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Sports betting and corruption: How to preserve the - SportAccord

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<strong>Sports</strong> <strong>betting</strong> <strong>and</strong> <strong>corruption</strong>: <strong>How</strong> <strong>to</strong> <strong>preserve</strong> <strong>the</strong> integrity of sport<br />

Like <strong>the</strong> o<strong>the</strong>r moni<strong>to</strong>ring systems, EWS-ISM relies on a computerised matrix. Access <strong>to</strong> information<br />

is enabled by establishing memor<strong>and</strong>a of underst<strong>and</strong>ing - non-contractual agreements - with nearly<br />

450 public <strong>and</strong> private <strong>betting</strong> opera<strong>to</strong>rs, two-thirds of whom may be considered <strong>to</strong> be fully<br />

cooperative <strong>and</strong> active in <strong>the</strong> transmission of data. Among <strong>the</strong>se partnerships are over 20 Asian<br />

opera<strong>to</strong>rs (including <strong>the</strong> <strong>to</strong>p 4: IBC, SBO, 188, Singbet), <strong>and</strong> a similar proportion of opera<strong>to</strong>rs from <strong>the</strong><br />

Balkans (who have a much smaller market share however) 133 .<br />

One of <strong>the</strong> features specific <strong>to</strong> EWS is its use of human resources for its market watch - 20 informers,<br />

who operate in complete confidentiality in <strong>the</strong>ir own speciality areas, whe<strong>the</strong>r particular sports or<br />

particular styles of <strong>betting</strong>. EWS does not at <strong>the</strong> moment work directly with <strong>the</strong> FIFA confederations<br />

but some contacts have been made, particularly with <strong>the</strong> Asian confederation. As far as o<strong>the</strong>r sports<br />

are concerned, <strong>the</strong> IOC encourages its federations <strong>to</strong> use <strong>the</strong> system for <strong>the</strong>ir competitions, which <strong>the</strong>y<br />

have done from time <strong>to</strong> time (as has <strong>the</strong> international basketball federation), but as yet no long-term<br />

cooperation has been established.<br />

Advantages <strong>and</strong> disadvantages of moni<strong>to</strong>ring systems<br />

A moni<strong>to</strong>ring system can be an effective detection <strong>to</strong>ol. This is how large opera<strong>to</strong>rs such as Bwin <strong>and</strong><br />

Sportradar detected <strong>the</strong> fraudulent bets connected with <strong>the</strong> Hoyzer affair, in which Oddset, a German<br />

public opera<strong>to</strong>r, lost over 26 million. The affair demonstrated that <strong>the</strong> lawful market was not<br />

completely risk-free <strong>and</strong> could also provide a vehicle for <strong>corruption</strong>. It was following this sc<strong>and</strong>al that<br />

Bwin launched <strong>the</strong> initiative <strong>to</strong> create ESSA.<br />

One might also mention <strong>the</strong> iconic instance of <strong>the</strong> Davydenko affair in 2007, where it was <strong>the</strong> opera<strong>to</strong>r<br />

Betfair that originated <strong>the</strong> alert. The Russian player, who was strongly favoured, ab<strong>and</strong>oned <strong>the</strong> match<br />

in <strong>the</strong> third set. Betfair had recorded bets of $6 million on this match, while <strong>the</strong> average for this type of<br />

game (second round of a minor <strong>to</strong>urnament) is normally estimated <strong>to</strong> be 10 times less. And more than<br />

that, most of <strong>the</strong>se sums had been bet on <strong>the</strong> vic<strong>to</strong>ry of his opponent, <strong>and</strong> this trend continued<br />

throughout <strong>the</strong> match even though Davydenko won <strong>the</strong> first set.<br />

Given <strong>the</strong> fact that a large quantity of data is retained, a moni<strong>to</strong>ring system can be useful in retrospect<br />

by providing data for investigations <strong>and</strong> enquiries. Thus, in <strong>the</strong> case of FC Podeba, UEFA appointed<br />

an expert <strong>to</strong> carry out a study of <strong>the</strong> <strong>betting</strong> data. This expert observed strongly unusual trends on <strong>the</strong><br />

Asian market. During <strong>the</strong> Bochum trial, <strong>the</strong> CEO of Sportradar appeared as a witness. The opera<strong>to</strong>rs<br />

<strong>and</strong> o<strong>the</strong>r stakeholders in <strong>the</strong> market <strong>the</strong>refore have a strategic position <strong>and</strong> can be key observers of<br />

anomalies that may conceal a system of <strong>corruption</strong> in sporting competitions.<br />

Despite this, <strong>the</strong> ability of moni<strong>to</strong>ring systems <strong>to</strong> combat <strong>corruption</strong> in sport does have limits:<br />

- An alert does not constitute proof. There can in fact be many explanations for suspect<br />

movements, such as certain features of a match (underperformance, injury etc.). Most alerts<br />

au<strong>to</strong>matically issued by <strong>the</strong>se systems cannot <strong>the</strong>refore au<strong>to</strong>matically be interpreted as definite<br />

cases of match-rigging. To do this, it is necessary <strong>to</strong> move up <strong>to</strong> ano<strong>the</strong>r level of alert, in<br />

133 Interview on 5 August 2011<br />

76

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