Miles Briggs is a Conservative MSP for Lothian and Chair of the Scottish Parliament’s Cross-Party Group on Horse Racing and Bloodstock Industry. This is a sponsored post by the Betting & Gaming Council.
The impact of the Covid-19 pandemic and subsequent lockdowns on our high streets is already obvious. Shuttered premises are commonplace in town centres across the UK, and the recovery of the economy will be long and hard.
It is vital, therefore, that governments in London and Edinburgh do nothing to make things more difficult than they already are.
As the Chair of the Scottish Parliament’s Cross-Party Group on Horse Racing and Bloodstock Industry, I am acutely aware of what the pandemic has meant for our betting shops – and the knock-on effect for horseracing, which relies so heavily on the funding they generate for the sport.
With shops closed for large parts of 2020 and no immediate prospect of them reopening, bookmakers – particularly the independent sector – are understandably worried about what the future holds for them and their loyal staff.
The additional £40 million funding from the UK government to help the industry through the pandemic was very welcome. However, the impact of Covid-19 on the sector is significant and the future is uncertain.
All of this is taking place at the same time as the UK government’s review of the 2005 Gambling Act. I very much welcome the review and, with all the pressures and upheaval we have witnessed over the last year, it was encouraging to hear ministers say that the review must strike the right balance between protecting the vulnerable and not spoiling the enjoyment of the overwhelming majority who enjoy a flutter perfectly safely.
As a report last week by PwC showed, the unlicensed and unsafe black market will be the main beneficiaries if ministers get changes to regulation wrong and inadvertently drive ordinary punters in their direction.
Bluntly, the financial viability of sports like racing, darts, rugby league, snooker and much of football – which rely heavily on the support they receive from the regulated industry – is on the line.
I recently visited Midlothian-based bookmaker Scotbet’s Slateford Road shop in Edinburgh and met with management and staff to hear first-hand about the impact the Covid restrictions have had on the company and the wider industry.
In recent years we have seen the decline in the number of independent betting shops. The pandemic has sadly hit them especially hard, given their limited opportunities to adapt and develop online services. Scotbet is a good example of what has happened to high street bookmakers, with its shop numbers falling from a peak of 75 to just 30 today.
Across the UK, there are now 6,750 betting shops, a fall of around 1,600 in the past two years – denying local authorities around £15 million in lost business rates. Over the same period, the number of people they employ has also reduced by nearly 10,000, taking with them the income tax and national insurance they paid to the Treasury.
When you consider that the entire regulated industry – covering betting shops, casinos, bingo and online – contributes some £3.2 billion in taxes to the Treasury, it’s clear that anything that further impacts negatively on this should be avoided at all costs – especially as the Chancellor tries to repair the damage done to the public finances by Covid-19.
Local betting shops are also vital community hubs and are at the vanguard of attempts to promote safer gambling. Staff are trained to spot the signs of someone getting into trouble, and are able to direct customers towards the help they need.
The business challenges arising from the pandemic are significant and will take time to recover from – for all those, like me, who value horse racing across the UK, it is vital that we look to the future sustainability of the sector.
More recently, the Jockey Club has warned of a £60 million shortfall in its revenue if strict new affordability checks being considered by the Gambling Commission are introduced. These proposed changes have the potential to prevent millions of regular punters from placing a bet if the stake is deemed to be unaffordable.
Increased checks can be a good thing if they are targeted at vulnerable customers – but we should be wary of anything that risks driving mainstream customers to the unregulated black market, where there are none of the protections and safer gambling measures which are put in place by licensed operators.
The betting industry contributes around £350 million a year to racing through the levy, media rights and sponsorship, so any measures that affect the viability of betting will inevitably have a negative impact on the entire sport.
I sincerely hope that racing in Scotland – and across the UK – can bounce back stronger in the months and years ahead. A healthy racing industry is not just important for many local jobs, but also the supply chains it supports in places like Ayr, Hamilton, Kelso, Musselburgh, and Perth.
Thanks to the wonders of modern science and our amazing NHS, we are finally turning the corner on the pandemic. It would be a tragedy if well-meaning politicians inadvertently introduced changes which compounded the economic damage already done by Covid-19.