This fact pack was updated on 30 August 2007
061/07
Betting on horse racing is the second most popular form of gambling after the National Lottery. More than 12 per cent of the population have bet on a horse race in the last year, while around 3 per cent of people have bet on a dog race or an ‘event’ such as a football match (Taking Part, May 2007).
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;
- 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.
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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.
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.
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Integrity in sports betting
The Government, sports bodies and Gambling Commission have been working together to ensure that while more people are choosing to bet on a wider variety of sports – the integrity of sport is maintained and that the punters’ rights 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 will also have the power to void bets if it suspects unfair practices.
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.
A press notice which includes further information was released in 2006
Ongoing work
The Gambling Commission is considering new measures that will require betting operators to share information directly with sports governing bodies about breaches of the rules. This would make it easier for the sports to identify betting cheats and take action against them.
For more information go to the Gambling Commission website.
The Gambling Commission is also conducting wider consultative work on the potential impact of betting in Great Britain on the integrity of sport. In particular they are looking for evidence about whether incidents of betting integrity are compromising sport and if there are additional measures which could help protect sport further from betting cheats.
The issues paper has been published on the Gambling Commission website.
Press Enquiries: 020 7211 6052/6277
Out of hours telephone pager no: 07699 751153
Public Enquiries: 020 7211 6200
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