Horseracing in the U.K is expected to lose £300 million (US$409.7 million) in 2021 as a result of the Covid-19 pandemic. The industry took another hit January 14 when the government declined a request to review the gambling levy.
Currently, U.K. bookies pay a 10 percent levy on profits which is then used to support the racing industry, according to the Daily Mail. Sports Minister Nigel Huddleston told Annamarie Phelps of the British Horseracing Association (BHA) that increasing the bookmaker levy from 10 percent is not part of the review of the 2005 Gambling Act reform.
The request was part of a recovery plan published in August. The BHA and racecourses sought a levy on turnover instead of profits and also hoped for a cut of the bets from overseas races.
“I am aware that some stakeholders have reported that, during the statement, I made a commitment to review the rate of the levy itself in 2021,” Huddleston wrote to Phelps. “To clarify, we intend at some point this year to look again at whether there is a case for bringing forward the timetable for the review of the levy due in 2024. We did not feel there was such a case on the basis of the evidence you put forward last year.”
That could change if new evidence comes out. The BHA was optimistic that another review would have better results. The projected losses could mean racetracks, stables, animal welfare and the workforce would require immediate economic assistance.
One of the reasons for opposition had to do with the yield of £97 million in 2019-20, which meant far more income for racing than predicted. Still, forecasts for 1920-21 should produce an £80 million levy, with betting contributions remaining strong.
Still, a cause for celebration comes through the prestigious Royal Ascot races this year. Instead of the traditional six races a day, Royal Ascot will do seven daily races, thanks to the lingering impact of Covid-19. The addition debuted last year for the Copper Horse Stakes, the Palace of Holyroodhouse Stakes and the Golden Gates Stakes, all as a response to the pandemic, according to the Racing Post.
The races run from June 15 to 19, with a total of 35 meetings.
The Buckingham Palace Stakes, replaced in 2015 with the arrival of the Commonwealth Cup, returned last summer and is now a fixture, along with the Kensington Palace Stakes, new in 2021 for mares and fillies aged four years old and above, according to SBC News.
“It’s massive,” Betfair’s Barry Orr said. “Having 35 races instead of 30 is like having an extra day and from a bookmaking perspective it’s such a significant move in terms of growing the event. It’s a really positive move for racing and the levy.”
Simon Clare, Ladbrokes Coral’s media relations director, applauded the move. ““Royal Ascot is already the biggest week of betting in the flat season, and the permanent addition of five competitive betting races across the five days is great news all round,” he said. “It will deliver incremental growth to turnover over the week, and generate increased revenues from betting to racing. While the new races added last year were among the poorest performers in betting terms, that was to be expected as they were positioned in the weakest slots without the boost of ITV coverage.”
The new races lacked the kind of heritage favored by bettors, but “still delivered decent levels of additional turnover, and you’d expect them all to perform better as they become established,” Clare said.
While Ascot has yet to announce the TV schedule for the week, bookmakers hope extensive coverage will help recoup losses incurred in 2020. The new 2021 races will go off at the conclusion of each day except for the Saturday meetings, where the traditional Queen Alexandra Stakes will close the week, following the Golden Gate Stakes.
