The BBC's Richard Wells: "Bookies fear pitches will be bought to launder drug money"

The National Association of Bookmakers Chairman, John Stephenson, said plans to let pitches beside racing courses be auctioned off could allow drug barons and gangsters to use betting as a way of laundering money.

He told BBC Radio 4's Today programme: "The new situation will allow bookmakers to enter the ring who will have no experience whatsoever.

The National Joint Pitch Council's Richard Marriot and the National Association of Bookmakers' John Stevenson

"We fear that it will bring in new finance from dubious sources, for example from drugs, counterfeit goods, smuggled cigarettes and alcohol.

"They will have an agenda against racing and not in favour of racing."

The reforms are intended to modernise on-course betting and revive traditional bookmakers, who have been losing trade.

Many bookies are at odds with the new system

The changes will allow popular pitches in the betting rings at courses to be auctioned off to bring new operators into on-course betting. New technology, to print betting slips with more information, will also be introduced.

The Chairman of the National Joint Pitch Council, Richard Marriot, said the changes would work in favour of the on-course bookmakers.

He said: "Our prime objective is to reverse the ring's loss of market share by ensuring that punters get a better customer service.

"That will be achieved in three ways - first of all by making the ring a more attractive environment, secondly by providing punters with better information, and thirdly by ensuring a strong and competitive ring.

"That's where the auctions come in - to enable authorised bookmakers to sell and buy their seniority positions at auction for the first time."