Betting Rules

1. Introduction

  1. The Services provides Players with a betting service, which enables Players to buy or sell a ‘share’ in a team (each a “Share”) which represents a bet on that team.
  2. The process of buying or selling a Share is set out at sections 3 and 4 respectively.
  3. Players can seek to make a profit by selling a Share for a higher price than they bought such Share.
  4. Sports Broker shall determine the initial price for each Share but Share prices will then change as set out at section 6 below.

2. Interpretation

  1. The following words and terms, when used in these Betting Rules, shall have the below meaning:

    1. Base Score” shall have the meaning at 6.7;
    2. Bankrupt Team” shall have the meaning at 6.14.1;
    3. Buyer Commission” shall have the meaning at 8.1;
    4. Buy Order” shall have the meaning at 3.2 and shall include a Market Buy Order and Limit Buy Order;
    5. Commission” shall have the meaning as set out at 7.2
    6. Current Buy Price” shall have the meaning at 3.2.1;
    7. Current Sale Price” shall have the meaning at 4.2.1;
    8. Demand Price Fall” shall have the meaning at 6.5;
    9. Demand Price Rise” shall have the meaning at 6.2;
    10. Factors” shall have the meaning at 6.7;
    11. Higher Buy Price” shall have the meaning at 3.2;
    12. Limit Buy Order” shall have the meaning at 3.2.2;
    13.  “Limit Sell Order” shall have the meaning at 4.1.3;
    14. Lower Sale Price” shall have the meaning at 4.2.1;
    15. Market Buy Order” shall have the meaning at 3.2.1;
    16. Market Sell Order” shall have the meaning at 4.1.2;
    17. Non-Bankrupt Team” shall have the meaning at 6.14.1;
    18. Order” shall be deemed to refer to a Buy Order and/or a Sell Order, as the context may require;
    19. Performance Price Decrease” shall have the meaning at 6.9;
    20. Performance Price Rise” shall have the meaning at 6.10;
    21. Price Rise Commission” shall have the meaning at 9.1;
    22. Published Price” shall mean the price of a Share as published on the Services;
    23. Sell Order” shall have the meaning at 4.1;
    24. Share” shall have the meaning at 1.1;
    25. Weighted Score” shall have the meaning at 6.8;
  2. Any capitalised terms used in these Betting Rules but which are only defined in the Terms and Conditions, shall have the meaning as defined in the Terms and Conditions.
  3. A reference to:

    1. ‘buying’ or ‘selling’ Shares is not intended to denote any ownership of any Share, instead it is intended to reference the actions of placing a Bet or cashing out of a Bet respectively;
    2. an Order being “placed” (or a Customer “placing” an Order) shall be deemed to refer to a Player making an Order available to be executed;
    3. an Order being “executed” shall be deemed to refer to when an Order is completed on the Service (i.e. when a Buy Order is completed and a Player receives a Share in consideration for paying the respective Price of such Share).

3. “Buy” Orders

  1. Sports Broker provides Players with the opportunity to place a Bet by ‘buying’ a Share.
  2. You may submit a request to ‘buy’ a Share (a “Buy Order”) either as a:

    1. Market Buy Order” – which will require you set a range of prices at which you agree to buy a Share, between the Published Price of the Share at the time you place the Order (“Current Buy Price”) and a higher price which is equal to the Current Buy Price plus a percentage which you will set as part of the Market Buy Order (“Higher Buy Price”). For clarity, a Market Buy Order will only be executed in one of the situations as described at 3.3 below; or
    2. Limit Buy Order” – which will require you to set a price at which you agree to buy a Share. For clarity, a Limit Buy Order will only be executed in one of the situations as described at 3.4 below.
  3. If you place a Market Buy Order, this will be executed in the below circumstances:

    1. if a corresponding Sell Order (i.e. for such Shares at a value equal to or lower than the Higher Sale Price) is placed by another Player within 24 hours, your Market Buy Order will be executed automatically by Sports Broker at the time such corresponding Buy Order is executed and at the Published Price when such corresponding Buy Order is executed; or
    2. if a corresponding Sell Order is not placed by another Player within 24 hours, your Market Buy Order will be executed automatically by Sports Broker at the end of such 24 hour period and for the respective Published Price of such Share at the end of such 24 hour period, subject to such Published Price being lower than the Higher Buy Price.
  4. If you place a Limit Buy Order, this will be executed if the Published Price of the respective Shares reach the price set out in your Limit Buy Order and Sports Broker is able to match your Buy Order with a corresponding Sell Order (where the Shares are equal to or lower than the price in your Limit Buy Order). Sports Broker provides no guarantee that a corresponding Sell Order will be found/ that your Limit Buy Order will be executed.
  5. In the event that a corresponding Sell Order is only made for some of the Shares which were subject to a Buy Order, only that proportion of the Buy Order shall be executed and the remaining amount of the Buy Order shall be subject to the mechanism at 3.3.2 (in respect of a Market Buy Order) or will not be executed (in respect of a Limit Buy Order).
  6. At any point, Sports Broker has the discretion to prevent a Buy Order from being placed or cancel any existing Buy Order.

4. “Sell” Orders

  1. Sports Broker provides Players with the opportunity to cash out a Bet, by ‘selling’ a Share (a “Sell Order”) as below:

    1. Instant Sell Order”: which will result in your Sell Order being executed immediately and you receiving 90% of the Published Price of such Shares, with the remaining 10% being transferred to Sports Broker;
    2. Market Sell Order”: which will ensure that your Shares will be sold within 24 hours, though there is no guarantee with regards to the sale price of such Shares – which may be less than your Lower Sale Price (see 4.2 for detail); or
    3. Limit Sell Order”: which will require you to set a price at which you agree to sell a Share. For clarity, a Limit Buy Order will only be executed in one of the situations as described at 4.3 below.
  2. If you place a Market Sell Order this will be executed in the below circumstances:

    1. you will be required to set a range of prices at which you agree to sell a Share, between the Published Price of the Share at the time you place the Order (“Current Sale Price”) and a lower price which is equal to the Current Sale Price less a percentage which you will set as part of the Market Sell Order (“Lower Sale Price”). If a corresponding Buy Order (i.e. for such Shares at a value equal to or higher than the Lower Sale Price) is placed by another Player within 24 hours, your Market Sell Order will be executed automatically by Sports Broker at the time such corresponding Buy Order is executed and at the Published Price when such corresponding Buy Order is executed; or
    2. if a corresponding Buy Order is not placed by another Player within 24 hours, your Market Sell Order will be executed automatically by Sports Broker at the end of such 24 hour period and for the respective Published Price of such Share at the end of such 24 hour period.
  3. If you place a Limit Sell Order this will be executed if the Published Price of the respective Shares reach the price set out in your Limit Sell Order and Sports Broker is then able to match your Limit Sell Order with a corresponding Buy Order (where the Shares are equal to or higher than the price in your Limit Sell Order). Sports Broker provides no guarantee that a corresponding Buy Order will be found/ that your Limit Sell Order will be executed.
  4. In the event that a corresponding Buy Order is only made for some of the Shares which were subject to a Sell Order, only that proportion of the Sell Order shall be executed and the remaining amount of the Sell Order shall be subject to the mechanism at 4.2.2 (in respect of a Market Sell Order) or will not be executed (in respect of a Limit Sell Order).
  5. At any point, Sports Broker has the discretion to prevent a Sell Order from being placed or void any existing Sell Order, including because:

    1. of any error (including but not limited to those set out at clause 10.1 of the Terms); or
    2. your Account has been suspended or terminated.
  6. In the event that you place a Sell Order and the Published Price of the respective shares is reduced to zero before such Sell Order is executed, then the Order will be deemed void and all such Shares will be deemed to be cancelled (such Bets shall be deemed to have lost).

5. Cancellation of Orders

  1. We will use reasonable endeavours to meet Order cancellation requests, but do not guarantee that we will be able to cancel an Order.
  2. No cancellation of an Order will be effective until the original Order is removed from the Service and no longer displayed on the Service.
  3. As an Order is available to other Players until cancelled, there is the possibility that an Order may be accepted and matched in the Service before a cancellation request can be completed. We bear no responsibility for delays which may arise between the time a cancellation is requested by a Player and the time it is cancelled on the Service.

6. Share price changes

Share price changes due to supply/demand

  1. The price of a Share will change, based on the supply and demand of such Share. Such a change can occur both outside of the period when a match is being played and during the period when a match is being played.
  2. If a Player buys a Share, this will result in Buyer Commission being payable to Sports Broker by such Player (see section 8 for detail). This Buyer Commission will then be distributed to the value of all existing Shares for that team, thereby increasing the price of each such Share incrementally (“Demand Price Rise”). Please see 6.4 for a worked example.
  3. Any Demand Price Rise will always be rounded down to the nearest 1p. Any difference between the new ‘true’ value of the Share and the new rounded price of the Share will be recorded in a ‘reserve’ ledger. If the amount in such ledger exceeds 1p as part of a future Demand Price Rise, this will then be applied to the value of the Share accordingly. Please see 6.4 for a worked example.
  4. For example:

    1. there are 100 Tottenham Shares which have been issued and which are worth £10 each;
    2. a Player buys 10 additional Tottenham Shares from Sports Broker with a Buyer Commission of £2.50 (£100 of Tottenham Shares with 2.5% Buyer Commission);
    3. there will be a Demand Price Rise in respect of every Tottenham Share (the existing 100 Tottenham Shares and each of the 10 additional Tottenham Shares);
    4. the ‘true’ Demand Price Rise would be £0.0227272727273 (Buyer Commission of £2.50 divided by 110 Tottenham Shares);
    5. the rounded Demand Price Increase will be equal to £0.02;
    6. there are now 110 Tottenham Shares which have been issued and each will have a value of £10.02 and there will be a value of £0.30 in the ‘reserve’ ledger.
  5. If a Player sells a Share to Sports Broker, the price of all such remaining Shares will fall (a “Demand Price Fall”) by an amount equal to the 10% of the value of the sold Shares.

    Share price changes due to events in a match

  6. The value of a Share will change during the course of a match in which the respective team is competing, on the basis of an algorithm, as described below at 6.7 - 6.11.
  7. Sports Broker will award points to both teams in a match, on the basis of defined factors as set out at Appendix 1 (“Factors”). The value of each of the Factors and the weighting will be determined by Sports Broker, but the relative importance of the Factors is set out at Appendix 1. The total of such points for each team shall be the “Base Score”.
  8. The Base Score will then be weighted in accordance with the respective positions of the teams in their league (the “Weighted Score”). The weighting will be determined by Sports Broker and, in headline terms, each team will be assigned a handicap based on their league position. For example, if the team at the top of a league scores a goal against a team at the bottom of a league, the impact will be relatively small on the Base Score of such teams (when calculating the Weighted Score). On the flip side, if a team at the bottom of the league scores against a team at the top of the league the impact on the Base Scores of such teams will be relatively large (when calculating the Weighted Score).
  9. If a team has a lower Weighted Score at any point during a match, the price of a Share will decrease (the “Performance Price Decrease”). The amount of a Performance Price Decrease will be based on the relative Weighted Scores of each team and will be determined by Sports Broker using a proprietary algorithm.
  10. If a team has a higher Weighted Score at any point during a match, the price of a Share will increase (a “Performance Price Rise”). The amount of a Performance Price Rise will be equal to the amount of any Performance Price Decrease of the other team, see 6.11 for an example. The amount of a Performance Price Rise will then be subject to the deduction of Price Rise Commission (as set out at section 9 below).
  11. The amount of a Performance Price Decrease shall be calculated on a pro-rata basis at the end of the relevant match, according to the entire market value of the Shares of such team. By way of example:

    1. Manchester City play Aston Villa;
    2. prior to the match, the Shares for these teams are priced as below and the following amounts are bought by Players:

      1. Manchester City priced as £8 per Share and 1,250 Shares bought by Players; and
      2. Aston Villa priced as £4 per Share and 500 Shares bought by Players.
    3. Aston Villa achieve a lower number of Weighted Actions in the match than Manchester City and the Performance Price Decrease of an Aston Villa Share is calculated to be to be £1.25;
    4. Manchester City achieve a greater number of Weighted Actions in the match than Aston Villa and the Price Increase of a Manchester City Share is calculated to be £0.50, on the basis of the below:

      1. the Performance Price Decrease in each Aston Villa Share was £1.25 per Share, resulting in an aggregate decrease of £625 (£1.25 multiplied by 500 shares);
      2. the aggregate Performance Price Rise in the value of the Manchester City Shares must also be equal to £625, which equates to £0.50 per Share (£625 divided by 1,250 Shares).

    Warning

  12. Please note that a team may win a match but that there may be a decrease in the value of its Shares. This would occur if a team won a match but had lower Weighted Actions than the other team. For example, if a team which is top of the league played a team which is bottom of the league and the team which is top of the league won 2-1, there could be a decrease in the Share price for team which is top of the league if it had lower Weighted Actions in such match.

    Share Price reaches zero

  13. If a Share’s value is reduced to zero, then:

    1. all such Shares will be deemed to be cancelled (such Bets shall be deemed to have lost);
    2. any Sell Orders for such Shares shall be void;
    3. any Buy Orders for such Shares shall be void; and
    4. new Shares for the respective team will be made available for purchase at a price set by Sports Broker.
  14. If a Share’s value is reduced to zero value during a match:

    1. trading shall be suspended on the Shares of both the team whose Shares have reduced to zero value (the “Bankrupt Team”) and the opposing team in such match (the “Non-Bankrupt Team”); and
    2. the Price of the Shares of the Non-Bankrupt Team will not be affected by any Performance Price Rise or Performance Price Decrease until the Bankrupt Team has had new Shares made available and a certain proportion of such new Shares have been bought by Players (to be determined in the discretion of Sports Broker).

7. Commission

  1. In consideration for providing the Services, Sports Broker will charge commission as below:

    1. Buyer Commission (as defined at 8.1 of these Rules); and
    2. Price Rise Commission (as defined at 9.1 of these Rules).
  2. In these Rules, “Commission” shall be deemed to refer to “Buyer Commission” and “Price Rise Commission”.

8. Buyer Commission

  1. Sports Broker will charge commission to a Player on any Buy Order placed by that Player which is subsequently executed (“Buyer Commission”).
  2. Buyer Commission will be equal to 2.5% of the amount of a Buy Order.
  3. The Buyer Commission will be distributed amongst the holders of that Share, as described at 6.2 above.

9. Price Rise Commission

  1. Sports Broker will charge a commission on every Performance Price Rise (“Price Rise Commission”).
  2. The Price Rise Commission will be calculated on an ongoing basis during a match (approximately calculated every second) and shall be equal to 10% of any Performance Price Rise. The Price Rise Commission will be deducted from the value of the Share every time there is a Performance Price Rise.
  3. We have set out an example below of how Price Rise Commission is applied:

    1. a Player holds one Manchester City Share at £8 per Share;
    2. Manchester City play Aston Villa and Manchester City win 5-0;
    3. the ‘true’ increase in value of the Manchester City Share would be a Performance Price Rise of £1, with a new Share price of £9. However, the Performance Price Rise would be £0.90 (i.e. £1 less 10% Price Rise Commission) with a new Share price of £8.90.

10. Share price adjustment

  1. Separate from any changes in a price of a Share as described above at section 6, at the end of each match, Sports Broker may adjust the Published Price of each Share in its discretion.
  2. If the Published Price of a Share is adjusted, a Player will receive a number of Shares which are equal to the aggregate value of the Shares they held at the previous Published Price and subject to any difference to the Player’s detriment being refunded to the Player. By way of example:

    1. the value of a Manchester City Share is £10;
    2. a Player holds 20 Manchester City Shares (with an aggregate value of £200);
    3. Sports Broker adjusts the Published Price of Manchester City Share to £7.50;
    4. the Player is issued 6 further Manchester City Shares, with the result that the Player holds 26 Manchester City Shares (with an aggregate value of £195) and the Player is refunded £5.
  3. In the event of a Share price adjustment as described at 10.2, any Market Buy Order, Limit Buy Order, Market Sell Order or Limit Sell Order in respect of the affected Share(s) will be voided.

11. End of Season

  1. At the end of a season of a competition, the Shares of any team competing in such competition will be sold and any Order on such Shares will be cancelled.

Version date: 20 December 2019

Appendix 1 – Factors

The factors we use in order of importance are:

  • Goals
  • Own goal (negative factor)
  • Penalty conceded (negative factor)
  • Red cards (negative factor)
  • Yellow cards (negative factor)
  • Shots on target
  • Shots off target
  • Offsides (negative factor)
  • Fouls Committed (negative factor)
  • Free kick
  • Tackles
  • Aerial duels won
  • Ground duels won
  • Possession

    • Saves
    • Catches
    • Crosses
    • Punches
  • Touches
  • Pass Location

    • Own Half

      • Total
      • Attempted
    • Opponent Half

      • Total
      • Attempted
  • Passes Missed
  • Interceptions
  • Successful passes

    • Forward
    • back
  • Passes Received
  • Passes Attempted
  • Corners
  • Crosses

    • Blocked
    • Successful
  • Possession

    • Own Half
    • Opponents Half
  • Field Third

    • Own
    • Middle
    • Opponent