Betting industry claims of record £315m media rights contribution from bookmakers disputed

Claims that bookmakers will contribute a record £315 million in media rights payments to British racing next year have been refuted by the sport, which believes gambling operators are underestimating the decline in betting turnover on racing.

The Betting & Gaming Council (BGC), an industry body representing the majority of bookmakers, said its forecasts – based on information from Entain, Flutter, bet365, 888/William Hill and Betfred which is then adjusted to account for smaller firms – predicted a 10.5 per cent increase in media rights payments to racing in 2024, meaning £315.2m would be paid across.

However, David Armstrong, chief executive of the Racecourse Association, said the figures included VAT, which racing would not receive, and that a slowdown in betting on the sport meant media rights payments would be adversely impacted as they are based on turnover levels. 

Armstrong said: “We have given estimates to [the Department for Culture, Media & Sport] and we believe the BGC is underestimating the decline in betting turnover on racing. Media rights payments are based on turnover and when it falls so do the payments. 

“The increase they are proposing is nothing like what we are seeing as we are forecasting payments to flatline. They are only estimates, and it will be seen whether they are right or wrong, but we have a good handle on what the figures are.”

While acknowledging a “worrying decline in participation in horserace betting overall”, the BGC, which in August had to revise down an estimate of betting's contribution to racing by £71m due to a "data mistake", said its media rights contributions had increased by 16.7 per cent since 2022.

Michael Dugher: betting industry "making a record and growing contribution to the sport"

BGC chief executive Michael Dugher said: “BGC members are already making a record contribution to racing and these figures show that is only going to increase.

“This comes despite a reduction in betting turnover on racing in the last five years and a worrying decline in participation in horserace betting overall. The BGC and our members remain fully committed to working together with the leadership of the sport, including the BHA and others, to ensure a better future for racing. But the fact that we are making a record and growing contribution to the sport cannot be ignored.”

Any increase in contributions from bookmakers to racing were already being consumed by the sport, according to Armstrong. Analysis compiled by racing for the government as part of discussions around levy reform showed rising costs from the likes of inflation meant the sport was no better off.

“Part of the process of levy reform discussions is that we have provided common interest costs projections and that shows the costs of running racing have exceeded the increase in funding racing has received,” Armstrong said. “We are in a worse position and this is part of our argument for an increase in the levy and was the argument the last time the levy was reformed. 

“However, there is common ground in all of this and that is our collective position on the white paper and the affordability checks. That’s the biggest game in town and we’re working very well together on our responses to the Gambling Commission’s consultation.”

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