The white paper two years on: 'A lot of the things we warned about are coming to pass'

Punters, senior racing figures and gambling industry experts have united to express their deep concern and frustration at the lack of progress on proposed reforms to the Gambling Act 2005, which were set out in the white paper published two years ago on Sunday.  

Nevin Truesdale, the former chief executive of the Jockey Club, said the white paper reforms, and more specifically the implementation of affordability checks, remained the “biggest challenge racing is facing”, with betting turnover on the sport plummeting since 2022.

A range of areas were identified for modification in the white paper, including advertising and measures for children and young adults, but the most seismic reforms concerned proposals for checks on punters’ finances.

The immediate impact was the rollout of ‘light-touch’ financial checks, which remain in place even as a pilot of more enhanced scrutiny takes place. The consequence has been bettors continue to be asked for financial documents by bookmakers, often for unclear reasons that can vary between operators.

Truesdale, who led the Jockey Club from January 2021 to the end of last year, was one of racing’s strongest voices on the white paper. He also launched a petition supported by the Racing Post calling for an end to affordability checks, which gathered more than 100,000 signatures and prompted a Westminster Hall debate.

Industry editor Bill Barber's view:

Uncertain times continue for the sport as constant political change scuppers much-needed breakthroughs 

“A lot of the things we warned about are coming to pass,” he said. “Racing should continue to warn that the blanket checks do not have any discernible impact on problem gambling levels, but there is significant evidence to show they impact the growth of the black market and have put a significant hole in racing’s finances and the Treasury’s finances.

“I don’t feel in some ways that the sport is any further on. I don’t think the arguments that racing and betting have quite rightly put across have been properly heard.”

Nevin Truesdale: "I don’t think the arguments that racing and betting have quite rightly put across have been properly heard”Credit: Edward Whitaker

Before the publication of the white paper, bettors expressed frustration at intrusiveness from bookmakers, acting on Gambling Commission guidance, asking for financial documentation before they could bet or withdraw winnings.

Despite the promise of “frictionless” checks, punters have continued to be asked for payslips and bank statements, with many refusing to comply.

Gambling Commission data for the year ending March 2024 showed online betting turnover on racing had fallen by £1.6 billion in the prior two years. When adjusted for inflation, that represents a decline of £3bn, or 25%, costing the sport tens of millions in lost revenues.

 Moreover, the Racing Post’s Big Punting Survey of 10,000 bettors found a marked increase in the use of the black market, with the greatest shift coming among high-staking punters.

The Big Punting Survey:

We asked 10,000 punters about affordability checks and the black market. What you told us is alarming

How do young people feel about racing and betting? The results might surprise you 

Jumps or Flat? Our survey reveals a clear winner in punters' affections 

Professional gambler Neil Channing said: “If you can’t gamble in the regulated sector you’re going to gamble in the unregulated sector. I thought the Racing Post’s Big Punting Survey was amazing in terms of how many people replied to that. This is still something people care about.”

A mandatory levy on bookmakers to fund gambling research and care was introduced this month having been part of the white paper. This move from a voluntary scheme has the potential for long-term ramifications according to Dan Waugh, a partner at gambling industry analyst Regulus Partners.

“The gambling industry is now going to pay the Office for Health Improvement and Disparities somewhere between £20 million and £30 million a year to effectively try and put the industry out of business,” he said.

A meeting took place recently between the BHA and the Gambling Commission, which Greg Swift, BHA director of communications and corporate affairs, described as “very positive” as the sport continues to push for reforms to the betting levy, which remain unfulfilled, and frictionless checks.

He added: “We are disappointed that it is two years down the line from the white paper being published and a significant amount of what was contained therein has not been delivered. We ask that the government acts urgently to provide much-needed certainty for the financial sustainability of British racing.”

With much of the white paper still to be implemented, Truesdale said the racing and betting industry had the opportunity to drive home its messages in a simple and forceful way.

He said: “With the government we have to put it into two terms they understand – jobs and taxes. The anti-gambling people can trade on emotion and those stories pull at the heartstrings. We’re dealing with cold, hard economic facts and if you put those in terms of jobs and tax then you start to land blows.

“I think this remains the biggest challenge racing is facing at the moment and it needs to be overcome.”

Read more:

The £3 billion black hole: calls for urgent action on affordability checks as online betting turnover on racing crashes 

Our government is overseeing a decline in a sport which brings so much joy to every part of society, alongside billions to our economy 

Premier racing half-term report: affordability checks blamed for drop in average turnover at major festivals 

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