The British horseracing industry is undergoing significant regulatory changes concerning customer checks, as announced by the Gambling Commission and the Betting and Gaming Council (BGC). Julie Harrington, CEO of the British Horseracing Authority (BHA), has issued a statement reflecting on these changes and their implications for the racing community.
Understanding the Changes:
The Code on Customer Checks, jointly crafted by the BGC and the Gambling Commission, introduces new policies aimed at enhancing customer protection and financial oversight within the gambling sector. One of the central aspects of this code is the implementation of affordability checks, a contentious issue that has been subject to extensive debate and lobbying efforts within the racing community.
Impact on Racing Finances:
Harrington acknowledges the progress made with the revised thresholds for affordability checks but emphasizes that these measures alone do not guarantee the financial sustainability of the racing industry. While the increased thresholds represent a step in the right direction, there are lingering concerns regarding the absence of updates on the Government’s review of the Levy—a crucial aspect of racing finances.
Voluntary Compliance and Financial Vulnerability Checks:
The BHA Code on Customer Checks will operate on a voluntary basis, targeting customers making monthly rolling net deposits exceeding £5,000. This voluntary approach underscores the industry’s commitment to responsible gambling practices while also recognizing the need for flexibility in implementation. Additionally, the integration of the Gambling Commission’s financial vulnerability checks further enhances the regulatory framework, ensuring comprehensive oversight of customer transactions and behaviors.
Addressing Anti-Money Laundering Concerns:
Harrington highlights the importance of promptly establishing new rules on Anti-Money Laundering (AML) checks to streamline regulatory processes and mitigate potential risks. The seamless integration of AML measures is essential in safeguarding the integrity of racing betting activities and minimizing the likelihood of illicit financial activities. By addressing AML concerns proactively, the industry can uphold its reputation for transparency and accountability.
Advocating for Levy Reform:
A critical aspect of securing the racing industry’s financial future lies in advocating for Levy reform. Harrington reiterates the industry’s stance on increasing the basic rate of Levy and expanding its scope to include bets placed on overseas racing events. Such reforms are vital for leveling the playing field and ensuring a fair and sustainable funding model for British horseracing. Collaboration with governmental authorities is paramount in advancing these reforms and securing the industry’s long-term viability.
The recent changes to customer check policies mark a significant development in the regulatory landscape of the racing industry. While commendable progress has been made, challenges persist, particularly concerning financial sustainability and Levy reform. The industry’s commitment to responsible gambling practices, coupled with proactive engagement with regulatory bodies, will be instrumental in navigating these challenges and shaping a prosperous future for British horseracing.