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the reason why betting institutions MUST have segregated accts for customers and operations

Prime example of why America doesn't allow widespread gambling - they simply have no idea how to look after the public interest.


NH enacts rules to protect track bettors

Wednesday, January 14, 2009

CONCORD, N.H. (AP) — New Hampshire has approved stricter gambling regulations to protect bettors if state dog or horse tracks go bankrupt.

The rules could have saved bettors at the bankrupt Hinsdale Greyhound Park a half-million dollars they had in betting accounts at the track.

The Racing and Charitable Gaming Commission approved the regulations on Tuesday. They will require the state's three remaining greyhound and harness racing tracks to maintain accounts at state financial institutions that could be used to pay back bettors and other creditors in bankruptcy or closure.

The Lodge at Belmont, Rockingham Park and Seabrook Greyhound track have until March 1 to open the accounts.

The Hinsdale track filed for bankruptcy last month and abruptly closed. The track used money from the betting accounts to pay employees.

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That last point is absolutely shocking. Australian betting firms must deposit large security bonds with local authorities so that customers can be paid out in the case of going bankrupt. Betting exchanges must have client funds on deposit and operating funds completely segregated. Other firms often don't have to face such tight scrutiny, hence the long list of online bookies (and brokerages in the case of BetBrokers, exchanges in the case of SportingOptions) who have gone belly up without customers receiving a penny.

The entry barriers to getting a betting licence must be very high so that the fly-by-night cowboys with shoddy business models don't get in.

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