The Government announced last week that the proposed new regulator for the industry, the Gambling Commission, will be able to freeze and, where appropriate, make bets void that it believes to be unfair. The Government will also be accelerating its proposals for the new regulator.
On-line betting exchanges offer their users the ability to offer odds to other users, and also accept bets in the conventional manner. In this way, reasons the Government, it is possible for unwitting members of the public to be exploited with apparently tempting odds. The proposals will apply to other betting operators too.
Speaking before he addressed the Future of British Gambling Conference in London last Tuesday, Minister for Gambling 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."
The Government plans to bring forward legislative proposals for a comprehensive modernisation of the law on gambling. The first part of these proposals was published on 15th July.
The new powers
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.
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 8th April 2003. The Bill will then be introduced as soon as Parliamentary time becomes available.