UK Betting Exchange Investigation Launched

UNITED KINGDOM – As reported by the UK Independent: "An investigation into betting exchanges, whose emergence in recent years has been blamed for a rise in suspicious betting patterns in horseracing and prompted allegations of race fixing, is to be launched.

"The inquiry, ordered by the Chancellor, could result in those who use betting exchanges having to pay tax on their winnings. Internet exchanges, led by Betfair, allow punters to offer their own odds directly to other users: a practice known as laying a bet.

"…An investigation by Customs and Excise has been informally under way for several months, but industry observers said the Chancellor's intervention will speed up the process.

"…Betfair has repeatedly rejected any link between the rise of betting exchanges and suspicions of race-fixing, and it angrily rejected suggestions yesterday that it or its clients were unfairly avoiding tax…"