'I'm being courted by offshore bookies' - Classic-winning owner sounds alarm over affordability checks

A Classic-winning owner has warned he is being courted by illegal offshore bookmakers amid a growing struggle among high-staking punters to get bets on via the regulated market.

Phil Cunningham, who won the 2007 2,000 Guineas with Cockney Rebel, owns the Newmarket-based ownership vehicle Rebel Racing, for which salaried trainer Richard Spencer oversees 38 horses.

Cunningham, who is the majority shareholder in insurer Direct Commercial Limited, said he had already been subjected to intrusive affordability checks, which have resulted in him being restricted to betting no more than £2,000 a month by some bookmakers, despite handing over personal financial information disclosing his level of funds. Other firms have closed his betting accounts entirely.

At the same time, unregulated black market bookmakers have been attempting to woo the owner into using them instead, leaving Cunningham fearing racing's funding via the levy and media rights is at major risk.

Last month, the Gambling Commission launched a 12-week public consultation on the government's proposed financial risk checks, which will formalise affordability checks as a legal requirement. The consultation document included details about how the proposed checks will work that have alarmed bettors and racing, such as the suggestion that for the calculation of net spend winnings should only be treated as such for as little as one week, raising the prospect even those whose betting is profitable will be caught in the affordability check net.

“I play my betting with a straight bat,” Cunningham said. “I don’t use other people’s accounts, I don’t use offshore bookies, but I am being courted by them.

“I don’t have an offshore account at the moment as I want to do things the right way, I want my bets to go back into the system and support racing through the levy. You have to ask yourself where do you go if you can’t get a bet on anymore though, because there are other bookmakers out there to bet with.

“You also have to consider the fact the levy supports prize-money in this country, and if you are restricting what’s coming in at the top then it can only increase the challenges at the bottom. I mean, what is the future for prize-money after this?”

Cinders And Ashes wins the 2012 Supreme Novices' Hurdle for Phil CunninghamCredit: Caroline Norris (racingpost.com/photos)

Cunningham’s successes as an owner include Cinders And Ashes winning the 2012 Supreme Novices’ Hurdle at the Cheltenham Festival as well as Cockney Rebel's Guineas triumph, a victory that netted him a sizable return from ante-post bets which in turn helped push forward his ambitions for establishing a private yard.

“Cockney Rebel winning the Guineas was a massive help in getting Rebel Racing started,” Cunningham said. “We won good money on him and on Cinders And Ashes at Cheltenham, they were really important in sustaining me.

“I want to have horses, I want these horses to be trained here and to employ people and part of what I like to do as well is have a bet on my horses. Where do I go if I can’t do that, is this something that is being considered? 

“I think it’s ridiculous what’s happening to punters. I’m fortunate that I have a private yard, but with prize-money being so poor I supplement anything we’re able to win by backing my own horses. I only back my own horses and if that’s something that’s going to be taken away from me with restrictions and accounts being closed then that’s going to make things hard for me.”

Affordability checks have also prompted owner Olly Harris to reconsider his level of investment in racing. Harris has labelled the proposed changes to gambling legislation “a complete car crash”.

The founder and chief executive of hedge fund Montreux Capital Management, Harris has expanded his string in recent years with the likes of Grade 1-winner Porticello and Miaharris, who runs in the Listed Highclere Thoroughbred Racing St Hugh's Stakes on Friday, racing in his yellow and black silks.

Porticello: Grade 1 winner racing for owner Olly HarrisCredit: Alan Crowhurst (Getty Images)

Harris said his desire to be more involved as an owner had been driven by his enjoyment of betting on his horses. However, he has stopped buying horses as a result of his punting being curtailed by demands for sensitive financial documentation. 

“I’ve had every single account have these affordability checks,” he said. “I’m a regulated hedge fund manager, I’m UK-based and if someone like me is having the sorts of restrictions I am having on my account then what chance does anyone else have? 

“I’ve stopped buying horses now because of it. For me and my friends, part of the fun for us of having a horse and going to the races is being able to have the bets we want. We haven't got involved in the way we have just to have a day out and a bit of lunch, we like to have a bet too. The only place where I bet properly now is in the ring. 

“I first started buying horses about nine years ago and as my business has become more successful I’ve been able to buy more horses. For me, it’s my hobby and my passion and I’m not expecting to make money from it but I want to be able to enjoy it by having a bet too.”

He added: “I think you’re going to get fewer people coming into the sport because of this and that’s really sad. I don’t think these plans have been badly thought out, I think they are just a complete car crash.”

• How to respond to the Gambling Commission consultation: Views can be provided at this page. After completing the introductory questions, select 'Remote gambling: financial vulnerability and financial risk' from the 'Consultations contents page'. You may choose to answer as many or as few questions as you wish. Further Racing Post guidance on responding to the consultation can be found here.

• The Racing Post 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 more:

Long-term impact of dangerous affordability checks cannot be underestimated, says Oli Bell 

Racing must react as another leading punter says no to affordability checks 

Affordability checks explained and how to respond to the Gambling Commission consultation 

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