UK Racing has called for immediate intervention on affordability checks, as ministers are notified of a “£3bn deficit in online betting turnover on horseracing”.

This morning, concerns about the plummeting betting turnover of horseracing were highlighted by The Racing Post, which stated that the heritage sport was in a ‘financial crisis’.

Statistics from the UK Gambling Commission (UKGC) reveal that, over the past two years, online betting turnover on horseracing has dropped by a real-terms value of £3bn. Adjusted for inflation, the turnover shortfall is estimated to be approximately £11.5bn.

The Racing Post noted: “The numbers prompted calls for urgent action on affordability checks from both MP Nick Timothy and the Betting and Gaming Council (BGC).”

The decline in online betting turnover poses further financial anxiety for UK racing, which has suffered from a loss of funding from media rights, sponsorships, and levy contributions.

Furthermore, rising costs in the racing community—including inflation, wage increases, and a higher National Insurance contribution for rural employers—have compounded financial hardships.

The government must recognise the disproportionate effect of gambling’s affordability checks on UK racing, which attracts higher-staking customers compared to other forms of sports betting.

Affordability checks cannot be applied with the same mechanism to UK racing, as Commission statistics reveal that “horserace betting turnover has fallen by 16.3 per cent over the last two years before inflation is taken into account, whereas turnover on greyhounds was down by 12.9 per cent, football by only seven per cent, and online slots turnover remained flat over the same period.”

The anxieties of UK racing stakeholders are clear, as betting turnover in horseracing has continued to decline in 2023, with a 9.5% drop year-to-date by August.

Nick Timothy MP

Conservative MP Nick Timothy expressed direct concerns to Parliament regarding racing’s levy but received no comment on affordability checks: “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 horseracing shows how urgent this is.”

The BGC has highlighted the double-digit decline in racing’s betting turnover as a result of regulatory measures introduced in the Gambling Review. The trade body maintains that customer checks should be frictionless and targeted, so as not to create friction for recreational customers.

Despite the continued drop in betting turnover, the BGC emphasised that its members have contributed £350m annually in direct funding for UK racing, including increased levy contributions, media rights, and sponsorship deals.

The BGC will act as the chief negotiator for UK gambling in discussions regarding the structure of an amended levy for British racing— an issue that was excluded by the former Conservative government from the remit of the Gambling Review.

Greg Swift: BHA

The British Horseracing Authority (BHA) continues to engage with the DCMS and other stakeholders to address affordability checks and declining turnover. However, the lack of progress on an anti-money laundering code remains a significant issue.

BHA Director of Communications Greg Swift stressed the importance of thorough evaluation of affordability checks: “One of the things we have made clear to the commission is the need to work closely with 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 BGC are planned to reignite talks on levy reform and address the financial crisis, with a report expected to be submitted to the government in the coming months.

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