In its BHA racing report 2024 published on 19 February, the authority stated that total betting turnover fell by 6.8% in comparison to the previous year. This is a 16.5% downturn when compared to 2022.
While the BHA would not disclose the betting turnover value, it told iGB that the rate consists of both retail and digital betting.
In its report, the BHA found that the decline in total betting turnover slowed to under 1% in the second half of the year. However, it stated that it had run more races in that period when compared to 2023, adding that the “average race turnover” was down by 4% in 2024.
BHA director of racing Richard Wayman wrote in the report that he has “no doubt” that the drop in betting revenue was “headed by the impact of affordability checks”.
Wayman said these have resulted in people either stopping betting or are placing wagers with unlicensed operators where these checks do not take place.
This past August, the Gambling Commission launched its light-touch financial vulnerability checks pilot. The risk checks trigger when a player hits a monthly betting deposit of £500 or above. At this point additional checks are being carried out by credit reference agencies.
The pilot’s second phase will come into force on 28 February, at this point checks will be triggered when a players hits a net deposit of £150 or higher.
In a statement sent to iGB the Gambling Commission said: “We note a BHA employee has offered their personal view on the impact of what they describe as ‘affordability’ checks, but there is little by way of evidence provided in the report to support their opinion. As the report states there are likely to be several factors that may impact betting turnover, a number of which have nothing to do with gambling regulation.
“It is important to note there are no “affordability” checks mandated through regulation and neither the Government or the Commission are proposing such checks,” the Commission added.
The Gambling Commission published an update on the light-touch financial vulnerability checks pilot earlier this month, stating that approximately 95% of the 530,000 checks had undergone “frictionless assessments” by credit reference agencies.
Betting decline slows but jobs at risk
The racing sector has been fighting against the implementation of these checks since they were first proposed in the Gambling Act review and subsequent white paper.
Horse racing trade body the Jockey Club estimated that the checks could impact the UK horse racing industry to the tune of £250 million over the next five years.
Meanwhile the BHA warned in February last year the checks could put up to 1,000 stable staff jobs at risk.
British Horseracing Authority takes steps to reduce race clashes
The BHA 2024 report detailed a number of steps the authority has tried to change its fortunes, such as spreading out races on Saturdays and limiting the number of fixtures run between 2pm and 4pm.
BHA’s Wayman said: “The picture is clearer if we concentrate on the gaps between races on Saturday afternoons, when it is evident that for major events, a longer build up into a race (10 minutes or more) continues to see betting turnover on that event grow.
“Conversely, for other races, a shorter lead time (five minutes) supports increased betting activity but a longer build up generates limited further upside.”
The group has also aimed to reduce the number of clashing races on Saturday afternoons. BHA said its efforts have resulted in the percentage of Saturday races clashing before 5pm falling from 11.1% in 2022, to 7.9% in 2023 and down to 5.8% in 2024.
Wayman wrote that it is the BHA’s hope that the slowdown of the total betting turnover decline seen since August will continue into 2025.
Original article: https://igamingbusiness.com/gaming/gaming-regulation/horseracing-betting-turnover-impacted-by-affordability-checks-says-bha/
