Betfair co-founder asks UK government to protect racing sector

Neha Soni December 9, 2024

SiGMA news

Betfair’s co-founder Andrew Black has expressed concerns over the declining betting turnover of horse racing in the UK. He also predicted that the situation would only get worse.

This comes after the UK Gambling Commission published its latest report which noted a 25 percent decline in online betting turnover equal to £3 billion. Black believes the worst is yet to come and has appealed to the government to protect horse racing, highlighting its cultural and economic importance.

Betfair’s co-founder suggested to do so by having separate regulations for racing from other forms of gambling. Insisted that racing has a cultural significance, he said it should be treated differently than other forms of gambling as it is more specific than regular betting and casino gaming.

Black further said that treating racing differently is the only way to reverse the negative trend. Calling for the government’s involvement, he said the pleas of the countless people employed by the racing industry should be heeded.

Affordability checks and downward spiral

The controversial affordability checks have been largely blamed for the decline in bets on horse races. The industry stakeholders have opposed these checks strongly, calling them an intrusive measure that would alienate players.

The Gambling Act review introduced affordability checks. The idea was to prevent people from betting more than they could afford. However, the plan immediately ruffled feathers, especially in the horse racing world.

There is a belief that the checks will lead players not willing to undergo regulation towards the black market. This would eventually result in losses for the legal industry.

Lower turnover will result in licensees not being able to improve their product offerings, creating a downward spiral. This would inadvertently channel players towards illegal operators. He fears there is no end to this trend and that it would continue.

UKGC’s response

The UKGC said it has and will continue to engage with the racing sector but not at the expense of British bettors. The commission’s chief executive, Andrew Rhodes, said operators have misunderstood the checks’ intentions. He said they would only affect heavy spenders in an attempt to minimise harm and prevent financial fraud.

He further said other factors like customers’ spending capacity and product competition have also affected the reduction in racing turnover. Rhodes said affordability checks are not the sole factor responsible for the declining turnover.