Feeds

Chancellor to squeeze Betfair

Budget brings bad news for some

  • alert
  • submit to reddit

High performance access to file storage

Betfair, the wildly popular and controversial betting exchange, could be hammered in tomorrow's Budget.

Chancellor Gordon Brown is expected to use his Budget speech to announce an investigation into some online gambling sites. He wants to see changes brought in by summer to tax people making huge bets on the exchanges, the FT reports.

So-called betting exchanges offer punters the chance to bet against each other, not just against the bookie. There are believed to be as many as 1,500 professional punters using Betfair, by far Britain's most popular exchange with 200,000 live accounts. The Treasury believes the 'professionals', who average more than £15,000 a year each in profits, should pay tax as a bookmaker does.

Brown abolished betting tax in 2001, replacing it with a tax on bookmakers' profits. Part of the reasoning behind this decision was revenue being lost to offshore gambling sites.

Betfair put a statement on its site yesterday defending its customers and pointing out that it co-operates with the Jockey Club to identify potentially dodgy bets. It blames commercial rivals for much of the criticism it receives.

Betfair yesterday denied reports that proposed changes to gaming laws had scuppered a planned IPO. The company says that no flotation is in the offing and besides, it supports regulation. The Gambling Bill is currently at committee stage. ®

Related stories

E-crime costs UK business billions
Extortionists attack Paddypower.com
Sex and gambling drive mobile content sales

High performance access to file storage

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.