European Gaming & Betting Association

Online betting in tennis: French Tennis Federation sued for damages

Following claims by the FFT (Fédération Française de Tennis) that services offered by online sports betting operators present a danger to the ethics of sport, bwin, a member of the European Gaming and Betting Association (EGBA), is suing the French Tennis Federation for damages before a Paris court (Tribunal de grande instance).

Following claims by the FFT (Fédération Française de Tennis) that services offered by online sports betting operators present a danger to the ethics of sport, bwin, a member of the European Gaming and Betting Association (EGBA), is suing the French Tennis Federation for damages before a Paris court (Tribunal de grande instance). 

The EGBA is keen to emphasise that the nature of the Internet means that it is an extremely efficient tool in providing operators with a perfect audit trail, one that can, where appropriate, be shared with regulators and other authorities in order to trace bets and hence provide valuable evidence in the fight against fraud in sports. 

In contrast to the views of the FFT, any match-fixing would penalise bookmakers severely as they take financial risk when setting odds for all sporting events. As a result, any fraud which attempts to influence the outcome of an event would both distort the odds being offered and almost certainly deprive the the sports betting operator from generating any value from the event.  

The EGBA works closely with the European Sports Security Association (ESSA)*.  ESSA has set up an early warning system, in close cooperation with relevant sports authorities, such as the Association of Tennis Professionals (ATP), that is designed to combat fraud in connection with sporting events.  

This early warning system that connects all ESSA members enables the early detection and analysis of irregular betting patterns. When an irregularity is confirmed, the relevant bets are suspended and the information is then passed on immediately to the relevant sports authorities, so that they can carry out the necessary investigations.  

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For further information or comment please contact:

 Sigrid Ligné: +32 (0) 2 256 7527

sigrid.ligne@egba.eu 

The EGBA is an association of the leading European gaming and betting operators Bet-at-home.com, bwin, Digibet, Carmen Media Group, Expekt, Interwetten, PartyGaming and Unibet. EGBA is a Brussels-based nonprofit making association. It promotes the right of private gaming and betting operators that are regulated and licensed in one Member State to a fair market access throughout the European Union.

www.egba.eu   

Backgrounder 

The European online gaming industry

A high growing sector held by responsible operators   

1-    A cutting-edge sector 

IT experts 

·         The online gaming sector’s growth is strongly linked to the growth of the Internet and new technologies (e.g. 3G…)

·         Online gaming operators are cutting-edge IT experts. In particular, they need to manage a rapidly growing number of Internet users, to provide secure online financial operations, to formally identify users and protect their personal data, etc… 

Strong contribution to the European Market growth 

·         The online gaming market in Europe is expected to increase from 4,4 billion Euro gross gaming revenue (GGR) in 2006 to 9,5 billion Euro GGR by 2012 (source: Global Betting and Gaming Consultants, 2007). European online sports betting represented 0,6 billion Euro GGR in 2006.

·         The online industry represents a major potential source of sponsorship and advertising: for example one Swedish newspaper received around 8,5 million Euro per year for advertising online gaming.  

Vitality of the sector: new skills, new jobs 

·         The online gaming industry is at the forefront of eCommerce having led the way in a number of online practices such as age verification.

·         The online gaming industry has created a young, dynamic and European workforce, with high expertise in new technologies.

·         Bookmaking is a profession that requires a high level of expertise and know-how of a large variety of sports and, like with financial markets, risk management skills.  

2-    Responsible operators 

Legal operators

·         Established in EU Member States, EGBA members have European licences and are strictly regulated, in terms of consumer protection, transparency and public order.

·         Under Article 49 of the EU Treaty EGBA members, based in the EU, should be entitled to offer (and to use) services in the framework of the Single European Market, in accordance with European Law.

·         EGBA operators follow strict rules in terms of governance and account control.

·         EGBA members, based in the EU are obliged to comply with the EU anti-money laundering directive.

·         Certain members of EGBA are companies listed on leading European stock exchanges. 

The Industry commitment to ethical standards 

·         Consumer protection is a priority for EGBA. Since the creation of the association in 2003, all the members have to comply with a code of conduct which requires the enforcement of control systems of users’ identity as well as payment and stakes’ restriction. This code also sets out measures aimed at preventing problem gaming and struggling against money laundering.

·         The code is audited by eCogra an independent body which verifies that the standards meet the regulation’s requirements.  

3-    Sports integrity : an industry commitment 

Being a member of ESSA involves a strong cooperation with leading sports regulators

 ·         Online sports betting operators have an interest in keeping online sports betting free of corruption as manipulation damages their reputation, which for listed companies can have an adverse effect on their companies’ share price.

·         The leading online sports betting companies jointly founded ESSA (European Sports Security Association), in January 2005. ESSA is a non-profit organisation whose early-warning system links all ESSA members and allows them to inform the relevant authorities, as early as possible, of any suspicious betting activities related to sports competitions.

·         So far, ESSA has, for example, established close cooperation with UEFA, FIFA, EPFL, ATP, ITF, WTA and DFB. UEFA highlighted in a press release dated 21 February 08, the “necessity to collaborate with the betting industry”. 

The Internet allows online operators to provide valuable evidence for regulators 

·         Far from contributing to betting fraud and match-fixing, the Internet makes it possible to record and analyse each individual action taken online. For instance, irregular betting activities, such as an unusually high amount placed on the unexpected outcome of an event (e.g. an outsider wins) can be immediately identified and all related transactions notified to the authrorities.

·         The Internet also makes it easier to identify consumers, secure online payments as well as combat money laundering and criminal behaviour. 

Promoting a global framework for all stakeholders 

·         It is in the interest of the sports sector in general and online operators in particular, to protect the integrity of betting activities.

·         The EGBA is in favour of international cooperation of all stakeholders in order to fight betting manipulation that damages the reputation of sport and also the commercial activities of the online betting industry.

·         Sportsmen, sports bodies, regulators and operators should commit to guarantee the integrity of the sports environment by keeping a very close watch on the organisation of sporting events in order to prevent fraud of any kind.  Regulators should also seek to enforce severe penalties against sportsmen and women that believe that corruption in sport is a risk worth taking.

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