The level of individual prizes depends on the number of winners and cannot be predicted with any accuracy in advance.
To constitute pool betting the competition must have:
- An entry fee
- Winnings should be wholly in money, and
- A power of selection for the entrants which could determine the winner
The most common form of pool competitions in Great Britain is the football pools. The companies concerned organise weekly competitions based on the results of a number of football matches.
Requirements for running a pool competition
The requirements for running a pools competition are set out in detail in Schedule 2 of the Betting Gaming and Lotteries Act 1963. Anyone who is thinking of setting up a business should make themselves familiar with these rules.
Enforcement of those provisions lies with the registering authority. This is achieved, in the main, through the appointment of an accountant by the local authority. The promoter has to submit, to the accountant, detailed information about each competition, showing, among other things, the stakes, the proportion paid in winnings and the expenses apportioned to each competition.
Ability to run a pool competition
Only registered and approved pool promoters can run pools competitions.
Where can I operate a pools competition?
The legislation allows football pools to be retailed through any premises but only allows retailers to accept the stake money and coupons for forwarding to the pools company.
This is the only instance in which pool betting can be linked with a bricks and mortar premises (although licenses betting offices may pay out winnings). Pool competitions may be played via post, on the internet or by telephone.
Type of registration required
A Pools Promoter Registration. This allows a person to carry on a pool betting business involving the giving and receiving of bets made by way of pool betting.
The current annual fee is £464.
How to register as a pool promoter
An application is made to the registering authority, i.e. a local authority or London borough council for the area in which the company is based.
You may be asked to provide the following:
- Details of previous convictions
- Details of financial status
- Details of the intended enterprise
- Terms & conditions of the scheme
- Company information
- Details of premises
- Details of your company accountant
Please also note that:
- The application will be refused if the applicant has been convicted of fraud or dishonesty or has carried on a pool betting business on a track without a registration
- The local authority may also contact the police and HM Customs & Excise for further information
When a licence be revoked
A licence can be revoked if:
- The holder does not intend to carry on a pool betting business;
- The holder has permanently ceased to carry on pool betting;
- The place or principle place at which the holder carries on his pool betting business will not be, or has ceased to be, in their area.
The relevant legislation
The law on pool betting is contained in section 1(1)(a) & (4A), section 4 and Schedule 2 of the Betting, Gaming and Lotteries Act 1963.
Internet Pools Operation
The same regulatory process applies to those seeking to set up an Internet Pools operation.
Duty liability
Pools competitions are subject to pool betting duty, currently 15% of the stakes. More information about tax can be found on HM Customs and Excise website.