Sports minister Mims Davies: racing must make most of commercial opportunities

Sports minister Mims Davies has told British racing to make the most of its commercial opportunities and that it must provide evidence of financial challenges before further reform of its funding system can take place.

Davies, who took over from Tracey Crouch in November, was speaking on Friday on her first visit to the Cheltenham Festival.

The government brought in reforms of the levy system in 2017 which widened the sport's funding net to bets placed with operators based overseas and which resulted in an extra £45 million for British racing in the first year of operation.

However, the sport faces a loss of income of up to £60m a year from lost media rights payments with betting shops expected to close in their droves following the decision to cut FOBT stakes to £2.

When the FOBT decision was announced last year the then culture secretary Matt Hancock said the government wanted to work with the racing industry to mitigate any financial risk and that officials would look at how extending the levy to bets placed on racing abroad might work.

However, that would appear to be on the back-burner for now.

Davies told the Racing Post: "There's no doubt that with the changes to the levy more money is coming into racing, another £45 million, but the secretary of state [Jeremy Wright] and I have been very clear if some of the changes in regard to the gambling industry do impact the sport negatively, bring the evidence to us and we will take a look at the levy sooner."

However she added: "I think there is more that the sport can do and I think that being here today that shines a light on it very brightly. We have got 70,000-plus people here and with the commercial opportunities, the global audience and the interest in this sport, I think there are some fantastic commercial opportunities here.

Cheltenham: sports minister Mims Davies says more opportunities are out there for events like the festivalCredit: Edward Whitaker (racingpost.cpm/photos)

"So let's innovate, let's work together. If there are challenges we are ready to hear them, but also I think the sport would be uncomfortable if it was seen to be benefiting from vulnerable people. Long-term that's damaging to the sport as well. I think this is about a holistic package of measures around the levy."

Nevertheless Davies said the government was not ruling anything out.

"If ultimately we do see a decline and there is a challenge and commercial opportunities cannot be realised, then the government is all ears on how we can support the industry."

Racing's importance

Davies spoke about the importance of British racing to both the sporting and economic landscape.

"Economically it's vital," she said. "There are particular communities and areas who do so much to support this sport but it supports them.

"Where we shine, where Great Britain is on the global stage, is everybody wants a piece of our sport and racing punches above its weight because of events like this.

"It's really important economically, whether it's the tourism or the economic spend, to the amount of people coming through the turnstiles. So we must not underestimate the value to the exchequer and racing is a force to be reckoned with."

Brexit

British racing's next major event, the Randox Health Grand National, takes place a week after the UK is due to leave the European Union, with Aintree's big meeting starting on April 4, and Davies said the Department for Culture, Media and Sport was ready to support the sport.

There are concerns about the ability of Irish-trained horses to travel to and back from Aintree in the event of a no-deal Brexit taking place on March 29.

Davies said: "With the Grand National and the Aintree meeting coming up so quickly after what would be our exit day, should we fall out with no deal we are absolutely clear that racing must and can and should go on."

She added: "If we don't have an agreement or if there is some kind of delay our department and I stand ready to make sure that this sport continues to thrive and move forward. We are very aware of the challenges and we are very engaged with those whatever happens post March 29."

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