Technology gives some bettors an advantage
The particular issue which the UKGC suggests may lead to unfairness, results from the time lag between when events occur during a sports match, and when the bettor gets that information.
Even in “live streams” or “live broadcasts,” there is a perceptible time gap between the information gained by a spectator at a live match and a viewer getting the same information.
The gap may be extremely short, but in the financial world, high frequency trading operations are able to exploit the gap and front-run trades to make profits. The UKGC sees a similar potential for in-play sports betting, where some bettors can use high speed internet to receive information before both players and operators.
Using computer programs or “bots,” some bettors can then determine when the quoted odds are not correct and use this information to place bets at an advantage.
The UKGC does not see this risk as being significant, so long as bettors are informed that others using advanced technology may have an advantage, and that bettors are fully informed about operator policies on the issues involved.
Nevertheless, the UKGC plans to consult on the subject later this year:
“However, the Commission is considering whether the current information requirements sufficiently inform bettors about the potential use of software aids and operator’s policies for handling bet requests should a price change during the period between a bet request and confirmation. We will be consulting on these matters as part of the Remote gambling and Software technical standards review that will be launched in October 2016.”
UKGC Makes Case For Regulating In-Play Sports Betting, Not Banning It