Group 1-winning owners reveal 'deep concern' over impact of affordability checks

Two heavyweight figures who straddled the worlds of horseracing and betting have spoken of their deep concern for the sport's finances as a result of affordability checks, whose intrusive nature one described as "offensive".

Roger Devlin and Paul Roy, both Group 1-winning owners and former chairmen of major bookmakers, were speaking as increasing numbers of punters become subject to checks which include requests for personal financial information such as bank statements and tax returns simply to continue betting.

The impact of affordability checks on British racing's income has been discussed by the sport's leaders, with Arena Racing Company chief executive Martin Cruddace estimating digital betting turnover on British horseracing declined by £800 million in 2022, costing the sport £40m in income from bookmakers.

Devlin, co-owner-breeder of King George VI and Queen Elizabeth Stakes winner Pyledriver, described affordability checks as "a very serious issue" and spoke of his worries for racing if less money flowed into the sport.

He said: "From my perspective as an owner I can tell you I am deeply concerned by the dramatic decline in prize-money, and as an example, Pyledriver has won much more in defeat by running second in the Hong Kong Vase and fourth in the Dubai Sheema Classic than in all the Group races he has won in Britain with the exception of the King George.

"He won the Great Voltigeur at York, he won the King Edward VII at Royal Ascot and that is inferior prize-money to place money in Hong Kong and Dubai."

Roy, the former chairman of Sky Bet, the BHA and the owner of top-flight Flat performers including Sixties Icon and Dutch Art, said the affordability checks needed to be thought through more carefully and also expressed concern about the effect on racing's economy.

He added: "From what I have read it's incredibly inconsistent across the operators and in a number of places it is ridiculously penal and unworkable, designed essentially to turn people off.

"Why would people produce that sort of level of information? It is ridiculously intrusive. Checks and balances are one thing, but the level of intrusion is actually offensive, I think.

"I can't see who wins here. The punter is deterred from having a bet, bookmakers revenue is reduced and racing gets another hole blown in its finances."

Devlin also questioned why gambling was the only sector that should be subject to such invasive spending checks.

"When I go for a drink I don't get asked how many pints I had in the King's Arms across the road last week," he said.

Bookmakers have introduced measures including affordability checks before their expected inclusion in the government's long-delayed gambling review white paper, in part to pre-empt government action but also because of pressure from industry regulator the Gambling Commission.

Operators have been subject to heavy fines of as much as £17 million in the case of Ladbrokes and Coral's parent company Entain last August.

However, there have been complaints that the commission has not given clear guidelines to the industry, which has led to often wildly differing approaches to the checks.

Devlin, who stood down as chairman of William Hill following their takeover by Caesars Entertainment in 2021, said: "I think the bookmakers are undoubtedly running scared of the Gambling Commission, but you can't blame them given they've all incurred substantial fines and the ultimate sanction is the suspension of your licence with all the reputational damage that entails.

"It may be that at this politically sensitive time, when the Gambling Commission itself is under some duress, it might have a certain attraction to them to suspend an operator's licence for optical reasons.

"At the moment I think the bookmakers are very much depending on their own subjective judgment because they are operating in something of a vacuum with no guidelines, so the sooner we have a white paper, the better."

The phrase "running scared" was also used by Roy, who was chairman of Sky Bet when the firm was taken over by the Stars Group in 2018.

He said: "As I understand it there has not been a consistent policy [among operators] and it has been every man for himself.

"They have been, I assume, running scared of the commission which is a blunt instrument.

"You could argue you get a tick in a box for taking the initiative to try toward off this thing and maybe make it a softer landing when the commission finally gets there."

The government launched its gambling review in December 2020, but the subsequent white paper has been the subject of repeated delays. Ministers said this week it would be published "in the coming weeks".

Publication of the gambling review white paper in Westminster has been met with repeated delaysCredit: Getty Images

The potential cost of affordability checks to British racing

Income from punters via bookmakers is one of British racing's main revenue streams, with a 2019 estimate calculating the sport's annual income from betting via the levy and media rights at £262 million.

However, affordability checks have been blamed for a sharp decline in digital betting turnover on the sport, as punters turn away from betting due to the intrusive nature of checks or head to the black market.

Arena Racing Company chief executive Martin Cruddace has estimated a £280m drop in digital betting turnover at the company's 16 courses last year compared to 2019.

Some campaigners have called for affordability checks to be triggered by a net monthly loss of £100, which it is estimated would result in an annual revenue loss for racing of between £60m and £100m.

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

Read more here:

Intrusive affordability checks are 'top of the list' says punters' body chairman

Dire experiences of affordability checks show balanced solution is needed soon

'Not fit for purpose' – prominent MP slams gambling regulator over interventions

'Enough is enough' – punters detail their frustration with intrusive checks

Punters' views: 'Nobody checks my records when I buy wine or fill my car up'

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