Future of Horseracing

Debate between Stuart Andrew and Stewart Hosie

Wednesday 25th October 2023 Westminster Hall

[Stuart Andrew]

If only I could have achieved that when I was the deputy Chief Whip—that would have been great, but there we go.

I have also met with horse racing bettor forums to hear about this from a customer’s perspective, which is incredibly important, and I will continue to engage with all those stakeholders. Let me also take this opportunity to address a couple of important points. The first is to distinguish between the checks that many operators are currently doing and the future system that was set out in the White Paper. At present, the Gambling Commission has not set specific thresholds or requirements for how or when operators must consider customers’ financial circumstances. There has only been an ask to prevent a repetition of the cases in which operators allow rapid losses that would be life-changing for most of us. However, that has led to inconsistency across the sector, with different operators seeking proofs at different points, often in the form of onerous documentation such as payslips and bank statements. We also know that many operators are requesting personal financial information for a range of reasons that are not necessarily related to safer gambling. I have heard concerning reports that some operators are using checks as a way of restricting the accounts of successful bettors. As a result of listening to all of this, I have spoken to the Gambling Commission CEO about these issues. I asked him to challenge operators to be more transparent with customers and more consistent in how they apply the checks now. They are looking at that and I am waiting to hear back in the coming weeks.

My focus is also on the new coherent national framework underpinned by data sharing, which was outlined in the White Paper and the consultation. We want it to be a significant improvement for customers and companies, to have clear requirements and a much smoother process for assessments, and crucially to bring uniformity rather than the process that people are seeing now and which has been described by Members here today. It will ensure that we see no more of those terrible cases where people lose tens of thousands of pounds in a very short time. As the Minister for gambling, I have also had to hear the awful stories that families have raised with me, and it is right that we act in that area.

I agree with many Members who have pointed out the need to be proportionate. The White Paper was clear: we only want checks for those most at risk of harm. We want the checks themselves to be painless for the overwhelming majority of customers, and neither the Government nor the Gambling Commission should put a blanket cap on how much money people spend on gambling. That will be at the forefront of our minds. The point about being frictionless is essential. I reiterate my commitment that proposed checks will not be mandated across the sector until we are confident that they are frictionless for the vast majority of customers who will be caught by them. The Gambling Commission will continue to work closely with gambling operators, the financial services sector and the Information Commissioner’s Office to develop the checks. We are also exploring options such as pilots and phased implementation. I am pleased that the Gambling Commission has agreed to host a series of workshops with the industry to explore these in detail.

It is important that the wider public have their say too. It is great that the Gambling Commission’s recent consultation received over 3,500 responses, many of which focused on financial risk checks and the relationship with racing. The regulator is working hard to analyse those responses and, notwithstanding its statutory independence, we will continue to work closely with it as it refines proposals before introducing new requirements. The consultation was on all aspects and all details, including the levels at which those checks will come in and how we consider the previous winnings.

The Government are keen to ensure that measures such as these checks do not adversely affect racing or interrupt the customer journey. They also cannot push away high-net-worth individuals such as owners and trainers who invest in the sport. We want to protect those at risk of harm, but with minimal disruption to the majority who, I recognise, place bets on horseracing with no ill effect. I also want to point out that the proposals the Commission are consulting on will apply only to online gambling accounts; they will not affect betting shops or on-course bookmakers.

On the point made by my right hon. Friend the Member for West Suffolk about the workforce, the Migration Advisory Committee has recommended adding six racing roles to the shortage occupation list. That recommendation is currently being considered by the Home Office, but I will ensure that I write to my colleagues there to highlight this debate.

The Government remain committed to supporting horseracing in this country. It is vital to the rural economy and a source of great pleasure to many people. I look forward to further discussions on these important issues, especially as the review of the levy continues.

[Stewart Hosie (in the Chair)]

I call Matt Hancock, for the briefest of wind-ups.