Not a betting blog as no work this weekend but there's been a lot of discussion in the press, and even more on Twitter, regarding the upcoming white paper so I though I'd chuck my two penneth in as well.
The ever excellent Simon Nott highlighted on Twitter recently how many contributors were actually complaining that it is easier to get bets on on course than off. He, and I found, this complaint bizarre for a number of reasons.
Firstly there seems to be the idea that off course is highly regulated and on course is a free for all jamboree. This is simply not the case. On course bookmakers work to similar regulations to off course when it comes to betting on their core business- in our case horse racing. You may be surprised to know that on course bookmakers are required to have policies and procedures which are similar to off course horse racing bettors. On course bookmakers are required to have the following;
Ownership structure
Management structure
Credit reference check
Proof of liquidity
Anti money laundering policies and procedures
Self exclusion procedure
Reporting of key events procedure
Regulatory returns to both Gambling Commission and Inland Revenue
Code of practice provision
Policy and procedure for prevention of harm to vulnerable people and children
Policy and procedure for combatting problem gambling
And the list goes on. We are not unregulated. We are not fly by night chancers. We are, generally, small businesses in a service industry who have gone through a thorough vetting process to get a licence. Our job is not just to take bets, but to enhance the experience so that race going is fun.
Let's deal with the two main areas of contention;
1) Money laundering.
Firstly we have an anti money laundering policy. We are legally required to report any money laundering suspicions to the relevant body. To not do so is a criminal offence. On course bookmaking is not a haven for money launderers.
My background is in banking. I worked in the financial services industry for nearly 30 years and have worked in compliance departments which includes money laundering regulations. Generally speaking a money launderer is trying to turn cash into a legitimate financial instrument- for instance a BACS payment or, in the old days, a cheque. On course betting is cash in and cash out, so a prospective money launderer is not helped much by turning cash into cash. Should we be asked for payment of winning bets by bank transfer or cheque this would immediately raise a "red flag". I would further suggest that a money launderer is unlikely to be able to justify illegal activity by betting with an on course bookmaker and telling the authorities they had had a lucky run. This doesn't mean that we are immune to the threat of money laundering and we must remain vigilant but, in practice, it's not an easy route to washing money unless you pay out via the customer's bank account- we never do.
2) Problem gambling.
From all of the research it appears that the vast majority of problem gambling is done online and is often related to casino/slot machine type betting, or in premises often offering fixed odds betting terminals. Online betting allows a frequency of staking that on course simply does not. There are always sports events around the world to bet on online. On course the customer will be required to pay an entry fee to gain access to a racecourse and will usually have 6 or 7 events to bet on over a 3-4 hour period. It may be weeks before, geographically, a customer has the opportunity to go back on course after a meeting. This is, generally, not the modus operandi of a compulsive gambler who is often betting on anything and everything with a very short gap between placing bets.
That is not to say we can be complacent and again, we have a policy and procedure for anyone we suspect is a problem gambler. In reality on course betting is not the natural home for a compulsive gambler but this does not mean we can ignore the possibility and we take steps to ensure that, on any given day, a customer's enjoyment is compromised by the desperation to chase losses or roll up wins. We also monitor "regular" customers who may visit us over many meetings. We have a self exclusion policy and any customer can self exclude from betting with us, or any on course bookmaker. We display advertising for charities who support anyone who has a gambling addiction. Here are a few small examples of what we do to make sure a day's racing is a great day out.
More or less every meeting we meet someone who tells us they haven't been racing before and haven't placed a bet. They often ask for advice. Our advice is always the same. You have a betting pocket/purse/wallet and in that you put the amount of money that you would like to bet for the day. This amount must be an amount that you are willing to lose without spoiling your day. That amount might be a fiver or 50 quid or whatever but go in assuming you will lose it. Just as importantly you have a winnings pocket/purse/wallet. Whatever you win goes in there. It NEVER goes back into your betting purse. NEVER. It's a small thing but we think crucial to people's enjoyment of the day as a day at the races is to be enjoyed not endured. We are fortunate to work in an environment where people are, generally, there for a fun day out and we must contribute to that enjoyment.
Perth a few years ago. A lad out on a stag do and he went through the card for the first 6 races. Either a win or a place. His first bet was 20 quid. Going into the last he had £473. He wanted to put it all on the bumper on a 1/2 shot. I refused the bet. He couldn't understand why. I asked him what the biggest bet he'd had that day was. It was 50 quid. I told him to bet no more than 50 quid on the last. I told him he'd had a fantastic day but betting wasn't as easy as he'd found it that day. I told him he'd still be happy going home with 500 quid if it won but he'd be devastated if he went home with nowt. He agreed. It went off 5/4 and was tailed off. For all I know it still might be running now. The guy was in equal measure relieved and delighted. I would've looked a mug if it had won but I'd have still been able to sleep at night.
Student day at Musselburgh. Student in the first had a tenner on, I think, a 10/1 shot which won. She was ecstatic as she rightly should've been. I chased after her and told her to put the money in her purse. I told her not to roll it up and to keep betting the same relatively small stakes regardless. I hope she did. It doesn't sound much, but I think it is, and it is something all bookmakers do.
These are examples of things we do, even though we're in a low risk environment, and will continue to do as responsible bookmakers.
I know that many people have gambling issues and the core mechanisms which exacerbate this problem should, and must, be addressed. These issues must not be trivialised.
I also know that I am writing this from the perspective of a bookmaker with an on course business but I have read so many inaccuracies on the subject of on course bookmaking that I felt that they needed to be addressed. This is a crucial time for horse racing as an industry- we are already dealing with declining attendances, mainly due to the cost of living crisis. We don't have fixed odds betting terminals, we don't take 20 bets a minute online from the same customer. We believe that we are an integral part of what is a fun experience for the vast majority of people and the fact that horse racing is still the 2nd largest spectator sport in the UK would back that up. We must move with the times and we must continue to be vigilant but we must also not apologise for being part of a sport which, frankly, gives people a bloody good time as well. And long may that continue.
Newcastle on Good Friday and Musselburgh on Easter Saturday. It may be a double header betting blog on Sunday. You lucky people. Until then...
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