Existing rules

Under the 1963 Betting and Gaming Act anyone trading as a bookmaker needs a bookmakers permit, and if they have a premise, a betting office licence. Both are awarded by the local Magistrates Court and each application must be advertised in a local newspaper. The Gambling Commission currently estimates that there are around 1,300 bookmakers in Britain today, with about 8,000 betting shops.

Gambling Act 2005 – the new rules

The Gambling Act 2005 comes into force on the 1 September 2007 and will see betting regulated by the Gambling Commission for the first time; bringing betting into line with other gambling activities. 

The types of betting covered by the Act are:

• on course;
• off course;
• fixed odds;
• pool; and
• bets placed remotely.

 Spread betting will continue to be regulated by the Financial Services Authority. Licensed Betting Offices will also have an entitlement to house up to four gaming machines offering a maximum prize of £500.

The Gambling Act has three key objectives in relation to betting, to ensure it is:

•  fair;
• crime free; and that
• children and vulnerable people are protected.

These objectives will be enforced by the Gambling Commission who will investigate, prosecute, fine and remove the licences of operators who fail to comply with the law.

Operating licences

All betting operators will be required to have an operating licence from the Gambling Commission. Meeting the social responsibility codes of practice provisions will be an explicit licence condition and operators will have to put into effect policies and procedures including:

• preventing underage gambling;
• prominently displaying clear information about responsible gambling and how to get help for problem gamblers; and
• training staff to identify and help customers who may be affected by problem gambling.

Betting operators will also be required to:

• ensure key personnel are licensed by the Commission so that only those who are suitable and competent are involved in running the business;
• include rules on the voiding of bets, late bets, maximum payout and treatment of errors, any charges made to customers for the use of betting services and the treatment of withdrawals and non-runners;
• implement a fair complaints and disputes procedures and keep records of disputes for the Gambling Commission provided through quarterly returns; and
• have in place anti-money laundering procedures.

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Premises licences

In addition to an operating licence, each individual gambling premise will require a premises licence from their local Licensing Authority. All new applicants will have to publish a notice of application in their local newspaper so that local views can be taken into account. The Local Authority will then decide whether to grant the licence; taking into account the three licensing objectives including social responsibility requirements to protect children and vulnerable people. Licensing Authorities can also place specific local conditions on premises and carry out inspections.

Integrity in sports betting

More and more people are choosing to bet on an ever wider variety of sports. The Government, sports bodies and the Gambling Commission have been working together to ensure that the integrity of sport is maintained and punters’ right to a fair bet is upheld.

The Gambling Act 2005 introduces tough new rules on cheating with those who are caught risking a fine or a 2 year jail sentence. The Gambling Commission has the power to void bets if it suspects unfair practices, and bookmakers are required to share information on suspect betting patterns with the Commission.

A new licence condition will also require betting operators to pass on information to sporting bodies if they suspect it could lead the Gambling Commission to void a bet or if it points to a breach of the sport's governing body’s rules.

For more information see see the Gambling Commission website.

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In line with this, is a 10 point voluntary code of practice involving all major sports, and supported by the betting industry and authorities, was drawn up in 2006. The code sets out clear rules governing the conduct of participants and better information sharing. It included requirements that the sports:

• create provisions in their rules governing the behaviour of their participants in relation to betting;
• prohibit participants from misusing privileged information;
• co-operate, and if appropriate, enter into information sharing agreements with the relevant authorities (e.g. police, Gambling Commission); and
• proactively pass information on corrupt practices (e.g. race or match-fixing scams) to the relevant authorities.

The Government continues to support voluntary agreements between sports and betting which support high standards in sports betting integrity and investment in grass roots sports. 

Ongoing work

In May 2007 the Gambling Commission published a further consultation paper on sports betting integrity, looking at wider issues of risk, costs, evidence etc. The paper  asked whether the Commission needed to introduce additional measures to help protect sport from betting cheats, and also invited respondents to provide examples of betting integrity compromising sport. 

Returns have been received from sports and bookmaking organisations, and the Government awaits the Commission’s proposals with interest.

This consultation can be found on the Gambling Commission website.