House of Commons · Westminster Hall
25 October 2023 · 17 other contributors · 13,668 words
Opened by Matthew Hancock Con West Suffolk
Responding minister: Stuart Andrew
Summarised by AI from the official record, so it can contain mistakes.
Matthew Hancock raised concerns about future of horseracing — [stewart hosie in the chair] in Westminster Hall. A government minister responded.
Key points
Key requests to Government
The Minister needs to reform the horseracing levy so that offshore races count for the levy, increase prize money, ensure necessary occupations are on the shortage occupation list, and address the unintended consequences of affordability checks that drive bettors towards unregulated platforms. The policy is damaging horseracing economically and socially.
MPs spoke in turn to share their views and ask questions. Here's what each person said.
Opened the debate
British horseracing is essential to the country's culture, heritage, and economy, providing over £4 billion in economic activity annually with nearly 100,000 jobs. The sport faces challenges due to modern technology and affordability checks that push bettors towards unregulated platforms, leading to a decrease in prize money and tax revenues. Newmarket, home to two of the finest racecourses, employs more than 7,000 people directly and indirectly.
Mr. Afriyie expressed concern about proposed betting checks, arguing that reasonable bettors might turn to black market sites if these checks are introduced, exposing them to risks and reducing revenue for UK horseracing.
Agreed with Laurence Robertson's concerns about the potential harm of affordability checks to horseracing and highlighted the risks of driving gamblers towards international online gambling organisations without proper safeguards.
Mr Leigh mentions the history of racing in his constituency, highlighting that it depends on betting and is now at risk due to affordability tests. He hopes for a strong defence of the industry.
The hon. Member highlighted the economic benefits of racing to Scotland, noting that it generated over £300 million in 2018 and was projected to rise to half a billion pounds by 2025. He also raised concerns about problem gambling and advocated for affordability checks and limits on online betting.
Supports the debate on horseracing, highlighting its economic importance and the need for cross-party efforts to ensure a bright future. Emphasizes that betting is integral to the sport but must be regulated to prevent problem gambling.
The racing industry has lost approximately £1 billion due to enhanced checks for problem gamblers, resulting in about 1,000 racehorses being taken out of training. Despite these measures, none of the nine metrics used by the Gambling Commission to assess harm from gambling have improved during this period. The proposed new checks will affect around 3% of accounts but are already causing 50% of racing gamblers to consider stopping or significantly reducing their betting and driving others towards black market betting.
Mr Shannon adds a fourth reason for securing the debate, noting that escalating costs may make racing exclusive to elites. He calls for measures to ensure people from all classes can participate in horseracing.
Mr Spellar advises that while racing is crucial for specific areas, it also plays a role in attracting investment to the UK. He cautions against internalising the debate and emphasises the broader importance of horseracing.
Farris highlighted the economic and social importance of horseracing in Lambourn, mentioning over 1,000 jobs and £20 million annual revenue. She emphasised strong animal welfare standards, including veterinary facilities and retraining programs for retired racehorses. Farris raised concerns about proposed affordability checks under the Gambling Act review, arguing they disproportionately impact horseracing compared to casino-type games. The checks could reduce gambling yields by 6-11%, affecting prize money, media rights, and the levy.
British horseracing generates £270 million in my constituency from just four days of races, highlighting its economic importance. Prize money at lower levels is insufficient, with owners needing to win 12-13 races annually to break even, which is unrealistic. The sport relies heavily on betting companies' financial support, and proposed affordability checks could harm horseracing without addressing gambling addiction effectively.
Mr Zahawi discusses the impact of affordability checks on racecourses like Stratford-on-Avon, criticising the Department's and Gambling Commission's stance as 'drivel.' He suggests pulling a lever to support overseas betting.
As an equine vet, Neil Hudson expressed his passion for the horseracing sector and highlighted its economic importance, contributing £4.1 billion to the economy and employing 20,000 people directly with around 80,000 indirectly. He raised concerns about staff shortages in the industry and recommended adding certain parts of the equine sector to the shortage occupation list. Additionally, he discussed the impact of biosecurity on horse health and welfare and the importance of disease surveillance.
Mr Howell discusses illegal betting through the use of drones to film races and suggests measures to ensure revenue goes to racecourses, highlighting the issue of data integrity in sports events.
Acknowledged the extensive supply chain of British racing extending beyond training centres into towns with betting offices, emphasizing its economic impact across various sectors and localities.
Mr Philip Davies expressed concern about the impact of government-imposed betting affordability checks on horseracing, citing examples where owners and trainers would undergo enhanced checks for spending £2,000 on bets over 90 days while their significant investments in horses go unchecked. He argued that this policy is unreasonable and disregards the broader context of low problem gambling rates. Asked Jerome Mayhew if affordability checks should be introduced for alcohol purchases, as it causes more harm than gambling. He also challenged the accuracy of a figure given by Gambling with Lives about suicide rates due to gambling, stating that this figure has been debunked. Welcomed the hon. Lady to her post, agreeing with most of what she had said and commending her for it. Raised a question about whether games of skill should be treated differently from games of chance in gambling regulation. Given that the right hon. Member for West Suffolk and I actually agree on this issue, does the Minister accept that we really must be on to something?
Ms Dyke highlights the importance of Wincanton racecourse and other successful training yards in her constituency, citing worker shortages due to immigration rules. She urges urgent approval for adding six horseracing roles to the shortage occupation list.
Peacock highlighted the economic and cultural significance of horseracing, noting it supports over 80,000 jobs and generates £4 billion annually. She expressed concern about declining prize money compared to other countries, impacting incentives for participation in British racing. Peacock called for a review of the horserace betting levy to ensure appropriate funding levels and asked the Minister to provide updates on the progress of this review.
Government Response
Stuart AndrewIt is a pleasure to serve under your chairmanship, Mr Hosie. I thank my right hon. Friend the Member for West Suffolk (Matt Hancock) for securing this important and timely debate, and I appreciate his support for horse racing not only in his constituency but across Britain. The Government acknowledge the significant contribution that racing makes to our economy, supporting employment across racecourses, training yards, breeding operations and related sectors, reflecting a powerhouse industry that is respected at home and abroad. Horse racing is the second biggest sport in the UK with 65,000 to 70,000 people attending the grand national and 200,000 over the four days of the Cheltenham festival annually, contributing £4 billion to the economy. The levy has been extended to online bookmakers at a rate of 10%, seeing an almost doubling from £49 million to £95 million in recent years with forecasts for around £100 million in 2022-23. The Government are considering proposals submitted by the British Horseracing Authority (BHA) on closing the funding gap and conducting a review due by April next year, exploring options including legislation and voluntary agreements between racing and betting stakeholders. The BHA's concerns about financial risk checks outlined in the White Paper have been heard and addressed with the Gambling Commission working to develop a smoother process for assessments. Over 3,500 responses were received on financial risk checks from the Gambling Commission's consultation, highlighting the need for proportionate measures that protect those at risk of harm while minimizing disruption to the majority. The Government remain committed to supporting horseracing, which is vital to the rural economy and a source of great pleasure to many people.