After reading about the 15 people who are being prosecuted by the GC (not Met) for ‘insider trading and cheating’ (GC words not mine) when placing winning bets on the date of the last General Election, it has got me thinking about how this particular incident relates to day to day ante post betting markets.
For a fair while I have been thinking about the similarity between ‘insider trading’ in shares/stocks and betting markets, particularly ante post betting markets and what, if any, difference there is between them when someone buys/bets based upon insider information. The fact that a bet can now be traded, either cash out or back and lay, means that the horse doesnt have to win in order to profit from the transaction.
The GC say it’s against the law to use insider trading information to take advantage (cheat) and is against one of their three key principles, not being ‘Fair and Open’…..and this is what the 15 people are being prosecuted for. Trials in two years time for the 15 (not sure why the delay)
Based upon what the GC are stating is criminal law for insider trading, then I think there is a strong case against ‘connections’ who bet ante post AND bookmakers who manage ante post markets, particularly around ante post markets about a months hence, rather than longer term and that they are technically insider trading, not being fair and open and breaking the law.
Firstly Connections……..people who are ‘connected’ in anyway that they get information on a horses running plans ie it’s going to run or it’s not going to run in a certain race and bet accordingly, to take advantage of that market, are in the GC terms ‘insider trading’ and breaking the law. How many times do we see the first and second favs for O’Brien in an ante post race flip flop, the fav drift and proved to be right with the horse not running? Whilst it’s not certain that the horse that does run will win, then as we know on this forum, if getting the value regularly, then you should win over time. How is this ‘open and fair’ to the average joe customer and not ‘insider trading’? Whilst there is a key difference with the shares/stocks example, as a win is pretty much guaranteed, then if you know the short priced fav in an ante post race is not going to run, then I would suggest over time you will win and as stated earlier, you could grade that horse at the larger than SP price to guarantee a profit. I remember when not that long ago Illinois drifted from fav to second fav and I think the second fav (Scandinavia?) changed to fav from second fav, that the price move was spot on as Illinois was retired shortly afterwards? Nothing reported in the papers about the market move before the announcement. It appears that this practice is known to happen in racing, is acceptable and has been going on for years…….yet there hasnt always been a GC or a case where the GC have stated what their interpretation is of insider trading in criminal terms.
Secondly Bookmakers…….whilst I believe that bookmakers are no longer allowed to buy information directly following some press articles ten or so years back, then have no doubt that bets that are laid to certain ‘faces’ are technically marking their card. They will have information on certain customers betting patterns through data which ‘suggest’ that customer gets intel/information from a particular stable, without any direct knowledge of a customer and their connection to a stable or particular horse, which they may have as well. When this customer bets they may lay the bet knowing it’s ‘informed’ and then shorten the selection accordingly. They want the customer to bet with them so they, in an indirect way, technically ‘buy’ the intel……how is this in line with ‘open and fair’ GC law and not using ‘insider information to take advantage’? I would suggest that where bookmakers drift a horse in an ante post market for a race a months hence where nothing has changed for the main protagonists etc that therefore this is normally based upon intel/information (as very few ‘take a view’ nowadays) …..so if this information isn’t widely available to the general public why isn’t it ‘insider trading’? Using the Illinois example then when they drifted Illinois and moved Scandinavia to fav, surely this is cheating if they suspected through their intel that Illinois would not run? To comply with the ‘open and fair’ principle then bookmakers should suspend the market when the information isn’t widely available to the public.
The above insider trading practices operated by connections and bookmakers have been going on for years and will be very hard for the GC to prove to a criminal case threshold, so I suspect will continue for now. However if the GC get going on the prosecution side with ‘insider trading’ in betting terms following the election date scandal, then ante post markets could be threatened, we could see more suspended markets or certain horse prices suspended when there is negative intel around them?
Gonna get back in me box now and have a nap in the sun
