Hills boss warns of tricky times for racing despite Dettori's golden year

A golden summer for racing, in which Frankie Dettori proved a huge pull for punters, is set to end according to William Hill chief executive Philip Bowcock, who believes the sport cannot depend on an upturn in punter engagement to plug the impending hole in its finances.

Horseracing and greyhound betting were the primary drivers in a seven per cent increase in sports betting in William Hill shops during the first half of 2019, as punters engaged more with the sports in light of the reduction to £2 of the maximum stake for fixed odds betting terminals (FOBTs) in April.

However, Bowcock pointed out that racing benefited from a lack of competition from other sports, chiefly football, during the summer as well as increased exposure due to the exploits of Dettori.

He said: “I would have some caveats to [the betting increase]. Looking at the period of time from the [FOBT stakes] implementation to now racing has not faced much competition from football.

"In many ways this has been a golden period for racing to be the focus with Frankie Dettori rolling in every horse he seems to be riding, but life is likely to get tougher as we move into the football season.

"It’s encouraging that people are engaging with the sport, but it will not be a substitute for what racing will lose out on in terms of shop closures.”

As such, racing must brace itself for an inevitable drop in revenue from bookmakers, Bowcock said, as high-street firms adjust to the commercial realities of shops made unprofitable by the government’s crackdown on FOBTs.

Bowcock confirmed the bookmaker would be closing in the region of 700 shops before the end of the year, with results since April showing a “material number” of shops had become unprofitable.

Bowcock said: “The income for horseracing from betting will decline over the next period as shops close. That’s inevitable and people have to realise that. There needs to be thought going into that relationship and how that can be addressed, but I don’t have the answers for that."

The impact of the FOBT restrictions was evident in William Hill’s first-half results released on Friday, with a 33 per cent drop in operating profit to £76.2 million compared to the same period last year.

The reduction in profits was also down to expansion by the company into the USA, which could be turbocharged should the bookmaker’s strategic partner in the country, Eldorado Resorts, buys the Caesars Entertainment casino brand.

Hills broke through the $1 billion figure for bets handled in the USA during the first half of 2019, and the group are eager to roll out mobile and sports betting across all licensed US states.

“We’re very well placed in the US and I think we’re in a unique position and better placed than anyone else,” Bowcock said. “We didn’t wake up 12 months ago and say ‘We need to be in America’. It’s been a part of our long-term strategy and we’ve been operating in the US since 2012 in Nevada. This is in the DNA of the company.”

Philip Bowcock: 'We're very well placed in the USA'Credit: Henry Thomas.

Bowcock also emphasised the bookmaker's approach to responsible gambling and advertising, including being part of the whistle-to-whistle ban on the majority of sports and increased funding to support problem gambling groups.

He added: "William Hill has never been about shock value or laddishness. We’re a grown-up brand known for integrity that already stands out from competitors.

"We have to work together as an industry and have collaborated in two much-talked-about areas: advertising and funding for treatment. We need to continue to work together."

Shares in William Hill rose 4.91 per cent on Friday to 153.95p at 12.30pm.

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