Charlie Parker: Funding hit as politicians fail to deliver levy reform

There have been some unwelcome noises coming from Westminster on the subject of levy reform, which of course was due to be reviewed by April 2024. It seems as if the Labour politicians are keener than ever for the racing industry and the betting companies to reach an agreement that can in effect be rubber stamped. However, with no incentive for the gambling industry to come to the table with a sensible and joined up proposal, the standoff looks set to continue.

As the sorry tale of the levy continues to drag on, perhaps we should be turning our attention towards the mess that is the Gambling Commission and its disastrous affordability checks. With no evidence or data to show that its efforts have had any positive impact on problem gambling – indeed, with the increased flight to the black market, there are several studies that suggest the Commission’s endeavours have actually increased problem gambling rates – we should be pushing this issue harder. In terms of real term impact on the industry’s finances, the harm that the ill-conceived and botched affordability protocols have had is significant and continues to cause major problems.

The impact on prize-money is really beginning to bite. Total prize-money in 2023 in real terms was the lowest since the levy reform of 2017. Executive contributions from racecourses continued to fall (in real terms) from the peak of 2016, and the racecourses’ contribution per race (in real terms) has remained the same as 2016. To add some context, the stagnation in real terms has been seen during a time of increased media right deals signed by racecourses with the betting operators, fixture policy initiatives promoted by the BHA, and of course more recently the Premier raceday concept and the changes around those meetings.

It does not take an expert to realise that it’s just not working. Of course, we can be optimistic around the ongoing initiatives on seeking new inward investment and establishing a clear engagement with all our consumers, but that is not enough. We must work together to highlight the folly that is the current approach to problem gambling and sort the levy out once and for all. We must also establish the contract between the racecourses and participants by way of a simple and robust partnership agreement that ensures the flow of revenues into executive contribution towards prize-money.

Participants have always played a key role on the political front. Owners have been prominent throughout levy negotiations, lobbying on the white paper and affordability work, as have the other stakeholder bodies. Participants have taken an altruistic approach in terms of looking at the whole industry as one to fight for and protect. The elephant in the room has always been the lack of a clear link between revenues generated and prize-money levels. If we can put this to bed, we can then truly work together in the knowledge that everyone’s efforts will be rewarded.

The ROA has now signed an agreement with the BHA to allow us to really start to push forward on owner services, benefiting all owners, not just association members. This is a groundbreaking agreement that could transform the sport and finally begin to deliver a 21st century experience for owners. Sometimes what looks like a simple idea can take an unexpectedly long time to deliver.

What the agreement shows is that working together can result in progress; we now must deliver both for the industry and the ROA itself.

Finally, the recent announcements regarding Retraining of Racehorses (RoR) highlight the entire industry’s commitment to the care of all horses bred for racing. The increased funding will go towards the strategy that the industry signed off on last year to allow RoR to lead the work stream.

It is essential that the new funds are used appropriately – and that RoR is held to account on its business plan and strategic goals. The industry has a history of assuming a problem has been fixed by the agreement of funding; in this case that cannot be the end, merely the beginning of a programme to ensure that we place the care of our horses at the very highest of priorities.