UK court stoush between bookie and exchanges

Brad Waters - 12/03/2013

Counsel for British wagering giant William Hill has told the UK Court of Appeals that the biggest punters on betting exchanges should be classed as bookmakers.

William Hill has long argued the heaviest betting exchange users act in a similar manner to bookmakers and should be liable to pay an annual fee to the Horserace Betting Levy Board.

The High Court rejected William Hill's argument last year but the betting agency took its fight higher, asking three of the UK's top judges to rule that "business users of the betting exchange" should pay a levy.

The Racing Post reported William Hill's legal representatives told the court the definition of a bookmaker, according to the 1963 legislation, was wide enough to include those categorized as "business users of betting exchanges".

The court heard some betting exchange punters have adapted share-trading software to calculate the manner in which they place and lay a high volume of bets to guarantee themselves a return, thus operating as a business.

"Business users of betting exchanges, like traditional bookmakers, seek to utilise a trading strategy to deliver consistent profits," Dinah Rose QC, representing William Hill, told the court.

"A betting exchange user who, for example, undertakes a large volume of betting transactions, who has invested in sophisticated computer systems for the purpose, who systematically hedges his risks, is likely to be carrying out the business of receiving bets."

Betfair's lawyers contended that punters that back and lay horses through the betting exchange should not be liable for a levy that William Hill's customers did not have to pay.

"If a customer of William Hill isn't liable to pay levy on his betting, it must follow that the same bet made on Betfair cannot attract liability," David Anderson QC said.

The three-judge panel is expected to reserve its judgement until a date to be fixed.

I thought that was a fair comment, and Betfair pays its dues to the gov. and racing UK same as WH.

The only difference I see is that you wouldn't last long as a constantly winning customer using his services as a profitable business.

Aah BUT Mr Hill, there is a built in overround in your books of up to 30% in your favour, so you should pay a levy on that 30%.
Plus you only allow losers and not winners, so that 30% is more than likely double or more.
I put it to you my learned colleague, the Betfair traders have close to 0% overround after Premium Charges and Commission and therefore are not laying bets at a predetermined advantage.
I also contend that WH would not be in business, if it had to play in a Betfair market only, without overround and without a pre existing edge and selective customer base.
As Mr Hill has more than 25% and possibly closer to 50% advantage, that by rights and judicial law, it is a requirement to pay the levy.

Further, if the Court pleases, I would like to offer exhibits to define said differences.

Exhibit A
WH has a licence for online and offline betting
Exhibit B
WH is a registered business
Exhibit C
WH has registered premisies and employees.
Exhibit D
WH alters their odds prior to accepting bets, thereby guaranteeing an edge.
Exhibit D
WH keep taxation and profit and loss sheets, has a Board of Directors and is liable to shareholders.

In short your Honours, WH is in business and must pay taxation and levies based on that business. No Betfair user has ever been able to claim a loss.
Therein lies the conundrum.

I rest my case

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CASE DISMISSED.

The court orders that Mr Hill pay costs.

Well done Mr Prince.

Good stuff CP & spot on.

So does William Hill also ban and limit customers? Uk bookmakers are thugs.

Rinconpaul, a TOU has been received.

When you copy and paste information from somewhere else you need to provide a link.

Thank you.

Moderator.

Apologies, "Gambling News calvinayre.com"

The source wouldn't copy and paste on the iPad.