A cross-party group of 19 MPs representing British racecourses has called on Culture Secretary Lisa Nandy to intervene and suspend the Gambling Commission’s plans to implement financial risk assessments (FRAs).
The MPs warn that the policy’s rollout, scheduled for later this month, could inflict lasting harm on horseracing and the broader licensed betting market.
Assessments are not ‘frictionless’
In an open letter obtained by the Racing Post and published on Sunday, the MPs, representing 59 racecourses that attract over five million visitors annually, highlighted the economic significance of the horseracing industry.
They said it contributes more than £4 billion to the UK economy, generates £300 million in tax revenues and supports approximately 85,000 jobs nationwide.
The letter expressed concern that the affordability checks would disrupt the established synergy between racing and betting at a time when the sport faces increasing economic challenges.
Citing findings from the UKGC’s FRA pilot study, which tested the use of Credit Reference Agencies for additional affordability checks on certain players, the MPs warn that the policy would not be “frictionless” for racing bettors.
This comes after just over a month after the British Horseracing Authority published its own open letter against financial checks.
“This unprecedented state intrusion into people’s private lives has dismayed the millions of people who love horseracing. Over 100,000 signed a petition against the checks in 2024, triggering a Westminster Hall debate at which then-minister Stuart Andrew MP said that the checks would only be introduced if they were ‘truly frictionless’,” the letter said.
“The subsequent Gambling Commission pilot of affordability checks involving Credit Ratings Agencies has proved that a 100% success rate is not possible. Despite our repeated warnings, the Commission seems intent on pursuing this highly controversial policy regardless of the consequences for Britain’s second most-popular sport.”
Conservative MP Nick Timothy and Liberal Democrat Lee Dillon signed both letters.
Intrusive or not?
The MPs’ open letter argued that the FRAs would lead to more intrusive demands for personal financial documentation, contradicting earlier government assurances that such measures would only be introduced if completely seamless.
Gambling Commission director Tim Miller emphasised in a keynote speech last month that operators would not be required to ask for supplementary financial documents such as bank statements, following an FRA. Miller also stressed that less than 3% of active customers would trigger intervention steps based on the new pilot. Meanwhile 97% would undergo a frictionless assessment, without disruption.
A recent YouGov poll commissioned by the Betting and Gaming Council (BGC) has revealed that 65% of UK bettors would refuse to provide personal financial documents, such as bank statements or payslips, if required in order to continue betting.
Illegal betting
The MPs also drew attention to the risk of escalating illegal betting activity if the checks are implemented as planned.
Treasury data – cited by the MPs in their letter – showing a 522% increase in illegal gambling between August 2021 and September 2023, reinforces concerns that intrusive affordability checks could exacerbate this problem. The government set out plans to implement an illegal gambling taskforce with particular emphasis on online operators and the payment and advertising channels that facilitate their operations.
Financial repercussions are a prominent theme in the letter. The MPs cite estimates from the Betting & Gaming Council (BGC), warning of potential treasury revenue losses amounting to £300 million annually to the black market. This could cause a possible £250 million reduction in horseracing turnover over five years if customers shifted to unregulated platforms.
A critical point raised relates to a perceived erosion of ministerial oversight. The MPs asserted that government officials had assured the industry that no permanent affordability measures would proceed without detailed ministerial review post-pilot.
However, they claimed this assurance has been undermined as the UKGC reportedly plans to make a final decision through its board later this month without further ministerial input.
As a result, the MPs urged Secretary Nandy to instruct the UKGC to pause progression beyond the pilot phase until a comprehensive and transparent evaluation of the measures’ impacts on racing, consumers, the regulated betting market and public finances is completed.
Next steps
The board of the UKGC is expected to review the pilot’s findings shortly. Meanwhile, the Department for Culture, Media and Sport has not publicly responded to the calls for a pause and additional ministerial review.
Kathryn Evans
Kathryn covers bitesize breaking news with a primary focus on EMEA and US legislation. A proud North Walian, fluent Welsh speaker and lifelong Wrexham FC fan – long before Hollywood came calling.
Original article: https://igamingbusiness.com/finance/mps-urge-culture-secretary-halt-ukgc-affordability-checks/
