Horse racing fears the new government might focus on gambling laws

A ban on bookmakers sponsoring sports, without exceptions for horse racing, could seriously harm the industry.

Horse racing fears the new government might focus on gambling laws

The British Horseracing Authority has seen many leaders in recent years, but the new prime minister, Andy Burnham, might bring significant changes for the sport.

Burnham was born near a famous horse racing jump, but he has only visited the races once. He mentioned feeling a bit ashamed about this. However, there are many other important issues for the new prime minister to deal with, so racing might not be his top priority at first.

A key person for the sport is Lisa Nandy, who will continue as the secretary of state for culture. She played a role in the sport’s successful campaign against changes to betting taxes. However, she has also allowed the Gambling Commission to introduce checks on how much people can afford to gamble. These checks were warned against by the racing industry and others, who believe they could cause the sport to lose a lot of money.

If anyone hoped a new secretary of state would stop these affordability checks, that hope is now gone. Since Nandy is staying, racing hopes she will pay more attention to her responsibilities. They also hope she will demand more openness and accountability from the Gambling Commission as these checks are put in place, especially if they prove to be difficult for people to use.

Looking further ahead, Burnham’s views on the gambling industry could be more important. As the mayor of Manchester, he supported efforts to give local authorities more power to control the number of betting shops. He has also shown support for a campaign that wants to gradually stop gambling companies from sponsoring any type of sport.

A complete ban on gambling sponsorship and advertising in sports, without any exceptions for horse racing, would be financially devastating for the industry. Not only would tens of millions of pounds in direct sponsorship disappear, but the value of the sport’s television rights would also be lost. This would affect the free-to-air broadcasts that show racing on channels like ITV for many days each year.

Even if horse racing were exempted, a ban on sponsorship would still be a major problem for the betting sector. Betting companies have faced challenges from the rise of online casino games. The argument about whether sponsorship promotes gambling or just a company’s brand is complicated. However, it is probably best for horse racing’s long-term future to clearly separate betting on sports from casino gambling, which has been shown to have higher rates of problem gambling.

If the new government could also look at the problems with the 2005 Gambling Act, it would be a positive step for racing and those who bet. For now, however, the racing industry hopes the new administration will listen and act if the Gambling Commission’s affordability checks cause as many problems as they fear.


Vocabulary

churn rate — the rate at which employees leave a workforce and are replaced
figurehead — a leader who is in charge of an organization but has no real power
pressing issues — urgent or important problems that need immediate attention
intermediary — a person who acts as a link to help two or more people or groups to talk to each other
affordability checks — a system to see if people can afford to gamble without causing financial problems
extinguished — completely stopped or got rid of (a hope, feeling, etc.)
marginalised — treated as if less important than other people or things
nuanced — having or showing a subtle difference in or shade of meaning, expression, or sound

Discussion Questions

  1. What are the main concerns for the horse racing industry regarding the new government?
  2. How might Andy Burnham's past actions influence his decisions about the gambling industry?
  3. Why is gambling sponsorship so important for horse racing, and what are the potential consequences of a ban?

Based on an article from The Guardian.

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