British prosecutor spins like a top the BetFair virtues inside the courtroom.

Irish jockey Kieren Fallon, accused of being a member of a “conspiracy”:

Lefteris Pitarakis / AP

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Via mister Niall O’Connor, BBC News:

The object of the conspiracy was to wager large amounts of money on a particular horse to lose in each of those races while knowing that the jockey was prepared, if necessary, to cheat by stopping the horse.

Jonathan Caplan QC, prosecuting, explained to jurors how internet betting exchanges worked. He told them:

Betfair is one of the leading betting exchanges on the internet. In order to use it and place bets you must first open an account by registering. Customers will then be given a username and secure password. You can place bets by telephone but most betting is performed online on the internet. You must first deposit sufficient funds to cover the bet or bets that you wish to make. Betfair operates in a different way to a traditional bookmaker.

Mr Caplan said the main differences [between BetFair and the bookmakers] were:

1. That the customer does not bet directly with Betfair. Betfair is a commission agent which connects gamblers with opposing views on the outcome of a sporting event. It will only accept a bet if it is matched by another customer and it uses technology to match bets instantaneously. If the bet is large then it is likely that it will be matched with multiple counterparties.
2. That Betfair is a no-risk “bookmaker”. It makes a guaranteed profit by taking a commission from the winner’s net winnings. The commission varies between 2% and 5%.
3. That although wagers can be placed on the telephone, most of Betfair’s business occurs on the internet. Customers must have sufficient funds to deposit in their account to cover the bet. Usually these are deposited via a credit card.
4. That with Betfair a customer can “lay” or place a horse as well as back it to win or each way.
5. That Betfair’s odds are decimal (eg 4.1) and not fractions (eg 6-4) so 4.1 means that for every pound staked you receive a return of £4.10 which includes the pound stake. The decimal equivalent, therefore, of 2-1 is 3.0.
6. That Betfair’s market is a free market in that the prices are not controlled by the bookmaker.

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