Edinburgh to open world's first licensed betting exchange

The new betting exchange is the brainchild of Henry Spurway, a former Edinburgh bookmaker. Betting exchanges involve punters betting against each other, rather than directly with a bookie. Until now, on-line betting exchanges have relied on punters using their home or work PCs. Easibet.net hopes to profit by offering punters the sociable alternative of an internet café that doubles as a betting exchange.

Spurway explained the concept to Edinburgh's Evening News: “People bet and lay against each other rather than take on the bookmaker and, on average, prices are 20% better than High Street bookies.” The TV screens and information normally found in a betting shop will be present, but Spurway promises that the atmosphere will be entirely different.

“It’s an eatery too, and people will be able to eat lobster when Ascot is on, and we will be serving food with different themes for different occasions,” he added.

London-based Betfair, one of the world’s largest betting exchanges, is backing the new venture which targets those who would never previously have considered entering a normal betting shop.

Edinburgh’s licensing board is the first in the world to grant a gambling license for a betting exchange. Hong Kong has banned them and Australia is expected to do the same. The UK government has yet to rule on the matter.

However, rival bookies William Hill and Ladbrokes argue that the exchanges are illegal under the 1963 Gaming, Betting and Lotteries Act, which legalised betting shops. They have taken the matter to court, claiming the licensing board was acting out with its powers in granting the license.

In a preliminary hearing on Friday, a judge in Scotland's highest court, the Court of Session, ruled in favour of Spurway. However, the main points of the case have still to be heard.