Industry stakeholders issue stark warning around affordability checks ahead of parliamentary debate

Several horseracing industry stakeholders, as well as the former Chancellor of the Exchequer, have insisted affordability checks will lead to growth in the black market ahead of a parliamentary debate later today.

In comments reported by the Racing Post, former Chancellor Nadhim Zahawi has urged the government to rethink the policy as he warned horseracing would face an “existential threat” as a result of these “ill-advised, blunt and damaging” checks.

Zahawi, who served as Boris Johnson’s Chancellor in the final months of the Prime Minister’s tenure, counts Stratford racecourse as one of the key employers in his constituency.

Zahawi said: “I believe we face an existential threat to racing. I, with  Steve Harman [ex-BHA chair], have been actively engaged in this issue, and I’ve visited some of the major trainers in Newmarket, including John Gosden, as well as the Skeltons in my own constituency. 

“I am genuinely worried that the current situation could permanently harm the industry, leading to people leaving the sector and moving to other countries. It’s a very bad position to be in.”

Zahawi added that he believes these checks are not the best way to tackle gambling harm.

He explained: “These blunt checks are not being targeted at the 3% of people who really need help as problems gamblers. These are harming those who are enjoying a flutter and supporting the racing industry.

“I believe there are much better ways of doing this. There are 15 markers of harm and a lot of academic work being done that can help identify these 3% of people who really do need help, rather than this charade which is causing deep harm to what I think is a very important industry for not just rural constituencies like mine but the whole country.”

Zahawi’s views come ahead of the parliamentary debate on affordability checks scheduled to take place this afternoon, 26 February.

However, Zahawi confirmed he would not be able to attend the debate, which was sparked by a petition started by Jockey Club CEO Nevin Truesdale, which surpassed the requisite 100,000 signatures last year. 

Truesdale also aired his concerns in an article published on the Racing Post site yesterday, 25 February, arguing that implementation of affordability checks will “risk livelihoods” and “fuel the gambling black market”.

He added that while British racing is supportive of attempts to reduce gambling-related harm, he backed Zahawi’s point that the checks will not help those most at risk and called on the government to look at “more effective” ways of tackling the problem. 

The proposed affordability checks are set at two tiers, with the first tier encompassing light-touch checks for a net loss of £125 within a 30-day period or £500 within a one-year period. 

The second tier, the enhanced level checks, will come into force when a player records a net loss of more than £1,000 in a rolling 24-hour period or £2,000 in a rolling 90-day window.

Truesdale added that even these lower-level checks would “not recognise an individual’s personal circumstances and not effectively take action to intervene if there are signs of gambling vulnerability”. 

Instead, the Jockey Club CEO proposed a different system to spot markers of gambling-related harm.

Truesdale explained: “Instead, a better system of increased use of data sharing and government-agreed ‘markers of harm’ would allow for early, more specific intervention as soon as anyone showed any signs of harmful betting and be a much more effective way to tackle problem gambling with the small minority of individuals whom it impacts.”

Last week, the Gambling Commission (GC) confirmed its pilot test plans for affordability checks, claiming that the checks would be frictionless “for the vast majority”. 

Following this announcement, Arena Racing Company CEO Martin Cruddace wrote to the GC, voicing his doubts on how frictionless these checks would be and requesting a meeting to discuss it further. 

Cruddace previously told the government that the affordability checks already introduced by operators had cost British racing over £1bn in online betting turnover since 2021. 

The CEO also expressed his gratitude for the parliamentary debate and hopes it will provide an opportunity for ministers to consider how damaging these checks will be on the horseracing sector.

Cruddace added: “Equally, I hope it will be the catalyst for further clarity from the GC about the upcoming pilot schemes and how they may in turn impact on racing.”

Other horseracing heads to come out in support of the debate including Racehorse Owners Association CEO Charlie Liverton and Racecourse Association boss David Armstrong.

The topic of affordability checks has elicited much consternation from within the industry, with GC executive director Tim Miller speaking to EGR recently on the matter.

On the upcoming debate today, the BHA has already conceded the session is unlikely to result in an “immediate change to government policy”.