The Independent Betting Arbitration Service was formed in the autumn of 1998 with the Government’s approval and the support of the industry (over 95% of UK bookmakers have registered with the service). IBAS is funded by Satellite Information Services (SIS), Horserace Betting Levy Board (HBLB) and Trinity Mirror.
IBAS is a non-statutory service and its rulings are not enforceable in law. Registration with IBAS is in no way a guarantee of a bookmaker's financial strength or its ability to pay on winning bets.
Bookmakers who register with IBAS undertake to be bound by the rulings of its arbitrators. Failure to comply with an IBAS ruling would mean that a bookmaker had not honoured his obligation under the scheme - which would result in the bookmaker being publicly de-registered from the service.
Although this website will be an important communication opportunity for IBAS, it is important to emphasise that arbitrating in betting disputes is the service's principal role, offering and delivering effective dispute resolution procedures in a modern, independent structure to customers of bookmakers registered with the scheme.
SIR TRISTRAM RICKETTS, BT.
CHAIRMAN
CHIEF EXECUTIVE OFFICER’S REVIEW
Growth and change have been key aspects of the Independent Betting Arbitration Service this past year. The number of disputes on which the IBAS Panel ruled in 2005 soared by 35 per cent to a record 1,812, while the number of applications for arbitration increased by 30 per cent, figures that reflect both the changes and growth in the betting industry.
Change has come in the expansion of betting opportunities, and growth from the new fields of betting activity and the new customers they attract. Bookmakers, who, 20 years ago attributed some 80 per cent of their turnover to horserace betting, now find that more than half their business is generated from other sources, despite the fact that horserace betting has enjoyed increasing popularity.
Such diversity in the nature of gambling brings with it not just growth but added complexity, which inevitably leads to an increasing number of betting disputes. The result has been a diverse caseload for the IBAS Panel to deliberate on: from the definition of a snowflake to a complex, £750,000 betting exchange dispute relating to the winner of an American golf tournament.
Add to this mix everything from claims that are frivolous to those involving outright fraud and you have an insight into some of the challenges faced by IBAS on a day-to-day basis.
The IBAS Service demands the highest standards. These are imperative if it is to maintain the confidence of both the betting consumer and the industry. To uphold these standards, IBAS carried out a complete review of its internal procedures so as to implement more effective, efficient ways of managing an escalating workload. Action based on the results included easier accessibility through improved telephone and IT systems. This has enabled staff to shorten the lines of communication during case management and the adjudication process.
It is not in IBAS’s interests to prolong disputes unnecessarily. However, for IBAS to be authoritative and robust it is vital that it is committed to being thorough in all investigations and is in possession of the full facts of a case before issuing a ruling.
IBAS will never abandon the standards it has set simply to fast-track a case in a prescribed timescale. The resolution of disputes in the modern day, sophisticated betting world can be complicated, demanding, and time consuming. Clearly, the purpose of arbitration is to bring a dispute to a conclusion based on the Panel’s independent examination of the facts, so that both parties – and there is always a winner and a loser – can accept the judgement, hopefully having acquired some knowledge from the experience.
As a professional organisation it is right that, where circumstances warrant, IBAS agrees to institute a review of a case. In 2005 the Panel revisited 76 cases in which its decision was challenged by one of the parties involved. In all these cases the Panel provided further clarification of its decision but upheld the original finding.
Although it is critical that IBAS is quality effective it must also be cost effective. Therefore 23 requests for a full review were declined as they were presented simply on the grounds of disappointment or reluctance to accept the finality of the situation.
It is gratifying to report that bookmakers demonstrated their commitment to IBAS and the principle that arbitration is effective in a non-statutory environment. Full compliance with Panel rulings was achieved throughout 2005. On 271 occasions the Panel upheld customers’ claims, which resulted in £257,063 winnings being awarded.
There has been considerable consultation between IBAS and the betting industry, with regular meetings chaired by IBAS. This initiative has been particularly productive in that it has enabled IBAS, as an independent body, to consult, encourage and engage the industry in the matter of dispute prevention.
For example, IBAS has identified deficiencies in bookmakers’ rules, made recommendations relating to best practices and suggested common approaches regarding bet settlement. It has also assisted companies in producing publicity material that offers basic guidance to inexperienced customers. This has assumed particular importance given the large number of newcomers to betting that have been attracted by high-profile televised events.
IBAS has also held discussions with the betting industry to promote the benefits brought by a model of clear, concise rules. Betting operators’ rules will continue to form the basis of IBAS adjudications and greater consistency within the industry would greatly help to eliminate a number of disputes. Work in all these areas is well under way. A consultative framework has already been set in place for 2006, and considerable progress made in eliminating some of the main causes of dispute.
In November, IBAS entered into a six-month pilot project offering arbitration services to firms in the e-gaming sector which are members of the Remote Gambling Association. At the conclusion of the scheme a report will be submitted to the IBAS board and RGA executive outlining the nature of the disputes put before IBAS during this period, evaluating the cases, and making recommendations as to whether IBAS is the appropriate organisation to offer adjudication on a long-term basis.
Royal Assent for the Gambling Act was given in 2005 and the experience, and wealth of data, within IBAS has been employed in papers submitted to industry forums chaired by the Commission as part of the consultation process.
IBAS, with its total independence, can assist the new regulator to develop and implement policy that is relevant to one of the Commission’s key objectives – ensuring that gambling is conducted fairly and openly.
IBAS has always maintained that there should be provision within legislation for all betting consumers to have the protection of guaranteed access to independent arbitration, and it is heartening that the Commission has acknowledged that independent arbitration is effectively conducted on an entirely voluntary basis.
In their latest consultation document this issue is addressed and, in summary, states that, under the codes of best practice, bookmakers’/operators’ approach to disputes requires both an internal and an external independent element. Clearly, as the incumbent arbitration body there is tremendous scope for IBAS, and I look forward to continuing productive dialogue with the Commission in the months ahead.
Finally, I would wish to thank the outgoing Chairman of IBAS, Rodney Brack, for his solid support, and welcome his successor, Sir Tristram Ricketts Bt., who has vast experience, innovative ideas and genuine enthusiasm. Looking back on previous reports it is clear that IBAS has come a long way. I am proud of the commitment and standard of service the administrative staff and panellists have provided and I thank them all, as well as the independent board members, for the support they have given over the past year.