Affordability Checks Face Backlash from Racing Industry

The British Horseracing Authority (BHA), bookmakers, and prominent figures within the racing world are urging the Government and the Gambling Commission to reconsider newly proposed affordability checks. Concerns center around the potential for these checks to drive bettors towards the unregulated black market, significantly impacting revenue and jobs within the industry.

What are the Proposed Affordability Checks?

The enhanced affordability checks, initially raised by the previous Government and trialed starting in 2024, are set to be implemented when a customer reaches a net spend threshold of £1,000 per day or £2,000 within a 90-day period. These checks aim to ensure bettors can afford their gambling activity. The Gambling Commission states they are continuing to work on these financial risk assessments with a focus on minimizing friction for consumers.

Industry Concerns

The Betting and Gaming Council (BGC) estimates that approximately 120,000 racing punters could be required to submit personal financial documentation to demonstrate their ability to afford betting. The BGC further suggests that around 96,000 customers may refuse to comply with these requests, based on current drop-out rates.

Grainne Hurst, chief executive of the BGC, warned that the proposed financial risk assessments could duplicate existing protections while simultaneously pushing customers towards the unsafe, illegal black market. She stated, “Without a better solution the illegal market will only grow.”

Financial Impact and Job Losses

The BHA echoes these concerns, fearing that the changes will divert customers from regulated bookmakers. A 2023 Government analysis indicated a potential loss of up to £700 million in revenue for the industry. This revenue loss would translate into a substantial tax deficit for the government.

Brant Dunshea, chief executive of the BHA, urged the Commission and Government to carefully consider the timing of these additional regulations, given recent regulatory and tax changes. He emphasized that a failure to find a better solution would not only fuel the illegal market but too lead to significant job losses and deprive the Government of vital tax revenue.

Trainer William Haggas Voices Opposition

William Haggas, trainer to King Charles III, has also joined the calls for a review of the affordability checks. He argued that betting on horse racing is a long-standing tradition and that any interference with this activity could harm the industry, cost jobs, and reduce government tax income. Haggas believes the Government should revisit the issue to ensure a positive outcome for all stakeholders.

Safer Gambling Resources

If you are concerned about your gambling, support and information can be found at:

• National Gambling Helpline / GamCare: 0808 8020 133
• begambleaware.org
• gamblingtherapy.org