The report reflects concern regarding the adequacy of the common law offence of conspiracy to cheat & defraud, the scope of Part 4AA of the Crimes Act 1900 (NSW) and the scope of s 18 of the Unlawful Gambling Act 1998 (NSW). It also reflects concern regarding "conduct directed at fixing results or individual events in the course of sporting and other activities which may be the subject of spot or spread betting".
The Commission comments that -
Sports betting has become a major industry in Australia. Cheating at sports betting, including by match-fixing, undermines the integrity and reputation of the sports in question, can involve significant fraud, and has the potential to cause disruption to a significant economic activity.It also comments that it -
The criminal law has not kept up to date and the Commission proposes two new sets of sports specific offences.
The first set of offences cover conduct by anybody (including players, match officials and team support people) that "corrupts the betting outcome of an event" with the intention of obtaining a financial advantage from betting.
The conduct of a person “corrupts a betting outcome” if it affects or would be likely to affect the outcome of a bet, and is contrary to the standards of integrity expected by reasonable people.
This covers for example spot and match fixing, deliberate underperformance, tanking, disrupting or interfering with the course of the event, and deliberately officiating in a dishonest way. It extends to anybody who fixes the event, or agrees to do so, or persuades another to do so, and also to conduct designed to conceal the existence of any such arrangement.
The second set of offences cover using inside information in connection with a sporting event to bet on that event, as well as providing inside information to someone else to enable them to bet on the event.
In both cases, the Commission proposes a maximum penalty of 10 years imprisonment, the same penalty as for fraud, recognising the seriousness of activity that can involve the corruption of sporting activities in aid of betting.
The Commission notes that national work is underway in this area following the adoption by the Australian Sports Ministers of the National Policy on Match-Fixing in Sport; and the agreement of the Standing Committee of Attorneys-General to develop a nationally consistent approach to criminal offences relating to match-fixing.
reviewed the role of sports controlling bodies and wagering agencies in ensuring the integrity of sporting events and gave support to the initiatives underway in Australia and internationally in this respect.In relation to amendment of the Crimes Act 1900 (NSW) the Commission proposes offences of corrupting the betting outcome of an event.
The Commission also examined cheating at gaming in connection with gaming machines and Casino type games, and proposes a review to rationalise the range of existing offences including the creation of a new general cheating at gaming offence in the Crimes Act.
Finally, the Commission recommends a review to improve NSW’s complex regulatory and enforcement arrangements to consider the creation of a single authority to replace the current division of authority between the Office of Liquor, Gaming & Racing (OLGR) and the Casino Liquor & Gaming Authority (CLGA), and to rationalise the powers of inspectors.
The first set of recommended offences proscribe forms of conduct that corrupt the betting outcome of an event or a contingency connected with it, including -
• engaging in such conduct (cl 193M);To avoid criminalising actions that involve the breaking of the rules of a sport, or making tactical decisions for reasons other than affecting betting the Commission suggests several qualifications. The relevant conduct must be contrary to the standards of integrity that a reasonable person would expect of someone in a position to affect the outcome of any type of betting on the event, there must be an intention to obtain a financial advantage or of causing a financial disadvantage as a result of any betting on the event and there must be knowledge or recklessness as to whether the relevant conduct corrupts a betting outcome of the event.
• offering to engage in such conduct (cl 193N(1));
• encouraging another person (including by various forms of incitement and coercion) to engage in such conduct (cl 193N(2)) and
• entering into an agreement that results in such conduct (cl 193N(3)); and
• encouraging a person to conceal, from the relevant authorities, conduct or an agreement that corrupts a betting outcome. (cl 193O)
The Commission also recommends an offence of using inside information about an event for betting purposes, ie to -
• bet on that event (cl 193P(1)(a));The proposed provision is limited by the requirement that the inside information must not be "generally available" and that it must be information that would affect the decision of a person, who commonly bets on such events, whether or not to bet on that event.
• encourage another person to bet on that event in a particular way (cl 193P(1)(b)); or
• communicate the information to another person who would be likely to bet on that event. (cl 193P(1)(c)).
Chapter 4 calls for a central gambling authority. The Commission notes issues concerning establishment of a revised regulatory or supervisory structure in relation to gambling (wagering on sporting and other events and gaming) -
• the desirability of a national uniform approach;It suggests that there is a need to review the current NSW regulatory arrangements that are shared between the OLGR and the CLGA.
• the role of sports controlling bodies in detecting and in responding to cheating;
• the adoption of sporting codes of conduct that govern relevant conduct;
• the need to establish anti-corruption education programs;
• the role of betting providers in detecting and reporting suspicious betting trends;
• the need for a clearer and more comprehensive consultative process for identifying approved betting events within the States and Territories;
• the need for international collaboration between sports controlling bodies, betting agencies, and law enforcement agencies; and
• the potential formation of a national sports betting integrity unit to perform a policy and liaison role within a national regulatory framework.
The OLGR is "accountable for the development, implementation and integrity of the overall regulatory framework across alcohol, licensed clubs, charitable fundraising and gambling activities in NSW", including policy direction and advice regarding regulated activities, early intervention, education activities and co-ordination of licensing, compliance and enforcement functions. Those regulatory activities encompass oversight over -
• Sale and consumption of alcohol (over 14,000 licensed premises including over 1,700 hotels)The CLGA operates under the Casino Liquor & Gaming Control Act 2007 (NSW) and which replaced the NSW Casino Control Authority, Liquor Administration Board and Licensing Court.
• Operation of licensed clubs (over 1,300 clubs)
• Gambling (including 96,000 gaming machines, wagering, lotteries, keno, art unions and raffles with an annual turnover in excess of $40bn and combined annual state tax contribution of $1.6bn)
• Charitable fundraising (over 5,200 current fundraising licences).
The Commission argues that those arrangements are "unduly complex and out of line with the approach adopted in other States and Territories". Consideration should accordingly be given to the possible establishment of a NSW central gambling authority, with specific powers in relation to the regulation of gaming and sports and other event betting.
