Betfair Co-Founder Asks UK Government to Protect the Declining Racing Sector
Betfair’s co-founder Andrew Black has expressed concern about the precarious financial position of horse racing in Britain. A horse owner and breeder himself, Black cautiously highlighted the declining betting turnover and predicted that the situation would get worse.
The Government Must Shield Racing, Black Says
Black expressed his concerns just after the UK Gambling Commission’s latest report, which outlined a 25% decline in online betting turnover equal to £3 billion. Whereas the industry hoped for a turnover of £11.5 billion for the previous fiscal year, a figure that would have been consistent with the inflation, it ended up reporting a turnover of only £8.37 billion.
To make matters worse, Black believes that this has not been the worst of it. He appealed to the government to protect horse racing, highlighting its cultural and economic importance. Black suggested that, to that end, the government must separate racing from other forms of gambling when it comes to regulation.
The decline in bets on horse races has been largely blamed on the controversial affordability checks, which industry stakeholders have opposed strongly, calling them an intrusive measure that would alienate players. Executives believe that the checks will continue to channel players who do not wish their playtime to be regulated toward the more dangerous black market, resulting in losses for the legal industry.
The lower turnover means that licensees cannot improve their product offerings, which would inadvertently channel more players toward illegal operators, creating a downward spiral. He said that he doesn’t see an end to this trend but expects it to continue.
Black insisted that racing is cultural and more specific than regular betting and casino gaming and should therefore be treated differently than other forms of gambling. Additionally, because of its nature, racing employs a huge amount of people who would suffer if the industry declined.
Black noted that the government’s realization that it should treat racing differently is the only way to reverse the negative trend. He said that the government should listen to reason and heed the pleas of the countless people employed by the racing industry.
The UKGC Says Affordability Checks Are Not the Sole Factor
The UKGC parried the allegations by saying that it has and will continue to engage with the racing sector but will not compromise the health of the British bettors. Its chief executive, Andrew Rhodes, said that operators had misunderstood the affordability checks’ intentions.
Rhodes said that the checks would be frictionless, as the regulator previously promised, and would only affect heavy spenders in an attempt to minimize harm and prevent financial fraud.
Rhodes also denied the notion that the affordability checks are the sole factor responsible for the reduction in racing turnover, suggesting that other things, such as customers’ spending capacity and product competition, also play a huge role.
Rhodes vowed to continue seeking the right balance between regulation and a healthy market.
