BHA's Brant Dunshea highlights 'incredible threat to racing' posed by migration to black market

The BHA's chief regulatory officer Brant Dunshea has highlighted the "incredible threat to racing" that the growth of black market and unregulated betting sites poses to the sport's integrity.

Speaking to a webinar hosted by the Asian Racing Conference, Dunshea compared the way BHA investigators were able to piece together the complex threads of the Danny Brock case with a mythical future inquiry into inside information, where bets or lay instructions were struck with unlicensed offshore operators. 

In answering a question regarding the BHA's preparedness in the face of a growing betting black market, Dunshea accepted further migration away from licensed operators was likely if recommendations contained in the UK government's gambling review around affordability checks are enacted. 

And while he believes the authority is "as well prepared as we can be" to face the challenges posed by illegal betting markets, he concluded that making a case such as Brock's to present to British racing's independent disciplinary panel would be far more difficult without investigators being able to rely on the close co-operation of licensed operators. 

In January Danny Brock was warned off for 15 years by the disciplinary panel for his involvement in a conspiracy whose features the BHA's legal counsel summarised in striking terms: "The betting is extraordinary, the rides are extraordinary and the communication is extraordinary."

Dunshea said of the Brock investigation: "The case highlighted the challenges where there is a failure by individuals involved to co-operate in producing records – telephone records for example – and participating in interviews. This meant that our team of investigators were faced with a lack of evidence in connecting the individuals alleged to be involved."

Danny Brock: was warned off for 15 years by the independent judicial panel in JanuaryCredit: Edward Whitaker

Dunshea said the role played by licensed betting operators was invaluable; both when it came to analysing betting activity in the suspect races, and in providing a counterfoil in showing the behaviour of the jockey and his co-conspirators in "normal" circumstances. 

"This case highlights the importance of a well-regulated betting sector which collaborates through information sharing agreements – memorandums of understanding – with racing and sports regulators," said Dunshea. 

"That information provided by various betting operators allowed our team to identify the connections and links without the direct evidence of the telephone calls and messages shared between all of the individuals. 

"Without those information sharing agreements and relationships we have with regulated betting operators, it becomes incredibly difficult for sports to be able to properly understand and investigate what might have gone on in a case of alleged wrongdoing."

Pushed to say what avenues the investigators would have found open to them if the corrupt activity had taken place on illegal betting platforms, Dunshea was clear.

"I think I have to be very open and say I suspect we certainly wouldn’t be able to prove the case as far as we did," said Dunshea. "In the absence of that betting information from the likes of an offshore, unlicensed, unregulated exchange, it would have left us in a position where all we had was the video evidence of the race in question.

Transactions placed on black market betting sites would have little or no visibility to investigators

"I think this highlights an incredible threat to racing and sport generally in relation to the migration of money to betting activity away from regulated markets."

When asked about the effect the introduction of affordability checks would have on the direction of business to unlicensed betting operators, Dunshea said: "The issue around the black market is not new and it’s well understood. 

"Yes, we know that through the gambling review here in the UK, the government will be introducing affordability checks – frictionless ones as we understand – and that of course may lead to a migration of players to markets who don’t want to bet into an environment where there are affordability checks in place.

"In terms of how well we are prepared for any further migration of players, I think we’re as well prepared as we can be as a sports governing body."

• 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.

Read these next . . .

Black market comments expose yet another example of the Gambling Commission's ignorance 

BHA hits back over Gambling Commission's claims that the black market threat is overstated 

Sign up to receive On The Nose, our essential daily newsletter, from the Racing Post. Your unmissable morning feed, direct to your email inbox every morning.