UK Horseracing Industry Can Face £60m Yearly Loss Due to Affordability Checks

The horseracing industry fears the financial loss of £60 million a year from the proposed affordability checks. There is a template letter by senior figures, addressed to parliament. The letter is intended for lawmakers to propose to Gambling Commission (UKGC) to reconsider the proposal.

UK Horseracing Can Face a Substantial Loss Due to New Measures in the Gambling Act

The Gambling Commission has introduced a new measure in its review of the Gambling Act. People vested in the horseracing industry fear that the new affordability checks proposed by the Gambling Commission could cut their revenue by £60 million annually.

The proposed affordability checks will be for players who acquire losses up to £100 monthly which the senior horse racing executives fear will drive punters to gamble less or go to unlicensed operators who will not offer checks.

The horseracing industry on the island has seen better days. In the UK, it has a substantial loss of revenue due to shut betting shops, fewer racegoers, and the fact that it has been operating behind-closed-doors most of the time during the pandemic. It has been hit hard by the Covid-19 situation, the spectators are banned from racecourses and on-course betting is widely-inaccessible.

Last week, Scottish Racing reported that the current predicament has brought horseracing in Scotland “on its knees”. The report says that the racecourses have lost up to 55% of their income before the second lockdown because they are no punters from the racetracks.

Senior Figures Prepared a Letter for the Gambling Commission

There is a template letter prepared by the senior executives, which is circulating among the members of the sport. It is prepared for lawmakers as a proposal for the UKGC to reconsider this change. According to the letter, horseracing should be treated differently from casino gambling because it requires skill and there is a lesser chance of it creating a gambling problem for the players.

The letter also suggests that the Gambling Commission’s proposal of affordability checks could result in more than £60 million of losses for the UK racing industry. It also states that this number could even lead to racecourses getting shut down. The letter also concludes that this action, taken by the UKGC, could result as a major setback in such unprecedented times, referring to the pandemic.

The UKGC has already denied the probability of “license to gamble.” Such a license would require affordability checks for all players.