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. 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.
  2. 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