Mr Richard Caborn (Minister of State (Sport and Tourism), Department for Culture, Media & Sport; Sheffield Central, Labour)

The clause provides for the control of pool betting when there is no exclusive licence in operation. It consists of proposed new sections 4, 4A and 4B, and proposed new schedule 1A to the 1963 Act. The three new sections provide for the restriction of pool betting on track, restrictions to pool betting off track and the detailed regulation of horse race pool betting.

Under proposed new section 4, a person commits an offence if he carries on a pool betting business on a racecourse unless it is in connection with horse racing that is carried on by the holder of a bookmaker's permit, on an approved race course on a day that racing takes place and in accordance with the regulatory regime in part 2 of proposed new schedule 1A. An offence is also avoided if the relevant activity is in connection with a horse race that is carried on in accordance with a point-to-point exemption notice issued by the Gaming Board. Such notices will be issued where racing take place no more than four days a year and allows the Gaming Board to attach further conditions, such as the operation of the pool and the publication of betting rules, should it feel that they are required.

That limit is a reduction from the present seven-day exemption, but the Government feel that that is justified. Leaving the present seven-day limit raises the possibility of some race courses that only have a few fixtures being able to offer pool betting without needing to be an approved race course, thereby avoiding the stricter requirements. For example, Aintree has only seven fixtures for 2004. It and others have had fewer than that before, so we have reduced the scope of the exemption to four. The third permitted way of carrying on a pool betting business is on a licensed dog track by means of a totalisator.

Under proposed new section 4A, a person will commit an offence if he carries on a pool betting business other than on a track, unless it is in connection with horseracing and is carried on by the holder of a bookmaker's permit in accordance with the regulatory regime provided for in part 2 of proposed new schedule 1A. In practice, that covers pool betting

in licensed betting shops. Alternatively, the person may be a registered pool promoter, or the pool betting business may be carried on in accordance with a licensed inter-track betting scheme.

Proposed new section 4B introduces a new schedule 1A, which provides a detailed regime for the regulation of pool betting business in connection with horse racing. The requirements include the proper working of the totalisator and compliance with a number of conditions set out in part 2, which are designed to ensure fairness and transparency in the operation of horse race pool betting. Furthermore, the provisions provide for the Gaming Board to supervise the operation of the pool in accordance with part 3. That includes the appointment of an accountant and a technical adviser to ensure compliance with the requirements. Those are important safeguards for the customer and help to ensure the integrity of the product.

Question put and agreed to.

Clause 10 ordered to stand part of the Bill.