Arc warns affordability checks 'would undermine the financial ecosystem that underpins racing'

Arena Racing Company (Arc) has hit out at proposed affordability checks on bettors and warned they are “potentially disastrous for racing”. It comes after MPs from across Britain and Northern Ireland lined up during a debate in Westminster Hall to spell out the impact on the sport of the checks.

Arc issued a statement summarising the concerns it set out in its response to the Gambling Commission, whose consultation on plans revealed in the government white paper on gambling reform closed last week.

It said: “Proposals for affordability checks, as they currently stand, are potentially disastrous for racing. The British horseracing industry has warned that it is set to lose £250m over the next five years if these checks are introduced, while many of the over 80,000 jobs the industry provides would also be at risk.

“The proposed checks will deter punters from betting on British horse and greyhound racing with licensed bookmakers and threaten their right to privacy. A significant number of racecourses and stadia in the UK rely on revenue from their media and data sales as a major revenue stream."

Arc disputes the extent to which checks will be “frictionless”, as the commission claims and says they ignore the nature of the betting market. It also claims they will hit the wrong target as “surveys consistently show that betting on horseraces is associated with higher than average mental health and wellbeing and low levels of problem gambling".

“None of the thresholds proposed for the affordability checks takes this into account. As a result, they will impact countless legitimate consumers who have no issues with gambling. This is not a targeted measure.”

Arena chief executive Martin Cruddace

Arc criticised the commission's claims that only three per cent of accounts will be affected by checks, as that figure includes dormant accounts. It said: “The evidence provided throughout the consultation has been highly selective. We are concerned that this undermines due process.”

Outlining the potential damage to racing, Arc warned of “an existential threat”.

“We have significant concerns that the government’s proposed checks would undermine the financial ecosystem that underpins the commerciality of British horseracing,” it said.

“New deals established across the industry in recent years are based predominantly on betting turnover and rely on the ongoing growth of this sector. A reduction in betting revenues would be a direct hit to racecourse businesses, inhibiting their ability to invest in prize-money, facilities and employment.”

Arc also warned: “We anticipate that thousands of those who support and service racing in rural areas could lose their jobs as a result of these checks being implemented. The potential damage that could be caused by these checks would cross social, geographical and economic divides.”

It claims there will be no discernible impact on problem gambling, pointing out that “intrusive financial risk checks have already been in place in the industry for a number of months, with many operators implementing them in line with guidance from the Gambling Commission. To date, evidence has not suggested that existing checks have made any tangible impact on problem gambling rates”.

Arc added: “We are extremely concerned that, if anything, additional checks would exacerbate risks to legitimate betting customers, by pushing them on to the unregulated black market.”

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