Written by Administrator | 04 June 2010

Chief Executive of the British Horseracing Authority, Nic Coward thinks that some of the most-loved independent horse courses in the country may go out of business because of the funding crisis the horse racing industry is facing. Paul Roy, BHA Chairman, further said that modest courses like Ludlow could be part of the expected 20% drop in revenues this year. Despite overwhelming attendances at race events, the sport is clearly not getting good returns.

 

The forecast for levy funding is about £75 million this year, as compared with the 115 million in 2008 and £91 million in 2009. With this decline, the Levy Board is likely left with only £48 million as prize money, from the original 61 million.

About 300 trainers who own a maximum of 15 horses may also have a hard time with their livelihood as BHA wants to realign its priorities regarding the distribution of prize money due to the decline in revenues. BHA believes that the decision of major bookmakers to transfer their operations offshore is the reason for the decline in levy income. Once offshore, they are beyond the coverage of the levy. Last year, Ladbrokes and William Hill transferred their telephone and online services offshore. Victor Chandler, Paddy Power and other major players, despite UK licenses, are based offshore entirely.

Labour Department pledged to discuss the offshore issue but there was no promise of amending the licence conditions to require those taking bets from UK to contribute to the levy.

According to Nic Coward, although attendances and other key indicators are at good levels, it isn't so with returns from the betting industry and bookmakers are using this loophole to avoid a fair return.

Although there was an indication that the issue will be looked into, we cannot be assured of priority in attention as there are many major challenges to the new coalition. However, Coward's comment should be taken note as a warning amid the present situation.