Racing warned of 'watershed' moment over affordability checks as leaders back warning of £250m black hole

British racing has been told it has reached a "watershed" moment following a warning to ministers that the sport faces the loss of £250 million from its finances over the next five years  as a result of affordability checks.

This week leaders from across British racing gave their support to a letter sent by Arena Racing Company chief executive Martin Cruddace to culture secretary Lucy Frazer about the damage that could be caused by the checks.

The Gambling Commission is currently consulting on proposals contained in the government's gambling review white paper that would require bookmakers to carry out checks on customers who lose as little as £125 in 30 days or £500 in a year.

A second tier of enhanced checks would take place for punters with net losses of £1,000 in 24 hours or £2,000 in 90 days.

However, operators have already brought in their own checks which Cruddace claims have resulted in more than £1 billion of online betting turnover on British racing being lost since 2021, contributing to a reduction in horses in training of around a thousand. Cruddace has asked Frazer to pause the formal introduction of affordability checks or risk Britain becoming the "sick man" of European racing.

Among the signatories to Cruddace's letter were the National Trainers Federation (NTF) and Racehorse Owners Association (ROA).

NTF chief executive Paul Johnson said: "We are fully supportive of the views provided in the letter from Martin Cruddace. We believe that while well intentioned, it is very evident that the direction that the Gambling Commission are taking at present will largely fail to impact the issue that they are targeting.

"The commission’s actions in creating an environment of uncertainty for bookmakers have already caused significant harm to the sport and their future proposals, if implemented, have the potential to cause far reaching and irreparable harm to the sport. This is a watershed moment for the sport, and the 88,000 people that it employs, and the actions of those involved now are likely to shape the future."

In his letter, Cruddace said the cost of affordability checks on British racing would have a "disproportionate detrimental effect on the rural economy and the fragile ecosystem of related occupations that the industry supports".

Charlie Liverton: ROA chief executive

ROA chief executive Charlie Liverton echoed those views as he warned the impact of affordability checks on racehorse ownership numbers "cannot be overestimated".

He added: "For many owners, having a bet, especially on their own horses, is a significant part of the enjoyment they get from their ownership experience. On that basis, there is a high likelihood that affordability checks will see many owners channel their bets through unregulated markets or even leave the sport altogether.

"Racehorse owners contribute more than £32 million a month to the rural economy, underpinning over 80,000 jobs.

"It is inevitable that a reduction in the number of owners driven from the sport by these checks would have a negative impact on the rural economy, betting operators, and the wider sport of horseracing."

The Department for Culture, Media and Sport (DCMS) is expected to respond to Cruddace's letter in due course.

A DCMS spokesperson said: "Horseracing is an integral part of British sporting culture and heritage, and we are committed to a sustainable future for the sport. As a result, we have committed to reviewing the horse race betting levy.

"As set out in the government's gambling white paper, financial risk checks will provide protection for those most at risk of gambling harm, and we are working closely with industry to ensure they are implemented in a frictionless manner."

The Gambling Commission consultation closes on Wednesday.

To complete the Gambling Commission's consultation on affordability checks, visit racingpost.com/consultation and follow the instructions.

The Racing Post also wants to hear from you: What has been your experience of affordability checks since the white paper was published at the end of April, and what do you think of the government's proposals? Have affordability checks affected your betting behaviour?

It's a chance for your voice to be heard. Email the Racing Post at editor@racingpost.com with the subject 'Affordability checks' to share your experiences, your thoughts about the government's proposals, and your contact details.

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'By the time our punters get to the third race on the opening day of the Cheltenham Festival, we'll be asking them for their P60s' 

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