Horse Racing Betting Hit by Affordability Checks, Says British Horseracing Authority

The British Horseracing Authority (BHA) is pointing fingers at the Gambling Commission’s financial risk checks for a sharp drop in betting turnover. The group claims punters are walking away from the sport or shifting their bets to unlicensed operators, raising concerns about the industry’s financial future.

Betting Revenue Takes a Hit

According to the BHA’s 2024 racing report, total betting turnover dropped 6.8% compared to 2023 and a significant 16.5% since 2022. While the exact figures weren’t disclosed, the authority confirmed that the downturn includes both retail and digital betting markets.

Interestingly, while the decline in turnover slowed to under 1% in the latter half of 2024, the BHA highlighted that more races were held in that period compared to the previous year. Despite the increase in events, the average race turnover still dropped by 4%.

BHA’s Director of Racing Richard Wayman left little doubt about the cause. He stated in the report:

“I have no doubt that the drop in betting revenue was headed by the impact of affordability checks.”

The checks, he argues, have driven bettors away—either discouraging them from wagering altogether or pushing them toward unregulated markets where such checks don’t exist.

Affordability Checks Under Scrutiny

The Gambling Commission’s financial vulnerability checks pilot started in August 2023. Initially, the system flagged players who deposited £500 or more per month, triggering additional checks through credit reference agencies.

The second phase, launching on 28 February 2024, will lower the threshold significantly—down to £150 in net deposits per month before a player is scrutinized.

In response to the BHA’s concerns, the Gambling Commission dismissed the claims, saying there’s no direct evidence that these measures are the primary reason for declining betting turnover. In a statement to iGB, the regulator said:

“There are likely to be several factors that may impact betting turnover, a number of which have nothing to do with gambling regulation.”

The commission also pushed back against the term “affordability checks,” insisting that neither the government nor the regulator has mandated such measures.

Despite the backlash, the Gambling Commission reported that 95% of the 530,000 financial checks conducted so far have been “frictionless,” meaning they didn’t disrupt the betting experience.

Racing Industry Faces Economic Risks

The British racing industry has fought against these financial checks since they were first proposed in the Gambling Act review. The sector argues that the changes could devastate the sport’s economy, with projections painting a grim picture:

• The Jockey Club estimates that affordability checks could cost the industry £250 million over five years.
• The BHA previously warned in February 2023 that up to 1,000 stable staff jobs could be at risk.

BHA officials have repeatedly stressed that British horse racing relies heavily on betting revenues, making any disruption in wagering a direct threat to the sport’s sustainability.

BHA’s Strategy to Boost Betting

To offset the downturn, the BHA has rolled out changes aimed at improving betting engagement. Key strategies include:

• Spreading out Saturday races to reduce scheduling conflicts.
• Limiting races between 2 PM and 4 PM, ensuring they don’t overlap.
• Optimizing race build-up times based on betting patterns.

Wayman emphasized that longer gaps before major races (10 minutes or more) boost betting turnover, while shorter lead-ins (five minutes) tend to drive more engagement for regular races.

The results so far show a reduction in race clashes on Saturdays:

The BHA remains hopeful that the downward trend in betting turnover seen since August will continue slowing into 2025. But with affordability checks tightening and punters turning to alternative options, British horse racing finds itself in a challenging position.