A polling station sign points to where local residents can cast their votes in Westminster, with the Queen Elizabeth Tower's clock face in the background, in London, on May 3.Kin Cheung/The Associated Press
Insider trading is usually associated with the business world, but Britain’s election campaign has been upended by allegations that candidates and political operatives have placed bets on the election using knowledge gleaned from non-public sources.
The growing scandal involves more than 15 candidates and party officials, mostly Conservatives, who allegedly bet on when the election would be called. Regulators are looking into whether the bettors knew before Prime Minister Rishi Sunak announced last month that voting day would be July 4.
The probe is yet another headache for Mr. Sunak, whose Conservatives trail the Labour Party by 20 points in most opinion polls. It has also raised questions about whether politicians should be allowed to bet on elections.
“My personal view, I would just say that people shouldn’t do it, but I think we should have a debate about it more broadly,” said Tory MP Mel Stride, a cabinet minister who is running for re-election.
Britain has a long tradition of betting, and by some estimates, nearly half the population buys a lottery ticket or places a wager at least once a month. While most punters bet on sports, it’s possible to take a flyer on almost anything from who will direct the next James Bond movie to whether it will rain on Christmas Day.
Betting on elections – when they will be called and which party will win – is also common.
Mr. Sunak stunned pundits and Conservative MPs by calling an early election instead of waiting until fall, which most MPs expected. Gambling companies and regulators are examining a spike in betting that occurred in the days leading up to Mr. Sunak’s announcement on May 22. Many of those bets would have carried long odds, resulting in a hefty payout for someone in the know.
News that some politicians may have cashed in came on June 12 when The Guardian reported that Craig Williams, an incumbent Tory MP from Wales, placed a £100 bet, or $173, on a July election on May 19.
Mr. Williams confirmed the bet and said he was co-operating with the Gambling Commission, which regulates the industry. “I don’t want it to be a distraction from the campaign. I should have thought how it looks,” he said.
So far, five Conservatives have confirmed that they are also under investigation. Along with Mr. Williams, the others include another candidate, the party’s head of data operations, the director of campaigning and a Conservative member of the Welsh assembly.
On Tuesday, the BBC reported that the commission is probing bets made by 15 Conservative candidates and officials.
Several other politicians have also come forward with tales of their gambling. Cabinet minister Alister Jack said he placed three bets on the date of the approaching election but insisted he had no knowledge of the election date. Liberal Democrat leader Ed Davey said he bet on the election outcome in 2010, when the party formed a coalition government with the Conservatives, but also said he had no insider information.
And on Tuesday, Labour candidate Kevin Craig said he has been questioned by regulators about the bet he made that he would lose in July’s election. Mr. Craig said he did it for fun and planned to donate any proceeds to charity.
Adding to the intrigue are allegations that five London police officers and a member of Mr. Sunak’s protection team are also under investigation by the commission.
The Gambling Commission has declined to provide details about the investigations.
Mr. Sunak said he was “incredibly angry” about the allegations, but it has taken him several days to disown the two candidates. He finally suspended both on Tuesday, and the two party officials have taken a leave of absence. Russell George has also stepped away from his opposition duties in the Welsh assembly and Labour has suspended Mr. Craig.
While it’s rare for politicians to be caught up in gambling probes, the allegations didn’t surprise Neal Luke, a former compliance manager at the Gambling Commission who is now an industry consultant.
“I’ve seen it all before,” he said Wednesday.
Mr. Luke said betting companies have rules about wagers made by “politically exposed persons,” or PEPs, which include members of Parliament, their families and close friends. Companies must also report suspicious activity by PEPs to the commission.
The commission can sanction companies that don’t follow proper PEP procedures. It can also refer bettors to the police for possible criminal prosecution.
Mr. Luke advises industry clients to avoid the hassle and simply stay away from politicians. “Just don’t accept them as customers,” he said. “It’s easier.”