Fall in betting turnover and impact of affordability checks could spark demise of British racing warns punters' body

British racing is at the "top of a downward spiral" due to a dramatic decrease in betting turnover on the sport and waning popularity because of reduced punting opportunities, the industry body that represents backers has warned.

Analysis by the Racing Post has revealed that online betting turnover fell by the equivalent of £1.75 billion in the last financial year when taking inflation into account, at a time when affordability checks have been widely implemented.

Gross gambling yield (GGY), the profit retained by bookmakers after winnings have been paid out, rose in line with inflation, indicating that operators have increased their margins to maintain profitability.

"I'm really concerned we're at the top of a downward spiral," said George Ryley, vice-chair of the Horseracing Bettors Forum (HBF). "As the popularity of the sport wanes with people deciding to walk away from it, I worry we might be seeing the demise of British racing as we know it. I don't think that's an exaggeration. I hope it's not too late to turn it around but there needs to be clarity around the checks.

"The decrease in betting turnover evidences our worst fears regarding the impact of affordability checks. It gives foundation to our arguments that customers are actually either disengaging with the sport altogether or moving towards the black market. It's hard to pinpoint the downward trend is all down to the financial checks that are going on now but they must be playing a significant part."

On Wednesday, BHA chair Joe Saumarez Smith warned of the long-term threat to British racing from the current situation and noted that bookmakers increasing their margin on racing was linked to the reduction of promotion and marketing activity using price boosts and extra places. "You want customers to be rewarded for betting on racing," he said. 

That position was echoed by Ryley, who added: "We're seeing fewer bonuses. Best Odds Guaranteed is extremely popular with our members but that's drying up. You regularly see bookmakers taking it away. They're changing the bonuses as well so they're not as appealing as they used to be. In addition to this, odds are more contracted as well and it's becoming increasingly difficult for people to find value."

Professional punter Neil Channing

Professional punter Neil Channing acknowledged the impact on racing bettors but said he was chiefly concerned by the knock-on effect on the sport's funding due to it becoming a less appealing product.

"I can see it from both sides," he said. "If I was a bookmaker faced with the headwinds they're facing I would just turn around and say British racing is not a product I particularly want to push and therefore if I'm going to use some of my marketing budget to offer concessions to punters, I'm not going to use it on British racing, which is bad for the sport long term. 

"Of course, times are tougher for punters but previously we never had it so good and I'm more worried for the future of the sport. Bookmakers still have offers that are in favour of punters but they're not as generous or prevalent as they used to be."

Read more:

Revealed: the real cost of the huge fall in racing betting turnover 

Senior figures take racing's concerns over affordability checks and levy to 10 Downing Street 

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