Betfair Limited (Betfair) and cross matching
Press release
Date: 17 October
2008
The Gambling Commission has had under consideration a change to
Betfair's practices introduced on 18 February 2008 under which
Betfair General Betting Limited (BGB), a company in the Betfair
group, accepted customers' bets on the Betfair Exchange in
connection with a process called ‘cross matching'.
Cross matching extended the bet matching process to permit
matching across different selections in the same market, with BGB
acting as counterparty to allow customers' bets to be
matched. Cross matching was introduced without informing
customers in advance. BGB made revenues of approximately £300,000
from the inception of cross matching until the end of March
2008.
The directors of Betfair have announced today that they regret
that customers were not informed of this change before it was
introduced. They have given an assurance that, in future,
customers will be notified of changes in practice in advance unless
Betfair's general terms and conditions clearly permit a change to
be introduced without prior notification.
One of the Commission's objectives is to secure that gambling is
conducted fairly and openly. Although the introduction of cross
matching did not breach the terms of Betfair's or BGB's licence,
the Commission welcomes the assurance given by Betfair in the
announcement today and considers its enquiries into this matter
closed.
Notes to editors
- 1. The Gambling Commission regulates gambling in the public
interest. It does so in accordance with the licensing objectives in
section 1 of the Gambling Act 2005, namely by keeping crime out of
gambling, by ensuring that gambling is conducted fairly and openly,
and by protecting children and vulnerable people from being harmed
or exploited by gambling. The Commission also provides independent
advice to government on gambling in Great Britain.
2. The Commission is responsible for licensing and regulating
commercial gambling in Great Britain other than the National
Lottery and spread betting, which are the responsibility of the
National Lottery Commission and the Financial Services Authority
respectively.
3. Betfair Limited and Betfair General Betting Limited are
subsidiaries of The Sporting Exchange Limited. Betfair Limited
operates the Betfair internet betting exchange under its remote
betting intermediary operating licence. Betfair General Betting
Limited is authorised to provide facilities for betting (other than
pool betting) in respect of remote gambling and by means of remote
communication under its remote general betting operating
licence.
- 4. The Betfair Exchange matches customers' bets. Typically,
customers who bet to back that an event will occur are matched with
customers who bet to lay that event will not occur. Cross matching,
as initially introduced, extended the bet matching process by
allowing bets to be matched across different selections in the same
market if the bet would otherwise remain unmatched.
Further information
Further information is available from the Commission's
website.
Telephone John Travers on (0121) 230 6700 or
email communications@gamblingcommission.gov.uk