Arena seeks significant damages from SIS after success in High Court claim

Arena Racing Company and media rights company The Racing Partnership say they are entitled to "very significant damages" after a high court judge found that SIS had unlawfully breached confidentiality in Arc's raceday data.

SIS, which successfully defended two other claims made against it, said it was considering whether to appeal against the verdict.

Legal proceedings will continue to determine the amount of damages payable to TRP by SIS. It is understood to be a multi-million-pound claim that could potentially deal a severe financial blow to SIS. It is believed costs for each side could amount to £3 million each.

The case goes back to the launch of TRP, which was formed to represent the media rights of the 16 Arc-owned courses and six independent tracks – Fakenham, Hexham, Newton Abbot, Plumpton, Ripon and Towcester.

William Hill, Paddy Power and the majority of independent bookmakers signed contracts with TRP to receive data and pictures from six Arc courses – Doncaster, Lingfield, Southwell, Windsor, Wolverhampton and Worcester – from the start of 2017.

However, Ladbrokes, Coral and Betfred did not sign deals with TRP, instead receiving an unofficial service supplied by SIS from data derived from the Tote's presence on course, in the case of raceday data, and other sources.

TRP took immediate legal action and commenced High Court proceedings against them in January 2017. Arc and TRP alleged the bookmakers conspired with SIS and the Tote to injure TRP, in the first instance by driving down the value of TRP's media rights.

According to the 96-page judgement from Mr Justice Antony Zacaroli, Arc and TRP also claimed that SIS and the other conspirators intended to damage the value of TRP "so SIS could make a bid to acquire Arena".

The judge found against Arc and TRP on the conspiracy claim and also on their claim against SIS for infringement of copyright and database rights in terms of the betting shows and prices coming from those six tracks.

However, on the claim around raceday data, which includes information such as going, non-runners, jockey changes and off-times, the judge found that there had been misuse.

He found that SIS knew that Arc imposed restrictions on the use of raceday data on all racecourse attendees; that Arc had granted exclusive rights to exploit raceday data for fixed-odds betting to TRP; that there was considerable commercial value in being able to disseminate that data to off-course bookmakers as soon as possible; that the Tote had no contractual arrangement with Arc regulating its entitlement to collect raceday data, or sub-license it to others; and the Tote's right to be on Arc courses had only ever been exercised for the purposes of pool betting.

Therefore the Tote would breach obligations of confidence by using that information other than for the limited purpose of pool betting. Ladbrokes Coral, Betfred and the Tote settled the matter as part of the media rights agreements with TRP in July 2017.

Arc chief executive Martin Cruddace thanked Justice Zacaroli for the "diligence and work" with which he had approached his judgement.

Cruddace added: "We are pleased that the High Court has unequivocally recognised the validity and enforceability of our exclusive rights in the raceday data created and collected on racecourses and therefore owned by them.

"We welcome the fact that the judgement gives a ruling on the rights in and protection of raceday data which is important to all of British horseracing."

He added: "It is clear and, in our view, beyond any reasonable dispute that Ladbrokes, Coral and Betfred were only able to not enter into media rights agreements with TRP, on proper commercial terms [between January 1 and late July 2017], because of their access to raceday data unlawfully supplied by SIS, and it follows that SIS is responsible for the very significant damages to which TRP is entitled.

"We will now expeditiously commence the proceedings to determine the quantum of damages and will continue to monitor any infringements of our rights and take appropriate action wherever such infringements are found."

In its statement SIS said it was happy the judge had found in its favour for two of the three claims.

The statement read: "We have taken note of his judgement that a technical breach of confidence occurred in regard to our use of raceday data emanating from TRP courses, whilst acknowledging that SIS did take precautions, and acted upon a warranty provided by the Tote, which had supplied the data in question.

"We will be reviewing this judgement and any possible appeal with our advisers."

Judgement could have consequences for entire sport

The wedding pictures of Michael Douglas and Catherine Zeta-Jones are unlikely to have played a pivotal role in the world of horseracing before, but that might have changed following the judgement handed down on Wednesday by Mr Justice Antony Zacaroli.

Precedents set by the case of Douglas v Hello Ltd and the publication of unauthorised photographs helped shape the judgement that found in favour of Arena Racing Company and The Racing Partnership's claim that SIS misused raceday data.

Arc and TRP have said they are entitled to "very significant damages" to recompense for the damage they claim was done to their business. SIS will no doubt argue that any damages should be considerably less significant.

A multi-million-pound payout could be a heavy blow for SIS, which is already facing challenging conditions due to a new operating model with lower profit margins and the prospect of a major reduction in betting shop numbers.

The judgement also removes any doubt about the ownership of raceday data, which will benefit not only Arc and its partners among the independent tracks but all British racecourses.

Looking further ahead, the judgement could lead to a change in the way the sport derives income from online betting operators. At present there is the belief in racing that the sport is being used as a loss leader by online bookmakers, with offers and guarantees driving down profits and therefore the income racing receives from them.

In future, rights holders could insist that in return for raceday data those operators must switch to a turnover-based model.

Members can read the latest exclusive interviews, news analysis and comment available from 6pm daily on racingpost.com