The British horseracing industry is in a state of financial crisis. New figures have revealed that online betting turnover has plummeted by a colossal £3 billion in the last two years. This amounts to a 25 percent reduction in wagers and is being blamed on affordability checks which have recently been introduced. To gamble responsibly in the UK, bettors must undergo affordability checks, providing financial details as proof of their means.

Though intended to safeguard players, these measures have inadvertently placed a stumbling block to the horseracing industry, and its revenue. Now industry leaders, politicians and the wider community which the horseracing industry supports are urging prompt action to reassess the impact of these regulations. They want to open a dialogue to ensure a balance between the intention of added regulation and the consequences of implementing it.

Now the very future of horseracing hangs in the balance.

Affordability rules saddle racing with losses

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.

Often, bookmakers request sensitive financial details, such as bank statements or payslips, from bettors before allowing larger bets. Critics argue these harsh regulations deter casual bettors. In a recent in-depth , this £3 billion shortfall illustrates just how much the measures, implemented with good intention, have had on recreational bettors. Many of these now seem penalised by the rules, which should actually address problem gambling, not make recreational gambling overly fraught with red-tape.

The Gambling Commission released figures to illustrate how online turnover has fallen to £8.37 billion compared to £10 billion two years ago. These figures consider affordability checks but show a disparity between horseracing and other betting products.

Horseracing is reliant on a loyal and high-stakes customer base. Other products like football betting and online casino games have fared better. Football betting thrives thanks to its broad, worldwide appeal, driven by mass media coverage of major tournaments and prime events like the Premier League and Champions League. Online casinos have mitigated losses in part because of the high frequency of small bets on slots and table games.

Newer products like esports betting and virtual sports are increasing in popularity with younger and tech-savvy audiences whilst maintaining a steady growth. In contrast, horseracing struggles to attract new bettors. This disparity underscores the uneven burden affordability checks place on different sectors of the gambling market.

The British Horseracing Authority (BHA) expressed their concerns and warned the new affordability checks may threaten the future of horseracing through its financial health. They urge the need for a balance between responsible gambling initiatives and looking at the ‘real-world’ reality of these measures and seeing how it’s already affecting the racing industry. The BHA seeks urgent action to keep the industry alive.

Heavy going for racing’s economy

The impact of sinking turnover not only affects the horseracing industry. Far-reaching consequences also affect far beyond what bettors, fans, spectators and the industry itself see. Although horseracing relies heavily on betting revenue to cover costs, including prize money, employment, track maintenance and its own safety drives, the wider supply chain also suffers from the knock-on effects of this. Communities which are built around the horseracing industry also experience added hardship to the cost of living and economic crisis that the UK is currently undergoing.

The Horserace Betting Levy Board (HBLB) sounded the alarm on this. Their warning that smaller racecourses, such as Ripon and Wetherby for example, and community level programmes could face a significant threat with the decline in overall betting revenues. Prize money reduction also hinders grassroots and high-profile events, jeopardising their existence. A recent study suggested lower-tier races may have their prize funds slashed by up to 20 percent, forcing trainers and owners to reconsider their involvement in the sport.

But these challenges stretch beyond the financial. They are deeply personal. Thousands of livelihoods depend on the horseracing economy being vibrant and healthy. From jockeys to stable staff to the industry that race events support. An entire community that rallies around their local racecourse will also feel the pinch.

The House of Commons Library has already acknowledged the pressure on the sport, calling horseracing “a cornerstone of rural Britain” that needs urgent support. Growing numbers demand a more practical government approach to gambling rules in UK horseracing, otherwise an entire heritage and tradition is under threat.

Raising the stakes on regulation

The plight of the horseracing industry is not an isolated issue. Critics argue affordability checks represent a heavy-handed approach that does not account for the nuances of different betting markets.

Additionally, offshore hubs which operate outside of traditional regulatory frameworks exacerbate the horseracing industry’s struggles, acting as pseudo-regulators. A recent SiGMA News article discussed the Isle of Man’s Gambling Supervision Commission (GSC) where the International Federation of Horseracing Authorities (IFHA) criticises offshore operators for undermining the industry’s integrity and financial stability.

Industry experts see that the affordability checks which, by design, promote responsible gambling create barriers for recreational bettors. Thus it’s not only horseracing that the impact affects. Other betting sectors, including football and greyhound racing, are prime examples. As the Racing Post reported, the Gambling Commission-mandated checks normally involve customers proving their financial means by meeting average income conditions. The Culture, Media and Sport Select Committee (DCMS) advises that affordability checks should be minimally intrusive and also protect gamblers’ financial privacy.

To add to the ongoing debates over gambling regulations, The Gambling Commission’s recent decision to clear a Labour candidate of election betting fraud, despite controversy, has sparked robust discussion on the consistency and fairness of regulatory implementation.

Many bettors share their frustration over the intrusiveness of affordability checks. Recent comments on social media include customers being asked to provide sensitive financial information and proof, such as bank statements, payslips or tax returns, even for modest wagers. One commentator on X (formerly Twitter) described the process as “off-putting and degrading,” reflecting the indifference experienced by recreational bettors.

Others highlight deeper issues. Comments allege some bookmakers limit successful bettors to small stakes and refuse to honour winning bets in-store, forcing transactions online. Some punters criticise the racing industry for ignoring the needs of bettors, only to react urgently when its revenue stream or livelihood is affected. “Punters have been dragged through the mill by crooked bookies for years,” one user remarked, summing up the frustration many feel.

Mandatory minimum bet limits, as seen in Australia, are one suggestion for reform, as well as targeting online casinos, often blamed as a major cause of problem gambling. There is also a widespread conversation about making individuals, not the government or racing industry, be responsible for their own gambling problems. Debates have raged. On one hand, the Lancet public health commission unveiled a report that argues the negative effects associated with gambling are now comparable to those posed by tobacco and alcohol. On the other, people propose an argument that those individuals who heap added pressure on the public health and social sector in the UK should face charges at the point of service as a deterrent.

The Gambling Commission expresses their commitment to reviewing affordability measures while maintaining a focus on consumer safety. A spokesperson said, “We are testing ways to ensure affordability checks are frictionless and effective in protecting at-risk individuals while minimising disruption for others.” It is clear these trials aim to address the criticism that blanket measures unfairly impact recreational bettors, a sentiment echoed by both industry stakeholders and punters alike.

At odds over reform

The BHA, alongside other key stakeholders, has intensified its lobbying efforts to push for revisions to affordability checks. It argues that more targeted approaches, such as focusing on bettors who display clear signs of problem gambling, could ease harm without alienating recreational gamblers.

Thus far, government officials have resisted calls to dilute the regulations. Their argument is based on the fact that these measures will help to protect vulnerable individuals and promote responsible gambling. However, other insiders suggest ongoing discussions may result in modifications aimed at softening the unintended consequences for industries like horseracing. One proposed solution includes raising the thresholds for affordability checks. This would allow casual bettors to gamble freely within reasonable limits. Other ideas include a data-driven approach, using artificial intelligence (AI) and advanced algorithms to identify individuals at risk rather than imposing blanket measures.

Clearing the final fence

The debate over affordability checks rages as the racing industry finds itself at a crossroads. Stakeholders demand reform, but the way forward is very uncertain. With £3 billion already lost and more financial challenges on the horizon, the stakes have never been higher.

The Gambling Commission is reviewing affordability measures with a continued priority on customer safety. In a recent statement, a spokesperson declared, “Our role is to ensure gambling is conducted fairly and safely. We are committed to working with all stakeholders to find solutions which protect individuals without compromising the viability of industries reliant on betting revenues.”

For now, the finish line for horseracing’s future remains unclear. It is vital for the government and industry, and all its stakeholders, to find common ground. Discussion and implementation are two separate issues, though.

One thing is clear: action must come quickly to preserve this cherished sport. The balance to strike is to reassess the current regulations as a priority. Without swift and decisive action, the UK risks losing another symbolic part of its heritage and tradition that has made it a notable nation on the world stage.

The devastation, if allowed to happen alongside other government measures and economic proposals to plug the treasury’s financial black hole, will cause significant ruin for many.

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