Betting ban on UFC over integrity issues


Betting ban on UFC over integrity issues - 3rd January 2016

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by Cameron Houston, Rania Spooner, Chris Vedelago

Challenger Holly Holm knocks down champ Ronda Rousey in UFC 193 at Etihad Stadium. Photo: Darrian Traynor


Victoria's gambling regulator banned Tabcorp from taking bets on the recent UFC cage fighting event in Melbourne, amid warnings by law enforcement agencies that the sport was vulnerable to corruption and money laundering by organised criminals.

It was the first time the Victorian Commission for Gambling and Liquor Regulation had refused an official request to allow punting on a sports event and delivered a strong rebuke to the UFC, which ranks as one of the world's most valuable and powerful sporting franchises.

A commission spokeswoman confirmed it had prevented Tabcorp from taking bets on any fights at UFC 193 in November, which attracted a record crowd of 56,000 at Etihad Stadium and a massive global television audience.

The event featured the much-anticipated title bout between world champ Ronda Rousey and Holly Holm, which saw Holm cause a stunning upset with a second-round knockout.

"In determining the application the VCGLR formed a view that UFC does not have appropriate policies or measures in place as required by Victoria's gambling laws," a spokeswoman said.

UFC executive vice-president Tom Wright told Fairfax Media he was baffled by the regulator's decision and said the organisation had a series of robust integrity measures in place.

Mr Wright said the UFC's global compliance unit dealt with "each and every complaint", while all competitors were required to sign a code of conduct that was strictly enforced. He said the organisation had staged 40 events in five continents over the past year without a hint of corruption.
While the Victorian gambling commission refused an application by Tabcorp, it has been powerless to stop offshore and interstate gaming operators, which have aggressively targeted the popular combat sport despite serious integrity concerns.

A Victoria Police spokeswoman said the Sporting Integrity Intelligence Unit was established in 2013 to identify criminal behaviour and match-fixing in Australian sports, but confirmed that mixed martial arts was exposed to a heightened risk.

"Any sport where there are two people competing against each other and where a betting agency is taking bets, is open to corruption. The risk of corruption increases where the betting agency operates offshore and is not under the regulatory environment of the VCGLR," the spokeswoman said.

Under the existing laws, Tabcorp is the only betting agency controlled by the Victorian gambling commission because it is licensed in Victoria.

But interstate and offshore gaming companies are able to flout local gambling regulations, which are now the focus of a parliamentary review by former NSW premier Barry O'Farrell.

UK firm Ladbrokes launched an aggressive expansion into Victoria, after the Andrews government legalised cage fighting events in March 2015, which are now staged on a monthly basis across the state.

But Ladbrokes is understood to have lost more than $100,000 on a series of "multi bets" placed on different combat sport events in Melbourne.

A Sydney-based syndicate is understood to have been behind the plunge, which prompted Ladbrokes to reconsider its foray into Victoria and cancel several sponsorship agreements with local promoters.

Ladbrokes' Queensland head office did not respond to a request for comment.

Ladbrokes recently employed former fighter Julian Gallin to recruit punters at cage-fighting events around Melbourne. It is understood that Mr Gallin was paid a commission for each new account opened with Ladbrokes and openly promoted the firm on social media.

Last month, Mr Gallin was arrested and charged over his alleged involvement in a major cocaine trafficking ring that made more than 2000 drug deals from an Elwood apartment while under police surveillance.

CrownBet, which is based in Darwin, has also pursued Victorian boxing and mixed-martial arts events in a bid to sign up new punters for its online gambling site.

Former champion boxer turned promoter Barry Michael has actively spruiked the site on social media, but could have contravened Victorian regulations by recently offering an inducement to open a CrownBet account.

On December 3, Mr Michael sent an SMS message to boxing fans offering $600 in bonus bets once they had deposited $400 in a CrownBet account.

"Once you've joined and made your deposit, text me your CrownBet username and I'll arrange the Bonus Bets to be credited to your account," Mr Michael said in an SMS message.

A Victorian gambling commission spokeswoman said it was making further inquiries with CrownBet regarding the offer and was unable to comment further.

Chris Eaton, head of sports integrity at the International Centre for Sports Security, said it was unlikely the Victorian gaming commission had taken such a strong stance against wagering on cage fighting without solid intelligence.

"It is unlikely a regulatory agency would direct bookmakers not to list a sport without either conclusive betting fraud data or credible insider information from within the sport. And the Victorian regulator is recognised globally for efficiency and effectiveness," Mr Eaton said.

(Fairfax Media)