The British Horseracing Authority (BHA) has criticised the Gambling Commission’s decision to introduce Financial Risk Assessments for online gamblers, warning that the policy could create serious financial consequences for British racing and raise concerns about customer privacy.

The regulator confirmed that affordability-related checks will be introduced through a phased approach aimed at identifying and supporting higher-spending customers who may face financial difficulties. The first stage will apply to the largest operators when customers reach a £5,000 net deposit threshold within a rolling 24-hour period.

Once fully implemented, the assessments will apply to customers aged 25 and over with net deposits exceeding £1,000 during a rolling 24-hour period or £3,000 over 90 days. For customers under the age of 25, the limits will be reduced to £750 over 24 hours or £2,000 over 90 days.

The Gambling Commission said the process would use credit reference agency information and is designed to reduce unnecessary document requests for customers who do not show signs of financial risk.

Sarah Gardner, acting chief executive of the Gambling Commission, said, “We are confident that our approach, using high-quality data, will enable support for high-spending customers in financial difficulties, while reducing friction for customers who are not in financial difficulties by removing the need for unnecessary and unpopular document checks to understand financial risk.”

She added, “We have listened to feedback throughout the pilot process which has led to us deciding to carefully proceed. We will work with key partners to make sure that they are implemented in the most effective way for consumers and operators.”

BHA warns of impact on racing revenues

BHA chief executive Brant Dunshea strongly opposed the decision, arguing that the measures could affect betting activity linked to horse racing and create wider economic consequences.

“We are hugely disappointed that the Gambling Commission will implement affordability checks which will have severe financial implications for British racing and the UK economy and subject racing bettors to unwarranted levels of intrusion.”

Dunshea said the racing sector had repeatedly provided feedback during consultations and warned policymakers about potential consequences for the sport and its supporters.

“Over a number of years, and through several consultations, British racing has engaged in a spirit of huge goodwill to honestly advise the Government about the potential impact this policy would have on our sport and its fanbase.”

The BHA said concerns about the policy had also been raised by betting industry representatives, politicians, campaigners and policymakers. According to the organisation, the measures could affect industries that contribute billions of pounds to the UK economy and support more than 200,000 jobs.

According to the BHA’s press release, Dunshea also questioned whether the checks would operate as smoothly as initially promised.

“We understand these checks have been proven by the Gambling Commission’s own pilot to not be ‘fully frictionless’ as originally promised by successive Government ministers.”

The BHA argued that some customers could move toward illegal gambling operators if they encounter additional barriers when using regulated betting services.

“Rather than protecting consumers, these checks will have the opposite effect: driving more customers to the illegal market – which puts them at much greater risk of gambling-related harm – and starving the Treasury of much needed tax revenue.”

The organisation said it would continue working with the Gambling Commission, the Department for Culture, Media and Sport (DCMS), and the betting industry to reduce potential negative effects once implementation begins.

Concerns remain over data accuracy and implementation

Industry representatives have raised questions about the reliability of information provided through credit reference agencies, which will support the Financial Risk Assessment process.

Legal experts noted that pilot testing highlighted differences between credit reference agencies when assessing the same customer. The BHA also called for clearer guidance to ensure operators do not take excessive action after customers are flagged.

Wiggin partner Chris Elliott described the phased rollout as a practical approach but said concerns about inconsistent credit reference agency results remain unresolved. He also questioned whether reduced operator revenue could result from customers avoiding checks rather than from interventions involving financially vulnerable individuals.

“The industry is understandably concerned that the reduction in GGY will in practice come not just from those who are in financial distress, but from those customers who simply do not wish to submit to the provision of financial documents or open banking interrogation and who will instead reduce their spend or move elsewhere,” he said.

“The Commission’s announcement does nothing to assuage that concern.”

Melanie Ellis of Northridge Law also highlighted concerns about the accuracy of credit reference agency data, stating that different agencies producing different results for the same customer remains an unresolved issue.

The BHA referenced previous projections suggesting the policy could have a significant effect on racing income. Independent modelling carried out after the 2023 Gambling White Paper estimated that financial risk assessments could cost the horseracing sector around £250 million in lost revenue over five years.

The Betting and Gaming Council has estimated that approximately 120,000 racing bettors could face enhanced affordability checks requiring financial documentation, with around 96,000 potentially refusing to provide those documents.

The BHA also pointed to consumer research indicating limited support for sharing financial information with gambling operators. A Gambling Commission survey involving more than 12,000 respondents found that only 14% would be willing to provide personal financial information to continue betting, while 66% said they would feel uncomfortable or very uncomfortable with credit reference agencies accessing their personal information.

Political criticism has also followed the announcement. Shadow gambling minister Louie French MP called for greater parliamentary scrutiny and urged the government to take a stronger role in overseeing the Gambling Commission’s approach.

The BHA said an independent review should assess whether the policy delivers the intended results after implementation.