The horse racing industry in the UK is facing a crisis as new figures released by the UK Gambling Commission reveal a significant drop in online betting turnover. Over the past two years, there has been a £3 billion ($3.8 billion) decrease in turnover, representing a 25% decline. This decline is particularly concerning as the sector heavily relies on revenue from betting to fund its activities.
According to the UK Gambling Commission figures, adjusted for inflation, online racing turnover for the 12-month period ending in March was £8.37 billion ($10.6 billion). If this figure had grown in line with inflation, it would have been nearly £11.5 billion ($14.6 billion). This rate of decline is more significant than in other sports, highlighting the severity of the situation.
In response to these figures, the Betting and Gaming Council (BGC) is leading calls to reduce strict new affordability checks that have been implemented. The racing industry is facing challenges such as reduced media rights deals, increasing National Insurance rates, higher wages, and stricter regulation, all of which are putting a strain on operators.
Many industry experts believe that the new affordability checks are disproportionately impacting racing, as people tend to place larger bets on races. The BGC is advocating for urgent action to revise these rules and prevent unnecessary intrusion on customers who are not at risk of harm.
The British Horseracing Association (BHA) is set to meet with the BGC next week to discuss potential strategies to increase the sport’s turnover and address the challenges facing the industry. It is clear that swift action is needed to support the horse racing sector and ensure its long-term sustainability in the face of these significant challenges.