'The algorithm does not understand' - surge in bets during Cheltenham could see more punters caught in affordability net

Contests at the Cheltenham Festival dominate the list of the biggest betting races of the year behind the Grand National, but there are concerns the meeting's popularity could mean more punters are subject to affordability checks.

One operator has told the Racing Post it was inevitable more punters would be swept up in the affordability net as betting activity increased over the four days of the meeting.

Asked if he thought more people were in danger of being subject to these checks during Cheltenham, professional gambler Neil Channing said: "For sure. This is an analogy I have heard people use before and I think it is quite a good one. Being a gambler is not like having a gym membership, you don't pay £50 every single month. Some people who don't really like Flat racing but do like jumps racing might not have many bets during the summer.

"There are also periods of the jumps season before Christmas that are a bit dull but then suddenly you get the Christmas festivals, the Dublin Racing Festival, then the Cheltenham Festival and then the Grand National and these are spikes when you can have loads of bets. The algorithm does not understand that so that's definitely an issue."

Channing also said he believed the festival could be a boon for the black market. "The black market is a big thing," he said. "I think it will be huge. If it is a great week for bookmakers for acquisition and they are prepared to throw lots of money at promotions and getting new customers, well what do you think it is for illegal bookmakers. The only promotion they need to do is 'there are no checks here'."

Anecdotally, there have been reports that some larger Betfair exchange players have been subject to checks in the run-up to the festival.

Channing said: "Do I think Betfair liquidity will be down on last year? Undoubtedly."

A Betfair spokesperson said any such checks would be part of existing interactions they have with customers around affordability and safer gambling.

They added: "In an ever-changing environment, these processes are constantly evolving and, like all other operators, we have obligations as set out by the Gambling Commission.

"We do endeavour to make these interactions as frictionless as possible and hope for some certainty, in relation to all industry issues, in the much anticipated white paper."

Affordability checks involve bookmakers asking for personal financial information such as bank statements and payslips once certain spending limits are triggered and are one of the most controversial aspects of the proposals likely to figure in the government's long-delayed gambling review white paper.

They have been introduced by operators under pressure from the Gambling Commission, although the regulator has denied mandating them.

Entain, the parent company of Ladbrokes and Coral, last week revealed that affordability checks reduced its revenues by £100 million in 2022.

That would have an impact on the financial health of British racing, with one estimate claiming the checks could hit the sport's revenues to the tune of £40m per year.  

Have you been affected by intrusive affordability checks in the build-up to Cheltenham? If so, we would like to hear from you. Email us (editor@racingpost.com) with the subject 'Affordability checks' to share your experiences and contact details

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