Olympic Games 2012: Match Fixing and Suspicious Betting

Debate between Lord Moynihan and Baroness Rawlings

Thursday 9th February 2012 Lords Chamber

[Lord Moynihan]

My Lords, I declare an interest as chairman of the British Olympic Association, a member of the Olympic Board and a director of the London Organising Committee of the Olympic Games.

When IOC president Jacques Rogge stated that corrupt betting, not doping, was the biggest threat to the London 2012 Olympic Games, his opinion was read by some to be surprising and unexpected. From my perspective, his words were intended to send a signal to Governments, the Olympic family and, above all, the athletes proactively to take seriously a potential scourge that could seriously damage the reputation of the Olympic Games and the integrity of Olympic sport in the 21st century.

Today’s debate provides us with an opportunity to assess how well prepared we are for this threat to sporting competition. To date, we have taken only a few tentative steps towards addressing how sport can best mount a counterattack against suspicious betting and event fixing in Olympic and Paralympic sport.

Over recent years, this threat to sport has grown. Significant changes in the betting market during the past decade have provided increased opportunities for those who seek to engage in corrupt betting on sport. Internet betting and new betting platforms—exchange and spread betting—have resulted in increased liquidity in the betting markets and the opportunity for punters to play the bookmaker and bet on teams, individuals and horses to lose. Above all, the industry is increasingly designing every conceivable type of bet, and the greatest danger comes from bets available on specific events that occur “in play” and are televised globally

The strongest and most effective response in the United Kingdom came from the Parry report—a review of integrity in sports betting. It recognised what has become commonplace in the financial sector, where the misuse of inside information—insider dealing—is a criminal offence, and proven breaches are likely to result in a criminal prosecution overseen by the FSA. That remains a far cry from the world of sport, where there is no generic definition of inside information. The lack of any clarity on this issue poses a major problem for the Olympic movement. As your Lordships will be aware, there are various types of inside information, and sport rules need to cater for them. The most obvious is match fixing. Being in possession of inside information that will bear directly on the outcome of the events enables punters to place a bet, safe in the knowledge that it will win.

There are, however, other types of inside information open to abuse that do not bear directly on the final result of the event. Such information may be used for what is known as spot fixing, whereby inside information is misused to bet on certain acts taking place during the course of an event, although those acts may have no bearing on the eventual result of the event. The recent conviction of three Pakistan cricketers for arranging no-balls to be delivered at certain fixed points of the Lords test match against England is an illustration of that sort of inside information, as they knew those no-balls were going to be bowled at that stage of the England innings, which in turn proved very useful information for corrupt betting purposes.

The Parry review led to the establishment of the Sports Betting Group, which advises the British Olympic Association. I pay tribute to that group, which includes Darren Bailey, Simon Barker, Ian Smith, Paul Scotney, James MacDougall and Tim Lamb, for its work on this issue, and its advice to us at the British Olympic Association and to the athletes that we will select to represent Team GB. The Parry review made further recommendations that are relevant to our debate and merit consideration by the Government. The review called for an ongoing risk assessment process, and constant and effective monitoring of betting patterns. This summer that must mean constant monitoring of every televised event in the Olympic Games, and cover every heat and every final.

The decision to establish a joint working party between the Gambling Commission and one IOC representative to undertake that work is a start, but the 205 national Olympic committees and the Paralympic committees need to know what process will be followed when strong evidence of irregular or illegal betting is discovered. To date, there is no guidance on whether the athlete, the coach or the team chef de mission will be immediately informed and what should be done with that information. The athlete may be innocent, but there is no guidance for national Olympic committees, let alone established rules and procedures to follow. At the British Olympic Association, we have embarked on our own far reaching educational programmes and embedded codes of conduct to be signed by every athlete selected to participate in the British team but, for many British athletes, this will be the first time that they know the rules regarding the scope of their ability to place a bet on the Olympic Games; whether their coaches or families can place a bet on another sport in the Olympic calendar; or what to do if they are approached to fix a competition, or part of it, and to whom to report.

A universal code of conduct is required urgently if the scourge predicted by president Jacques Rogge is not to become reality. The IOC's founding working group on the fight against irregular and illegal sports betting has made an important start. Both the Minister for Sport and I sit on that body. Its challenge is to ensure that, before London, the Olympic movement moves from broad generalisations to a detailed action plan and advice to the athletes, international federations and national Olympic committees alike.

We need ongoing programmes of education and awareness-raising for all sports participants, particularly on the dangers of the misuse of inside information. It is regrettable that, in all the forums working on that issue, the principal stakeholders—the athletes—are not represented, as they are central to resolving that challenge. A handful of athletes may be the problem. The overwhelming majority of athletes—those of the highest integrity and desirous of contributing to the fight against threats to their sport—are a vital part of the solution. It is notable that the biggest problem by far in cricket is in the three jurisdictions where there is no player association: India, Pakistan and Zimbabwe.

For London 2012, the Minister for Sport, Hugh Robertson, and his colleagues are to be congratulated. The system for the London 2012 Games exceeds any which has been seen before at a multisport event and includes the establishment of a joint assessment unit, which will monitor betting intelligence throughout the period of the Games. Although the progress which has been made by the Gambling Commission and the IOC should be applauded, there is a need to ensure that the communication and disciplinary procedures which will operate at the time of the Games are robust. At present, guidance is needed from the Government on a range of related issues. I put the following questions to the Minister.

What is the process for analysing and reviewing the credibility of any evidence discovered by the joint assessment unit? Are there plans to monitor live betting activity? Will independent experts be recruited to review evidence? Will data be collected in advance of the Games of the betting patterns across both Olympic and Paralympic sports? What procedures will be adopted by the IOC to notify national Olympic committees of any adverse betting activity within their delegations? Are there plans to carry out scenario planning and testing for the JAU? That will be invaluable for all stakeholders to understand how communication processes will work and to test the processes for analysing evidence.

It is not clear whether the IOC Ethics Commission has sufficient understanding of suspicious betting and the appropriate mechanisms in place to act effectively. For example, it worries me that the frequent use of the word “irregular” is often linked by the IOC to illegal betting. The proper definition should be suspicious betting. The reason why that is misleading is that history shows that the challenge for the majority of sports is suspicious betting on legal markets. Irregular betting patterns are a normal everyday phenomenon of all betting markets and can be caused by a number of factors that are not to do with corruption, including the volume of money. Although betting-related corruption on illegal markets can be a problem, that is mainly in the sport of cricket. Recent betting-related scandals in horse racing, football and snooker have all been on legal markets, both traditional fixed odds and the betting exchanges.

We also need to address the problem that many bookmakers operating in the UK do so over the internet and are based overseas in places such as Gibraltar and Malta. That means that they avoid the UK licensing regime as well as tax. As a result, those operators are not statutorily obliged to share information with the Gambling Commission and sports governing bodies. I support Matthew Hancock who, in another place, is urging the Government to put those proposals into effect as soon as possible. Additionally, the existing definition of cheating in the Gambling Act 2005 is not, in my view, fit for purpose. A specific sports fraud definition is necessary. The Parry report was once again right in that respect.

I have sought to set out a few essential components of a comprehensive programme to meet the challenge set out by the president of the IOC. The central threat to the 2012 events is that many of the participants and officials will come from countries where corrupt individuals will pay a life-changing amount of money, which can be as little as $5,000, without thinking as they know that they can make 10 times that, particularly by betting on the exchanges, if they know that someone will definitely not be winning. The use of specific inside information that someone will not be winning an event for any number of reasons is gold dust to those in corrupt betting.

We need a sporting landscape in which universal rules are formulated to tackle betting-related corruption— a landscape that recognises the importance of ongoing monitoring and assessment of the risk that all Olympic sports face from corrupt betting, particularly the misuse of inside information.

[Baroness Rawlings]

My Lords, we have a timetable for this debate. I remind your Lordships that when the number seven appears on the clock, that is the end of the time for a seven-minute speech.