A bookmaker is a person who carries on the business of receiving or negotiating bets. A fuller explanation is available in the appropriate legislation.
Relevant legislation
The law on betting is contained in the Betting, Gaming and Lotteries Act 1963. Copies of the Act are available from the Stationery Office at PO Box 29, Norwich NR3 1GN. Also by telephone at 0870 600 5522.
Permit and licence requirements
A person may act as a bookmaker only if he holds a bookmaker's permit. This is issued by the Betting Licensing Committee of a local Magistrates' Court. The Committee will need to be satisfied that the applicant is a fit and proper person.
If a bookmaker wishes to operate from premises he will also require a betting office licence. Only a holder of a bookmaker's permit may hold a betting shop licence. Applications are again made to the Betting Licensing Committee which will consider whether there is a demand in the locality for the facilities.
Provisions for the application for bookmakers permits and betting office licences are contained in Schedule 1 to the 1963 Act.
Duration and cost of permits and licences
Permits and licences last for three years and an application for renewal may be lodged with the Betting and Licencing Committee.
The fee for a bookmaker's permit is presently set at £160. Renewal is £20.
The fee for a betting office licence is presently set at £125. Renewal is £25.
Information that may be requested in support of an application
The Committee will need to be satisfied that the applicant is a fit and proper person to hold a permit. Magistrates may wish to request the following details:
- If the applicant is an individual, a Council Tax demand or a demand from one of the utilities addressed to the applicant at the address stated( the demand should be no more than three months old)
- In case of a limited company, the company number and a copy of the Certificate of Incorporation and a Certificate declaring the office registered
- Evidence of a bank or building society account and the funds within it going back over the last 12 months (this may help determine whether the applicant has sufficient resources to cover potential liabilities)
- If the two independent referees are not from a professional background, what is their relationship to the applicant, and if the application is in the form of a limited company, a copy of its annual return and latest statutory accounts
Oral hearings
Oral hearings supporting written applications are quite common. They give licensing justices the best opportunity to satisfy themselves that the applicant is a fit and proper person to hold a permit. It is for the justices themselves to decide how detailed their examination of the applicant is on these occasions.
Changes of address and directors
Those granted permits should, by law, inform the Licensing Justices and the Levy Board of any changes of address and of any change in directors (see paragraphs 25 and 25A of Schedule 1 to the 1963 Act). Similarly Customs and Excise should be notified of any change in directors (see paragraph 25 of Schedule 1 to the 1963 Act as amended by paragraph 6 of Schedule 3 of the Finance Act1966).
Opening hours for licensed premises
Premises opening hours are from 7am to 10pm during April, May, June, July and August. The rest of the year is governed by a 7am to 6.30pm opening period.
Telephone betting
Actual entry to licensed premises in order to place a bet is not essential and telephone betting has been acceptable for a number of years. As such, only a bookmaker's permit is required to run this operation. There is no requirement for a betting office licence.
Internet betting
In view of the above, there is nothing to prevent bookmakers taking bets over the internet.
Again, only a bookmaker's permit is required.
Spread betting
Applicants are advised to approach the Financial Services Authority, the body that regulates spread betting to discuss the requirements.
Betting disputes
There are, at present, no statutory regulations to enforce the payment of gambling debts or to determine the validity of a particular bet (although this issue is being considered as part of the Gambling Review). The Government, therefore, has no legitimate grounds to intervene. It is an issue between the parties involved in the wager.
In the event that a punter feels that they have been treated unfairly, they can contact the Independent Betting Arbitration Service (IBAS) at PO Box 44781, London SW1W 0WR, on telephone number 020 7881 2690 or via their website at www.ibas-uk.com
The Independent Betting Arbitration Service (IBAS) was launched in November 1998. It offers an independent non-statutory arbitration service to settle betting disputes. The Service is supported by the main industry trade associations. It is free of charge to customers of bookmakers who are registered with it. Bookmakers in this scheme have to declare their intention to assist IBAS in any investigations and to abide by its decisions.
Failure to abide by such a decision would mean that the bookmaker had not honoured his obligations under the scheme and magistrates might wish to consider whether there were implications for the fit and proper test for renewal of the permit. Conversely, it would be reasonable to expect that if someone seeks to oppose the renewal of a permit on the basis of an unresolved betting dispute they should already have sought remedy through the IBAS arbitration process.
