Racecourse bookies fear financial ruin if stands stay empty

Greg Wood and Chris Cook in The Guardian.

In an open letter, an on-course bookmakers’ group has accused the BHA of not doing enough to get spectators back.

A group which represents on-course bookmakers said on Wednesday that its members have become “the forgotten cog in the wheel that is the industry of horse racing”. The group also accused the British Horseracing Authority of being “more concerned with preserving behind closed doors status” than getting crowds back to racecourses.

In an open letter to the BHA, the Racecourse Association and relevant government departments and ministers, Lynn Garritty, the chair of the Independent On-Course Bookmakers Group, also said that many racecourse bookies face imminent ruin if limited crowds are not allowed back onto tracks “at the earliest opportunity”. Garritty pointed to the “obvious success of two pilot events at Doncaster and Warwick, where it was proved beyond doubt restricted audiences can safely attend race meetings”

Garritty points out that most on-course bookies have not been able to work for seven months and most are “small family firms with no other income”. However, the majority are unable to claim financial assistance from the government, and their “premises” – their racecourse pitches, often bought at considerable expense – “are not buildings with a rateable value” and so do not qualify for grants.

“As an industry, we would much rather return to work rather than rely on handouts,” Garritty said. “But if this situation is set to continue for many more months, we need to be included in any plans for financial support.” The letter also claims there are inconsistencies in the government’s rules for suppressing Covid-19 transmission.

No sector in racing or its associated industries has been untouched by Covid-19, but the on-course bookies have been as exposed as any to its financial impact while receiving little or no support, and so their frustration is understandable. Many have also invested heavily in pitches which were estimated to have a total value of around £100m before the pandemic, and could see the value of their main assets disappear if the current situation persists.

The BHA cannot respond to a letter it has yet to receive, but it could fairly point out that it was at the forefront of pilot schemes for the return of crowds in the summer, which were suspended by the government several weeks ago. Also, it does not face an “either/or” choice on maintaining racing behind closed doors or working towards a return of spectators. It can do its best to do both at once.

But the latest announcement from the Levy Board on funding for prize money, which also arrived on Wednesday, was a further reminder of the existential threat to many racecourses and all those that depend on them for a living, if the grandstands remain empty for months to come.

On the face of it, the news was positive: the Levy Board will guarantee to maintain elevated levels of funding for the first four months of 2021. The £24.4m earmarked for prize money from January to April is 46% higher than usual for the period.

However, with betting shops across the north of England being forced to close as many areas enter Tier 3 lockdowns, there is also a warning of a “downward impact” on Levy yield as well as media rights payments to racecourses, and a reminder that the Board’s current level of funding cannot continue indefinitely.