Using Inside Information for Betting Purposes

Using inside information for betting purposes is an offence under section 193Q(2) of the Crimes Act 1900, which carries a maximum penalty of 2 years in prison.

To establish the offence, the prosecution must prove beyond reasonable doubt that:

1. You possessed inside information
2. You knew or were reckless as to whether the information was such, and
3. You bet on an event, or you encouraged another to bet on an event in a particular way, or you communicated the information to another person where you knew or ought reasonably have known the other person would, or would be likely to, bet on the event.

‘Conduct’ means any act or omission to perform an act.

‘Inside information’ is that which is:

1. Not generally available, and
2. If it were generally available would, or would be likely to, influence persons who commonly bet on the event to decide whether to bet on the event, or to make any other betting decision.

Information is ‘generally available’ if it:

1. Consists of matters that are readily observable by the public, or
2. Have been made known in a manner that would, or would be likely to, bring it to the attention to the public

‘Bet’ includes placing, accepting or withdrawing a bet as well as causing a bet to be placed, accepted or withdrawn.

‘Encourage’ includes to command, request, propose, advise, incite, induce, persuade, authorise, urge, threaten or place pressure on.

‘Communicate’ includes causing to be communicated.

You were reckless if you foresaw the possibility that the information was inside information but went ahead with your actions regardless.

Duress is a defence to the charge.