**UK Racing Calls for Immediate Action on Affordability Checks Amid Huge Betting Shortfall**
UK Racing has urgently requested intervention regarding affordability checks as government officials are alerted to a significant £3 billion shortfall in the online betting turnover on horseracing.
Today, concerns surrounding the drastic drop in horseracing betting turnover were spotlighted by *The Racing Post*, labeling the traditional sport as being in the midst of a ‘financial crisis.’
According to data from the UK Gambling Commission (UKGC), the last two years have seen a £3 billion real-term decrease in horseracing’s online betting turnover. When adjusted for inflation, the turnover loss balloons to an estimated £11.5 billion.
*The Racing Post* emphasized, “These figures have sparked urgent appeals for action on affordability checks from both MP Nick Timothy and the Betting and Gaming Council (BGC).”
The continuing decline in online betting turnover is aggravating financial concerns for UK racing, already hit by reduced income from media rights, sponsorships, and levy contributions.
Adding to the industry’s financial woes are rising costs, including inflation, increased wages, and higher National Insurance contributions for rural employers.
The government must recognize the uneven impact of gambling’s affordability checks on UK racing, which tends to attract higher-stakes bettors compared to other sports.
Applying the same affordability checks across UK racing is inappropriate, as Commission statistics indicate that “horserace betting turnover has dropped by 16.3% over the past two years before accounting for inflation. In contrast, turnover for greyhound betting fell by 12.9%, football by only 7%, and online slots maintained steady turnover during the same period.”
UK racing’s stakeholders remain deeply concerned, with betting turnover in horseracing continuing to dwindle, showing a 9.5% decrease from January to August 2023.
Conservative MP Nick Timothy shared his apprehensions in Parliament about the racing levy without receiving any response on affordability checks: “These statistics highlight the significant worry over the negative repercussions of unjustified affordability checks on horseracing. I’ve repeatedly addressed this issue, together with the need for levy reforms, since my election, yet despite positive responses, no solutions have been forthcoming. The betting downturn in horseracing underscores the urgency of the matter.”
The BGC has pointed out the sharp decline in racing’s betting turnover resulting from regulatory actions introduced through the Gambling Review. The organization advocates for effortless and precise customer checks to avoid inconvenience to casual bettors.
Despite the ongoing decrease in betting turnover, the BGC stressed that its members contribute £350 million annually in direct support for UK racing, involving enhanced levy contributions, media rights, and sponsorship agreements.
The BGC will lead negotiations for UK gambling in discussions on restructuring the British racing levy—an issue that previous Conservative administrations omitted from the scope of the Gambling Review.
The British Horseracing Authority (BHA) is actively collaborating with the DCMS and other parties to address issues around affordability checks and diminishing turnover. However, the absence of advancement towards an anti-money laundering code remains problematic.
Greg Swift, BHA Director of Communications, underscored the necessity of a careful review of affordability checks: “We have made it clear to the commission that close cooperation with DCMS, betting operators, bettors, ourselves, and wider stakeholders is essential to ensure that the phase one pilot test results undergo independent review.
“Thorough and independent evaluations are crucial for understanding the potential impact of these checks. Without this, there will be a severe trust deficit across the sport and industry in those preliminary findings.”
Meetings between the BHA and BGC are scheduled to rejuvenate discussions on levy reform and address the financial crisis, with a comprehensive report anticipated to be delivered to the government shortly.