Racing industry fears £60m financial hit from UK affordability checks

UK horseracing could face a £60m revenue blow if affordability checks are imposed on bettors by the Gambling Commission (UKGC), the sport has claimed. According to The Guardian, a template letter from senior racing figures calls on MPs to reconsider the proposals, labelling them as “disproportionate” and an invasion of privacy. The UKGC is prepared to consider monthly loss limits of £100, having opened a consultation in November ahead of the government’s review of the 2005 Gambling Act. Depending on the results of the review, the UKGC could add further restrictions to the licensing codes of conduct and practice (LCCP) for gambling operators later this year. The letter from racing states: “I am reliably informed that the proposals put forward by the Gambling Commission could result in more than £60m in direct losses to the British racing industry from reduced Horserace Betting Levy and media rights income. “This would be amplified many times over through the wider rural economy and potentially lead to racecourses closing. “The Gambling Commission’s proposed action would be disproportionate to the small number of people who suffer harm from betting on racing, as well as being a very significant invasion on personal liberty in the free society in which we live. “At a time when racing and the British economy are trying to recover from Covid-19, a rushed intervention like this would also significantly set back recovery,” the letter concludes. It is understood the letter calls for horseracing to be exempt from proposed affordability changes, claiming that it is a skill-based pursuit and is less likely to trigger problem gambling. The UKGC has already ruled out the prospect of a “licence to gamble”, which would demand pre-emptive affordability checks on all consumers. UK horseracing has been severely affected by the coronavirus pandemic, with on-course betting largely unavailable and spectators banned from racecourses. The industry, which has been operating behind-closed-doors for the most part, has already lost out on significant revenue from racegoers and shuttered betting shops. Last week, Scottish Racing admitted the current situation was “unsustainable” and had effectively left horseracing in Scotland on its knees. Scottish racecourses reportedly lost £12m, or 55% of their regular income, before the second lockdown due to the absence of punters from racetracks.