RacingBetter News
	Tuesday 22nd October 2024

How Gambling Restrictions will Affect Sports in the UK

For centuries, sports betting has been a favoured pastime in the United Kingdom. It started towards the end of the 18th century when Harry Ogden became the first person to open a bookmaking business in the UK. His trailblazing creation covered horse racing, with Ogden responsible for the concept of horses having individual odds. From his example, the bookmaker was born, with many others to the present day following his example. Sports betting started off with mini stands at horseracing meets, then evolved into high street bookies, before digitalising their way onto online platforms.

Sports, as well as betting, has always been a cornerstone of British society, but with the evolution of society, comes evolved thinking, and recently, there have been measures introduced in the gambling industry that could have a knock-on effect on the sports betting market and ultimately, the sports industry.

Affordability checks to make people think twice about betting

As of 30th August 2024, “invisible” background affordability checks were introduced to online gamblers who incur losses of £500 or more in a month. Understandably, these affordability checks were introduced to provide more support for those who suffered more from the addictive nature of online gambling. However, for stakeholders in the sports industry, there is a growing fear that they will be the ones to lose out on precious revenue due to the prospect of less people making online bets.

For those taking part in online gambling, there are already alternative ways to sidestep these new rules, by playing on independent casino sites, but the fact any revenue created on these platforms would not benefit UK operators is also a concern for the horse racing industry. The industry relies on the investment from UK sports betting companies to hold prestigious events such as the Cheltenham festival and Royal Ascot. Another fear is that online gamblers, regardless of if they are winning or losing, might be deterred from online sports betting if these affordability checks have greater implications on their lives.

Even for sports betters that turn a profit, the prospect of losing is a realistic one. These affordability checks were introduced primarily because of the profound rise of the online casino industry in the UK, but the legislation is proving to have a ripple effect on the sports betting industry.

Clampdown in football

In football, another of the UK’s favourite sports, there is legislation coming into play for the start of the 2026/27 season that will ban sports betting companies from advertising as front of shirt sponsors for Premier League teams. Over the past years, there has been an unprecedented rise in sports betting sponsorship, especially from outside of the UK. So much so that eleven of the current twenty Premier League teams display online betting companies as front of shirt sponsors. In another move to tackle online gambling, the aim is to reduce the exposure to fans watching live or on television. It remains to be seen what impact this will have, but onlookers from other sporting backgrounds, especially horse racing, will be hoping that similar legislation is not introduced into their sport.

What to expect for the future?

Since bonus buy games were banned in 2019, the moves to implement wagering limits and “frictionless” financial checks are two of the biggest strides taken by the UK Gambling Commission (UKGC) to tackle gambling addiction. While the results of these pilot projects, expected early in 2025, will give further indication of which stance to take against gambling issues, the signs are not positive for stakeholders in the sports industry.

It is a bit of a nervous wait for those involved with these limitations, as well as the incoming measures for Premier League shirt sponsorship, potentially having a significant effect on future revenue. The ultimate fear for sports country wide is that more restrictions are to follow. With foreign investors lurking, ready to pounce on any profitable opportunity, protagonists in UK sports might not hesitate to invite foreign investment. The UKGC and UK government have begun their assault against online gambling and problems it can cause. How it plays out remains to be seen. What is certain is that those in the sports industry will be keenly following developments.