Racecourse bookmakers say they are “shell-shocked” at a decision by the Gambling Commission to ramp up punishments meted out for failing to prevent underage betting. Seven bookmakers have been told they must pay what amounts to 2.5% of their gross profit for an entire year after being caught by enforcement action at Royal Ascot last summer, when each of them allowed a 16-year-old – the permitted age is 18 – to place a £5 bet.
The bookmakers affected have until the end of this week to persuade the Commission that a lesser punishment would be appropriate and none were willing to go on the record. However, their trade representatives and other bookmakers said the fines were disproportionate to the offence and a long way out of line with action taken against high-street or online firms.
“It’s scary,” said Mick Williams of the Association of Racecourse Bookmakers. “You’d think there’d be a procedure in place: a warning for the first offence, a fine for the second and then at some stage a possible suspension of your licence. But there’s none of that. They’ve spent seven months thinking about it and have come up with this.”
The Commission said it could not comment on an ongoing case but pointed to a statement by its executive director, Richard Watson, issued last summer, when he said: “Every single gambling business must protect children from gambling but the on-course bookmakers’ results have remained unacceptable.”
When the Commission organised a similar test at Ascot in 2014, all 20 bookmakers tested served a 16-year-old without asking for proof of age and received a written warning. On this occasion 17 bookmakers were tested and 10 asked for ID.
Robin Grossmith of the Federation of Racecourse Bookmakers said: “We think the penalties are absolutely horrendous. This is a misdemeanour, of course, and none of those involved have denied it, but it’s Royal Ascot, you’re flat-out busy. For that fiver taken, one of these men is looking at a fine of £7,600. We’re quite shell-shocked by this.”
Newcastle 1.10 Lady Kyria 1.40 The Wolf 2.10 Glittering Love 2.40 Endlessly 3.10 Dunly (nap) 3.40 Oscar Maguire 4.10 Storm Nelson
Lingfield 1.30 Allavina 2.00 Easter Gold 2.30 Echo Watt 3.00 Swaffham Bulbeck 3.30 Go Steady (nb) 4.00 Kapga De Lily
Southwell 4.25 Luscifer 4.55 Dune Of Pilat 5.25 Le Manege Enchante 5.55 Katheefa 6.25 Bond Angel 6.55 Break The Silence 7.25 Global Melody
The fines have been set at 2.5% of gross gambling yield, the amount retained by a bookmaker after payment of winnings but before deduction of any expenses. Several bookmakers told the Guardian that the Commission was, as a result, being much more severe on a series of small businesses than they have been on the off-course firms. “Are you going to fine William Hill 2.5% of gross?” Grossmith said. “That would be tens of millions of pounds.”
“Racetrack betting does not, in my opinion, contribute meaningfully to problem gambling issues,” said Geoff Banks, an on-course bookmaker who is not one of those affected. “What I constantly see on racetracks is parents trying to place wagers for their children in front of us. ‘Which one do you want dear?’
“On occasion, you get teenagers trying to place wagers and when challenged, they cannot produce appropriate ID and we refuse. Apparently, many parents see strict regulation of gambling to be unnecessary in the particular environment of a racecourse.”
