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Sports betting legal commercial and integrity issues at work

Октябрь 2, 2012

sports betting legal commercial and integrity issues at work

with regard to certain key issues in the regulation of legal sports betting. 1. Licensing. Every U.S. jurisdiction with legal sports. problem, more work is required to understand the scale, Integrity Lead, Sports Betting Intelligence Unit, Gambling. Commission, United Kingdom of Great. It's not a slam dunk yet, but advocates of single-game sports betting are We are in a very good position to identify integrity issues in our. INQUISITORE FOREX TRADING

The Forum keeps pace with the increasing complexities, such as international influences, focusing on prevention, disruption and deterrents. This approach reflects the belief that match-fixing presents a major and continuing challenge for the governance, culture, reputation and operational capabilities of sports and sports betting operators.

Our strategy - Protecting betting integrity The Commission remains committed to sustaining the national approach to managing betting integrity as defined in the SBI Plan. We will continue to work with partners and stakeholders in the betting industry, sport including but not limited to SGBs, player associations and industry bodies and law enforcement agencies to identify the vulnerabilities, support preventative action and strengthen the deterrents to corruption in betting.

The collective objective is to prevent and discourage involvement in betting integrity issues by understanding the opportunities to subvert existing controls and making it more likely that those involved can be identified and appropriate sanctions imposed. To achieve this goal and support international efforts to combat the threats we are engaged with European and international efforts to develop effective operational collaborations. The Commission sees itself playing an important role through the continual development of the Sports Betting Intelligence Unit SBIU , working in collaboration with partner organisations to identify the corruptors and corrupted.

We aim to identify the longer term threats and to implement approaches that prevent and deter those that pose the greatest risk. To achieve this goal, we have established effective operational cooperation with our partners to maintain our understanding of the scale and scope of the threats presented to UK interests. The Commission will work on the principle of being risk-based and proportionate in determining the focus and scale of our activity. Specifically, where the outcome of an event has been influenced with the intention of benefiting through betting on it or where misuse of information is used when placing a bet.

This includes making an assessment to consider if the offence of cheat has been committed. The Commission understands the importance of upholding betting integrity to sporting bodies, the betting industry and to the public. The Commission has the power to impose such restrictions. However, the Commission does not consider, based on the available evidence, that such intrusive or resource intensive methods are warranted or would be effective in Great Britain, although we will continue to monitor developments in this area.

Effective collaboration We will work with partners to establish effective information exchange arrangements and promote the effective use of information to enable SGBs, betting operators and law enforcement, both nationally and internationally, to gain a better understanding of the risks faced and the options to manage those risks. We will encourage and where appropriate facilitate sports governing bodies and betting operators to have effective direct agreements on joint working.

Memorandums of Understanding MOUs that set out how we will work together are in place where appropriate with some organisations. The Commission will continue to review MOU requirements to sustain current agreements and initiate new ones as and when deemed necessary. Working with betting operators The Commission will sustain its engagement with British licensed operators and others to maintain effective information exchanges.

We will ensure that operators have appropriate clarity as to the work of the SBIU and the requirements of the Commission as to assurance that their controls are effective as set out in the Licence Conditions and Codes of Practice. As the regulator, the Commission is keen to emphasise that it is the primary responsibility of licensed operators to identify and mitigate the threats to the licensing conditions.

We have an expectation that operators will comply with the conditions and have in place mechanisms to identify and act to protect their customers and their own commercial interests. The Commission considers licence condition In summary this is the requirement for betting operators to share information on suspicious activity with the Commission.

A copy of the wording of this licence condition can be found at appendix 1. We expect operators to have in place systems and procedures to identify suspicious or unusual betting patterns which will enable them to report relevant information to the Commission and to SGBs. The Commission will share information with relevant third parties to meet its statutory duties and only when legally allowed under relevant Data Protection law.

This information may be of a general or specific nature that could be used to mitigate emergent risks and promote good practice, recognising the constraints of confidentiality. Working with sport The Commission has established good working relationships with many sporting bodies. We will continue to build new relationships with organisations seeking to take steps to preserve the integrity of their sport. This includes those with whom we may have had limited or no previous engagement or where we consider the risks to be greatest.

We will encourage and facilitate sport governing bodies to share information with us and with operators about suspicious sporting activity possibly related to betting integrity in order to offer support and help decide on the most appropriate course of action. We will work with and offer expertise to sports and betting operators, as befits our capability and resource constraints to share good practice and expertise. We will work to understand what education programmes, rules or codes are in place regarding participants betting and the sanctions that can be applied if these are breached.

Where appropriate, we will share with sport governing bodies information about our investigative techniques and procedures to help sports bodies build up their capacity to uphold their own rules and conduct investigations on issues relating to their sport. We will where appropriate disclose information gathered by the Commission investigations to assist Sports Governing Bodies in applying their disciplinary codes. We will do this in line with the requirements the relevant Data Protection Legislation.

We will explore with SGBs, sports organisations and relevant others for example, the Sports Betting Group, the Professional Players Federation, UK Sport etc opportunities for the facilitation of the sharing of best practice. SBIU will also work with event organisers to provide bespoke support opens in a new tab for international tournaments hosted in Great Britain. Working with other law enforcement agencies Sports betting investigations can be complex and resource intensive.

The Commission recognises the competing priorities and operational challenges faced by law enforcement agencies. In circumstances where the scale and scope of the criminal activity related to sports betting integrity is considered to be of a serious nature then the Commission will engage with law enforcement agencies to discuss them adopting investigations, with Commission support and expertise.

The Commission will continue to raise awareness of the threats and indications of sports betting corruption, the work of the Commission and the support it can offer police and law enforcement. Betting integrity cases often involve parties from a wide geographical range and therefore determining the best route for an investigation to take can prove problematic.

It was clear therefore that in developing our own policies in this area we should do exactly that. This report, which looks at the situation in the EU as a whole, is the culmination of that process and provides what we believe to be an excellent analysis of all of the available information, the vast majority of which has been derived from data that is in the public arena.

Given the interest in these subjects it was decided that the report should be published even though it was originally intended solely to be a report to the RGA. Aside from the report, a number of recommendations that flow from it have been made to the RGA.

For what should be understandable reasons they are purely for internal consideration and have not been published. From the outset we acknowledged that the report should be an objective one that did not contain any pre existing views held by the RGA or its members.

It followed that the author should come from outside of our organisation. Jason has a decade of experience of sporting and betting issues within government in relation to domestic and wider European policy, and so no learning curve was required which might have been necessary had the work gone elsewhere.

Both personally and on behalf of our members I would like to thank him for producing this report. Secondments from the public to the private sector are fairly commonplace, but we must also thank DCMS for what I understand is the first such placement into the gambling industry. In relation to this we are anxious to stress that any views expressed in the report are solely those of the author and cannot be taken as a reflection of the position of DCMS or HM Government in general.

In addition, I would like to express our gratitude to all those who responded substantively to the consultation exercise that formed an early part of this project. Finally, we hope and believe that this report will serve to inform any wider debates about these matters and we commend it to anyone who seeks to look at the issues fairly and objectively. The affect upon the licensed gambling industry has been no different in that regard, opening new product platforms and access to a wider consumer base.

International and national sporting bodies seek to control the betting product and to obtain increased revenues from licensed gambling operators that offer betting on sporting events. In some jurisdictions there are fears that the introduction of new betting licensing regimes will serve to reduce the income that sports currently receive from state gambling monopolies.

The professional sporting movement has been particularly proactive in pressing its case through various forums where the focus has been on the promotion of sport. As such, there must be a serious risk that the policy considerations of these issues have not been balanced or properly informed. The consultation sought to obtain information regarding the basis of the commercial arguments present by sports and to consider the existing integrity mechanisms Overall, the response was limited both in number and in the information advanced, notably in relation to the professional sporting sector.

There is, however, considerable material within the public domain that provided more than sufficient information for a detailed assessment of the legal, commercial and integrity aspects surround the sports betting debate The European Commission has rightly determined that sport is subject to EU competition law and internal market provisions in so far as it constitutes an economic activity with the specificity of sport being assessed on a case by case basis , and has rejected a general exemption as proposed by the Independent European Sport Review, funded by UEFA EU case law provides that gambling is a service and subject to the application of the Treaty, notably Articles 49 and 56 TFEU ex Art.

The Database Directive and judgements surrounding its application to sporting data such as fixtures lists, determined that this data amounts to creation and not investment, which does not fall within the scope of the protection of the Directive. This means that this potential source of revenue for professional sports can be nowhere near as high as they would like, or in some cases, had expected prior to the ECJ s ruling in BHB v.

William Hill. It is worth noting that the latter provides 3. The assertion that licensed gambling operators exploit the sporting product and should pay additional revenues as a result does not recognize that many other products also seek to associate themselves and exploit sports to profit However, those businesses are not pursued for a greater contribution to the sporting sector, or control over their commercial products or trading practices.

It must be underlined that the licensed gambling sector pays everything it is legally obliged to pay to sport and invests substantial funding over and above that amount, primarily in the form of sponsorship and joint ventures with sporting bodies In FIFA, UEFA and the IOC had combined revenue streams that amounted to over 4bn effectively tax free with the five major European football leagues accounting for another 7.

In addition to this, sport and its participants receive numerous fiscal advantages through State aid and taxation measures, and use, or are located in, offshore tax havens This is not a criticism of any tax efficient policies or preferential tax treatments that are employed or enjoyed by sporting organisations, but it does bring into question the public attacks that have been made by some sporting representatives on online gambling companies who choose to base themselves in jurisdictions providing comparable taxation regimes The argument presented by sports that a new EU wide statutory mechanism is required to permit sports greater control over the betting product and to enforce additional payments from licensed gambling operators does not appear to be valid, necessary or proportionate There is ample income within the professional sporting sector, which is markedly more affluent than the betting industry, to fund both integrity and grassroots sport.

Whether or not that sporting income is currently being distributed in a fair manner through its various solidarity mechanisms is an issue for each sport to determine and not for this report to examine With regard to the integrity of sport, again professional sporting bodies seek control over the operation of the commercial betting product. Sport has determined that sports betting, or more specifically certain types of bets, make it more susceptible to corrupt activities and a result that sports should have control of betting and, as a minimum, receive integrity payments from licensed gambling operators that offer betting products on sporting events Unfortunately, corrupt activities do occur in sport betting and non betting related.

Those operators have also invested considerable resources in establishing integrity mechanisms that seek to detect and deter corruption in sport linked to betting All of these are important ingredients in a joint effort by both industries to protect the sporting and betting products, but which have been principally promoted by licensed gambling operators.

Indeed, licensed gambling operators have a particular commercial interest in ensuring that the sporting product, and by association, the betting product are not corrupted. It is fundamental to understand that the European licensed gambling industry is the likely victim of any fraud that is perpetrated and in no sense can it fairly be described as the polluter This protection is, however, predicated on the establishment and enforcement of suitable rules by sports and their ability to act promptly when receiving information from gambling operators.

There are some good examples within sport, but the vast majority declined to provide their betting rules as part of this study; the overall position is therefore unclear. The establishment of such information sharing arrangements with the RGA formed a particular aspect of this report s consultation, yet of the sporting bodies invited to discuss establishing an MoU, only 2 responded positively With regard to suggestions that the commercial sporting sector should have control of the betting product, again it has to be determined if the argument presented is valid and the action necessary and proportionate.

The evidence strongly demonstrates that it is not As the British Gambling Commission has rightly pointed out, there would need to be a very strong evidencebased justification to introduce and enforce statutory licensing regulations that would essentially be a restriction on trade There is no available evidence to suggest that restricting bet types would prove an effective mechanism to ensuring a significantly increased level of protection for sport in a global market when the very people that constitute the threat are the very ones that would not be bound by such licensing or contractual restrictions What is self evident is that both the sporting and the licensed gambling industries have a common objective in safeguarding the integrity of sporting events, especially when the examples of serious corruption tend to point to the activities of organised crime groups and unlicensed betting operations which are commonly based outside of Europe Given the 3.

As they are confidential they do not form part of this publicly available report. In doing so, the views of the principal stakeholders have been taken into account. As such, it has been completed with a large degree of independence and without any bias. The Remote Gambling Association 2. As such, they represent many of the preeminent organisations in the field of global online gambling. It is a condition of membership that all operators be licensed for gambling in Europe. Some members also provide other interactive betting channels, notably via the telephone, and extensive and multi jurisdiction retail gaming and betting services With regard to the latter, RGA members make up a large part of the retail betting markets in the United Kingdom UK and Ireland, and a number of outlets throughout mainland Europe in jurisdictions that license such operations.

RGA membership also includes the largest betting exchange in the world and the leading global providers of gambling software amongst its stock market listed and privately owned companies The organisation s members consequently represent many of the foremost global and multi platform licensed gambling businesses. The RGA, and its membership, is therefore an important stakeholder in the international gambling market and has a significant interest in the development of relevant commercial and regulatory policies in these areas These policies can have profound affects on the financial position of large multi national corporations and the continued employment of an international workforce numbering tens of thousands.

That in turn can also have financial affects on related markets, such as the sports sector, the financial outlay that operators attribute, and the promotion of sporting events. The debate has permeated into political mechanisms at all levels: state; national; and international. The professional sports movement has been particularly proactive in pressing the debate and promoting its views in these areas However, neither the RGA, nor the wider licensed gambling industry, has been invited to participate in many of the detailed discussions that have taken place, notably those that have increasingly been undertaken in sporting forums and discussions with policymakers.

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