Government Acts To Protect Consumers Against Unfair Betting

Minister for Gambling Andrew McIntosh today announced that the Government will
act to protect consumers from unfair betting.

 

The Government will bring forward proposals for the new Gambling Commission to have powers to freeze and, where appropriate, void bets that it believes to be unfair.

 

The proposals are a response to a new form of betting now happening on the Internet, but will apply to other betting operators too.  'Betting exchanges' operating online offer their users the ability to offer odds to other users, as well as accept bets in the conventional manner.   In this way it is possible for unwitting members of the public to be exploited with apparently tempting odds. The Government therefore intends that the proposed new regulator for the industry, the Gambling Commission, will be able to make bets void where it can be established that there is evidence of improper conduct.

 

Speaking before he addressed the Future of British Gambling Conference in London, Andrew McIntosh said:

 

"I welcome the innovation that betting exchanges bring to the betting market. And I believe that the proposed Gambling Commission can regulate them effectively. But there is potential for consumers to be exploited. Exchanges do present an opportunity for those with 'inside information', acquired improperly, to make a profit from the uninformed punter.

 

"Of course, information and intelligence is at the very heart of betting.  But some information is obtained improperly, or is used improperly.  So the Government will bring forward proposals for the Gambling Commission to have powers to void bets that it believes to be unfair.  We are acting now to help sports' regulators root out any cheating or improper conduct."

 

 

 

1. The Government plans to bring forward legislative proposals for a comprehensive modernisation of the law on gambling. The first part of these proposals were published on July 15 and are available at http://www.culture.gov.uk/global/publications/archive_2003/gambling_bill_cmnd5878.htm 

 

2. The powers proposed would be available in all circumstances where the Gambling Commission has reason to suspect that there has been unfair activity in relation to a particular event, and an individual has sought to profit from it.  The Commission would be able to act on information from sports regulators to freeze particular betting transactions if they had not yet been settled.  Once frozen, the Commission would conduct an investigation into the events surrounding the bet.  If it was satisfied that improper activity had taken place then it will have powers, subject to appeal, to void the bet and return the stakes to the participants.

 

3. Details of the proposal will be made available in November, when the Government plans to publish the draft Gambling Bill. A Joint Committee of both Houses of Parliament will scrutinise the draft Bill and are scheduled to report no later than 8 April 2003. The Bill will then be introduced as soon as Parliamentary time becomes available.