Betfair co-founder Andrew Black has urged the UK government to protect the racing sector amid concerns over a sustained decline in betting turnover. Predicting the situation will only get worse, Black has appealed to the government to save the industry, highlighting its cultural and economic importance.

Black’s petition follows the UK Gambling Commission‘s publication of its latest report, which shows a 25% decline in online betting turnover on the sport, equivalent to £3 billion ($3.8 billion). For the owner-breeder, this is just the beginning, with “more to come” if no plan to save the sector is enacted.

Emphasizing racing’s cultural significance in the UK, the Betfair co-founder suggested having separate regulations for racing from other forms of gambling. According to Black, the sector should be treated differently since racing is more specific than regular betting and casino gaming.

Affordability checks blamed

For Black, treating racing differently might be the UK’s only shot to reverse the negative trend. His call for government support comes as regulated options compete with illegal alternatives, which Black says have become more attractive for punters in light of the recent introduction of affordability checks.

The industry has placed much of the responsibility for the decline in consumer interest on these checks, with some major players in the sport blaming an “unaccountable and out of control” Gambling Commission. The checks, the regulated industry says, drive punters to offshore alternatives, which in turn have become more profitable.

“They’re able to spend more and although you can say they can’t advertise, they have ways around that, they get their business in a viral manner,” Black said, as reported by the Racing Post. “As those businesses become more profitable that is a spiral that carries on and potentially undermines the legitimate businesses who are playing the game fairly.”

Affordability checks were recently introduced as part of the Gambling Act review, with the idea to prevent punters from betting more than they can afford. However, the plan was quickly met with skepticism from the racing industry, which sees checks as an intrusive measure that ends up alienating players.

As players leave the regulated market, turnover falls. As a result, operators are less likely to offer an attractive product, Black said, creating a vicious circle where players are inadvertently channeled towards illegal operators. It is this scenario that has prompted the sector to raise its voice, calling for government action.

“Ultimately, if online is feeling the pinch, then the punter is going to feel the pinch, because value is going to leave. You’ll find offers disappearing as they have to tighten their belts and that gets passed on to the punters,” he said. “It is all part of a spiral. We don’t know when it comes to an end and how it’s going to play out but what we do know is there is more to come.”

Racing industry asks to be treated “differently”

Earlier this week, Arena Racing Company chief executive Martin Cruddace said in a statement on behalf of British racing stakeholders including the National Trainers Federation, Racehorse Owners Association, and Racecourse Association, that they would be writing to prime minister Keir Starmer and culture secretary Lisa Nandy to outline their “major concerns” about the situation.

Supporting the move, Black said UK racing needs to make the case that the sector requires special protection from being caught in the crossfire of a battle over the regulation of other forms of gambling. “We need to be separated from other forms of gambling, two flies on a wall, casino-type gambling,” he said, as per the Racing Post.

According to Black, other forms of gambling don’t have the same “cultural and social aspect” that racing does. Another reason that makes racing deserving of being “treated differently,” says Black, is that “a huge amount of people” are employed in the industry, which makes the downward spiral of racing a matter of public concern.

“I think there are people who can make that argument and I think there are people in government who will listen to that argument when they look at the number of people who are employed in this industry,” he said. “It’s the only salvation I can see right now.”

UKGC responds to racing sector

Responding to the statement from racing stakeholders, the UKGC said it has and will continue to engage with the sector, but not at the expense of British bettors. According to UKGC chief executive Andrew Rhodes, operators have misunderstood the check’s intentions, which he said would only affect heavy spenders in a bid to minimize harm and prevent money laundering.

Rhodes defended the affordability checks, labeling them as “proportionate” and arguing they support “the most financially vulnerable customers.” If implemented, he said, they would take place for only the highest spending customers and would also be frictionless for the vast majority who undergo them. Further information would only be requested from customers as a last resort, the UKGC added.

The chief executive also dismissed the notion that checks are to blame for the reduction in racing turnover, noting that other factors such as customers’ spending capacity and product competition have also played a role.

“Evidence informs our decision-making and we will continue to review our findings to balance our drive to protect the most vulnerable consumers and similarly protect the freedom of adults to gamble,” Andres said. “We hope and expect others to do the same.”