MPs call on culture secretary to suspend Gambling Commission’s affordability checks

(AsiaGameHub) –   A cross-party group of 19 MPs, representing British racecourses, has appealed to Culture Secretary Lisa Nandy to intervene and suspend the Gambling Commission’s proposed financial risk assessments (FRAs).

The MPs caution that the implementation of this policy, set to begin later this month, could cause lasting damage to horseracing and the wider licensed betting sector.

Assessments are not ‘frictionless’

In an open letter obtained by Racing Post and published on Sunday, the MPs—representing 59 racecourses that draw more than five million visitors each year—emphasised the economic importance of the horseracing industry.

They noted that it contributes over £4 billion annually to the UK economy, generates £300 million in tax revenue, and sustains approximately 85,000 jobs across the country.

The letter voiced concern that the affordability checks could disrupt the long-standing relationship between racing and betting at a time when the sport is already facing significant economic pressures.

Referencing findings from the UK Gambling Commission’s FRA pilot study, which tested the use of Credit Reference Agencies for enhanced affordability checks among certain customers, the MPs warned that the new policy would not be “frictionless” for racing bettors.

This follows closely on the heels of an open letter sent by the British Horseracing Authority opposing financial checks earlier this year.

“This unprecedented government intrusion into individuals’ private financial affairs has deeply concerned the millions of people who support horseracing. Over 100,000 signed a petition against the checks in 2024, leading to a Westminster Hall debate where then-minister Stuart Andrew MP stated that such checks would only proceed if they were ‘truly frictionless’,” the letter read.

“However, the subsequent Gambling Commission pilot involving Credit Rating Agencies has demonstrated that achieving a 100% success rate is not feasible. Despite repeated warnings from stakeholders, the Commission appears determined to push forward with this highly contentious policy, regardless of its potential consequences for Britain’s second-most popular sport.”

Both Conservative MP Nick Timothy and Liberal Democrat Lee Dillon co-signed both letters.

Intrusive or not?

The MPs argued in their open letter that FRAs would lead to increasingly intrusive requests for personal financial information, contradicting prior government promises that such measures would only be introduced if they were entirely seamless.

Gambling Commission director Tim Miller clarified in a recent keynote address that operators would not be obligated to request additional financial documentation—such as bank statements—following an FRA. He also highlighted that less than 3% of active customers would trigger any intervention steps based on the current pilot, while 97% would experience a fully frictionless assessment without disruption.

A recent YouGov poll commissioned by the Betting and Gaming Council (BGC) revealed that 65% of UK bettors would refuse to provide sensitive financial documents—like bank statements or payslips—if required to do so in order to continue placing bets.

Illegal betting

The MPs also raised concerns about a possible rise in illegal betting activity if the planned checks go ahead.

Official Treasury data cited by the MPs shows a staggering 522% increase in illegal gambling between August 2021 and September 2023, underscoring fears that overly intrusive affordability checks may drive consumers toward unregulated platforms. The government has since announced plans to establish an Illegal Gambling Taskforce, focusing particularly on online operators and the payment and advertising systems that enable their operations.

Financial impacts feature prominently in the correspondence. The MPs reference estimates from the BGC warning of annual losses to public coffers of up to £300 million due to a shift toward the black market. They also project a potential reduction of £250 million in horseracing turnover over five years if customers migrate to unlicensed betting sites.

A key issue raised is what the MPs describe as a weakening of ministerial oversight. They assert that government officials had assured the sector that no permanent affordability measures would move forward without a thorough ministerial review following the pilot phase.

However, they claim this assurance has been undermined by reports that the UKGC intends to make a final decision through its board later this month without seeking further input from ministers.

In light of these developments, the MPs have urged Secretary Nandy to direct the UKGC to halt all progress beyond the pilot stage until a comprehensive and transparent evaluation of the policy’s effects on horseracing, consumers, the regulated betting market, and public finances has been completed.

Next steps

The UKGC board is expected to review the pilot results imminently. At present, the Department for Culture, Media and Sport has not issued a public response to calls for a pause or additional ministerial scrutiny.