'I'm not sure I've been as worried as I am now - it's a real threat' - Goodwood chief speaks out over affordability checks

Goodwood managing director Adam Waterworth believes the impact of affordability checks has been underestimated and said he has never been more concerned for the health of the sport.

Waterworth said signs of falling betting turnover are creating uncertainty around media rights revenues and are making decisions about prize-money levels for next year more challenging than ever.

Goodwood is the second big independent course to voice such fears after York's chief executive William Derby said that in its current form the UK gambling review white paper would have a major impact on the money flowing into British racing.

"We're doing our budget at the moment and it's difficult to know at what level to set the media rights revenues for next year," said Waterworth. "That's the revenue stream that drives prize-money decisions.

"I can't see how you can possibly assume growth for next year. The turnover numbers didn't look particularly good for July and August. It's a worry and I can't see how turnover will suddenly turn around."

A recent Racing Post investigation published this week questioned the calculations employed in the Department for Culture, Media and Sport's impact assessment on racing's finances and concluded the cost to the sport could be three times the figure quoted. The range of lost revenue to the sport in the first year of implementation provided alongside the white paper ranged from £8.6 million to £14.9m.

Gross gambling yield on racing is heavily reliant on high-staking punters and those over the age of 55, two groups that are likely to be disproportionately affected by the more intrusive levels of affordability checks proposed by the government and the Gambling Commission. 

"We don't seem to have any clarity around affordability checks and the impact has probably been underestimated," said Waterworth. "In addition to that you've got the cost of living crisis and I'm not sure we're getting the new punters in to replace those who are turning away from the sport due to affordability checks. 

"Everyone acknowledges we've got this issue and is doing their bit but that's only good if people are listening, which is my worry. Things need to change quickly. We're reading a lot about owners giving up because of affordability checks and we can't afford to lose them. I've been working in this game for 30 years and I'm not sure I've ever been quite as worried about it as I am at the minute. It's a real threat."

This week, owner-breeder Chris Wright said it was "ridiculous" he was being asked for financial details to bet while being permitted to spend hundreds of thousands of pounds on coverings for his mares.

How ownership could be affected by affordability checks, and not just through downward pressure on prize-money, is also in the thoughts of Racehorse Owners Association (ROA) president Charlie Parker.

Charlie Parker: "If 20 per cent of owners get cheesed off and leave the sport, what impact does that have?" Credit: Edward Whitaker

He said: "There's the prize-money aspect and then there's the impact it might have on owners, people who enjoy betting on their horses then suddenly have the intrusive checks. That could be a real turn-off."

A number of owners have already told the Racing Post the financial checks they have had to go through have affected their enjoyment of ownership and resulted in them questioning their involvement.

Parker added: "The population of owners is relatively small compared with the population of bettors and if they are impacted severely then that could really affect the industry's ability to function. The numbers that have been produced, they are all about how it is going to impact the overall betting community.

"There's been no work done, as far as I know, on if 20 per cent of owners get cheesed off and leave the sport, what impact does that have? Then it gets scary and also for breeders, for sales companies, just for everybody."

The Right To Bet online survey, a questionnaire designed to gauge the views of racing punters on the implementation of affordability checks, closes on Monday. The BHA, Racing Post, At The Races and Racing TV combined to create the survey. 

The Gambling Commission's public consultation on a wide range of questions surrounding affordability checks closes on October 18.

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 more on the affordability checks here

'The confusion stems from the Gambling Commission's approach' - more readers' views on affordability checks 

'By the time our punters get to the third race on the opening day of the Cheltenham Festival, we'll be asking them for their P60s' 

'The elephant in the room' - are frictionless affordability checks a flight of fantasy? 

How the white paper miscalculated the impact of affordability checks on racing

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