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Sports Betting Integrity Panel
Integrity Seminar
Gambling Commission Fees
Report on Commission's Performance published
Accrington v Bury
The Grand National
Safebet Alliance Launch
ABB AGM - Key Messages
Is the Betting Sector Recession Proof ?
Integrity in Sports Betting
Betting Shop Robbery
Self Exclusion - The debate continues
Consultation on Guidance to Licensing Authorities
What does membership get you?
Changes to LCCP
Violence in the Workplace
Consultation on Funding for Research, Education and Treatment
The ABB welcomes the announcement by the Sports Minister of the appointment of the Sports Integrity Panel to be chaired by Mr Rick Parry. Whilst we would have preferred a Chairman who is neither aligned to sport or sports betting, we are sure that we can work productively with Mr Parry and the rest of the panel, which includes highly experienced bookmaker representatives. We also welcome the announcement of the terms of reference of the panel which will be narrowly focussed on sports betting integrity issues and not on the issue of the promotion of sports “rights”. The Minister has already made it clear that the issues of sports betting integrity and “rights” can be separated and we would resist strongly any attempt by sport to widen the terms of reference to include calls for additional unjustified funding from bookmakers. UK bookmakers are proud of their record of detecting all of the very limited number of incidents of suspicious betting patterns that are currently being investigated by the Gambling Commission or Sports Governing Bodies. UK sport and UK betting are the cleanest in the world, but we welcome any measures that will provide assurances to those who have raised concerns in this area. Our members will fully facilitate the panel’s work. The ABB will be holding a seminar on integrity in sports betting on 25 June at the City Inn Westminster (1030-1230). Anyone who wishes to attend should contact CathBurnell@abb.uk.com or call the ABB on 02074342111
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With the announcement by the Sports Minister of the names of those who will sit on the integrity in sports betting panel to be made shortly, there is now an opportunity to listen to representatives from sport, the Gambling Commission and the betting industry on this important subject. A seminar is being held at the City Inn Westminster on Thursday 25 June at 1030. If you want to attend please contact Cathburnell@abb.uk.com or call the ABB Office on 020 7434 2111
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The ABB deplores joint proposals made by the Gambling Commission and DCMS to raise annual fees for bookmakers. The proposal is that independent bookmakers will see rises of 4.75% and the major operators will be subjected to rises of 6.25%. These proposed rises are to make up for shortfalls in the Commission's projected budget, but in our view the Commission's budget needs to be reduced as they now have less to regulate and they should be making greater efficiency savings. The Commission trail the unevidenced idea that the recession will lead to operators providing greater risk to the three licensing objectives; this following shortly after a BRE report (see below) which exposed significant flaws in the way the Commission regulates the industry. Most bookmakers have now adapted well to the regulatory regime and provide little or no risk to the licensing objectives. If the Commission was running a proper risk based system, fees should be coming down, not going up. The ABB will be calling upon the Minister to reject these unconvincing proposals and the ABB will be camapigning to expose these proposals for what they are; an attempt to recession proof the Commission at the expense of a compliant industry which makes a major contribution to the UK in terms of tax and jobs.
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The long awaited report on the Gambling Commission's regulatory performance has now been published by the Better Regulation Executive and the National Audit Office. A summary of the main findings can be found below. • The Commission's published approach to risk assessment has been described as a “vision” which has yet to take effect and there are doubts expressed about the clarity of the link between the allocation of policy and compliance resources and risk assessment. • The quality of the Commission's communication with the industry needs to improve and it also needs to become more transparent about the way it does business with the industry. • The Commission's requirements for data and its failure to explain why certain data is required is identified as a source of tension. • Both the Commission and to some extent DCMS are criticised for failing to support the economic progress of the industry and the Commission has been told that there needs to be a clearer recognition of the ways its actions as a regulator can have economic impact. • The review team also believe that the Commission should take the lead on ensuring a more sophisticated level of debate about regulatory risk in gambling. • The relative roles of the Commission and local authorities needs to be reviewed and the Commission needs to take more of a strategic lead. • The Commission needs to focus more on outcomes (the effect it is actually having) rather than outputs (e. g. number of licences issued or visits undertaken). • Finally the Commission needs to do more to make a complex regulatory regime more easily understood by small businesses.
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The Association of British Bookmakers, which is the principal trade association for High Street betting shops, welcomes the news that progress has been made by the Football Association into the enquiry relating to bets placed on the Accrington Stanley v Bury match on 3 May 2008. Suspicious betting patterns were identified by our members on this match and the ABB coordinated intelligence received from members and non members alike, having alerted the Gambling Commission and the Football Association to this issue. Stakes on this particular match, which were mainly with High Street bookmakers, predominantly in the North West of England, whilst still relatively small, were much larger than would be expected on a match of this nature, and were disproportionate regarding the outcome. The Gambling Commission did not use its powers to void bets on this market, but the ABB gave advice to members that it saw no reason to withhold the return of stakes on bets placed on Bury and recommended that when making such payments, members should ask customers to supply sufficient information to ensure that any subsequent settlement of outstanding bets could be properly be made in the future. That advice remains in place as this matter has yet to be concluded. We have continued to liaise with the FA and the Gambling Commission. Whilst we reserve comment on this particular matter, this is one of only a few high profile cases under review. We want the sports we offer markets on to be clean and where there are irregular betting patterns, bookmakers and the legitimate betting public are the victims. Thankfully such activity is not widespread and it would be wrong for anyone, generally, to claim that there were significant problems with the integrity of sports betting. Bookmakers have to manage their own liabilities and as such remain vigilant about such matters.
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Whilst the profits made by Bookmakers on the Grand National result are a welcome respite from an otherwise challenging trading environment, two other parties will benefit significantly from the result. Firstly, bookmakers pay a levy to horseracing on a percentage of their gross profits. Therefore racing will be a beneficiary of this result through possible increased levy payments. Secondly, bookmakers pay 15% gross profits tax as well as corporation tax. Therefore Government tax revenues will see a positive rise. Whilst the turnover on the Grand National seems to have bucked the recessionary trend, this does not mean that the industry is generally recession proof. It would be wrong for commentators (or politicians for that matter) to extrapolate on the basis of one result and characterise the industry as immune from recessionary pressure. The reported profits on this event whilst significant have been exagerrated and follow hot on the heels of some difficult Cheltenham results and a poor result for bookmakers on the Lincoln.
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The ABB launched the Safebet Alliance in London on 31 March. The Safebet Alliance is a voluntary code of robbery security standards for London Bookmakers. Speakers from the Metropolitan Police, the ABB, local authorities and Crimestoppers gave their views on the issue of betting shop robbery in London. All London bookmakers whether they are in ABB membership or not are encouraged to participate in the initiative. This initiative will be a prescursor to a national standards document. IF YOU WANT TO DOWNLOAD THE DOCUMENT GO TO THE SOCIAL RESPONSIBILITY- TACKLING CRIME-SAFEBET ALLIANCE LAUNCH
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The key debate should be about the sustainability of the high street industry and preserving jobs- We need a stable tax and regulatory environment- The industry already pays nearly £1 billion in betting and corporate taxes and provides 50,000 jobs in the ailing retail sector- An equivalent sized non gambling sector would pay around £400 million less in tax- The industry provides financial support for horseracing, greyhound racing and other sports- Through the Bookmaker's Committee, the industry has offered a long term levy deal to racing and we are prepared to pay a fair price for the product, but not an artificially enhanced price- DCMS should be doing more in difficult economic times to sponsor and promote the industry which is a mainstream retail sector- The Gambling Commission needs to be more transparent about the way it approaches risk based regulation- Both Gambling Commission and local authority fees should be lowered for independents and major operators- The debate around B2 machines needs to be put into the wider context that there has been no rise in problem gambling and 99.4% of the popuulation gamble harm free. We support good quality research into this area- The industry needs to be more effective at delivering its good intellectual arguments which are based on sound evidence- There should be a debate about the value that split representation delivers for the industry.
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A number of commentators have recently suggested that the betting sector is recession proof. Whilst some of the major operators have returned robust financial results, stability could be badly affected by any rises in taxation or any regulatory changes which led to a negative effect on gross profits. If gross profits were to reduce, many marginally profitable shops would be at risk and this would result in potential sector job losses. Independent bookmakers are already suffering high regulatory and commercial costs and to describe the industry as recession proof is we think irresponsible. The ABB together with leaders of the major bookmakers have recently met with the Treasury to press the point about protecting jobs and providing stability in fiscal and taxation policy to limit the effect of the economic downturn. The industry has some 50,000 employees (40,000 FTE) and contributes nearly £1 billion in corporate and gambling taxes to the Exchequer. In difficult times, the major operators are very much focussed on preserving jobs in what is an already a difficult retail environment. Action needs to be taken now to insure against any recessionary drag which could affect the industry later this year. We believe that the industry sponsor (DCMS) and the Gambling Commission should also be focussing on the issue of job preservation in high street betting shops.
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The ABB welcomes the recent findings of the Gambling Commission that whilst there have been certain high profile cases of sport being corrupted for betting purposes that there is little or no evidence of widespread abuse in the UK. Risks are well documented, but incidents are few. The ABB and its members are vigilant and from time to time identify suspicious betting patterns. The ABB coordinates intelligence activity and works closely with sports governing bodies (SGBs) and the Gambling Commission to ensure that matters are promptly reported. The ABB has signed a number of MOUs with key SGBs. There is a clear statutory framework for dealing with these matters which empowers the Gambling Commission to void bets and investigate matters of cheating at gambling. Many SGBs also have effective regulatory structures to deal with breaches of their own rules (such as participants being prevented from placing bets on their own sport or passing inside information). Many of these sports are well funded through their own commercial and marketing activity and well able to fund their own regulatory structures and integrity services. As far as horseracing is concerned, bookmakers already fully fund the BHA's integrity services through the Horserace Levy. The current issues surrounding the levy and the Government's desire to end it (following identification of a commercial solution) make it clear that the calls for the imposition of further levies on the industry are not a valid solution. In any event, the Gambling Commission's substantial intelligence and enforcement functions are funded through industry fees and it has been given the statutory powers to deal with sports betting integrity issues. The industry is aware of recent calls from sporting bodies for additional funding, but the Gambling Act and the related structures are concerned with gambling regulation in the UK and it would not be right or indeed lawful to ask the UK gambling industry to fund overseas enquiries where the bets were not struck with UK based operators
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Please see the security section of the members area for some key messages on betting shop security. With a further spate of betting shop robberies in North London, the ABB has again re-emphasised that it will pay a reward of up to £10K for information which leads to the detection and prevention of betting shop robberies. The ABB is keen to publicise the availability of its reward scheme which demonstrates the industry's determination to minimise the risk to betting shop staff. People with valid information can contact police or Crimestoppers and each case will be considered in its merits. Offering a reward scheme is part of a package of measures to reduce the incidence of betting shop crime (Please see our article on reducing violence in the workplace)
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The Court of Appeal (16 December 2008), in dismissing an appeal by Graham Calvert against the previous decision of the High Court, has found that a bookmaker’s duty of care does not extend to preventing a person who has asked to be self excluded from gambling; the limit of a bookmaker's responsibility is to assist a person to control their gambling (within the limits of the self exclusion agreement)and the consequences of a person's wider gambling activity cannot be ignored when making an assessment of losses flowing from a bookmaker's failure to action a self exclusion agreement properly. This judgement, in our view, places responsibility to control their gambling very much in the hands of the individual. Whilst betting operators have to abide by the Gambling Commission’s Licensing Conditions and Code provisions on self exclusion, this judgment reopens the debate on the effectiveness of self exclusion and particularly the onus that is put on betting shop staff to police self exclusion in the face of determined efforts by some to break their agreements. The industry fully supports the facilitation of self exclusion, but some operators are finding that gamblers are trying to use self exclusion as an insurance policy; refusing to supply a photograph with their details and then playing the self exclusion card when they have evaded detection and incurred further losses. Persons who wish to self exclude are asked to sign an agreement which excludes them from a betting shop for a minimum of six months (up to 5 years), they are asked to provide photographs so that attempts to break the agreement can be detected by betting shop staff. The Commission recently announced that there would be no further changes to the self exclusion regime at this time, but the Regulator has in the past appeared cynical about the industry’s view that the principal responsibility for control of their gambling rest with the individual. The industry has made submissions that self exclusion is difficult to police if an individual refuses to provide a photograph or opts for self exclusion from an operator’s entire betting shop estate. You can view a copy of the judgement in the members area (Gambling Commission section). The ABB will be raising the matter with the Gambling Commission. (Please see the article on LCCP changes below)
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The ABB has now submitted its reponse to the The Gambling Commission's consultation on the latest proposed version of the Guidance to Licensing Authorities. This document is extremely important as all licensing authorities have to have regard to the content and must formulate their own policies and procedures on the basis of the advice. The ABB has made clear that it believes that the Commission should strengten its guidance to ensure that licensing authorities do not include matters in their gambling policy statements which relate to other areas of regulation. Also that licensing authorities only impose additional licensing conditions where absolutely neccessary and are clear that door supervision in betting shops is a measure of last resort. More recently licensing authorities have been lobbying for an increase in their powers (see the recent announcement in the Queens Speech regarding clustering of betting shops) and some authorities are pushing for a much wider application of the crime and disorder Licensing Objective to try and impose disproportionate security standards and other obligations on operators. This document, which already contains advice about "premises splitting" and "primary purpose", can be relied on by both authorities and operators when disputes arise about premises licensing issues.
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The ABB remains the principal trade association for high street bookmakers. The ABB negotiates with central and local Government and the Regulator to get the best deal it can for the industry (small operators as well as the large chains) In difficult economic times and in a climate where Government seems to have an appetite for more not less costly regulation, it is important that bookmakers speak with a collective voice. One of our main roles is to hold those who impose excessive costs on the industry to account and to demonstrate the real facts about the industry. The ABB provides advice on the Gambling Commission regime, health and safety and employment issues and can help represent individual bookmakers who are experiencing difficulty with a local authority or the Gambling Commission. If we can't help we know someone who can. We can also provide essential documents such as self exclusion material, template rules and template written policies and procedures. You are also required to train your staff in certain areas and we can assist in this area We already run the ABB insurance scheme which provides significant discounts and in the New Year we will be introducing further membership discount schemes. If you are a single shop operator, a small chain or even an operator with a significant estate why not let us act as your compliance consultant? It makes financial sense and there will be a significant saving in terms of management time.
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A new version of the Gambling Commission's Licensing Conditions and Codes of Practice comes into force on 1 January 2009. As a result of ABB pressure, thankfully there are few changes for the betting industry. However, despite warnings from the ABB, the Commission has made changes to the wording of the condition which obliges operators to notify the Commission and Sport Governing Bodies (SGBs) of circumstances where they have information which suggests a breach of an SGB's rule or may lead to the Commission voiding a bet. The Commission have been persuaded by the SGBs to insert the words "sufficient information" into the Licensing Condition, but the Information Commissioner who shares the industry's concerns about "unnecesary and speculative disclosures of personal data" has now asked the Commission to provide further guidance and to work with the ABB to resolve the complexities surrounding this issue. The ABB will be holding discussions with the Commission in the New Year. We will also be discussing the status of the Commission's advice on the Proceeds of Crime Act as we do not believe that the Commission has consulted properly on this document. Members should continue to refer to the ABB's own guidance in this area. Finally self exclusion procedures remain the same (this means that self exclusion must be made available immediately on request - the cooling off period comes at the end of the self exclusion period not the beginning).
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The safety of betting shop staff remains high on the ABB agenda and both the UK and Scottish Goverments have asked the industry to participate in forums to discuss this broad issue which covers the full spectrum from betting shop robbery to abusive customers. Whilst staff health and safety is a priority for our members, there are those who are prepared to cast the industry in a bad light and would wish to impose costly, universal and disproportionate security standards on an already heavily regulated industry. The ABB sees proper risk assessment and staff training as key, with operators applying proportionate security standards to meet real risk. This process should involve consultation with betting shop staff. The ABB has called on all operators (including non members) to support this initiative which is of benefit to all. The ABB is in the final stages of producing a document that outlines minimum security standards for the industry and we have also produced training packages on reducing violence in the workplace and reducing the risk of betting shop robbery. These packages, which are subject to copyright,are free to members and can be obtained by calling the ABB office on 02074342111 or e-mailing andrewlyman@abb.uk.com. Non members can also obtain these packages, but there will be a proportionate charge to cover development costs and staff time spent on this issue.
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The ABB is working with other trade bodies through COGA (see above) to secure a workable voluntary funding scheme. We do not believe that there is a need for a statutory levy,but DCMS has now issued a consultation document which could result in a compulsory levy for betting shop operators of between £300-400 per shop. In the past, funding has very much relied on substantial voluntary contributions from the large operators. To date, funding targets have always been achieved, but with the establishment of a Strategy Board which will set priorities for research, education and treatment and award funding, DCMS and the Gambling Commission want to be able to guarantee levels of funding over a three year period. The ABB contend that the system being established (which still calls for voluntary fund raising from the industry on top of a compulsory levy) is bureaucratic and will waste money in administration and salary costs. The large betting operators have always provided funding and many other operators have made voluntary donations as well. However official attitudes have hardened due to the failure of some (mainly small operators in all sectors) to make voluntary payments. This is being used as a reason for the Government and the Regulator to exert more control over the industry which will result in increased costs and a reduction in the influence of the industry over how the money is spent. If a compulsory levy is introduced, this will also result in significant increases in costs for betting operators. The ABB has consistently urged all its members to make voluntary contributions. The industry feel that improvements could be made to the structure of the Responsibiity in Gambling Trust (the organisation which currently administrates funding) which would increase the effectiveness of its fund raising activity. However officials seem determined to bring about a compulsory levy on their own terms. The ABB strongly opposes the imposition of a compulsory levy.
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association of british bookmakers
info@abb.uk.com
tel: 020 7434 2111
