Betfair Account Restrictions & closed accounts - Getting them removed and accounts reopened

[wearthefoxhat]

The direction of travel for gambling regulation has been concerning me for some time, particularly because I plan to move to trading full time this year.
A number of people in this thread have already highlighted the pressures being brought to bear by anti-money-laundering legislation and the consumer protection lobby, but the way the UK regulates speculation/trading more generally is what has got me really worried.
The following article discusses the ban on trading crypto-currency derivatives, e.g. spreadbetting on the value of bitcoin, that came into effect this month: https://www.moneymarketing.co.uk/analys ... -advisers/
The key thing to note is that the FCA held a consultation, and 97% of the respondents opposed the ban. They then went ahead with it anyway.
This follows on from the previous ban on fixed odds bets on financial markets, also called binary betting (just in case you wonder why there is no longer a ‘financials’ section on Betfair). The justification given is also remarkably similar, couched in terms of difficultly of comprehension, financial risk to consumers, and the ‘lack of investment need’.
Technically, it is still possible to trade in these products if one is a ‘professional investor’. To give you a flavour of what that looks like in practice, it is someone who meets two of the following:
the client has carried out transactions, in significant size, on the relevant market at an average frequency of 10 per quarter over the previous four quarters; or
the size of the client's financial instrument portfolio, defined as including cash deposits and financial instruments, exceeds EUR 500,000; or
the client works or has worked in the financial sector for at least one year in a professional position, which requires knowledge of the transactions or services envisaged”
The only way I can see this kind of infantising nonsense being kept at bay in the gambling world, is if the large bookmakers are able to apply enough pressure to politicians by talking about job losses and loss of tax revenue. And we better hope they do, because I am absolutely certain that whatever pencil-pushers and apparatchiks are assigned to ‘modernise’ betting will not give a damn about Betfair traders, and will be just as likely to ignore their own consultation as the FCA.

For me, it's important to be aware of the developments and plan accordingly.

Currently, HMRC treat trading, and profits from trading/gambling, as non-taxable in the UK. If they go to the "US model" and tax it in some form, then, once this is proven to the trading platform, certain restrictions should be lifted, but kept in place for the more recreational punter.

If there are losses (as per a large % of businesses), then records are filed accordingly and no tax in that financial year. The govt/hmrc aren't gonna say to a bona fide, tax paying business, they can't invest larger amounts to make future profits. (Or, less than £12,500 personal tax allowance) Under those conditions, national insurance should also be paid too. (Registered as self employed too)

Finding something that you can work from home and make money, is in the fore front of lot of people's minds after during/after covid, as the landscape for travelling to an office/premises is likely to change in the next 3-5 years and onwards.

The FOBT's took quite a while to be restricted and the bookies made millions during that time. One of the problems is that the "success" of being able to restrict those, might go to their heads and restrict cart blanche, all things gambling.

[wearthefoxhat]

Currently, HMRC treat trading, and profits from trading/gambling, as non-taxable in the UK. If they go to the "US model" and tax it in some form, then, once this is proven to the trading platform, certain restrictions should be lifted, but kept in place for the more recreational punter.

Just thought;

Will they restrict the lottery purchases/scratch cards in the same way too?
Will they go the way of Spain and tax winnings?

[goat68]

This is all potentially worrying, if you think of the sequence of events, people like me which will frequently hit £100 loss will just give up. So the dumb money as it were is driven away, just leaving Smart money vs Smart money, which will make life difficult for them driving Smart money to give up...end of Betfair.....

[goat68]

On the flip side, I remember reading Thomas's blog, making the ethical point that the large money he makes is at a deficit to many others...So he makes 100k a year from some addicted punters who lose 5k a year...?

[Realrocknrolla]

end of Betfair.....

[goat68]

end of Betfair.....

And?

[goat68]

Brexit, that will never happen....haha

[ilovepizza82]

lol
Most people have £5000 deposit limit.
Ive had it ever since i remember.

[Realrocknrolla]

end of Betfair.....

And?

"Betfair claims to have over 4 million customers (1.1 million active customers) and a turnover in excess of £50 million a week." 2014

[The Silk Run]

If I was in a position to lobby I would end the monopoly and encourage regulated competition to the exchanges. Paddy Power Betfair should not be included in this as they manage their business like a monopoly game board !!!

[Derek27]

Surely anyone who's lifetime profile is in profit can afford to gamble? As goat says though, if all the losers are taken out of the market that would be the end of the exchange. I would have had my account closed when I was predominantly arbing and losing to Betfair.

[Realrocknrolla]

Surely anyone who's lifetime profile is in profit can afford to gamble? As goat says though, if all the losers are taken out of the market that would be the end of the exchange. I would have had my account closed when I was predominantly arbing and losing to Betfair.

Can’t see it, but get your point about the exchange but not betfair as a company.

[ANGELS15]

Another threat which I'd mentioned before or possibly elsewhere is a possible time limit to how long a customer can be online. Many strategies may rely on us being connected via Bet Angel for hours at a time for automation to do it's work. This is in contrast to ordinary betting where people can simply log in and out to place bets. I suspect that the authorities may be aiming the time limits more at online fruit machine gaming but who knows?

[Grinderman]

This reply in from my MP

Thank you for contacting me about sports betting and the review of the Gambling Act 2005.

I know many people enjoy gambling and of course, everybody has the right to spend their own money enjoying themselves. But on the other hand, gambling addiction is highly serious and where a harm is clear, the Government has a duty and responsibility to tackle it.

I believe the law on gambling should be approached from a public health perspective to protect the vulnerable and particularly children and young people, but to allow others who choose to do so to gamble safely.

I welcome the gambling review because UK gambling legislation is more than 15 years old. It is right that the legislation is brought up to date. We need fit-for-purpose regulation that can keep up with the changing nature of gambling online. We must also ensure the right support is in place to tackle the highly serious matter of problem gambling.

I do, however, recognise the concerns you raise and I am aware of reports suggesting there could be an increase in unregulated betting activity on sport as a result of the Gambling Commission’s affordability proposals being consulted on alongside the Government’s review.

The Gambling Commission has said it does not necessarily consider it proportionate that an affordability assessment is undertaken on all customers. But it does feel online gambling operators should consider whether a customer is spending beyond their means, and therefore proposes an affordability assessment should be undertaken if certain loss thresholds are reached.

I believe we need a regulated and safe gambling industry both for the industry itself and for those who are at risk from gambling-related harm. Nevertheless, I agree the legislation must be evidence-based so the right measures can be targeted effectively to reduce gambling-related harm.

The Government says it is seeking to strike a careful balance between giving individuals the freedom to choose how they spend their own money, while protecting vulnerable people and their families from gambling-related harm.

I hope the full range of evidence and views will be considered throughout this process, and I will certainly continue to bear in mind the points you raise.

Thank you once again for contacting me and sharing your views.

[LeTiss]

Thanks for posting. That's still unclear how they will determine one's affordability though