British Horseracing Authority hits out at “affordability checks”

The British Horseracing Authority (BHA) attributes a significant decline in betting revenue in 2024 to the stringent financial risk checks instituted by the Gambling Commission, suggesting that punters have increasingly turned to unlicensed gambling operators.

According to the BHA’s 2024 racing report released on February 19, overall betting turnover has decreased by 6.8% compared to 2023, marking a substantial 16.5% drop relative to 2022.

While the BHA refrains from publishing specific turnover figures, interviews with industry leaders indicate that this decline encompasses both retail and digital betting channels.

The report highlights a slowing in the rate of decline, dropping to below 1% in the latter half of the year. Notably, this period featured an increase in the number of races compared to 2023; however, the average turnover per race fell by 4% in 2024.

Richard Wayman, BHA’s Director of Racing, expressed his conviction in the report that the decrease in betting revenue is primarily driven by the constraints imposed by affordability checks.

Wayman emphasized that such checks have prompted many bettors to either withdraw from the gambling landscape or shift their wagering to unlicensed platforms that do not enforce these restrictions.

Last August, the Gambling Commission initiated a pilot program for light-touch financial vulnerability checks, which become active when a player’s monthly betting deposits reach £500 or more. At this threshold, further assessments are conducted by credit reference agencies to evaluate financial stability.

Phase two of this pilot is set to launch on February 28, when checks will be triggered at a net deposit level of £150 or higher.

Responding to the BHA’s claims, the Gambling Commission stated: “While we acknowledge that a BHA employee has shared personal views regarding the effects of what they term ‘affordability’ checks, the report lacks robust evidence to substantiate these claims. It’s crucial to recognize that the decline in betting turnover may be influenced by a multitude of factors, many of which are unrelated to gambling regulations.”

Furthermore, the Gambling Commission stressed that there are currently no regulatory mandates for “affordability” checks, clarifying that neither the government nor the Commission has proposed such measures.

Recently, the Gambling Commission released an update on the light-touch financial vulnerability checks pilot, revealing that approximately 95% of the 530,000 checks were processed through “frictionless assessments” by credit reference agencies.

Betting Decline Slows, Yet Job Security is Threatened

The horse racing industry is actively contesting the implementation of these financial checks, a contentious issue first proposed during the Gambling Act review and detailed in the subsequent white paper.

The Jockey Club, representing the horse racing community, estimates that these compliance measures could lead to an economic impact of £250 million on the UK horse racing sector over a five-year horizon.

In a cautionary statement issued in February of the previous year, the BHA warned that job losses among stable staff could reach as high as 1,000 due to the pressures imposed by these checks.

BHA Implements Strategies to Mitigate Race Clashes

The BHA’s 2024 report outlines a series of strategic initiatives designed to enhance its performance, including the rescheduling of races on Saturdays and minimizing the number of concurrent fixtures running between 2 PM and 4 PM.

Wayman explained, “Our analysis indicates that a more systematic approach to scheduling could yield better results. For instance, extending the interval between races on Saturday afternoons—ideally to ten minutes for major events—has shown to positively impact betting turnover.”

Conversely, he noted that while shorter lead times (around five minutes) can stimulate immediate wagering activity for smaller races, extending the buildup can significantly enhance turnover potential.

In addition, the BHA has targeted the reduction of concurrent races during this vital afternoon period. Their efforts have successfully lowered the percentage of Saturday races overlapping before 5 PM from 11.1% in 2022 to 7.9% in 2023, culminating in a further decrease to 5.8% in 2024.

Wayman articulated the BHA’s optimism that the recent moderation in total betting turnover’s decline—as observed since August—will persist and contribute positively to the industry’s recovery as we move into 2025.