Bookmakers warn they are not a 'bottomless pit' after claims of £384 million contribution to racing

British racing has been warned bookmakers are not a "bottomless pit" as gambling industry body the Betting and Gaming Council (BGC) claimed its members made a contribution of £384 million to the sport's income through media rights, levy and sponsorship last year. 

It is the latest salvo in the debate over British racing's finances following the government's launch of a review of the levy system.

The BGC said its figure of £384m was based on data supplied by its largest members, who account for around 85 per cent of betting on racing, and that future investment must be accompanied by "reform".

It is an increase on the previous estimate of £350m, a figure both bookmakers and British racing have quoted as being the gambling industry's financial contribution to the sport.

In addition to the £384m direct contribution, the BGC also claimed bookmakers had spent £125m on promoting racing and betting through advertisements and partnerships, helping secure terrestrial coverage of the sport on ITV, supporting the two racing channels and raising revenue for newspaper titles.

BGC chief executive Michael Dugher argued betting on racing had fallen in recent years, and warned the industry was under pressure from the proposals laid out in the government's gambling white paper published in April.

Michael Dugher: "Future investment must come with reform"

He said: "BGC members in the regulated betting industry are now paying more towards British horseracing than ever before, despite a 10.3 per cent reduction in betting turnover on racing in the last five years. 

"These huge sums also come at a time when the regulated betting sector is under enormous pressure, not least in the form of recent measures unveiled in the government’s white paper."

Affordability checks on punters were among the proposals set out by the government, on which the Gambling Commission launched a consultation last week. Ministers have admitted these will hit British racing's income by as much as £14.9m a year, although the BHA has said it believed that to be an underestimate, and the government has launched a review of the levy system to ensure the sport is adequately financed.

British racing's leaders have called for the levy system to be extended to include money bet on international racing by British punters, as well as switching it to a turnover basis from gross profits, moves opposed by bookmakers.

"There has always been a symbiotic relationship between betting and racing," said Dugher. "Our two industries can only succeed and prosper in the future if we work in unison towards a shared goal of growing the sport as a product – especially in the face of a recent decline in betting on racing.

"These figures show that betting continues to bankroll the sport, but it is not a bottomless pit. I know racing, just like any other sport and indeed our own land-based betting and gaming industry, is trying to bounce back post-Covid in the face of seriously challenging economic headwinds – a task made even harder for racing and betting because of the decisions the government deliberately chose to make in its recent white paper.

"That is why the BGC is fully committed to working together with the leadership of the sport, including the BHA and others, to ensure racing not only survives but thrives. Anyone who cares passionately about the sport, as I do, understands that racing must change. Future investment must come with reform."

Bookmakers have been working with the BHA and other racing bodies on reforms to the fixture list and race programme as part of British racing's industry strategy.

This story was updated on August 24, 2023 to reflect the Betting and Gaming Council amending their figure for betting's contribution to British racing. Having originally estimated the figure at £455m per annum, the BGC revised it down to £384m.

The Racing Post wants to hear from you. What has been your experience of affordability checks since the white paper was published at the end of April, and what do you think of the government's proposals? Have affordability checks affected your betting behaviour?

It's a chance for your voice to be heard. Email the Racing Post at editor@racingpost.com with the subject 'Affordability checks' to share your experiences, your thoughts about the government's proposals, and your contact details.

Read more . . .

Racing Post readers on affordability checks: 'To my complete dismay, I find myself frozen out of my favourite pastime'  

No BHA support for 'blanket' affordability measures as checks should reflect interdependency of racing and betting  

Punters could face affordability checks every six months under new proposals triggered by white paper 

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