'They must be proportionate' - minister says she hears racing's concerns over 'frictionless' affordability checks
Government minister Baroness Twycross has told representatives of the racing and betting industries it was clear that affordability checks for bettors have to be "proportionate".
Speaking at a parliamentary reception organised by the All Party Parliamentary Group for Racing and Bloodstock on Monday evening, the minister for both gambling and racing, said that "frictionless, near-instantaneous checks" would be better for customers, racing and bookmakers.
Twycross's comments came after BHA chair Joe Saumarez Smith had told attendees that "repeated warnings" from racing about the checks had not been taken seriously enough, or the views of bettors considered.
Affordability checks, or financial risk checks as they have been termed, were the most controversial element of the white paper published by the previous government in 2023 and have been blamed for contributing towards a slump of £1.6 billion in online betting turnover on racing.
Twycross said she had "heard racing's concerns" about the checks being carried out by operators.
She added: "A replacement for what can be inconsistent and onerous checks is currently being piloted by the Gambling Commission. While I am clear we do want to have these checks to help address problem gambling, I'm also clear financial risk checks need to be and can be proportionate.
"I believe this is possible – frictionless, near-instantaneous checks, a system which is better for customers, better for the betting industry and better for racing."
Saumarez Smith had described affordability checks as one of a number of significant headwinds facing British racing "which, if not addressed, could do significant harm to our sport".
The outgoing BHA chair said betting turnover on racing was around 20 per cent down in 2024 compared to 2022. He added: "The Gambling Commission is piloting whether checks can be done in a frictionless way, which does not interrupt the customer experience. If these checks are to be introduced, they must be truly frictionless and not create an environment that deters people from betting – or worse, drives them to the black market.
"We will examine the results of the pilot with interest when the commission reports back in the spring.
"Almost two years after the previous government published its white paper on gambling, it is hard not to feel that repeated warnings from racing have not been taken seriously enough or the views of punters properly considered."
Saumarez Smith also called on the government to return to the subject of levy reform, an issue which was also included in the white paper but which was put on hold by last year's general election.
'Now is the time for the government to take decisive action'
He said: "With racing and betting unable to reach a mutually agreeable resolution, it feels like now is the time for the government to take decisive action to reform the levy and ensure that British racing can continue to be a world-leading industry."
However, the government has pressed racing and betting to return to talks over a deal to inject extra funding into the sport and there was little sign that ministers would intervene.
Twycross, who had described racing as "a core part of our culture and our national story", said: "I am convinced that a key part of securing a sustainable future for the sport lies in racing and betting working together to promote British racing to new audiences to create a win-win situation.
"It is therefore really important the betting and racing industries continue joint work such as on a growth fund for the longevity of the sport. This is quite simply the quickest way to get increased funding flowing back into racing."
Saumarez Smith also raised issues facing British racing caused by chancellor Rachel Reeves's budget last autumn.
He said that while the sport was pleased that the possibility of a rise in gambling duties had not materialised, there were still concerns for "the many small businesses which are the backbone of our sport and often operate on extremely tight margins".
He added: "The proposed changes to rules around inheritance tax, agricultural property relief and business property relief are threatening the existence of some businesses both in racing and across the equestrian sector, and we urge the government to rapidly review these changes.
"Whether it’s financial risk checks, or measures in the budget, these are examples of where well-meaning policy is causing unintended consequences for our industry, and I look forward to discussing these issues with the minister in the weeks ahead.
Twycross concluded her speech by calling on racing and betting to work together "to ensure that this wonderful sport can be enjoyed by generations to come".
She added: "2025 will be a year of change, not least because of the changes in leadership at the BHA, and the Horserace Betting Levy Board, but there's great potential for the ability for closer and better working between racing and betting and with a government which really supports you. I look forward to working with you to ensure that that change is positive."
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