Setting up a 'legal' gambling syndicate - help please

[tszar84]

Hi,

I am looking to set up a gambling syndicate and would like to make sure the business is set up as legally as possible.

Effectively, the gambling syndicate will pool investor's money and one person (me), will bet on various events. They will not possess shares in the business, their investment will simply represent a certain % of the pool, from which they would receive a proportional share of profits.

I have heard through contacts that you can set up this type of structure legally as a 'gambling syndicate', but having searched business and .gov sites, I can't find anything on this.

I would be extremely grateful to anyone who can point me in the right direction here.

If anyone can tell me how this fits in with forming a legal entity (sole trader, private limited company) for the business, that would be great too.

So essentially, how do i set up a business (either as a sole-trader or private limited company) which is a legal gambling syndicate?

I'll reply to any questions as soon as possible.

Many thanks!

 

[LawHound]

You need to start with this site under betting http://www.gamblingcommission.gov.uk/gambling_sectors/betting.aspx

and also consider the FSA site here:

http://www.fsa.gov.uk/pages/Library/Communication/PR/2006/047.shtmel

and generally. The structure of your business is normally dictated by risk from a legal position so a limited company would be normal for betting activities. You really will not get answers on this type of complex legal issue via a forum, and for this type of business you should talk to a specialist solicitor experienced in this sort of venture before proceeding with this as an idea, its high risk.

 

[tszar84]

Thanks for the advice.

I've had a look at the gambling commission link, and it does seem to be clear that I would require a gambling operating licence for this business. So thanks for pointing me in that direction.

I will be consulting probably a large number of people regarding this because of the complex tax issues that come about with gambling.

If anyone has any experience with professional gambling or pool betting and knows whether I would need to 'formalise' the business in this way, I would be grateful for further information.

As far as i can tell in terms of FSA regulation, a spread bettor (which is what the business would be doing) is not a part of their regulated remit.

Thanks for all the help.