Ascot looking to the future after 'landmark' year - but government tax proposals cast shadow over plans

Officials at Ascot are looking to the future after revealing record turnover and rising profits in the racecourse's set of accounts, although the threat posed by the UK government's proposals for gambling taxation is causing concern.

Ascot enjoyed what it described as a "landmark" year in 2024, with turnover increasing by two per cent to a record £113.1 million and pre-tax profits up £2.5m to £8.4m, a figure which not only matched but exceeded the levels achieved before the Covid-19 pandemic.

The track said the financial performance had helped lay the foundations for record prize-money of £17.75m being programmed for this year.

Chief executive Felicity Barnard said on Tuesday: "We're very happy with the way the business is performing at the moment and I think we're happy on lots of levels.

"Woven into all of this is the good news about our international runners and the horses we're attracting, which of course is at the core of everything we're trying to achieve here.

"The revenue and the profit we're making allows us to be competitive on the horse side, so that's attracting the best runners we can. That's really important to us."

Overhead costs fell last year, while Ascot paid a further £5m back on the loan which financed its redevelopment 20 years ago, including an early repayment of £2m. That reduced net debt to £4.6m by the end of 2024.

Ascot chief executive Felicity Barnard: "We are very happy with the way the business is performing"Credit: Edward Whitaker (racingpost.com/photos)

Barnard said: "Mechanics like that mean that we're paying more in costs, which hits our profit line, but actually helps get us to this position of financial health we have at the moment."

Ascot is expected to be net debt free this year – the amount of cash Ascot has versus how much it owes will be zero – which Barnard described as a "very, very significant milestone" and an "incredible job" by Ascot's financial team.

She added: "It means that it's now time for us to look at what we do with our business and are we ready to start developing again on site, which is something we're certainly thinking about.

"Having that position of financial strength means you have more confidence in yourself. You can make those decisions and, of course, are not then tied into additional payments that mean you can't put more into prize-money. So that is a very, very significant milestone for us that we're all very proud of."

However, Ascot's plans for the future could be affected by Treasury proposals to harmonise online gambling taxes.

British racing's leadership fears the duty rate for betting on sports like horseracing will rise, with a potential increase of six percentage points to 21 per cent, the rate levied on online games of chance such as roulette, expected to wipe £66m from the sport's finances.

Barnard said: "Of course it's a worry, and it's something we want to work with the rest of the industry to avoid at all costs. We'll certainly be rowing behind the industry strategy around that.

"It will affect us and all racecourses. If we have more money going out of the door it will mean that perhaps some of these plans we have around prize-money or development may be changed. It's difficult to predict what the actual impact will be, but undoubtedly it would affect us."

On-course attendance was largely unchanged year-on-year, with 513,869 racegoers in 2024 compared to 514,208 in 2023. Attendance at Royal Ascot did rise, to 273,526 from 266,145, and increased again this year to 286,541.

Another landmark will be reached later this month when the King George VI And Queen Elizabeth Stakes will be run for a record £1.5m.

The King George VI and Queen Elizabeth Stakes will be run for a record £1.5 million this yearCredit: Alan Crowhurst (Getty Images)

Barnard added: "Generally speaking, we feel we are in very strong financial health and that's able to drive the core product of racing, which is really important to us.

"All of those pressures around the cost base and everything else we are seeing, we are trying to be as nimble as we can as a business and adapt to those wherever we can."

Ascot 2024 financial results key points

• Turnover up two per cent to a record £113.1m 

• Pre-tax profit of £8.4m, up from £5.9m in 2023

• Record prize-money of £17.75m scheduled in 2025    

• Voluntary increased loan repayment reduces debt ahead of schedule to £4.6m

Read these next:

Britain's joint-richest race set to be run without a sponsor with Ascot ruling out a 'partial or compromised deal' 

'We're already excited for next year' - Royal Ascot officials thrilled as attendance rises by almost five per cent 

'We need to be more self-confident' - Ascot's new boss has strong words for the racecourse and racing 

Sign up to receive On The Nose, our essential daily newsletter, from the Racing Post. Your unmissable morning feed, direct to your email inbox every morning.