Sports journalists Andrei Liimets and Henri Kõiv recently discussed the consistent growth of sports betting platforms in Estonia and the associated risks on Sunday's "Spordipühapäev" Vikerraadio broadcast after carrying out extensive research.

Liimets said the aim of their recent article on the subject was to provide a balanced overview of the sector.

He said: "Instead of focusing solely on addiction and discussing how harmful gambling can be, or focusing solely on the sports side and talking about how exciting it all is and how you can place your bets, we tried to open up different aspects, and understand how various stakeholders from betters to businesses, and from politicians to sports leaders, think about the issue."

"The most interesting feedback has come from the industry itself; from those who run these types of companies, and who have also acted as sources. They have said that there hasn't been such in-depth coverage alongside simpler, yet more striking stories, but that focus on one aspect," Liimets continued.

"So it was a necessary introduction to the topic. Maybe it shows that we have been too soft as journalists, but that was indeed our aim."

Henri Kõiv said that the piece was written for a broader audience, though particularly those interested in sports and related fields should read it.

Kõiv said: "However, it seems to me that politicians and legislators, who should be regulating this sector for us, require this story the most. Because the message we got from those quarters during the putting-together of the article was that they really don't grasp how big of a thing this is, how it works, and where the problem areas lie."

Estonian gambling regulations resemble tax havens

Public references to sports betting are becoming increasingly visible in Estonia, but the sector has gained significant momentum largely due to the low tax rates and the issuing of gaming licenses that allow casino operators to operate in overseas markets.

"Several sources spoke about how regulations are already in place and it's great that licenses are easy to obtain in Estonia," Liimets said.

"The reason why Estonia is such a desirable destination and why the legislation is considered effective is that taxes have been very low; they may be rising now, but still remain low compared with many other European countries; plus that it's viable to target foreign markets from Estonia. An Estonian license also allows the provision of these services abroad, which is a huge boon for these firms."

"This places Estonia alongside tax havens like Malta and Curacao," he went on. Both island nations' gaming authorities also issue licenses commonly used by online gambling firms.

Those who gamble vary hugely, the pair said. Many see the activity as a form of entertainment, engaging in it during major sports events, or to add an extra layer of excitement when watching professional sports.

However, Liimets and Kõiv noted, that the already lax advertising laws are often broken with respect to gambling.

This could, they said, lead people prone to addiction further and further into that trap.

Kõiv said: "The more marketing is done to the public, the more likely it is that people with a predisposition to addiction and gambling risks will be drawn further to the sector."

"They might start with betting for fun, but gradually it evolves into them sitting in bed at night, placing bets and obsessively checking results."

"The more normalized the sector, the more likely it is that those at risk will enter it," he added.

This is particularly the case since with most sites, a sportsbook is just a click away from other forms of gambling, such as table games.

"What we also observed on the sites we looked at is that all these same companies deal with all other forms of gambling. It can be very difficult to stick only to sports betting; people often immediately end up at the blackjack or poker tables," Liimets said.

These can include "live dealer" variants, and playing poker, a skill game, against other players – in some cases experienced players there to clean up beginner or less skilled players.

"Where we ended up with in the piece was that, in fact, betting on sports doesn't differ much from other known harmful sectors to society, such as casinos, alcohol, or tobacco. The question is what stance we as a society take," Liimets went on.

"We accept it all to some extent, but the question is, where exactly do we draw the line? At least in terms of sports betting, the discussion in society has not been held, by and large," he added.

Abstinence often the best choice

Liimets and Kõiv are sports fans, and worked on the piece for a year, jumping in at the deep end and betting with their own money.

While they said they ended up ahead, they would caution against anyone else following their example.

Liimets stressed the importance of keeping a sober eye on finances, particularly as gaming sites have done their homework on the psychology of the phenomenon. "We remained very aware of our steps, but even then about two months later, I found out that I had miscalculated all our statistics, on how the portals themselves display amounts," he said.

"You can experience small visual distortions. For example, if you bet ten euros and you lose, they show the result as zero. That can feel as if nothing had happened."

"If you win and the coefficient is two, ie. you doubled your stake, they show a 20, in green. That can have the effect of making it look like you 'won' €20, but actually, you only won €10. There are quite a few such small nudges and distortions going on on these sites. It's worth delving deeper into the numbers and remaining vigilant," Liimets said.

"And the second thing is that it's easy to get carried away; there's nothing to be done about it," he added.

"I completely understand why it's captivating as entertainment, I felt some warning signs where I wanted to make up for some losses or felt like it was going well. It emotionally draws you in, though, for me at least, that wasn't lasting; at some point, I realized that the high was a fleeting one. Even when I was getting wins, there was always that nagging voice of, why hadn't I bet more."

Kõiv also mentioned situations where an Estonian athlete succeeding felt to him like a failure, if that success didn't bring in money (ie. if they hadn't bet on them). "We watch sports for the emotion, then hope to amplify that emotion with bets. But it's easy to create situations where you can't feel that strong emotion, simply due to how you have bet," he said. "There's always some nagging doubt. Betting never once created the ultimate satisfaction. Instead, annoyance and frustration were the chief memories," Kõiv said.

Betting company ads unlikely to disappear from football shirts 

The coalition talks held last spring discussed banning ads on gambling and online betting. Had it come to fruition, this would have resulted in a situation where companies supporting Estonian sports clubs and venues could not advertise their logos anymore.

At the beginning of this year, the Ministry of Economic Affairs and Communications put together proposals for amending the Advertising Act, but proposals regarding gambling were not to be found among them.

Sports betting is also having the effect of skewing the playing field, as it were.

According to Liimets, revenues from betting companies make up about one percent of total sports funding. "The problem is actually with that small selection. These are really the top clubs, who have the greatest ambitions, who also have the biggest fixed costs. They are obviously the most attractive to different sponsorship funds because they are the most prominent," Liimets said, referring to domestic Estonian clubs, leave alone the English Premier League teams, most of which have betting firm sponsor logos emblazoned on their shirts, either as the main sponsor or a smaller sponsor (though this is set to change a couple of seasons from now, as things stand).

"While these clubs make up a very small part of the overall sports pyramid, they are certainly the most visible and the most vocal and the most vulnerable to the disappearance of gambling firms' money. And if those sponsors should disappear, there are clubs, and even top leagues for whom this may be an existential issue today," he added.

In this case, the Premier League, the Champions' League, and other major sports leagues are highly popular viewing in Estonia.

The issues are not unique to the sports sector; for instance, alcohol and tobacco products have long, if rather incongruously, been associated with sports.

During UEFA Champions League broadcasts, viewers can get to beer ads, while many Estonian sports arenas (such as the national stadium) bear the name of an alcohol producer.

Liimets and Kõiv said they had spoken to sports leaders who had not yet formed an opinion on gambling. "We asked where they draw the line in terms of sports sponsorship and it was quite clear, for example, that tobacco products no longer sit well with sponsoring sports. "

"Regarding alcohol, the stance was that as long as it's kept away from youth and children's sports, it's actually fine," Kõiv added.

"It was definitely seen as the case that the display of the logos of sports betting companies was perfectly okay, too. Perhaps also the societal image of sports betting and, for example, casinos [is different from those taking part], although, as Andrei already said, when you go to those pages, you're but a click away from that blackjack table..."

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