Convention on the Manipulation of Sports Competition

The issue of combatting the manipulation of sports competitions came under close scrutiny by the Council of Europe. This focal point evolved into a Convention, the Convention on the Manipulation of Sports Competitions.

The purpose of this Convention is to prevent, detect, punish and discipline the manipulation of sports competitions, as well as enhance the exchange of information and national and international cooperation between the public authorities concerned, and with sports organisations and sports betting operators. The Convention calls on governments to adopt measures, including legislation, to notably:

• Prevent conflicts of interest in sports betting operators and sports organisations;
• Encourage the sports betting regulatory authorities to fight against fraud, if necessary by limiting the supply of sports bets or suspending the taking of bets;
• Fight against illegal sports betting, allowing to close or restrict access to the operators concerned and block financial flows between them and consumers.

Sports organisations and competition organisers are also required to adopt and implement stricter rules to combat corruption, sanctions and proportionate disciplinary and dissuasive measures in the event of offence, as well as good governance principles. The Convention also provides safeguards for informants and witnesses.

The Convention was adopted in Macolin in September 2014, providing the first common legal framework which responds to the necessity to dispose of a juridical instrument open to all European and non-European states, enabling a more systematic application of the measures taken by sports betting operators and public authorities.

Recently, the European Union is seeking the adoption of this Convention by all EU member states. These two entities, (the EU and the Council of Europe) are two entities which are separate, distinct and with different members. The EU, seeking to ratify the Convention as an entire bloc, implies that consent is needed from each and every member state. The tentative ratification was discussed in the European Parliament, even recently. Particular reference was made to Malta’s stance. One might safely state that there has been an element of criticism in view of Malta’s objection. Malta’s opposition to the definition of ‘illegal sports betting’ is slowing down the likelihood of ratification of this convention by the EU as one entire bloc.

Malta’s position vis-à-vis this Convention was laid down in a press release issued by the Parliamentary Secretariat for Competitiveness and Economic Growth earlier last year, stating that:

‘Malta’s position on the Convention has always been made very clear and remains unchanged. Malta has maintained that it fully supports the main objective of the Convention which is to prevent the manipulation of sports competitions. In fact, Malta is currently undergoing an exercise to ensure the implementation of stricter rules and systems to suppress fraud and manipulation in sports. However, Malta has consistently reiterated its concerns on the definition of ‘illegal sports betting’ which goes beyond the scope of the Convention and does not contribute to the fight against match fixing. Malta tabled various proposals for amendment throughout the discussions on the Convention and following the rejection of all such proposals, was compelled to vote against its adoption. Consequently, Malta did not sign the Convention when it was opened for signature in September 2014.’

Malta’s position can be seen in view of the Maltese remote gaming industry, which following the tentative definition: ‘any sports betting activity whose type or operator is not allowed under the applicable law of the jurisdiction where the consumer is located’, may pose dire consequences to the Maltese gaming sector since the majority of Maltese-registered online gaming companies take bets in a wide variety of countries. This due to the fact that such a definition will effectively render illegal all operators who offer their services via their MGA licence in other EU Member States.

One may argue that the clause in question goes well beyond the scope and objectives of such a convention. Further to this, one may view such a definition as a method of seeking to regulate an industry rather than targeting the integrity of sports competitions.

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