BHA chief executive Julie Harrington has welcomed the introduction of an interim gambling industry code but warned it “does not yet secure a more sustainable future for racing’s finances” with uncertainty still surrounding levy reform and new anti-money laundering (AML) rules.  

The voluntary ‘Code on Customer Checks’, developed by the Betting and Gaming Council (BGC) and Gambling Commission, will operate until frictionless affordability checks are piloted and introduced. 

It is intended to replace checks currently being carried out by operators with uniform rules that feature much higher thresholds than those set to apply after the white paper proposals are implemented.

In addition to publishing the new interim code, on Wednesday the Gambling Commission set out its long-awaited response to the consultation it ran on affordability checks, including its plan to launch a six-month pilot of enhanced affordability checks.

Under the new interim code, only those who make net deposits of more than £25,000 in a rolling 12-month period will have to provide financial documents to prove an ability to afford their gambling, while if a customer wishes to deposit more than £5,000 in a rolling month, operators will carry out a risk assessment to determine whether evidence of gambling harm is being shown.

Affordability checks

“We’re reassured that the government has listened to racing’s long campaign against the affordability checks it first set out in its white paper more than a year ago,” said Harrington.

“It’s also to the credit of racing fans and the wider racing industry that their lobbying of the government, whether through taking part in our ‘Right to Bet’ survey or signing the petition to trigger February’s Westminster Hall debate, has so clearly been heard.”

When the gambling white paper was published last year, the government promised to review the levy to ensure racing did not suffer financially from the other proposals. However, ministers asked racing and betting to come up with a voluntary deal and an agreement has not yet been found, despite offers and counter-offers between the two sides.

Work to devise a new AML code has similarly not yet been completed. It is understood to have been carried out in parallel to the interim code for affordability checks, with the aim of ensuring checks do not catch bettors spending at much lower levels than the affordability thresholds. 

“While today’s announcement on increased thresholds for affordability checks is a move in the right direction, it does not yet secure a more sustainable future for racing’s finances,” said Harrington.

“We remain concerned there’s no update on the government’s review of the levy, promised more than a year ago, and the threat that represents to racing’s financial wellbeing. It’s also vital that new rules on anti-money laundering checks are set out as soon as possible to avoid racing bettors being caught up in separate requests for financial documents. 

“We’ll continue to work collaboratively with the secretary of state Lucy Frazer and sports minister Stuart Andrew to secure a review of the levy that delivers a sustainable funding model for Britain’s second most-watched sport, safeguarding thousands of jobs and an economic lifeline in Britain’s rural communities. 

“It remains our belief that the simplest way to do this is to increase the basic rate of levy and include bets taken on overseas racing to put our sport on a level playing field with other jurisdictions.”

Read this next:

New interim affordability code introduces £25,000 threshold for submitting financial documents 

Sign up to receive On The Nose, our essential daily newsletter, from the Racing Post. Your unmissable morning feed, direct to your email inbox every morning.