Government planning to regulate offshore bookmakers - 7M sport

Government planning to regulate offshore bookmakers



Posted Wednesday, December 23, 2009 by theguardian.com

The government is planning to recommend a new licensing regime for offshore bookmakers to help ensure they provide information about suspicious betting patterns, amid increased concerns about the extent of match-fixing in sport.

Early in the new year the Department for Culture, Media and Sport is expected to unveil the results of a review commissioned in April to look into how overseas operators might be captured by the UK regulatory regime, "including securing fair contributions from overseas licensed operators towards the cost of regulation".

But while the DCMS, which conducted the review in conjunction with the industry regulator, the Gambling Commission, is believed to have been convinced of the case for "secondary licensing", it is not yet expected to use it to force overseas operators to pay the statutory horse racing levy.

Senior racing industry insiders say they have been reassured by the sports minister, Gerry Sutcliffe, that the move will not close off the debate about the future of the levy. When he launched the review he said "getting a fairer deal for UK operators" was one of his "top priorities".

For more than a decade the horse racing industry has warned that a mass defection offshore by bookmakers could cripple racing's income and claim it is now coming to pass.

The decision by William Hill and Ladbrokes to move their online arms offshore has cost racing an estimated £4.2m, and the overall take from the levy on bookmakers' gross profits was £93m in 2008-09, down 20% on the previous year. The decision also angered the government after it made a series of concessions to bookmakers throughout the early part of the decade.

Under the new system, overseas-based bookmakers would also have to be licensed in this country. That would bring them under the aegis of the Gambling Act, and force them to share information on illicit gambling.

The mechanism could be a requirement to have a co.uk website address, or a head office based in the UK and to pay a licensing fee to the Gambling Commission. A failure to comply could lead to a ban from advertising in Britain.

Foreign-based bookmakers say that such measures would be unnecessary and unworkable, potentially cutting off a valuable flow of advertising revenue into Britain and starving sports of sponsorship. They say they are happy to share information on suspect betting patterns and most claim to do so already.

The Remote Gambling Association, which represents the biggest players in the area, said it was ready to support the concept of dual licensing, providing a workable solution could be found and it was not seen as a precursor to the government trying to claw back tax revenues or for sports to progress their arguments for a "betting right".

Clive Hawkswood, chief executive of the RGA, said a formal consultation would be required on any new licensing measures but indicated his members would be prepared to listen to the proposals. The likely six-figure licensing fee, to cover administration costs, would be unlikely to prove a stumbling block, he said.

"The reason our companies are offshore is not because of the Gambling Commission, but because of tax. If they wanted to go for this dual licensing approach, we'd have to sit down and work through the detail. But none of that is undo-able," he said.

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