Government rejects gambling threshold.

The Government has rejected proposals from a committee of MPs and peers which could have brought about the setting of a threshold above which betting exchange users would be determined "non-recreational".

It has also decided that backers and layers should not be treated separately.

The Joint Scrutiny Committee into the proposed new Gambling Bill wanted exchange firms to register "non-recreational" layers and for those using exchanges to lay bets professionally to be "identified, regulated, made subject to the appropriate levy arrangements, and have their status checked."

A powerful lobby including the British Horseracing Board and High Street bookmakers had urged that high-volume layers be regulated.

In its response to the Committee's recommendations, the Government yesterday said it had discussed with the exchanges the possibility of identifying and regulating layers operating beyond a certain threshold.

But it said: "We believe that any attempt to define a threshold for non-recreational users would inevitably be arbitrary and could not provide any certainty about the point at which a user was undertaking betting transactions in the course of business.

"We think it preferable to implement a universal registration scheme proposal, and to require exchanges and the Gambling Commission to work together to identify parties who may be using exchanges to run a business, without the appropriate licences."

BHB chief executive Greg Nichols said: "Government's unwillingness to agree to implement the Joint Committee's recommendation for a threshold beyond which a `lay' on a betting exchange is regarded as non-recreational will do little to reduce the incentive for certain individuals to attempt malpractice.

"Racing is damaged if a malevolent act takes place, regardless of the outcome of any subsequent investigation process.

"We will continue to support the views of the members of the Joint Committee as the Gambling Bill goes forward and we urge Government, to address key integrity issues which remain outstanding."