Probe that led to Betfair tipping off Jockey Club

The arrest of Kieren Fallon and three other well-known racing figures is the first time information supplied by Betfair has led to police action.

The betting exchange is determined to clamp down on the stigma of corruption which surrounds its industry and is understood to have been in close contact with both the Jockey Club and City of London police.

Betfair is believed to have tipped off the Jockey Club after becoming aware of suspicious gambling patterns in up to 80 races over the last two years. The company has since been assisting police after racing's governing body decided its information required further investigation.

The Jockey Club have used Betfair evidence to launch their own disciplinary proceedings against suspected race cheats, but never before have there been arrests.

As Betfair allows punters to back horses to lose as well as win, accusations that the company facilitates corruption have been levelled against it ever since its launch four years ago.

As a result, Betfair takes security very seriously and employs around 40 staff specifically to watch for suspicious betting patterns. The company has also signed agreements with the Jockey Club and several other sports bodies pledging to disclose any suspected wrongdoing detected by its hi-tech systems.

The first clues as to the identity of the arrested jockeys first appeared on Betfair this morning. Fallon, the odds-on favourite for the Flat Jockeys' Championship, started to drift dramatically. By 11am, he had gone from 1-8 to 2-1.