Is spoofing cheating under the Gambling Act.

[Frogmella]

Section 42 of the Gambling Act 2005 created an offence of cheating.

Cheating includes "actual or attempted deception or interference in connection with the process by which gambling is conducted, or a real or virtual game, race or other event or process to which gambling relates." The maximum sentence following conviction being 2 years imprisonment.

As far as I can see in almost every horse race large sums of money are placed near to the current traded price with the sole intention of using it to influence the direction of market prices without any intention that said monies should ever be matched.

To me this in unfair market manipulation by wealthy traders or syndicates to the detriment of less wealthy participants and is therefore cheating and subsequently illegal under the Act.

Please discuss.

[to75ne]

no its not cheating, its a perfectly valid method even if some people find it unfair/deplorable and so on.

its just one of many things that help/make the markets move.

[Dallas]

I dont have a problem with it, if you spot happening just adapt and use it to your advantage.
It usually creates some great opportunities

[spreadbetting]

If you believe it's going to influence the direction of market flow then take advantage of it. If those bets are placed near the current traded place there's no guarantee they won't be taken so hardly cheating.

[Euler]

I've discussed it with Betfair many times but they feel it's just part of the makeup of the market and not risk-free.

[weemac]

Deception or not, the money is there to be taken if anyone so wishes. Just click your mouse.

[LeTiss]

Interesting question, I can see how some people would perceive it that way

[Dallas]

I'de say its only a problem if it cant ever be matched - through any sort of special privileges
If it can be taken (full or part) in the same way any other waiting money can and there prepared to take that risk and deal with the situation if it does get matched thats their choice

[Euler]

I dislike it as the market should be flowing freely, but there are opportunities from time to time. I don't think it's a one way street for the manipulators.

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[Alpha322]

no its not cheating, its a perfectly valid method even if some people find it unfair/deplorable and so on.

its just one of many things that help/make the markets move.

I agree with this point, as a trader you should be able to read these spoofers, infact sometimes they give you good entrys. Trading is a Journey and you learn these things as you go along, and no dont think i am one of them, i think its a risky deception incase the markets crash, left with your pants down for nothing

[ruthlessimon]

I like to think of manipulation like this: The girl in pink is manipulating the market. She's having to work really hard to go against the natural direction, to get a great fill - & in some cases is easy to spot (grimace in her face/big stakes). Tension builds, she lets go, then it explodes.

[sealebet]

An interesting topic. It's illegal in the financial markets but seems to be fair game in the gambling markets.
I envisage that one day, the rules and regulations around the gambling markets will start to allign with the financial markets.

https://www.bloomberg.com/news/articles ... llegations

[Euler]

Gambling is heavily regulated in terms of licensing but governments nor gambling firms seem to care much for the actual gamblers in terms of legislation. When I've pushed for things within government bodies I get the feeling that people think if you lose money gambling then that's your fault for being so stupid.

[Naffman]

People who want spoof to be illegal get swayed easily by it, those who don't mind it (or even like it) can usually adapt to it and most other things that affect the market.

[bennyboy351]

The way I look at it is this: Is spoofing the market any worse than Betfair building in a false delay in its video? Is it any less 'legal' than trainers and jockeys 'tuning' a horses performance to do well/poorly in a specific event?

In short, it is what it is and is just another hurdle to be overcome.