May 22, 2006, 5:56AM
The stakes are high
As interest in competive reality TV shows rises, so does the traffic to online gambling sites
By MIKE McDANIEL
Copyright 2006 Houston Chronicle
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-->Are you a member of the Soul Patrol or have you caught the McPheever?
An audience in excess of 30 million is expected to cast more than 50 million votes Tuesday night for American Idol hopefuls Taylor Hicks and Katharine McPhee. A winner will be revealed Wednesday.
Meanwhile, an untold number of viewers will watch for more selfish reasons. They hope to fatten their wallets.
Climbing interest in online betting is making reality-show winners out of ordinary viewers while augmenting the coffers of Web-based betting houses.
Every week, such Web sites as sportsbook.com, pinnaclesports.com, bodog.com and betus.com post odds on the competitors on such shows as Idol, The Amazing Race and Survivor. And Americans are placing their bets in record numbers.
The action ``is not huge, compared to our major sports,'' but has gone ``from nothing to interesting levels,'' says Alex Czajkowski, marketing director for the Americas region of sportsbook.com. Sportsbook is a subsidiary of sportingbet, the world's largest online gaming company, with headquarters in London.
``The average bet size is half the average that I see in sporting areas - $15 to $20 versus $50 to $60,'' he said.
He put volume on a level with such ``smaller'' sports as boxing or golf.
``The big volume (in gambling) is college and pro football, college and pro basketball and pro baseball. Of the smaller sports - NASCAR, NHL, soccer, boxing and golf - reality TV is a viable contender.''
``People like to bet on things they have opinions about, things they think they have some insight to,'' he said. ``Even if their knowledge about it isn't complete, they have an emotional attachment.''
Though he couldn't be specific about take-in, Matthew Ross, spokesman for betus.com, said traffic in reality TV has increased by 40 percent since January. Not coincidentally, new editions of Idol, Race and Survivor revved up then.
``Survivor is what started this whole phenomenon,'' Ross said.
Today, in terms of wagers, Idol gets the most betting action. On betus.com, Idol is followed by Survivor, Race, The Apprentice and Big Brother.
Sportsbook.com is more discriminating.
``We're fairly particular about the shows we list,'' said Czajkowski. ``We only want the major ones. We don't do Big Brother or Rock Star.''
A bit of whimsy is involved in determining the odds and who sets them.
``Our oddsmakers have a very complicated mathematical formula that consists of asking their wives, their mothers and their girlfriends,'' said Czajokowski. ``It is, honestly, about that complicated. There is some math involved, but it's very subjective.''
Betus.com has a team that ``scours information and news sources out there and tries to decipher who's being talked about. It isn't an exact science.''
Several online sites were forced to rejigger their propositions two weeks ago when rocker Chris Daughtry was eliminated from American Idol competition. Pinnaclesports.com, for one, had predicted a win by the North Carolina native and said he had become the odds-on favorite among bettors. Sportsbook.com also had Daughtry as an early favorite.
New odds at pinnaclesports.com, sportsbook.com and betmaker.com now put Birmingham, Ala., native Hicks, 29, as the slight favorite over McPhee, a 22-year-old from Los Angeles.
Even with the Daughtry setback, online gambling companies say they have yet to take a bath in reality-TV propositions.
But there are known incidents in which companies were burned. Sportsbook.com suspended betting when a flurry of $500 bets were placed in March 2005 on Amazing Race couple Joyce and Uchenna Agu of Houston. The site took another hit last winter when suspicious betting occurred on The Amazing Race family edition.
In both instances, sportsbook.com honored the wagers and shut down betting.
``Nobody gave us a whole lot of heat about it,'' said Joyce Agu, ``because most of the betting was out of Boston and California, and we were in Texas. I think people knew we had nothing to do with it.''
Betting sites are vulnerable to shakedowns when shows like The Amazing Race are taped in advance. Contestants and crew are subject to multimillion-dollar fines and/or job termination for spilling the results, but with large production crews involved, leaks happen.
``A hundred people know the answer,'' said Uchenna Agu. ``How do you keep 100 people quiet?''
No reports of suspicious betting have emerged this season. That may have something to do with producers cracking down on employees. Producers know that when a betting house shuts down betting, the accompanying press release potentially ruins the outcome for viewers. After all, the Agus did indeed win last spring's Race.
That's less true of shows like Survivor and The Apprentice; most of the eliminated contestants are known in advance, but the ultimate victor is selected on a live show.
On Idol, of course, the eliminated contestant is announced live each week.
As the last reality show of the season reaches its conclusion, oddsmakers are betting viewer interest - and betting - will peak.
``You definitely see an increase in activity as you come to the end (of a contest),'' said Czajkowski. ``The dollar value doesn't necessarily increase - it's five, 10, 20 bucks - but the number of bets increases.''
Online wagering on reality TV is likely to grow as long as the shows stay popular. Since no one predicted that American Idol would be more popular in its fifth season than in any previous edition, prospects are anyone's guess.
Whatever happens, online betting houses will follow along.
``We're definitely going to stay around,'' said Czajkowski. ``It's fun. Our customers like it. It brings new customers to us. And our guys (the ones setting the odds) like it because they watch the stuff.''
``People talk about these things at the office anyway,'' said Ross of betus.com. ``Might as well have them bet on it.''
http://www.chron.com/disp/story.mpl/ent/tv/3878406.html
The stakes are high
As interest in competive reality TV shows rises, so does the traffic to online gambling sites
By MIKE McDANIEL
Copyright 2006 Houston Chronicle
<!-- commented out ad <iframe width="1" height="1" marginwidth="0" marginheight="0" frameborder=0 scrolling=no></iframe> <script></script>
-->Are you a member of the Soul Patrol or have you caught the McPheever?
An audience in excess of 30 million is expected to cast more than 50 million votes Tuesday night for American Idol hopefuls Taylor Hicks and Katharine McPhee. A winner will be revealed Wednesday.
Meanwhile, an untold number of viewers will watch for more selfish reasons. They hope to fatten their wallets.
Climbing interest in online betting is making reality-show winners out of ordinary viewers while augmenting the coffers of Web-based betting houses.
Every week, such Web sites as sportsbook.com, pinnaclesports.com, bodog.com and betus.com post odds on the competitors on such shows as Idol, The Amazing Race and Survivor. And Americans are placing their bets in record numbers.
The action ``is not huge, compared to our major sports,'' but has gone ``from nothing to interesting levels,'' says Alex Czajkowski, marketing director for the Americas region of sportsbook.com. Sportsbook is a subsidiary of sportingbet, the world's largest online gaming company, with headquarters in London.
``The average bet size is half the average that I see in sporting areas - $15 to $20 versus $50 to $60,'' he said.
He put volume on a level with such ``smaller'' sports as boxing or golf.
``The big volume (in gambling) is college and pro football, college and pro basketball and pro baseball. Of the smaller sports - NASCAR, NHL, soccer, boxing and golf - reality TV is a viable contender.''
``People like to bet on things they have opinions about, things they think they have some insight to,'' he said. ``Even if their knowledge about it isn't complete, they have an emotional attachment.''
Though he couldn't be specific about take-in, Matthew Ross, spokesman for betus.com, said traffic in reality TV has increased by 40 percent since January. Not coincidentally, new editions of Idol, Race and Survivor revved up then.
``Survivor is what started this whole phenomenon,'' Ross said.
Today, in terms of wagers, Idol gets the most betting action. On betus.com, Idol is followed by Survivor, Race, The Apprentice and Big Brother.
Sportsbook.com is more discriminating.
``We're fairly particular about the shows we list,'' said Czajkowski. ``We only want the major ones. We don't do Big Brother or Rock Star.''
A bit of whimsy is involved in determining the odds and who sets them.
``Our oddsmakers have a very complicated mathematical formula that consists of asking their wives, their mothers and their girlfriends,'' said Czajokowski. ``It is, honestly, about that complicated. There is some math involved, but it's very subjective.''
Betus.com has a team that ``scours information and news sources out there and tries to decipher who's being talked about. It isn't an exact science.''
Several online sites were forced to rejigger their propositions two weeks ago when rocker Chris Daughtry was eliminated from American Idol competition. Pinnaclesports.com, for one, had predicted a win by the North Carolina native and said he had become the odds-on favorite among bettors. Sportsbook.com also had Daughtry as an early favorite.
New odds at pinnaclesports.com, sportsbook.com and betmaker.com now put Birmingham, Ala., native Hicks, 29, as the slight favorite over McPhee, a 22-year-old from Los Angeles.
Even with the Daughtry setback, online gambling companies say they have yet to take a bath in reality-TV propositions.
But there are known incidents in which companies were burned. Sportsbook.com suspended betting when a flurry of $500 bets were placed in March 2005 on Amazing Race couple Joyce and Uchenna Agu of Houston. The site took another hit last winter when suspicious betting occurred on The Amazing Race family edition.
In both instances, sportsbook.com honored the wagers and shut down betting.
``Nobody gave us a whole lot of heat about it,'' said Joyce Agu, ``because most of the betting was out of Boston and California, and we were in Texas. I think people knew we had nothing to do with it.''
Betting sites are vulnerable to shakedowns when shows like The Amazing Race are taped in advance. Contestants and crew are subject to multimillion-dollar fines and/or job termination for spilling the results, but with large production crews involved, leaks happen.
``A hundred people know the answer,'' said Uchenna Agu. ``How do you keep 100 people quiet?''
No reports of suspicious betting have emerged this season. That may have something to do with producers cracking down on employees. Producers know that when a betting house shuts down betting, the accompanying press release potentially ruins the outcome for viewers. After all, the Agus did indeed win last spring's Race.
That's less true of shows like Survivor and The Apprentice; most of the eliminated contestants are known in advance, but the ultimate victor is selected on a live show.
On Idol, of course, the eliminated contestant is announced live each week.
As the last reality show of the season reaches its conclusion, oddsmakers are betting viewer interest - and betting - will peak.
``You definitely see an increase in activity as you come to the end (of a contest),'' said Czajkowski. ``The dollar value doesn't necessarily increase - it's five, 10, 20 bucks - but the number of bets increases.''
Online wagering on reality TV is likely to grow as long as the shows stay popular. Since no one predicted that American Idol would be more popular in its fifth season than in any previous edition, prospects are anyone's guess.
Whatever happens, online betting houses will follow along.
``We're definitely going to stay around,'' said Czajkowski. ``It's fun. Our customers like it. It brings new customers to us. And our guys (the ones setting the odds) like it because they watch the stuff.''
``People talk about these things at the office anyway,'' said Ross of betus.com. ``Might as well have them bet on it.''
http://www.chron.com/disp/story.mpl/ent/tv/3878406.html
