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British bookmakers will make a record contribution next year to horse racing, with media rights expected to rise by almost PS30m.
Entain Flutter bet365 888/William Hill Betfred are the five largest members of the Betting and Gaming Council for horse racing betting.
BGC members will pay PS270.1m in 2022 for the right to show live races and stream them for their customers.
Members estimate that the cost will rise further to PS315.2m by 2024. This is a 10.5% increase.
Media rights costs are expected to increase by 16.7% from 2022 to 2024.
The figures were derived from data provided by the five largest members of the Betting and Gaming Council for horse racing betting. They were then adjusted to include smaller operators who also have to pay media rights.
Michael Dugher said, “BGC Members are Already Making a Record Contribution to Horse Racing and These Figures Show That This Will Only Increase.”
This is despite the fact that betting on horse races has declined in recent years.
“Horse Racing remains an important sport that is enjoyed by millions and, like the betting industry, it continues to provide many jobs.
I know that racing is trying hard to modernise, reach out to new audiences, and also to recover from the Covid epidemic and to deal with difficult economic headwinds. It must also deal with the funding cut by the government. The betting industry faces many of the pressures we face on revenue and cost.
“The BGC, and our members, remain committed to working with the leaders of the sport including the BHA, and others to ensure a brighter future for racing.” The fact that our contribution to racing is increasing and at a record rate cannot be overlooked.
The BGC has announced that their members contributed directly PS384m (£384m) to British horseracing last year through levy, sponsorship and media rights.
The figures were higher than previous estimates of the contribution from the regulated industry, which was estimated at approximately PS350m per year.
Bookmakers also spent PS125m in marketing to promote betting and racing through advertising and partnerships. This helps secure important terrestrial coverage and raises revenue for print newspapers.
According to the Horserace Betting Levy Board, in addition to increased media costs, the levy payment is projected to reach PS99m by 2022/2023.
The record investment will also allow horse racing to use some revenues to award prize money records of PS179.3m by 2022.
Horse racing is second in popularity to football only, with over five million people watching around 1400 races annually at 59 racecourses.
Its popularity has declined. Horse race betting has declined in popularity. In 2007, 17% participated, but this fell to 10% by 2018.
Around the same time, football betting overtook horseracing betting.
The Department for Culture, Media and Sport (DCMS) has promised to review the Horseracing Levy before next year.
The Horseracing Levy is administered by the Horserace Betting Levy Board and goes to improving the sport, breeding, and boosting the veterinary care.
The British Horseracing Authority, racing stakeholders and betting operators work closely together to reform the race program and fixture list. This should result in a greater commercial return from the media rights and levy.
The betting industry supports the modernisation of horse racing to realise its full potential.
BGC also works closely with the Government on proposed reforms in the White Paper. This is to ensure that those who like to bet can do so without any unnecessary interference, while improving safeguards for those who struggle.
Around 42,000 people are employed by betting shops. They pay PS1bn in taxes to the Treasury each year and PS60m to local councils in business rates.
The wider regulated gaming and betting industry generates PS4.2bn tax revenue and supports 110,000 jobs.
DCMS released the Government’s White Paper on Gambling Reform in April. This included a number key measures that the BGC had fought for.
These included a mandatory Ombudsman in the regulated industry, online spending checks that were enhanced, and a mandatory levy for research, education, and treatment of gambling-related harm and problem gambling.
Around 22.5m adult gamblers bet each month in Great Britain. The most recent Health Survey for England estimates that only 0.4% of adults are problem gambling.
The UK’s unregulated, unsafe black market for gambling online continues to grow. Bets on these sites have doubled in the last few years and stakes are in the billions.
