Editing Betfair (section)

==Controversies==

===Illegal dividends===
In its 2014 annual report, the betting firm admitted that its final dividend in 2011 and the interim and final dividends for 2012 and 2013 were paid erroneously because, by law, the "company did not have sufficient distributable reserves to make those distributions and so they should not have been paid by the company to its shareholders". Betfair also admitted that the purchase of 6.5 million shares in April 2012 was executed when the "company did not have sufficient distributable reserves".<ref>{{cite web|url=https://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/11007928/Betfair-paid-60m-illegal-dividends.html|title=Betfair 'paid £60m illegal dividends'|date=2 August 2014|work=The Daily Telegraph|access-date=23 March 2015|archive-url=https://web.archive.org/web/20150504113135/http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/11007928/Betfair-paid-60m-illegal-dividends.html|archive-date=4 May 2015|url-status=live}}</ref>

===Data theft===
In September 2011, Betfair admitted that it had concealed the theft of confidential customer data from the company's 2010 share prospectus. The theft included the payment card details of most of its customers, "3.15m account usernames with encrypted security questions", "2.9m usernames with one or more addresses" and "89,744 account usernames with bank account details". The company further stated that it had informed the [[Serious Organised Crime Agency]] of the incident which happened on 14 March 2010 but was not discovered by Betfair data security until 20 May that year.<ref>{{cite web|url=https://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/8797834/Criminals-stole-customer-card-data-from-Betfair-just-months-before-float.html|title=Criminals stole customer card data from Betfair just months before float|date=30 September 2011|work=The Daily Telegraph|access-date=23 March 2015|archive-url=https://web.archive.org/web/20150110195438/http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/8797834/Criminals-stole-customer-card-data-from-Betfair-just-months-before-float.html|archive-date=10 January 2015|url-status=live}}</ref>

===In play betting concerns===
Betfair offer in play betting on a variety of horseracing events. There has been some controversy over alleged [[broadcast delay]]s of up to five seconds.<ref name="thefreelibrary1">{{cite web |url=http://www.thefreelibrary.com/Racing%3A+ATR+dismisses+the+time+delay+with+SIS+as+a+%27non-issue%27.-a0142880766 |title=Racing: ATR dismisses the time delay with SIS as a 'non-issue'. – Free Online Library |publisher=Thefreelibrary.com |date=6 March 2006 |access-date=28 December 2011 |archive-url=https://web.archive.org/web/20131023061213/http://www.thefreelibrary.com/Racing%3A+ATR+dismisses+the+time+delay+with+SIS+as+a+%27non-issue%27.-a0142880766 |archive-date=23 October 2013 |url-status=live }}</ref>

Among the bettors on Betfair's exchange are companies that place high-speed automated bets using [[predictive modelling|predictive models]]. Some of these companies use [[courtsiding]] data transmitted directly from agents located at the event, giving them an edge over recreational punters who do not receive the latest scores as quickly. The practice drew widespread scrutiny after one such agent, working for a company established by former Betfair employees, was arrested at the [[2014 Australian Open]]; charges were later dropped.<ref>{{cite news|title=Inside the Shadowy World of High-Speed Tennis Betting|newspaper=FiveThirtyEight Sports|publisher=ESPN|first=Carl|last=Bialik|url=https://fivethirtyeight.com/features/inside-the-shadowy-world-of-high-speed-tennis-betting/|date=29 May 2014|access-date=6 February 2015|archive-url=https://web.archive.org/web/20150209113826/http://fivethirtyeight.com/features/inside-the-shadowy-world-of-high-speed-tennis-betting/|archive-date=9 February 2015|url-status=live}}</ref>

===Advertising===
In September 2009, the [[Advertising Standards Authority (United Kingdom)|Advertising Standards Authority]] (ASA) banned Betfair from running two billboard adverts which claimed that their Starting Price (SP) offered 40% better returns, on average than the industry SP. The ASA found that only 10% of the bets used by Betfair in their calculations yielded at least 40% better returns than the industry SP.<ref>{{cite web|url=http://www.egrmagazine.com/news/industry/255792/misleading-betfair-ads-banned-in-uk.thtml|title=Misleading Betfair ads banned in UK|publisher=egrmagazine.com|access-date=28 September 2009|url-status=dead|archive-url=https://web.archive.org/web/20090921220932/http://www.egrmagazine.com/news/industry/255792/misleading-betfair-ads-banned-in-uk.thtml|archive-date=21 September 2009}}</ref>

In February 2011, the ASA banned another Betfair advert, that stated "On Betfair, you cut out the middle man, which means you could win bigger". The regulator said that the description "cutting out the middleman" was ambiguous and misleading, because the site takes a commission fee on winnings, which could be perceived as a middleman role.<ref>{{cite web|url=http://www.asa.org.uk/Rulings/Adjudications/2011/2/Betfair-Ltd/TF_ADJ_49711.aspx#.VDjLF_ldWSo|title=ASA Adjudication on Betfair Ltd|date=9 February 2011|access-date=23 March 2015|archive-url=https://web.archive.org/web/20141014213024/http://www.asa.org.uk/Rulings/Adjudications/2011/2/Betfair-Ltd/TF_ADJ_49711.aspx#.VDjLF_ldWSo|archive-date=14 October 2014|url-status=live}}</ref>

===Premium charge===
In September 2008, Betfair introduced a "Premium Charge" for wagerers whose winnings are particularly high compared to the amount of commission they pay. Specifically, members whose commission charges amount to less than 20% of their gross profits, and have placed bets in at least 250 markets, are required to pay the additional charge to make up the difference.<ref>{{cite web|url=http://content.betfair.com/aboutus/?product=exchange&sWhichKey=Betfair%20Charges|title=Betfair Charges|publisher=betfair.com|access-date=8 April 2009|archive-url=https://web.archive.org/web/20090228144048/http://content.betfair.com/aboutus/?product=exchange&sWhichKey=Betfair%20Charges|archive-date=28 February 2009|url-status=live}}</ref>

Though Betfair stated that the charge would only affect less than 0.5% of its members, it attracted criticism on its member forum and from the broader exchange betting community.<ref>{{cite news|url=https://www.independent.co.uk/sport/racing/betfair-faces-criticism-for-massive-rise-in-charges-924359.html|title=Betfair faces criticism for massive rise in charges|work=The Independent|access-date=8 April 2009|location=London|first=John|last=Cobb|date=10 September 2008|archive-url=https://web.archive.org/web/20090619185001/http://www.independent.co.uk/sport/racing/betfair-faces-criticism-for-massive-rise-in-charges-924359.html|archive-date=19 June 2009|url-status=live}}</ref><ref>{{cite web|url=http://green-all-over.blogspot.com/2008/09/betfair-premium-charge-racing-post.html|title=Betfair bosses deny being too "greedy"|date=12 September 2008 |publisher=racingpost.co.uk|access-date=8 April 2009|archive-url=https://web.archive.org/web/20090524083957/http://green-all-over.blogspot.com/2008/09/betfair-premium-charge-racing-post.html|archive-date=24 May 2009|url-status=live}}</ref> According to ''The Guardian'', the charge significantly changed the relationship between Betfair and its customers, as Betfair can no longer claim to be a neutral betting exchange "where winners are welcome" (its mantra for many years).<ref>{{cite news|url=https://www.theguardian.com/sport/2008/sep/09/horseracing1|title=Betfair: where winners have just become losers|work=The Guardian|access-date=8 April 2009|location=London|first=Greg|last=Wood|date=9 September 2008|archive-url=https://web.archive.org/web/20150109053445/http://www.theguardian.com/sport/2008/sep/09/horseracing1|archive-date=9 January 2015|url-status=live}}</ref>
In June 2011 Betfair raised its Premium Charge to 60% for some customers, a move which was met by outrage.<ref>Hayler, Will. [https://www.theguardian.com/sport/2011/jun/29/betfair-premium-charge-increase "Betfair's premium charge increase welcomes winners with open palms"] {{Webarchive|url=https://web.archive.org/web/20160312134600/http://www.theguardian.com/sport/2011/jun/29/betfair-premium-charge-increase |date=12 March 2016 }}. ''[[The Guardian]]''. 29 June 2011. Retrieved 1 July 2011.</ref>

===Sports integrity===
Betfair has noted that they have signed numerous information sharing agreements with [[sport governing bodies|governing bodies]] around the world, with whom they cooperate on matters if the latter suspects corruption to have taken place. Betfair has agreements with some thirty sports bodies, such as the Lawn Tennis Association and the British Horseracing Association, and has been instrumental in several high-profile investigations into suspicious betting.<ref>{{cite web|url=http://director.co.uk/MAGAZINE/2008/6%20June/betfair_61_11.html |title=Playing their cards right, Director magazine |access-date=1 June 2008 |url-status=dead |archive-url=https://web.archive.org/web/20100921032054/http://director.co.uk/MAGAZINE/2008/6%20June/betfair_61_11.html |archive-date=21 September 2010 }}</ref>

In June 2010, high-profile racehorse owner and professional gambler Harry Findlay was banned by the [[British Horseracing Authority]] for using Betfair to bet against his own horse, Gullible Gordon.<ref name="Chris Cook">{{cite web|url=https://www.theguardian.com/sport/2010/jun/11/harry-findlay-six-month-ban|title=I'll never own horses in Britain again, says Harry Findlay after ban|author=Chris Cook|work=The Guardian|date=11 June 2010 |access-date=23 March 2015|archive-url=https://web.archive.org/web/20141021135448/http://www.theguardian.com/sport/2010/jun/11/harry-findlay-six-month-ban|archive-date=21 October 2014|url-status=live}}</ref>

At the disciplinary hearing into Findlay's betting against Gullible Gordon, it was revealed that Findlay had been in financial difficulty and that Betfair had allowed him to use the account of a friend, racehorse owner Eammon Wilmott. In a further twist, the bets were actually made by Findlay "associate" Glenn Gill.<ref>{{cite web|url=http://www.britishhorseracing.com/resource-centre/disciplinary-results/disciplinaryappeal-hearings/disciplinary/?result=535a306bb33ebfaa5320ec98|title=Disciplinary|author=The British Horseracing Authority|work=The British Horseracing Authority|access-date=23 March 2015|archive-url=https://archive.today/20141011070136/http://www.britishhorseracing.com/resource-centre/disciplinary-results/disciplinaryappeal-hearings/disciplinary/?result=535a306bb33ebfaa5320ec98|archive-date=11 October 2014|url-status=live}}</ref>

Betfair themselves condemned the punishing of Findlay, saying the punishment was not "proportionate or consistent with similar offences in the past."<ref name="Chris Cook"/> Findlay had previously called himself "a walking advert for Betfair."<ref>{{cite web|url=https://www.theguardian.com/sport/2006/dec/06/horseracing.gdnsport31|date=6 December 2006|title=Harry's game is playing big on and off the track|website=[[TheGuardian.com]] |access-date=23 March 2015|archive-url=https://web.archive.org/web/20141021135456/http://www.theguardian.com/sport/2006/dec/06/horseracing.gdnsport31|archive-date=21 October 2014|url-status=live}}</ref>

===Winning bets voided===
In August 2007, Betfair took the unprecedented step of voiding all bets following a tennis match between Martin Arguello and [[Nikolay Davydenko]] because of suspicious betting patterns.<ref>{{cite web|url=http://www.metro.co.uk/sport/other/article.html?in_article_id=59875|title=Betfair suspends betting on tennis clash|work=Metro|location=UK|access-date=8 April 2009|archive-url=https://web.archive.org/web/20091126082816/http://www.metro.co.uk/sport/other/article.html?in_article_id=59875|archive-date=26 November 2009|url-status=live}}</ref>

In December 2011, Betfair voided all in running bets on a race at [[Leopardstown]] after an automated customer reportedly laid the winning horse Voler La Vedette at odds of 28–1, even as the mare crossed the finish line. The controversy was described as "devastating" by Betfair CEO Stephen Morana, and it affected at least 200 customers who were refused more than £23M in winnings. Some of these customers are believed to be pursuing their case with the independent adjudication body [[Independent Betting Adjudication Service|IBAS]], as Betfair no longer falls under the jurisdiction of the Gambling Commission since its move to [[Gibraltar]] in 2011.<ref>{{cite news|url=http://www1.skysports.com/horse-racing/news/12426/7402454/Betfair-blame-technical-glitch|title=Betfair blame technical glitch|publisher=skysports.com|access-date=3 January 2012|archive-url=https://web.archive.org/web/20120126050338/http://www1.skysports.com/horse-racing/news/12426/7402454/Betfair-blame-technical-glitch|archive-date=26 January 2012|url-status=live}}</ref><ref>{{cite news|url=http://www.independent.ie/sport/horse-racing/betfair-needs-to-win-back-confidence-of-punters-2977056.html|title=Betfair needs to win back confidence of punters|work=The Irish Independent|access-date=3 January 2012|date=1 January 2012|archive-url=https://web.archive.org/web/20120112232600/http://www.independent.ie/sport/horse-racing/betfair-needs-to-win-back-confidence-of-punters-2977056.html|archive-date=12 January 2012|url-status=live}}</ref><ref>{{cite news|url=https://www.telegraph.co.uk/sport/horseracing/8987388/Punters-fear-the-worst-in-Betfair-dispute.html|title=Punters fear the worse in Betfair dispute|work=The Daily Telegraph|access-date=3 January 2012|location=London|first=J A|last=McGrath|date=1 January 2012|archive-url=https://web.archive.org/web/20120103050029/http://www.telegraph.co.uk/sport/horseracing/8987388/Punters-fear-the-worst-in-Betfair-dispute.html|archive-date=3 January 2012|url-status=live}}</ref>

In September 2011 Betfair refused to honour winning bets made by their customers on [[The Tote]] Jackpot bet at [[Newmarket Racecourse]]. Although funds were removed from customer accounts before the bets had won, the company claimed that due to "technical issues in transmitting bets into the Tote pools in the last 10 minutes before the pool closed", they would not pay any winnings. Reportedly some small gamblers were deprived of wins of up to £16,000 apiece.<ref>{{cite web|url=https://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/8792831/Betfair-will-only-refund-bets-for-punters-who-lost-out-on-16000-jackpot.html|title=Betfair will only refund bets for punters who lost out on £16,000 jackpot|date=28 September 2011|work=The Daily Telegraph|access-date=23 March 2015|archive-url=https://web.archive.org/web/20150110210208/http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/8792831/Betfair-will-only-refund-bets-for-punters-who-lost-out-on-16000-jackpot.html|archive-date=10 January 2015|url-status=live}}</ref>