Affordability dangers loom large if limbo continues due to white paper delay

If come Sunday you find that Santa has indeed delivered what you had hoped for this Christmas, then do spare a thought for executives across the gambling and racing industries who may well have been left feeling a little resigned and disappointed this festive season.

Twelve months ago hopes that the government would publish its proposals for gambling reform in time for Christmas came to nothing and a year later the wait still goes on for the almost-fabled white paper, a document whose arrival has been promised "in the coming weeks" by various ministers for several months now.

Suggestions that the detail of the white paper has finally been decided appear to have been premature – and now even a January publication date might be optimistic.

Along with gambling reform, the Department for Digital, Culture, Media and Sport (DCMS) has got the Online Safety Bill – its main priority – and the issue of football governance to deal with.

Once the gambling white paper is finished it will have to undergo a write-round process in which other government departments are informed of policy and are able to give feedback, which can take a week.

Given the Commons went into recess this week and is not due to return until January 9, it means the wait for the white paper is likely to go on for a little while longer, much to the frustration of those who would like much-needed clarity.

The issue of affordability checks is said to be one of the principal reasons for the delay in the white paper's publication, with the question of how to protect the vulnerable without reducing the right of the vast majority of normal punters to pursue the pastime without undue interference being far from simple to solve.

As was outlined in last week's series in the Racing Post, the delay in the white paper has created a situation in which bookmakers have come up with their own affordability checks to pre-empt any reforms proposed by ministers, with customers facing wildly differing approaches between operators despite producing the same documents to justify their level of spend.

The Gambling Commission has been either unwilling or unable to provide any clarity as to how operators should approach such checks, leading them to take a precautionary approach which has led to customers being asked to provide personal financial information and even having their deposits limited despite them demonstrating they are more than capable of paying for their level of betting.

Representatives of racing have met with Gambling Commission officials to outline their concerns about the huge financial impact the industry is already facing because of those checks.

The rising cost of living is a factor, but it is estimated affordability checks are the main driver in taking hundreds of millions of pounds off digital turnover on racing, with resulting damage to the sport's revenues already estimated at £40 million.

Persuading the industry regulator there has indeed been such an impact, even before the government releases its proposals, will be a critical area racing's leaders will be concentrating on.

Getting Gambling Commission officials to understand that being a high-staking bettor does not automatically equal being a problem gambler or in danger of experiencing harm will be another.

Paul Scully: indications the minister is 'more of a libertarian than an interventionist when it comes to policy'

The indications are that Paul Scully, the fifth minister to get the gambling brief since the gambling review was launched in December 2020, is more of a libertarian than an interventionist when it comes to policy.

That means that requests for financial information like bank statements, tax returns and P60s from punters seem unlikely not to be mandated as part of the white paper's proposals.

Instead the government will be looking for a frictionless solution using financial technology to avoid intruding into punters' private affairs.

That, however, is easier said than done. It is likely the affordability question will become the subject of further consultation involving the Gambling Commission and industry once the white paper is published.

Scully, who spoke at a racing and betting reception attended by a number of senior figures from both sectors in parliament on Monday evening, has not been in the job long and has had other issues to deal with.

However, he has been getting to grips with the intricacies of the gambling industry and the relationship between the sector and British racing.

Last week he answered a written question from Labour MP Kim Leadbeater asking whether ministers had considered the merits of a levy on sports betting, presumably similar to the horserace betting levy, and whether the money could be used to fund grassroots sport.

Scully said that such a levy had not been considered, adding: "While the horserace betting levy recognises the unique relationship between horseracing and betting, other sports have far broader appeal."

While the comment about other sports having "broader appeal" might have made a few people wince, it did demonstrate Scully recognised the close connection between the betting and racing sectors. Hopefully that close association will be in the minister's mind if and when a consultation on affordability checks is launched.

If there is no clear guidance in the white paper the danger for racing is that intrusive checks on punters will continue, whether that is with explicit instructions from the Gambling Commission or via the back door.

Scully might need to remind the regulator that such policy decisions are for ministers to decide rather than the commission.

Read more from our recent series on affordability checks:

Part one: an existential threat - how did affordability checks become such a big issue?

Part two: 'I'm very close to giving up' - the punters suffering from affordability checks

Part three: how affordability checks are already hitting horseracing

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