has been found guilty of making corrupt approaches to other players, betting on tennis matches and refusing to cooperate with the TIU investigation.

In November 2015, he asked Joshua Chetty, a player he had previously coached, to approach another player during an International Tennis Federation (ITF) Futures F1 tournament in Stellenbosch in South Africa.

The player was offered $2,000 (£1,500/€1,800) to under-perform in a singles match and $600 (£465/€543) for a doubles match, the TIU said.

South Africa's Chetty was himself banned for life in September.

Mitsuhashi then made an approach to another player in December 2015, according to the TIU.

This took place at an ITF Futures F4 tournament in Lagos in Nigeria, with the player asked to fix certain aspects of a match.

The Japanese player, who was ranked 1,997 in the world at the end of 2015, was also found to have bet on 76 tennis matches.

"In spite of repeated requests to engage with the TIU, the player refused to respond or co-operate with enquiries into the allegations against him," a TIU statement said.

"Failing to cooperate is an offence in its own right."

Mitsuhashi will not be allowed to play in any tournaments organised by the governing bodies of the sport or even attend the venues.

His case was considered by independent anti-corruption hearing officer Ian Mill QC, who imposed the lifetime ban and fine.

Tennis has faced significant match-fixing problems, particularly at levels where prize money is low.

It was the sport involved in 45 per cent of reported cases of suspicious betting during the first quarter of 2017, according to the European Sport Security Association.

In March, ITF President David Haggerty announced plans for tours with a limit of 750 male and 750 female players.

It is thought that around 14,000 are currently competing among the full-time ranks, with nearly half of these failing to win any prize money.

This, it is thought, can cause some players to be tempted by corruption.

May 11, 2017

New York Senate Finance Committee passes online gaming bill

On Tuesday, the state Senate Finance Committee approved legislation that would make New York the fourth and most populous US state to welcome legal and regulated online poker. Approved by a vote of 27-9, the bill S3898 now goes to the entire Senate, where a majority vote would send it to the desk of Gov. Andrew Cuomo for his signature.

If it reaches the governor’s desk, there will be a 10-day period where it may be signed into law or vetoed.

Sponsored by Senator John Bonacic, the bill seeks to legalise online poker as a game of skill, or specifically hold’em and omaha, which are deemed by the senator, apparently, to be the most skillful variants. That will be the key point for debate the take place in the Senate.

The Empire State’s long-running efforts to legalise internet poker had first moved forward last february after the legislation passed the Senate Gaming Committee by a unanimous 11-0 vote.

The bill originally introduced in late January would authorise the New York State Gaming Commission to hand out online poker licenses at the cost of $10m per license. Under the bill, poker would be classified as a game of skill, which differs from the provision within the state constitution that prevents internet gaming. The state will also be able to enter interstate compacts in order to increase player pools and liquidity.

The bill would amend the Racing, Pari-Mutuel Wagering and Breeding Law to permit certain interactive poker games, specifically Texas Hold’em and Omaha Hold’em. It would change the definition of poker to constitute a game where the outcome is determined by skill rather than luck, and would regulated without this being considered gaming expansion.

May 08, 2017

Poker Player to eat $1k worth of McDonalds food in 36 hours

A professional poker player has taken up a rather unusual challenge of attempting to eat $1,000 worth of McDonald’s food in 36-hours with wagers topping $200k.

I once took on the Fatty Arbuckle Challenge and failed. My ex-wife came back from the toilet and found pieces of steak in the vase holding the fake flowers, both condiments, and squeezed in between pages of the menu.

Poker Player to eat $1k worth of McDonalds food in 36 hours. My father-in-law at the time also took the challenge. You had to eat a CAFO full of chicken wings, a 28 oz steak with all the trimmings, and a two-pint ice cream sundae.

The trick, it seems, was in the Sundae. My father-in-law used his lighter to melt it and then drank the lot.

But not even my former father-in-law would be able to eat $1,000 worth of McDonald’s in 36-hours, but professional poker player Mike Noori is ready to give it a shot.

The Word Poker Tour (WPT) Executive Tour Director, Matt Savage, is the man behind the idea and here are the stipulations:

– Only $200 can be spent on salads.
– $300 has to be spent on hot food items ($50 of which must be burgers)
– Drinks don’t count
– Cannot remove any items from his orders
– Can add additional foodstuffs to requested items (extra bacon, etc.)
– Must eat everything that comes with the order (except the Happy Meal toy)
– He must eat the food in its original state, no blender
– Puking is ok as long as he doesn’t force the puke or puke repeatedly
– No inflated prices (I.e. Eating in McDonald’s in an airport)

According to the word on social media, there is over $200k in bets already booked, with Noori admitting on Twitter that he only has a small piece of his action.

Noori has already indicated that he will begin the bet by eating $500 worth of apple slices, but even if he goes down that particular orchard, this still ranks as one of the more difficult prop bets to be accepted on the open market (take not Bill Perkins).

One man who knows what he is talking about when it comes to food is Jimmy Fricke, and he believes the bet is impossible.

What Happens if You Consume Over 66k Calories in 36 Hours?

You won’t be surprised to hear that our great God Google didn’t have an answer to that question. And when I asked Alexa she said Sorry I don’t know that one. But I do know what would happen if you ate 6,000 calories per day for seven days straight so you can get some picture.

According to Men’s Health magazine, six healthy guys did eat 6,000 calories for seven days straight while staying in a hospital bed under the name of medical research. The men gained on average 8 pounds per person. They developed insulin resistance, liver complications and extreme oxidative stress.

And who can forget Morgan Spurlock’s SuperSize Me documentary? Spurlock only ate McDonald’s food for 30 days straight in a bid to prove that although the fast food chain won a libel case against a couple of obese girls who laid the blame for the extra poundage on old Ronald, the fast food franchise was still responsible for causing physical harm.

Spurlock ate 5,000 calories per day, gained 11 kilogrammes in weight (a 13% body mass increase), saw his cholesterol shoot up to 230 mg/dL, and lost his libido. It took Spurlock 14-months to shed the extra weight after being placed on a strict vegan lifestyle.

The average healthy males consume on average 2,500 calories per day.

If Noori loses the bet and is still alive, he will have to foot the $1,000 food bill. If he wins, then he has to contribute $500 towards his feast.

My father-in-law?

He won a t-shirt.

May 06, 2017

Chinese fixing syndicate and a real new threat to football as UEFA send report to Athlone Town

Fears are growing that Chinese criminals have taken match-fixing to new levels by buying stakes in European clubs and then organizing corruption of these teams’ fixtures.

A stake in Athlone Town, a club under investigation over an allegedly fixed match in the League of Ireland last weekend, is believed to have been sold to a party ultimately funded by a Beijing-based fixing syndicate.

The same group, control by an individual whose name is known to this newspaper, is understood to have taken interests in lower-league clubs in Portugal, Latvia and Romania where fixing has also been suspected.

Athlone are under investigation by the Irish police, the Irish FA and European football’s governing body UEFA over their 3-1 defeat to Longford Town last weekend.

A confidential UEFA report sent to Athlone on Friday says: ‘There is clear and overwhelming betting evidence that the course or result of this match was unduly influenced with a view to gaining corrupt betting profits.’

Sources say gamblers with inside knowledge profited by around £500,000 from bets placed in the unregulated Asian markets on at least two goals being scored in the first half (Longford were winning 2-0 at half-time), and on four of more goals being scored in the game. Longford went 3-1 ahead in the 87th minute.

Sources say the stake in the Irish club bought by the Chinese firm was lower in value (around £425,000) than estimated betting profits from that one game alone. Athlone have received recent investment but officials have declined to say how much or where from. It is not known if the cash was paid directly from China or via intermediary organisations.

Athlone did not respond to calls or emails seeking comment from the MoS but a club statement said they were ‘absolutely shocked’ by fixing allegations.


Chinese firms have bought interests around 20 clubs across Europe in recent years, almost all of them with no hint of controversy, let alone scandal. But governing bodies will now be on red alert over deals, not least for relatively large sums in the lower leagues. ‘If an investment offer for a “lesser” team seems too good to be true, it probably is,’ says one investigator.

Two other Athlone matches this season caused alarm among market watchers, although it is not known if UEFA are aware of this. One was against UC Dublin on 8 April, which Athlone lost 4-1. Sources from both the ‘integrity’ side of the football industry and in the betting underworld say huge sums were won in that match by bets place on at least five goals being scored in the fixture. UC Dublin’s fourth goal - the fifth in the game - was scored in the 89th minute.

The Irish police will begin an official investigation on Monday.

Athlone have seen a spate of comings and goings among the playing and coaching staff since the mystery investment in the club.

Among the recent arrivals was Latvian goalkeeper Igor Labuts, who has played for at least two other teams where money is believed to have been injected by the Beijing firm - and have been investigated for fixing. He has admitted to being approached in the past by fixers and thwarted their advances, and says he has been shocked by fixing allegations against his clubs.

‘I know that I am clean but it’s unpleasant and my reputation has been damaged,’ he said.

A UEFA spokesman said: ‘UEFA is completely committed to eradicating match-fixing, a disease that attacks football’s very core.’

Sources say UEFA have investigated around 200 matches per season over the last three years in leagues across the 55 nations in their region over suspicious betting patterns and fixing concerns.

Over the past seven years, UEFA has been involved in the successful prosecution of 14 match-fixing cases across the Continent where the guilty parties were banned for between a year and life.

While the ratio of allegations to prosecutions is hugely disproportionate, it is notoriously difficult to prove fixing beyond any doubt. Typically a successful case will involve tracing a money trail on bets and then linking that unequivocally to corrupt players or officials.