UK racing has demanded urgent action on affordability checks after revealing a “£3bn deficit in online betting turnover on horse racing”.
The sport faces a growing financial crisis, highlighted by The Racing Post, which described horse racing as being in “financial freefall.”
Statistics from the UK Gambling Commission (UKGC) show a £3bn drop in online betting turnover over two years. When adjusted for inflation, the shortfall is closer to £11.5bn.
This steep decline has triggered calls for immediate intervention from MP Nick Timothy and the Betting and Gaming Council (BGC). The fall in betting turnover has worsened financial pressures on racing, which has already lost significant funding from media rights, sponsorships, and levy contributions.
Rising costs, including inflation, wage increases, and higher National Insurance contributions for rural employers, are further compounding the industry’s struggles.
Horse racing has been disproportionately affected by affordability checks compared to other gambling sectors. The UKGC’s data shows the sport’s betting turnover dropped 16.3% over the last two years (before inflation). In contrast, betting on greyhound racing fell 12.9%, football betting declined by 7%, and online slots turnover remained stable.
The outlook for 2023 is no better, with horse racing betting turnover down 9.5% year-to-date by August.
Conservative MP Nick Timothy criticised the lack of government action, saying: “These statistics show exactly why so many are worrying about the effects of disproportionate affordability checks on horseracing. I’ve raised this problem—along with the need to reform the levy—repeatedly since I was elected.
“While the words have been warm, ministers are yet to come forward with solutions. The decline in betting on horseracing shows how urgent this is.”
The BGC has also sounded the alarm, blaming regulatory measures introduced in the Gambling Review for the double-digit decline. It called for “frictionless, targeted spending checks” that do not alienate recreational customers. Despite the downturn, BGC members have contributed £350m annually to UK racing through levy payments, media rights, and sponsorships.
Greg Swift, the British Horseracing Authority’s (BHA) Director of Communications, stressed the importance of rigorous oversight of the new affordability checks.
“We have made it clear to the commission that the results of pilot tests must be independently reviewed. Without this, the findings will lack credibility and erode confidence in the sport. Thorough evaluation is absolutely critical.”
The BGC is set to lead discussions on reforming the levy structure to provide a lifeline for British racing. Meanwhile, the BHA continues to lobby the Department for Culture, Media and Sport (DCMS) for action on affordability checks and declining revenues. However, progress on an anti-money laundering code remains slow.
The BHA and BGC are scheduled to meet in the coming weeks to reignite talks on levy reform. A report is expected to be presented to the government before the end of the year.
