is this tricky trading strategy legal and acceptable in betting business in the UK?

CFDplayer

Member
Messages
92
Likes
0
I overheard a tricky trading plan on online betting with margin trading when the game provider offer a generous marketing promotion by giving newcomers a guarantee amount cash back for the losses on P/L account in a certain period (winner cannot claim that cash).

Therefor, the tricker open two accounts with the provider under differnent names and deposit the same amount as the pre-agreed guaranteed compensation.Then, open two opposite bets on same product (i.e. , spot index or forex or gold) wiht full margins. So, in a short run, one account gain 100% return while the other loss almost margin by provider cleaning its settlement. BUt the losser account can get full margin back by the promotion, so the result for tricker on balance is near 50% return before the considering the trading cost.

My question is as follows,

1. Does one or both betting player abuse the principle or general terms and conditions by conduct this plan?

2. If the answer to the first question is yes, besides the breach of the agreement between the players and betting provider, does this action against any other English law?

3. If the answer to the first question is no, even the betting provider hold all necessary support evidences, how can the firm avoid the unfair financial loss? As we all know,they are rules maker as well, so they can waive or modify at anytime they like.

4. Does anyone believe that maybe the firm would happy to see that kind of stricker come to their business as the loss is already account into the promotion budget as at least they got two clients contacts.

Thank you for all comments.
 
btw,this is only for spread betting business. I am a CFD player and personally disagree the above plan and action by all means.
 
Top