CONSERVATIVE MP Laurence Robertson has warned of the devastating impact that the proposed affordability checks for punters will have on the racing industry.
Robertson believes punters could be pushed to the black market, where it is virtually impossible to regulate operators, meaning the racing world could be out of around £350m a year.
That would come on top of the black hole from the coronavirus pandemic.
The Gambling Commission are looking to tackle online gambling issues, and one of the proposals includes an affordability check where punters would have to prove they are able to afford losing more than £100 a month.
But there are fears customers won’t want to hand over their financial details to the betting companies – meaning they could look elsewhere to place their bets.
And Robertson, a parliamentary adviser to the Betting and Gaming Council whose constituency includes Cheltenham racecourse, says British Racing would not survive without the income it gets from betting industry and believes these measure would encourage users to instead bet on the black market.
He does believe the industry should be working to protect their vulnerable customers, but any measures should be risk-based.
He said: “So, any reduction in this income as a result of people being diverted to the black market, or being put off betting altogether, as a result of over-stringent measures being taken would be disastrous for the sport.”
He added: “Any steps must also avoid unintended consequences should customers refuse – quite reasonably – to provide their private financial data to operators.
“While the unintended consequences may manifest in the form of a devastating impact on sport, such as racing, another is generating consumer harm through driving customers to sites which will not make these onerous requests upon them.
“Once those customers leave the regulated market, both the regulated industry and the commission lose the opportunity to protect those customers. The risk posed by this should not be understated.
“Therefore, I ask that the commission works with the industry to establish a risk-based approach which protects customers and avoids arbitrary limits which may drive a range of unintended consequences that could ultimately increase problem gambling.”
The consultation process ends at midnight tonight.
A BHA spokesperson said: “In our submission, we outline that we are supportive of gambling regulation which is fit for the modern digital age and which helps reduce gambling-related harm, but emphasise that any changes must be evidence-based, scrutinised for their socio-economic impact and fully account for any potential unintended consequences for industries such as British racing.
“We understand this is also clearly an issue which has caused concern to the many customers of the sport who enjoy betting safely and responsibly, and have looked to reflect customers’ concerns as part of our submission.
“We have simultaneously been highlighting to parliamentarians our significant concerns regarding the impacts of these proposals for our industry’s finances, particularly after the Covid-19 pandemic.”
Betting and Gaming Council chief executive Michael Dugher last week warned black market betting was a real threat, and one that was growing in presence elsewhere in Europe where restrictions are stronger.
Dugher said: “I know this evidence is inconvenient to those who seek to dismiss and play down the threat of the black market, but there is a real danger of complacency.
“The UK risks sleepwalking into changes where the main beneficiary is the unlicensed black market. We all have an interest in getting future changes right, so must take heed of this latest evidence and look at what is happening elsewhere around the world.”
Remember to gamble responsibly
A responsible gambler is someone who:
- Establishes time and monetary limits before playing
- Only gambles with money they can afford to lose
- Never chase their losses
- Doesn’t gamble if they’re upset, angry or depressed
- GamCare – www.gamcare.org.uk
- Gamble Aware – www.begambleaware.org
