US Online Gambling Bill Progresses with Racing Exemption, While UK and Australian Regulators Address Integrity

The U.S. House of Representatives recently advanced the Internet Gambling Prohibition and Enforcement Act (HR 4411) with a vote of 317-93. A proposed amendment, aiming to broaden the online gambling ban to encompass horse racing and state lotteries, was defeated by a significant margin of 111-297. Representative Shelley Berkley (D-Nev.) introduced this amendment, with assistance from Representative John Conyers (D-Mich.), arguing that the bill was inconsistent by not prohibiting all forms of internet gambling. She suggested that Representative Bob Goodlatte (R-Va.) specifically exempted the horse racing industry to preempt strong opposition from the sector.

Global Integrity Challenges

Meanwhile, in the UK, a City of London Police investigation into horse race fixing has led to charges against eleven individuals, including prominent jockey Kieren Fallon. The inquiry scrutinized over 80 races conducted between December 2002 and September 2004. The situation first gained public attention in September 2004 with arrests related to racing corruption allegations. Notably, betting exchange Betfair played a crucial role in providing evidence for the investigation, facilitated by a memorandum of understanding with the Horseracing Regulatory Authority. A total of 28 individuals appeared in a London court on July 3, 2006, though only 11, including Fallon, Fergal Lynch, and Darren Williams, were ultimately charged with conspiracy to defraud Betfair customers. Fallon’s appeal to overturn his suspension from racing in Britain was rejected by the Horseracing Regulatory Authority, with the ban upheld until his trial, expected to begin no earlier than spring 2007.

In a related development, Owen Churchill, owner of Churchill's Bookmakers in the UK, faces charges from the Horseracing Regulatory Authority for rule breaches across ten races between December 2004 and February 2005. Churchill, along with jockeys Brian Reilly and Dean Williams, is accused of providing information for financial gain, aiding and abetting rule violations, and attempting to mislead an investigating officer. The trio is scheduled to appear before the HRA disciplinary panel during the week of September 11.

Australian Regulatory Measures

Across the globe, Betfair has also been engaged in regulatory enhancements. The online betting exchange finalized an agreement with the Tasmanian government last week, increasing oversight of gamblers using its platform. This move follows several inquiries from Australian racing stewards regarding potentially suspicious betting activities on the site. Geoff Harper, Chairman of the Tasmanian Racing Club, confirmed that this agreement will grant racing stewards more straightforward access to Betfair client data. The Tasmanian racing industry views this initiative as essential for safeguarding the national industry from scandals akin to the Kieran Fallon case.

Furthermore, Racing Victoria Limited (RVL), the regulatory body for thoroughbred racing in Victoria, Australia, has formally granted Betfair permission to display race fields for events within the state on its website. This approval effectively enables Betfair to facilitate wagers on Victorian racing. Although RVL will not levy a recurring fee, Betfair has agreed to a proposal to contribute a product fee of A$1.1 million in back taxes, covering its coverage of Victorian racing from 2002 to 2005. Betfair initiated the publication of Victorian race fields recently.

New Offerings and Partnerships

On the product front, SkyBet has launched a new service allowing customers to access the full array of totepool products via their interactive red button on Sky remote controls. This innovation enables punters to watch live races while simultaneously placing bets into tote pools, utilizing Sky Bet's