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D. Murali

Mr Jeff Rodwell

Chennai March 31 Betting is drawing attention in the wake of Bob Woolmer's murder. Even as speculation is rife that the betting biggies could have been behind the crime, www.cricketworldcuplatest.com informs that the Jamaica sleuths are yet to find any evidence regarding match-fixing and betting in Woolmer's laptop.

How big is the betting industry? A Las Vegas-datelined report on http://abcnews.go.com cites PricewaterhouseCoopers' forecast - that global revenue from gambling is expected to climb 8.8 per cent annually `to $125 billion by 2010'.

However, according to estimates of Global Betting & Gaming Consultants (GBGC) posted in a dated story on www.out-law.com, gross turnover for the global gambling industry should be well over $1,000 billion annually, with a gross profit rate of about 20 per cent. GBGC is of the view that the UK could become the centre of global gambling; because "the UK has long been a role model for integrity and regulation in the gambling sector."

To know about the UK laws that apply to betting, Business Line contacted Mr Jeff Rodwell, Partner in Reed Smith Richards Butler LLP, an international law firm based in London. Here's Mr Jeff, taking on a few questions on betting.

What is law on betting in the UK?

The current legislation governing the licensing of bookmaking in the UK is the Betting, Gaming & Lotteries Act 1963 as amended by the Gaming Act 1968. They provide for the licensing of bookmakers and premises used for bookmaking. The Gambling Act 2005 is partially in effect and is being phased in over time. The licensing provisions of the Gambling Act 2005 come into effect on September 1, 2007.

Who can apply for a licence?

The criteria under both the existing and new licensing regimes are similar with bookmakers being required to show good character, financial viability and industry knowledge. Both regimes also control the use of advertising for any licensed bookmaker and prohibit advertising for any person not so licensed. Bookmakers with a licence under the current statute still have to apply for a licence under the new regime. The period for application for a licence to be granted from September 1, 2007 has already closed but new licences can be applied for and granted after the current applications (mostly existing bookmakers) have been reviewed.

On online gambling.

Traditionally, of course, bookmaking has been done with a physical presence at the race track or a betting office situated off-track. Over the last two years, the volume and value of remote gambling through the Internet or mobile phones has increased substantially. Both the existing and the new statute provide for licensing in the UK of remote gambling operations, although this is addressed more directly in the new statute.

Are these operations commercially successful?

In the past there has been little commercial interest in UK registration of remote gambling sites because of the significant tax imposed on the turnover or profits of the remote sites. Most of the gambling Web sites used by UK residents are based in various offshore jurisdictions such as Gibraltar, Antigua, Curacao, Malta and Alderney.

Can a local person gamble on a foreign site?

It is perfectly legal for a licensed offshore gaming operation to permit UK residents to gamble on a foreign-based Web site. This is in contrast to the US prohibition under the Unlawful Internet Gambling Enforcement Act 2006 on offshore operators from providing gambling services through the Web to US residents. However in the UK, advertising of gambling services not licensed in the UK is prohibited and such prohibition will be enforced. This applies to advertisements with a physical nexus to the UK (billboards, UK TV or radio broadcasts etc.).

How then are gambling sites advertised?

Obviously much advertising of gambling Web sites are made via the Internet, which is legal provided that the server is based overseas. However in the UK, there is no prohibition on advertising Web sites per se, as long as they don't refer to the gambling activities. Therefore, it is quite common to see advertisements on the tube and in magazines for the Party Poker Web site, but not the Party Poker gaming operation.

Has the recent UK Budget made any difference to gambling?

Prior to the 2007 Budget speech, there had been considerable speculation that in order to promote the relocation of many of the offshore gambling operations to the UK, the government might reduce the relevant tax to 2% or 3%. However in the Budget speech last week, the UK Chancellor, Mr Gordon Brown, announced that the tax for remote gaming would be 15%. As a result it is now unlikely that there will be any major shift of jurisdiction to the UK for those gambling sites.

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