UK Racing: £3bn black hole sparks affordability checks threat as online betting turnover on racing crashes

Imago

The financial doom facing UK racing has been laid bare for all to see after new figures exposed a £3bn fall in online betting turnover on the sport over the last two years; equivalent to a decline of more than 25%. 

This has prompted UK racing to call for an immediate intervention on affordability checks from both MP Nick Timothy and the Betting and Gaming Council (BGC).

Statistics from the UK Gambling Commission (UKGC) reveal that, over the past two years, online betting turnover has dropped. Accounting for adjusted inflation the turnover was estimated to be approximately £11.5bn but has since dropped £3bn.

Last week, Timothy, the Conservative MP whose West Suffolk constituency includes the famous Newmarket Racecourse, asked ministers in parliament about progress on the levy and affordability checks but did not receive an answer on the latter point.

He said on Tuesday: "These statistics show exactly why so many are worrying about the effects of disproportionate affordability checks on horseracing. I’ve raised this problem – along with the need to reform the levy – repeatedly since I was elected and while the words have been warm ministers are yet to come forward with solutions. The decline in betting on horse racing shows how urgent this is."

This decrease in online betting turnover adds to the financial anxiety for UK racing, which has suffered from a loss of funding from media rights, sponsorships and levy contributions.

British Horseracing Authority director of communications Greg Swift stressed the importance of extensive evaluation of affordability checks: “One of the things we have made clear to the commission is the need to work closely with the Department for Digital, Culture, Media & Sport (DCMS), betting operators, bettors, ourselves and wider stakeholders to make sure the results of phase one of the pilot tests are independently reviewed.

“They must be subject to really rigorous independent evaluation to fully understand the potential implications of these checks. Failure to do so would only lead to a significant lack of confidence across the sport and the industry in those provisional findings.”

Meetings between the BHA and the BGC are planned to discuss levy reform and address the financial crisis, with a report expected to be submitted to the Government in the coming months.