Betfair co-founder: GC board lacking industry experience “a massive problem”

The co-founder of Betfair has publicly hit out at the Gambling Commission (GC), accusing the regulator’s board of commissioners of not having “one single person who’s worked in the gambling industry”.

Appearing as a guest on Racing TV’s Sunday morning magazine show Luck on Sunday, Andrew Black suggested the GC was lacking a diverse set of opinions, as he questioned the board’s knowledge of the fundamentals of betting.  

“I don’t feel we have the support the government and I feel we have a very unsympathetic regulator at the moment,” Black remarked.

“I know things are changing, but when you think that our regulator – and this is the regulator of the whole [gambling] industry, which we are a part of, there isn’t a single person on that board who could tell you what a ‘Yankee’ [bet] is, as far as I can see. To me, that is completely wrong.”

Black also accused the board of having opinions that “align with” those of outgoing CEO Andrew Rhodes.

“To me, it’s a responsibility of anyone in a quango to get the strongest possible board, which means a diverse collection of opinions, and [yet] we’re not represented on that board,” he added.

When pressed by presenter Nick Luck if he would, hypothetically, join the GC board, Black, who left Betfair in 2010 when the company floated and is now a thoroughbred horse breeder, somewhat cautiously said he would be willing to do so.

Black went on to suggest the GC’s board should have a similar makeup to that of the financial watchdog in the UK, the Financial Conduct Authority (FCA).

“If you look at the FCA, for example, who regulate the whole financial industry, of the 10-person board, eight of them formerly worked for financial companies, and then you’ve got a couple of others, a lawyer and a civil servant. And that seems a fair balance to me,” he said.

“Our regulator doesn’t have one single person [on its board] who’s worked in the gambling industry. How can we expect them to understand us and to respect our culture if you haven’t got a single [industry] person there.”

Black added: “There isn’t a single one of them who’s got any history of gambling or ever expressed any interest in it and, to me, that’s a massive problem. It’s not fair and it’s not right.”  

In response, a GC spokesperson told EGR: “Our board of commissioners bring experience and knowledge from a wide range of sectors to set and oversee the corporate strategy and help us ensure gambling is fair and safe.

“In addition, the Commission has an industry forum which provides us with insight into the views of industry about the Commission’s plans, the quality of Commission services and the wider environment in which gambling operators work.”  

Members of the GC’s board of commissioners are appointed by the Secretary of State for the Department for Digital, Culture, Media and Sport.

The professional experience of current board members’ spans criminal law, gambling policy, regulation and financial services.

The GC is on the hunt for a permanent chair to replace interim chair Charles Counsell, with an advertised salary of £59,950 per annum for two days’ work a week. The length of the term is five years.

Meanwhile, CEO Andrew Rhodes is due to depart the regulator at the end of April to “take up a new role”, almost four years after he was appointed to the position on a permanent basis.

Reports suggest Rhodes is set to join Hawkbridge, a new international strategic advisory firm launched by UK gambling law firm Harris Hagan. 

Deputy CEO Sarah Gardner has been performing the role of acting CEO since Rhodes’ departure was announced by the regulator in February. Rhodes remains a board member at the time of writing.

Last week, the High Court ruled in favour of the GC and dismissed a claim by ex-publisher and businessman Richard Desmond seeking £1.3bn in damages over the regulator awarding the fourth UK National Lottery licence to Allwyn.