Conservative MP Laurence Robertson recently told the UK Gambling Commission (UKGC) that the country’s horse racing industry could suffer a “devastating impact” should enhanced “affordability checks” to monitor gambling losses be put in place.
According to the Racing Post, the new measures would flag customers when they hit net monthly losses of £100.
Robertson, a parliamentary adviser to the Betting and Gaming Council (BGC) and MP for Tewkesbury, home of Cheltenham Racecourse, believes British racing could be critically undermined by the new benchmark.
In a statement, he said: “Any reduction in this income as a result of people being diverted to the black market, or being put off betting altogether, as a result of over-stringent measures being taken would be disastrous for the sport.” U.K. horse racing gets £350 million a year from the betting industry.
He also said the checks can be harmful for players, and possibly drive them to illegal operators. “Any steps must also avoid unintended consequences should customers refuse—quite reasonably – to provide their private financial data to operators. While the unintended consequences may manifest in the form of a devastating impact on sport such as racing, another is generating consumer harm through driving customers to sites which will not make these onerous requests upon them.”
Industry leaders also oppose the proposed regulations, claiming the sport could lose up to £60 million in media rights and a reduced levy if bettors opt out of legal gaming. Jockey Club CEO Nevin Truesdale and Arena Racing Company CEO Martin Cruddace said the measure could result in £100 million in losses.
The British Horseracing Authority (BHA) issued a statement saying: “In our submission, we outline that we are supportive of gambling regulation which is fit for the modern digital age and which helps reduce gambling-related harm, but emphasize that any changes must be evidence-based, scrutinized for their socio-economic impact and fully account for any potential unintended consequences for industries such as British racing.
“We understand this is also clearly an issue which has caused concern to the many customers of the sport who enjoy betting safely and responsibly, and have looked to reflect customers’ concerns as part of our submission.
“We have simultaneously been highlighting to parliamentarians our significant concerns regarding the impacts of these proposals for our industry’s finances, particularly after the Covid-19 pandemic.”
In related news, a report commissioned by the BGC highlights reasons to be concerned by black market threats to the country’s gaming industry. BGC Chief Executive Michael Dugher said the legal industry is “sleepwalking” towards a “black market disaster” if stricter regulations are introduced.
Meanwhile, 11 U.K. soccer clubs, including those in the Premier League, English Football League (EFL) and Scottish Premiership, have received letters from “50 former gambling addicts” warning them against promoting betting on social media sites such as Twitter.
The letter said former addicts feel “distressed” when they see such links, and continued, “We hope that you will take this request seriously and we look forward to seeing your social media channels free of direct gambling promotion soon.”
Most social media sites in the U.K. have implemented safer gambling controls recommended by the BGC, where betting operators may only display ads to those who have verified that they are over 18. This reportedly caused the number of such ads to decline from 70 to five from July to September of last year.
The U.K. is reviewing the 2005 Gambling Act and one possible result may be a ban on gaming industry sponsorships of team jerseys.
