BHA CEO says BGC voluntary code a positive as she bangs the drum for levy reform update

British Horseracing Authority (BHA) CEO Julie Harrington has said the Betting and Gaming Council’s (BGC) voluntary code of conduct on affordability checks is a “move in the right direction” but more still needs to be done. 

Harrington highlighted it was clear the government had “listened to racing’s long campaign against affordability checks” after giving its backing to the trade body’s new measures.

The new code of conduct, which will sit alongside the Gambling Commission’s (GC) confirmed six-month pilot scheme for financial risk assessments, aims to give member operators a level playing field when it comes to customer care.

The GC’s pilot scheme has not disclosed what limits it will set, but the regulator has confirmed the low-level checks will commence after a £125 net deposit threshold is reached.

Under the voluntary code, checks will start with net deposits of more than £5,000 in a rolling month, at which point operators must conduct a risk assessment to determine if the customer is displaying any markers of gambling-related harm. 

This may include an estimate of the player’s income or wealth, as well as a safer gambling interaction, which must include a self-declaration of the customer’s income and/or wealth.

The trade body has said that low-level checks will not require players to provide any private financial documentation.

Also, at this level checks are at £2,500 for those aged between 18 and 24.

A second level of checks for net deposits of £25,000 a month will see further intervention from operators.

Harrington praised racing fans and the wider industry as the catalysts for this announcement.

She said: “It is also to the credit of racing fans and the wider racing industry that their lobbying of government, whether through taking part in our ‘Right to Bet’ survey or signing the petition to trigger February’s Westminster Hall debate, has so clearly been heard.

“While today’s announcement on increased thresholds for affordability checks is a move in the right direction, it does not yet secure a more sustainable future for racing’s finances.”

However, the BHA chief took the opportunity to air her concerns over the government’s review of the levy, which has yet to reach a conclusion.

Harrington added: “We remain concerned that there is no update on the government’s review of the levy, promised more than a year ago, and the threat that represents to racing’s financial wellbeing.”

The current statutory levy within horseracing is 10% of bookmakers’ gross profits on British racing above the first £500,000.

The government committed to revisiting this system by 2024 and, in the white paper, the Department of Culture, Media and Sport (DCMS) revealed that the process was underway “to ensure the appropriate level of funding for horseracing is maintained.” 

The DCMS said that while an increase in the current levy rate was possible, it was also evaluating the proposal to switch from a model based on operators’ gross profits to one based on betting turnover from British racing. Harrington also raised concerns about a lack of updates on anti-money laundering checks, which BGC CEO Michael Dugher said had to have

its own voluntary code of conduct to match the new financial risk check framework.

She commented: “It is also vital that new rules on anti-money laundering checks are set out as soon as possible to avoid racing bettors being caught up in separate requests for financial documents.”

Lastly, Harrington added that the BHA will continue to work closely with the government to ensure the new levy will protect the future of British horseracing.

She concluded: “We will continue to work collaboratively with the Secretary of State Lucy Frazer and Sports Minister Stuart Andrew to secure a review of the levy that delivers a sustainable funding model for Britain’s second most-watched sport, safeguarding thousands of jobs and an economic lifeline in Britain’s rural communities.

“It remains our belief that the simplest way to do this is to increase the basic rate of levy and include bets taken on overseas racing to put our sport on a level playing field with other jurisdictions.”