Funding a stumbling block in on-course bookmakers' bid to play a renewed part in SP process

British on-course bookmakers have gone to the government in their quest to make racecourse odds part of the starting prices for British racing, but a resolution hangs on whether they can gain funding.

The Starting Price Regulatory Commission (SPRC) switched its odds mechanism away from the racecourse when racing resumed behind closed doors during the Covid-19 pandemic, and the switch was made permanent in March 2021, when it was cited that off-course betting accounted for 98 per cent of the overall market.

The SPRC said on Tuesday it would be open to on-course prices forming part of its market, but reaffirmed its stance that it would not pay for the provision of price sources as outlined in its latest annual report.

Funding for on-course SP data had been paid for by media companies The Racing Partnership and Racecourse Media Group, but it is understood they are unwilling to pay for data.

The media rights war between gambling giant Flutter and racecourse group Arena Racing Company has brought SPs in Britain into focus, with Flutter-owned Paddy Power and Sky Bet not creating their own markets for selected fixtures and the SPRC accepting that if that boycott was joined by other off-course bookmakers it could become a legitimate hindrance in generating prices. 

This sparked the United Council of Racecourse Bookmakers (UCORB) to write to the culture, media and sport secretary Lisa Nandy and, in a letter seen by the Racing Post, it highlighted that a return of on-course prices would provide greater transparency for punters.

UCORB regional director and on-course trader James Lovell said: "This letter comes from frustration but also a genuine desire for horseracing to prosper and survive. It's a dangerous time and one of the vital parts of it is the starting price. If that's not protected then the trust in the sport itself is an issue.

"On-course prices have been the bedrock of the SP since the 18th century and all we're calling for is transparency and structure. It needs to be clear and open – people need to be able to trust the source. It's a huge issue for the sport."

UCORB also drew comparisons with the fully-functioning SP model in Ireland which incorporates on- and off-course betting and said its operator, Racecourse Data Technologies, would be ready to operate in Britain if required.

"I'm sure the Irish model could certainly provide a technical solution but it would still cost several hundreds of thousand pounds to operate," SPRC chair Nick Rust responded. "The question is who is going to pay for that?

Nick Rust: former BHA boss now chairs the SPRCCredit: Edward Whitaker (racingpost.com/photos)

"The SPRC does not directly control funds in this regard. We don't, or never have, arranged payments for the media groups to the on-course bookmakers and we're not sure we can justify £1 million a year that was being spent on the on-course validation of the prices given it constitutes 1.5 per cent of the market.

"We welcome on-course bookmakers and we've met them and discussed the technical way it could be done. We remain fully open to that but we're not in a position to fund it."

On the possible effect of the media rights war, Rust said: "It's definitely true that there are risks if we suddenly fell down to only a few bookmakers. Diversification is important and market consolidation is something our board manages, irrespective of media rights disputes. We're monitoring it."

The letter to the DCMS also highlighted concerns over the "impartiality" of the SPRC board which includes Rust, who worked for Ladbrokes and Sky Bet before becoming chief executive of the BHA, while Richard Hayler is managing director of the Independent Betting Adjudication Service which includes betting content from SIS as a major funding stream.

Rust said: "It's clear, open and transparent that we receive a fee from the media rights companies, so we are not independent in the strict legal sense. But if a media rights company were to try and interfere we'd politely tell them to find someone else to do the rules. Who would run the SPRC if it wasn't someone with experience within betting?"

The average overround per runner in British racing had increased from 1.76 to 1.84 in the SPRC's latest annual report, although the average among the first three in the betting dropped 1.16 per cent to 72.81 in the same timeframe.

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