The UK's gambling watchdog has been urged to investigate "suspicious" insider betting on the recent appointment of John Healey as Chancellor. His selection was a significant surprise in the latest Cabinet reshuffle, occurring after days of speculation that Home Secretary Shabana Mahmood or Ed Miliband would be given the Treasury role.
Shabana Mahmood had been the favorite for the position, with a predicted 84% probability at odds of 1/5 on the betting exchange Smarkets immediately before the appointment. However, in the hours leading up to Healey's formal announcement at 6 p.m. on Monday, four bets were placed between 8 a.m. and 1 p.m. at odds ranging from 80/1 to 140/1. Each of these bets had the potential to win at least £600, an amount exceeding the £100 threshold that typically triggers a Gambling Commission investigation. These bets have now been reported to the watchdog.
Sources indicate that Healey's appointment was decided well in advance by "Team Burnham," with measures taken to ensure the information remained confidential. One individual with knowledge of the situation stated that a secret summit between Healey and Ed Miliband took place at Miliband's constituency office in Doncaster three weeks prior to Andy Burnham becoming Prime Minister. The discussion reportedly focused on Healey's pathway to the chancellorship, with even their respective advisors excluded to prevent any leaks.
Scrutiny and Precedent
Robert Jenrick stated that the watchdog "should investigate this suspicious activity." He drew a parallel to a recent case where a former Conservative MP pleaded guilty to cheating at gambling related to the timing of the general election, adding, "It would be outrageous if someone at the top of the Labour party has done the same."
The Gambling Commission has not yet confirmed whether it has initiated a full review, citing the need to "preserve the integrity of investigations." Insider betting is considered a criminal offense under the Gambling Act 2005.
During a previous "gambling scandal" involving Conservative politicians who allegedly used inside knowledge to bet on the date of the June 2024 general election, Labour politicians publicly called for thorough criminal investigations. Pat McFadden, now the Secretary of State for Work and Pensions, wrote to then-Prime Minister Rishi Sunak regarding the "gambling scandal engulfing the Tory party," suggesting a double standard and demanding the suspension and public naming of those involved. He also urged a full investigation by the Gambling Commission. Several Conservative MPs, including Rishi Sunak's close aide Craig Williams, faced prosecution for bets smaller than those now under scrutiny. In contrast, when asked about the current allegations, a Labour spokesperson declined to comment.