Bookies slam 'disproportionate' fines for under-age bets struck at Royal Ascot

Racecourse bookmakers have hit out at the "disproportionate" fines which seven of their number are facing after accepting bets from an under-age 'test purchaser' at Royal Ascot last year.

The bookmakers involved, who have yet to be named, are due to pay 2.5 per cent of their annual gross gambling yield – the sum retained by bookmakers after winnings have been paid but before other costs – although the appeal process has not yet been completed.

The fines, which in one case will amount to more than £7,000, are felt to be excessive compared to financial penalties imposed by the regulator on major online and high street bookmakers.

RECAP: racecourse bookmakers face licence reviews after underage test failures

The case stems from age-verification test purchasing carried out at the royal meeting in June, during which a 16-year-old was able to place a £5 bet with seven of the 17 bookmakers targeted.

The Gambling Commission, which carried out the tests along with officers from the Royal Borough of Windsor and Maidenhead and Trading Standards, said they were unable to comment until the cases were completed.

Federation of Racecourse Bookmakers director Robin Grossmith said his association had used an independent company called Serve Legal to help its members following previous test purchase failures.

He added: "We're very hot on this. The penalties imposed on the bookmakers so far seem very harsh and disproportionate to the offence. They all accept they have done wrong but the fines seem disproportionate."

Gambling Commission asked questions

Christopher Hudson of the British Racecourse Bookmakers Association, which has also used Serve Legal, also described the penalties as disproportionate.

He said: "Our lawyers have been engaged with the Gambling Commission for some time on these alleged offences. Questions have been raised to the Gambling Commission on the evidence leading to these charges.

"Currently, those bookmakers charged have a right to appeal. We will not comment further on this matter or the severe and disproportionate proposed punishment and other relevant issues pertaining to non-remote and on-course bookmakers until the appeal process has been exhausted, during which time the industry will continue its commitment to the prevention of under-age gambling."

The betting ring at Royal Ascot: where the age-verification test took place in 2019Credit: Edward Whitaker

Grossmith said he thought the proposed penalties were a "shot across the bows" of racecourse bookmakers from the Gambling Commission.

"I think these guys are being used as an example that everybody else says 'good God, this could happen to me'," he added. "There are fines of £7,000 and £5,000, which to me seem very harsh for taking a £5 bet from somebody.

"There are 400 on-course bookmakers and I'd say 398 of them, that's excluding Corals and Ladbrokes, are all small family businesses. That sort of penalty we feel is very harsh and at this moment in time we're not sure how they reached those figures, what they based it upon."

Grossmith said it would help if there were guidelines and guidance about penalties provided by the regulator.

"In this case there don’t appear to be guidelines and they have carte blanche to set their own parameters, and I'm not sure that's fair," he added.

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