Michael Chong: Better regulate sports betting than leave it unchecked

"LITTLE Dragon" should have been like any other teenager, watching MTV, following up on the latest gadgets, learning how to drive and earning a college degree.

Although he belongs to a well-to-do family in Kelang, the 19-year-old was yanked out of college by his father so that he could keep an eye on his gambling habits.

Since the impressionable age of 16, Little Dragon had begun betting on sports, namely football matches, and had already chalked up losses in the region of RM8 million.

According to MCA Public Service and Complaints Department chief Datuk Michael Chong, Little Dragon is not an isolated case of a teenager with gambling and loan shark issues.

"Many of the loan shark complainants I get have told me that their debts were a result of gambling," said Chong at his office in Wisma MCA on Wednesday, June 9.

"In fact, I can say that more than 80% of the loan shark problems I process come from gambling."

Chong said that from his observation and interviews with the victims, most of the loan shark problems were a result of casino gambling or sports betting.

"Almost none of the loan shark issues were due to 4-digit gambling or even horse racing," said Chong.

"Unlike the casino, which is open 24 hours a day, or football betting which takes place almost every day, the numbers game is only available three times a week.

"People also feel that their chances are better in football betting as they think that the matches, which are played in Europe, are harder to fix. They also like to think that they are experts in football prediction," he added.

According to Chong, the numbers game can be as low as RM1 for a gambler but football betting can go up to thousands.

Using records from 2005-2010, Chong said that he noticed a trend in loan shark activities during major football years. He said that there was also a noticeable hike in complaints during the European football season which is normally from mid-August to end-May.

Chong's records show that while the loan shark complaints averaged RM40 million per year between 2005-2009, in the years that a major football tournament was held the figure rose to RM50 million and RM56 million for 2006 and 2008.

The last World Cup tournament was held in Germany in 2006 while the European Football Championship was held in Austria and Switzerland in 2008.

In the non-major football tournament year of 2009, the total loan shark complaints received was only RM30.8 million although 2007 was quite high at RM46.7 million.

"Football betting is certainly on a rise in Malaysia and what I have on record is only a small percentage of the illegal gambling that goes on in the country," said Chong.

"Only the people with loan shark problems come to me. If we take into account those who don't come and complain, the actual figures could be ten times higher," he explained.

According to Home Minister Datuk Seri Hishamuddin Hussein's (Sembrong-BN) estimates, illegal sports betting could be as high as RM10 billion a year while an analyst report in 2004 said that illegal betting by Malaysians in Singapore is around RM3 billion.

Gaming tycoon and Berjaya Corporation Bhd chairman and CEO Tan Sri Vincent Tan estimated that illegal sports betting in Malaysia is around RM20-RM30 billion a year.

For Chong, legalising sports betting is the only way to cut down on illegal gambling in football matches.

"The issue here is not about encouraging more gambling activities but by legalising it, there will be more control and the government can reduce other unhealthy activities.

"The illegal bookies don't just take bets. When a gambler runs out of money, the bookies introduce them to their friends who are loan sharks and encourage them to take out loans to gamble some more.

"If we don't cut off the illegal bookies, there will be more and more loan shark-related problems," he explained.

Chong, who has been involved in public service for 30 years, said that the profits or gains derived from the sports betting company can also go to fund charities and welfare programmes.

"Otherwise, only the bookies, loan sharks and foreign syndicates benefit from this activity."

Chong said that he did not think that legalising sports betting will drive more people to gamble. "Some people are going to gamble whether it's legal or not.

"But ultimately, nothing beats education and good family values. If the family unit is strong, people won't gamble recklessly. What legalising sports betting will do is cut down on other illegal activities.

"Before the 4-digit game was legalised, people were already gambling and all the money went to bookies. But after it was legalised, the bookies have been reduced as people trusted the gaming companies better and the funds are channelled towards healthier pastimes like sports," he added.

But before the government rushes into sports betting, Chong cautioned that public opinion should be considered carefully and proper mechanisms installed to prevent underage children from taking up gambling.

"Maybe the gaming centres should have proper guards who can stop underage children and Muslims from going there. This will help reduce the number of people who are not permitted by law to gamble from indulging in the habit," said Chong.


Written by Chan Kok Leong
theedge malaysia