Sky unwilling to gamble on betting law

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SkyDigital has signalled to the third-party gambling operators on its interactive TV platform that any services falling under the 1968 UK Gaming Act’s definition of ‘gaming’ must be removed by 21 July, according to an investigative report by itvt.

The move is latest development in the industry to arise out of the ambiguity of UK gambling laws. The UK’s existing legislation attempts to make a distinction between casino-style games, such as roulette and dice (referred to in the act as ‘gaming’), and so-called ‘fixed-odds betting’, where money is staked on a chance event and the odds and rewards of winning are clearly stated. The 1968 Act stipulates that casino style games, where the operator is responsible for producing the events betted upon, can only take place on licensed premises – an edict that Sky now argues prevents it from hosting such games remotely.

Confusion arises, however, because some operators, including Sky, argue that iTV casino-style games driven by a random-number generators fall under the jurisdiction ‘fixed-odds betting’ rather than ‘betting’, because such a mechanism theoretically avoids any unknown variables resulting from an operator's involvement. Though critics might suggest the operator still has the power to interfere with the number-generator itself, Sky has passed a copy of its self-imposed regulations to Oftel, the regulatory body which oversees the UK telecommunications industry, and says it based its policy on consultations with the government and bodies such as the Gaming Board.

Various companies with an interest in iTV betting, including Gala which postponed launching iTV operations sue to ambiguity of the law, have welcomed Sky’s move to clarify regulations, especially as government reviews of the UK’s gaming laws have been delayed.

However, some third party operators are likely to be hit hard by the decision to suspend their casino-style services. Though many recognise the need for legal clarity in the industry, critics point out that Sky’s new regulatory environment is likely to reduce competition for the broadcaster’s own SkyBet Vegas service, which only features casino-style games powered by random-number generators and so will not be affected by the imposed restrictions. The income Sky gains through hosting third party services is said to be minimal compared to the roughly E100m it earned through SkyBet Vegas last year.