Top bloodstock agent admits to betting on black market because of affordability checks

The bloodstock agent behind Princess Zoe, a self-described serious bettor, has revealed he and dozens of fellow big punters in his circle have already been driven to black market bookmakers by draconian affordability and source-of-funds checks.

Bernard Cullinane, who also counts Grade 1 winner Irving among his high-profile buys, said he and numerous others had been left no choice but to take their business to unregulated operators, having been persistently asked for “incredibly intrusive” personal information by licensed bookmakers. The firms have introduced the controversial checks under pressure from the Gambling Commission.

Black market bookmakers do not make any contributions to racing via key funding mechanisms such as the levy or media rights, which according to a 2019 estimate provide the sport with £262 million per year. As a consequence, Cullinane warned that racing was heading for "terrible trouble" as so many big-staking punters were no longer able to get a bet on with regulated bookmakers.

Cullinane described himself as a punter prepared to place “serious bets” on racing and initially provided bank statements when requested to explain the source of the funds he was gambling with and his ability to afford it.

However, after becoming frustrated at the nature of the checks and restrictions on the stakes he could place, Cullinane said he elected to turn away from the regulated market, the same decision that had been made by “tens” of people he regularly spoke to about the matter, despite being aware it would mean less money going back into racing.

“Bookmakers are asking the most ridiculous questions – talk about invasion of privacy and issues around data protection,” he said on Tuesday. “I was asked to explain transactions on my bank statements from other people that were business payments by one bookmaker, they demanded I explain the payments to them. I think it’s unwarranted, I think it’s totally unnecessary and I think it’s extremely dangerous. 

“I didn’t want to provide the information, I thought it was incredibly intrusive and in no way relevant. But once I had decided to allow them to see my bank statements, it certainly isn’t right in my view that they can keep asking for more. I gave them more than enough and you have to ask yourself where is the data protection in this, why are we having to hand over so much personal information? 

“The real point of this, and it’s not going to help me out by saying it, is that we are being driven underground just to have a bet now; I have to bet on the black market. I simply have no choice but to do it because of what’s been happening.

“If people want to get a bet on now it’s not possible with a mainstream bookmaker, we’ve been squeezed out and driven away from betting on the sport [with them]. My business is in racing, I am an owner in racing and I want to support the sport [when betting], but I can’t do it.”

Princess Zoe: Group 1 winner was bought by bloodstock agent Bernard CullinaneCredit: Patrick McCann

The scale of the black market has frequently been debated, with a 2021 report commissioned by the Betting & Gaming Council, the UK industry body for betting and gaming, claiming that £2.8 billion had been staked with unregulated firms in 2020, double the amount staked in 2019.

However, the Gambling Commission has routinely played down the threat of punters migrating to the black market, with deputy chief executive Sarah Gardner stating this month that the risks are “being overstated”.

Nevertheless, Cullinane said damage was already being wrought on racing in Britain and Ireland by stringent checks being placed on punters by regulated bookmakers, under guidance from the Gambling Commission, which in turn was heaping pressure on the sport’s finances.

“Yes, a lot of owners are in racing as an enjoyment but there are many others who are in the game for it as a business and it’s struggling with prize-money and the domination of certain stables,” he said. “More and more I’m advising clients to go to France rather than Britain and Ireland because the model is better over there. 

“I think the betting industry is in terrible trouble and that’s going to have a consequence. In Ireland, people are saying how good Irish racing is going, but it couldn’t be further from the truth. Most semi-big bettors cannot get a bet on any more, so where is that going to leave the sport in the future?”

Concerns around the impact of affordability checks have been raised in recent days by Paul Johnson, chief executive of the National Trainers Federation, and by trainer Stuart Williams, but Cullinane believes racing's leaders need to take greater ownership of the matter to allow the sport to fight its corner and prosper.

“It’s absolutely right that we have to protect vulnerable people, no-one doesn’t think that should be the case, but not this way,” he said. “It’s been badly thought out by the industry, by the politicians and racing’s leaders who have been behind the point on it as well. 

“If we don’t look out for this and the people in power don’t take the right steps then we are going to be in trouble. We have to take ownership of this issue.”

Have you been affected by intrusive affordability checks? 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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