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If someone has some knowledge in this area, it would be very much appreciated.
Is an operating licence required if you wish to provide a service where somebody instructs you to place bets on their behalf? What about if they are using an online betting account, give their credentials, and the bets are placed on their behalf but from their own account?
What about if multiple people wanted you to bet on their behalf except all in the same way? So whatever the crowd does, you do on each gambler’s behalf?
To the best of my knowledge, the duties and responsibilities as described in your post, historically fall under the title of General Commission Agent as interpreted by the relevant section of European Law covering agents and agencies. That is to say …
“An individual who accepts or sells goods and services for the account of a beneficial principal, but in his / her own name. He / She is independent of the benefical principal, has a claim for his / her commission, and, except in France, has the right when dealing with certain transactions to execute them as he / she sees fit.”
Given the above description I would strongly suspect that in matters of possible dispute between a said General Commission Agent and beneficial principal(s) civil commercial law would apply.
http://en.wikipedia.org/wiki/Agency_(law)
Is an operating licence required if you wish to provide a service where somebody instructs you to place bets on their behalf?
“Operating Licence” I would suspect not … but rather the advisable need for a written and duly signed agreement between affected parties as to what is being required of them.
What about if multiple people wanted you to bet on their behalf except all in the same way? So whatever the crowd does, you do on each gambler’s behalf?
Again, I would think that such concerns would be covered by an advisable need for a written agreement between all parties concerned.
As far as I am aware there are no regulatory conditions to be applied to the scenario.
As to whether there is a contract between the agent and the client that is a matter for the individual parties – my view would be if you don’t trust the agent enough not to have a contract then they are not worth doing business with in the first place.
I have used an agent for what I call my "serious" bets for many years now and we have never had a written agreement and there have never been any problems in that time.
You’ll be fine just placing them for someone else or vice versa.
I’ve done this in the past myself with no problem just make sure the people you operate with are good friends and trustworthy.
Too many variables to admit of a "one-size-fits-all" legal answer.
On the governing law / jurisdictional side, perm the respective locations (and in some cases even the nationalities) of each of
– backer
– layer
– any betting intermediary (eg betting exchange)
– intermediary (eg you)On the ID side, perm the services offered, ranging from
– the intermediary simply pressing a keyboard to the dictation of the account-holder,to
– the intermediary acting with full discretion either as undisclosed agent for, or selling participations in the intermediary’s own account to, the client.Right to ask the questions ahead of any dispute arising, since the cost to the intermediary of getting it wrong can be
– on the criminal side, detention/ fines/ in some jurisdictions corporal punishment,and
– on the civil side, anything up to having to refund and bear client losing bets from intermediary’s own pocket in addition to paying out winning bets.Apart from gambling-specific regulation, remember
– the often-unappreciatedly-wide reach of moneylaundering and tax laws,– financial services laws about running a collective investment scheme
– contract issues, not just of mistake or misrepresentation, but also that old rule that used to give the bookie the right to treat several bettors as a single bettor when it came to applying a winnings limit (not sure what eg Gibraltar law says about that these days).
Couple of country-specific examples:
For GB, consider section 13 Gambling Act 2005:
"(1)In this Act “betting intermediary” means a person who provides a service designed to facilitate the making or acceptance of bets between others.
(2)For the purposes of this Act acting as a betting intermediary is providing facilities for betting."
For the US, if there’s any element in your proposal of providing a way for US residents to get around IP-blocks and participate on a GB betting exchange, be aware of state laws such as these from Kentucky:
"372.020 Recovery of gambling losses from winner or his transferee.
If any person loses to another at one (1) time, or within twenty-four (24) hours, five dollars ($5) or more, or anything of that value, and pays, transfers or delivers it, the loser or any of his creditors may recover it, or its value, from the winner, or any transferee of the winner, having notice of the consideration, by action brought within five (5) years after the payment, transfer or delivery….
372.040 Suit by third person where loser or creditor does not sue.
If the loser or his creditor does not, within six (6) months after its payment or delivery to the winner, sue for the money or thing lost, and prosecute the suit to recovery with due diligence, any other person may sue the winner, and recover treble the value of the money or thing lost, if suit is brought within five (5) years from the delivery or payment. "
Good luck !
wit
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