The Impact of Affordability Checks on the Horseracing Industry

The horseracing industry in Britain is currently facing a significant threat due to proposed legislation that would impose strict affordability checks on bettors. These checks, outlined in the UK Government’s Gambling White Paper, aim to address problem gambling by subjecting individuals who lose as little as £1.37 a day to intrusive scrutiny. However, the racing industry argues that these measures would have a catastrophic impact on the sport and could result in significant financial losses.

The UK Government’s Gambling White Paper introduced the concept of two tiers of affordability checks. The first tier targets individuals who lose £125 in 30 days or £500 in a year. These bettors would undergo frictionless background checks using publicly available data. The second tier involves more detailed scrutiny for individuals with net losses of £1,000 within 24 hours or £2,000 in 90 days. These checks would require credit reference agencies to be involved, and bookmakers would also request personal documentation such as bank statements and proof of earnings.

The proposed blanket affordability checks have been met with significant opposition from various stakeholders in the horseracing industry. More than one in four bettors claim to have already undergone affordability checks by bookmakers in anticipation of their implementation. Some operators have even requested financial documentation, including payslips and P60 forms. Racing industry experts warn that enforcing these strict measures in their current form would have a devastating impact on the industry.

According to a survey conducted by the ‘Right to Bet’ campaign, over half of the 14,000 racing bettors who participated stated that they would either walk away from the sport completely or reduce their involvement if the proposed checks were implemented. This exodus could result in a significant loss of revenue for the industry, estimated at around £250 million over the next five years. Furthermore, the introduction of the checks has already led to a decline in online betting revenue.

In response to the consultation on ‘Financial risk checks for bettors’ conducted by the Gambling Commission, the horseracing industry has launched a petition urging the UK Government to abandon the planned implementation of the betting affordability checks. The petition, listed as “Stop the planned implementation of betting affordability or financial risk checks” on Change.org, highlights the industry’s concerns about the proposed checks’ intrusiveness and discriminatory nature.

The horseracing industry argues that the proposed checks represent a significant infringement on personal freedom. Nevin Truesdale, Chief Executive of The Jockey Club, emphasizes that it is deeply concerning that racing fans may have to prove they can afford to lose less than £10 a week on their hobby. This level of intrusiveness is not seen in any other aspect of society, and the industry believes it is unjustified given the low percentage of problem gambling in relation to horseracing.

The potential consequences of the proposed affordability checks extend beyond the horseracing industry itself. The industry, supporting over 85,000 jobs and contributing £4.1 billion to the UK economy annually, plays a crucial role in the communities it serves. If the checks were to be implemented, many livelihoods would be at risk. Trainers, breeders, farriers, vets, jockeys, and countless other individuals who depend on the industry for their income could face significant challenges. Additionally, the local businesses that thrive as a part of racing communities would also be put at risk.

One major concern raised by the horseracing industry is the effectiveness of the proposed checks in addressing problem gambling. While the industry acknowledges the need to help those with gambling issues, it argues that blanket affordability checks will not address the underlying problem. Betting is a habit-forming activity, and those who bet responsibly may be deterred or forced into the unregulated black market. Meanwhile, individuals who cannot afford to gamble may find alternative ways to do so.

Instead of blanket affordability checks, the horseracing industry advocates for a more targeted approach. Industry experts propose focusing on other markers of harm rather than solely relying on financial checks. By addressing the root causes of problem gambling and implementing measures that specifically target at-risk individuals, the industry believes a more effective solution can be found.