Industry Leaders Concerned About Proposed "Affordability Checks"

Industry leaders in the gambling sector have sounded the alarm about government plans to introduce "affordability checks" on gamblers' financial affairs, warning that it could have disastrous consequences for the industry. Martin Cruddas, the CEO of Arena Racing Company, has written a letter to ministers expressing his "grave concerns" about the proposed measures. He argues that the new tests, which are untested and unprecedented in Britain, could lead to a slippery slope that would undermine consumer freedom and damage the economy.

Fears of a Precipitous Decline in the Horse Racing Industry

Of particular concern to betting bosses is the potential impact of the affordability checks on the horse racing industry. Cruddas warns that the sector is on the brink of collapse and that the government should not be the one to push it over. The reforms would allow the government to scrutinize the financial transactions of individuals who have lost as little as £125 in a month due to gambling. While ministers argue that these measures are necessary to combat problem gambling, industry bosses estimate that they could result in a loss of up to £250 million in revenue over the next five years.

Backlash and Petition Against the Reforms

The proposed affordability checks have sparked a massive backlash, with nearly 80,000 people signing a petition against them in just one week. Critics argue that the measures are overly intrusive and could disproportionately affect those who enjoy gambling as a leisure activity. In his letter to Gambling Minister Stuart Andrew, Cruddas demands that MPs be given the opportunity to debate the controversial subject in Parliament, rather than having the policy imposed by the Gambling Commission.

Accusations of an "Ideological Agenda"

Cruddas also accuses the Gambling Commission, the government regulator, of prioritizing an "ideological agenda" over the realities of the industry. He argues that the policy should be subject to democratic scrutiny and decision-making, rather than being dictated by an unelected body. In response, a spokesperson for the Department for Digital, Culture, Media, and Sport (DCMS) stated that the government is committed to a sustainable future for horse racing and that financial risk checks are necessary to protect vulnerable individuals.

The spokesperson further added that the government is working closely with the industry to develop a new system of checks that is proportionate and efficient, based on data-sharing, in order to replace the current system run by the industry itself.