British Racing to Get Funding Boost

British racing is poised for a financial boost after Chancellor George Osborne announced during his budget speech Wednesday that the government would introduce a Horserace Betting Right–a system under which bookmakers will pay for the rights to bet on racing. The Right is seen as the replacement funding mechanism to the 1963 Horserace Betting Levy, and would apply to all bookmakers, wherever located, who take bets from British customers on British racing and be administered directly by the racing industry. 

“Today’s announcement is a welcome and tremendous boost for the tens of thousands of people across the country that derive their livelihoods from our sport,” said Nick Rust, chief executive of the British Horseracing Authority. 

“British Racing–its governing body, racecourses and horsemen–has a collective desire for a modern and direct relationship with the betting industry, and believes that a Racing Right is the best solution to achieve this, and to secure the long-term prosperity of our sport and those within it. We are still in the situation whereby the vast majority of bets placed by punters outside of betting shops are making no contribution to the central finances of the sport. This is unsustainable, and there is recognition that this needs to change.” 

Rust added, “The hard work will continue, throughout the forthcoming General Election campaign and beyond, and with the betting industry, as we look to have a Racing Right introduced as soon as is possible.” 

The Association of British Bookmaker’s took the opposite stance on the Racing Right. The ABB’s Campaigns Director Hilary Douglas said, “we believe the Racing Right is unworkable and the detail will derail it, leaving racing seriously underfunded for a considerable length of time. It will be mired in legal and other issues for many, many years. Arguably the proceeds from the Right will not even be able to be distributed until legal certainty is obtained, with racing being the main loser.” 

Douglas added, “Our members already pay 10.75% of their gross profits from their UK horse racing business to racing and, together with media rights and sponsorship, the transfer from our members to racing is some £248 million, an incredible amount that has to be enough.” 

“We do, however, believe in a continued sensible dialogue with racing to try and achieve a solution that meets the concerns of both these great industries,” she concluded.