RMG CEO warns of members using unlicensed gambling operators

RMG’s Racing TV carried out a survey of members.

UK.- Racecourse Media Group (RMG) CEO Martin Stevenson has warned the UK government of signs that members are turning to unlicensed gambling operators. He urged the government to listen to consumers as doubts remain about the direction of the review of the 2005 Gambling Act.

As Lucy Frazer takes the helm of the government department responsible for the gambling white paper, Stevenson cited a survey of members of RMG subsidiary Racing TV. The survey found that 15 per cent of 3,539 respondents had bet or knew someone who bet with an unlicensed online betting operator.

Stevenson said: ‘This survey is clear evidence that shows that the black market is real and substantial and suggests that affordability checks are having the effect of moving a significant number of affected punters out of the UK-regulated environment and so exposing them to potential harm. 

“This must be a pyrrhic victory and the opposite to what affordability checks set out to achieve. We have shared this information with the Gambling Commission and hope that they can take account of this in their assessment of the black market. The evidence suggests it exists and is only building.”

The survey also asked respondents about affordability checks. It found that 80 per cent of 3,469 respondents were opposed to mandatory spending limits. Meanwhile, 22 per cent of 3,575 said they had been asked by a betting operator to provide “personal information”.

“This is a strikingly high percentage, demonstrating consumers’ rejection of this intrusion on their leisure activity,” Stevenson said. “The inference that 22 per cent of racing punters are at risk of harm is very challenging to believe and appears excessive when compared against the overall prevalence of problem gambling.”

Most worryingly, the survey found that 92 per cent of 3,237 respondents would “consider using a different bookmaker”.

“Everyone involved in the industry should be deeply concerned. The impact of affordability checks is that the sport is suffering a heavy financial toll,” Stevenson said.

“I hope that the new Minister with responsibility for horse racing and gambling will also consider the results of this survey as part of the ongoing work on the Gambling Act Review. 

“It has been long overdue, in this process, to consider the attitudes of the consumers themselves in regard to how they choose to spend their time and money. I was very glad to hear the former Minister acknowledge that in his recent speech.

“Applying universal limits does not recognise the wide range of natural betting behaviours, events, seasonality or differing individual financial circumstances. The undoubted highlight of the Jumps season, the upcoming Cheltenham Festival – which is the major focus for many punters – is clearly a case in point. To that end, I was pleased to see the former Minister stating that a ‘one size fits all approach’ was not the intention.”

Are affordability checks still on the agenda?

Paul Scully, who was the minister responsible for the review of gambling legislation until this month, told the Betting and Gaming Council (BGC) AGM that rather than “affordability checks”, he preferred the term “financial risk checks”.

“A one size fits all approach is not the intention here. It may be more accurate to call them ‘financial risk’ checks – checking that a higher than usual level of spend is not itself an indicator of harm.”

Scully’s comments suggested that some form of checks may make it to the final white paper. Previously, leaked content from the white paper in its form from mid-2022 spoke of “passive” affordability checks, which could be performed automatically without the customer needing to provide evidence. The BGC has warned that affordability checks are a risk to the gambling sector.

See also: Conor Grant appointed chairman of Racecourse Media Group