New watchdog planned for betting exchanges in UK

http://www.thisislondon.co.uk/sport/articles/9592990?source=EveningStandard

11 March 2004

The shady elements of betting exchanges will be targeted in a Government crackdown on suspicious gambling.

A new watchdog is being planned to clean up the image of Britain's betting industry, which was damaged again this week by a series of horseracing scandals.

Part of a Government-led overhaul of UK gaming laws, the Gambling Commission will have wide-ranging powers to investigate and prosecute claims of corruption.



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Central to the commission's work will be the policing of internet betting exchanges, such as Betfair or Betdaq, which allow gamblers to back horses to lose, as well as win, races. The latest race-fixing allegations involving jockeys Kieren Fallon and Sean Fox and trainer Alan Berry claimed huge sums were made from laying horses to lose.

The Government hopes the commission - along with other measures in its new Gaming Bill, including licences for companies which run exchanges - will allay fears that racing is open to manipulation. A version of the bill is being discussed by MPs and may become law next year.

Jeff Ennis MP, a Labour member of the parliamentary committee scrutinising the bill, said: "Obviously betting exchanges need to be regulated far more than they are at present. It is an issue of genuine concern."

British Horseracing Board chief executive Greg Nichols wants the bill to include a system of licences for professional "layers". He said these should only be awarded once the individual has passed a "fit and proper" test.

Nichols said: "Exchanges have opened the door for unlicensed, anonymous individuals, whether in Britain or anywhere in the world, to profit directly from a horse losing.

<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Nichols said: "Exchanges have opened the door for unlicensed, anonymous individuals, whether in Britain or anywhere in the world, to profit directly from a horse losing.<HR></BLOCKQUOTE>

This is not true because you could short sell horses with spread bookmakers before betting exchanges ever existed. Where were the outcries then?

The difference is that back then the BHB were unconcerned because it was no danger to their subsidy, and fixed odds bookmakers were unconcerened because it was no danger to their turnover.

The BHB and bookies in bed together over Betfair's threat to the "integrity of racing" is comical, they've been mortal enemies for years.

In the past these sort of shady dealings were not usually exposed. Exchanges have in many ways made the market more transparent.

After signing their MoD agreements with the Jockey Club and ATP Betfair will now turn over the full details of any unusual betting patterns (including the account holders details) to the relevant sports governing body thus exposing potential match/race fixings. This, if anything should help make the sports cleaner as to make large sums of money off an obscure race such as the one in question is going to stick out like a sore thumb which is exactly what happened and why Betfair alerted the Jockey Club prior to the race starting.

<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by jip:
In the past these sort of shady dealings were not usually exposed. Exchanges have in many ways made the market more transparent.

After signing their MoD agreements with the Jockey Club and ATP Betfair will now turn over the full details of any unusual betting patterns (including the account holders details) to the relevant sports governing body thus exposing potential match/race fixings. This, if anything should help make the sports cleaner as to make large sums of money off an obscure race such as the one in question is going to stick out like a sore thumb which is exactly what happened and why Betfair alerted the Jockey Club prior to the race starting.<HR></BLOCKQUOTE>
Interesting