UK Bettors Opting for Black Market Products as KYC Regulations Tighten
A major survey conducted by the RMG revealed that 15% of survey respondents either bet or know someone who bets with a black market bookmaker, resulting in a "material decline" in racing betting turnover on the sport last year as affordability checks drove punters away.
Martin Stevenson, CEO of RMG, which manages the media rights of 35 British racecourses and is the parent company of Racing TV, revealed the revenue hit while releasing the results of a survey of 3,500 RTV members.
It comes a day after Andrew Rhodes, chief executive of the Gambling Commission, claimed that his organisation had not mandated the implementation of affordability checks, which are expected to feature in some capacity in the government's long-awaited gambling review white paper.
Bookmakers claim they were forced to implement the contentious checks due to regulatory pressure, which requires firms to consider their customers' financial circumstances when assessing risk.
Stevenson said:
“The widespread response to the Racing TV survey shows how much the ongoing Gambling Act Review, combined with their recent experiences, is affecting our members.
"Our survey revealed that 15 per cent of respondents bet, or know someone that bets, with an unregulated bookmaker, which is of real concern. With millions of customers betting on racing, the findings of this survey indicate that hundreds of thousands of punters are potentially using the black market.
"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 exposing them to potential harm.
"This must be a Pyrrhic victory and the opposite of what affordability checks set out to achieve."
Four-fifths of respondents said they did not want bookmakers to impose mandatory limits, and 92% said they would consider using a different bookmaker if no personal information was required.
“We have shared this information with the Gambling Commission and hope they can take account of this in their assessment of the black market," added Stevenson. "The evidence suggests it exists and is only building.
"Nearly a quarter [22 per cent] responded ’yes’ to the question on whether they had been asked for personal information, with 50 per cent refusing to comply. This is a strikingly high percentage, demonstrating consumers’ rejection of this intrusion on their leisure activity.
"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.
“In addition, RMG has seen a material decline in online betting turnover on horseracing in 2022. Everyone involved in the industry should be deeply concerned. The impact of affordability checks is that the sport is suffering a heavy financial toll."
This sentiment has been echoed by freebets.ltd.uk, the number destination for online betting offers. The business last week announced that it had expanded into the decentralized betting space due to a spike in demand for anonymity amongst its players.
