Comment: time is running out for British racing to halt its precipitous decline

A £3 billion real-terms decline in the amount bet on horseracing online over the last two years represents a massive blow to the sport in Britain.

Apart from owners, punters – via the bookmaking industry – are the major funders of British racing, their money flowing through to prize-money and racecourses through the levy, media rights and sponsorship.

The sport has been somewhat insulated from the effects of the fall in turnover by the levy topping £100 million for the last two years. However, that has been due to a rise in operator margins – giving customers a worse product through shorter prices and fewer offers – which is a short-term boost likely to lead to further pain down the line. The Levy Board has already warned that higher margins are failing to have the same effect during its current financial year.

The fall in turnover is a direct result of the introduction of affordability checks under the direction of the Gambling Commission, the use of anti-money laundering checks and other heavy-handed regulation of the gambling industry. The last government and the industry regulator were repeatedly warned what would happen and, to nobody's surprise, it has, with consequences for British racing and all the other businesses it supports, especially in the rural economy.

Betting on other sports has also been affected, although not to the same extent due to the differences in racing's customer base.

Meanwhile, turnover from online gaming products such as slots, regarded as providing a greater threat to those suffering harm from gambling, has actually increased in the same period that racing has fallen, further illustrating how ham-fisted regulation of the sector has been.

It must also be said British racing's response to this crisis has often been lacklustre, having failed to capitalise on public outrage over affordability checks, secure levy reform or deliver a coherent and effective growth strategy.

With concerns that the so-called "frictionless checks" being piloted currently will fail to improve the situation and calls for further restrictions on the betting industry growing, time is running out for British racing to arrest its precipitous decline.

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