DCMS publishes Frontier analysis of the funding of British horseracing

The Department for Culture, Media and Sport (DCMS) has today published a Frontier report into the funding of the horseracing industry in Britain. The report was commissioned to help inform DCMS’s decision about a replacement for the Horserace Betting Levy, which was published recently.

Frontier’s report explored the costs incurred and revenues generated by the British horseracing sector. To support the proposals for a replacement for the Levy, the report also considers the nature of the economic relationship between betting and horseracing. This includes analysis of the current revenue flows between the two industries, and the extent to which there are ‘common interest’ costs between betting and horseracing.

Drawing on a range of quantitative and qualitative data sources from both betting and horseracing, the key findings from the report are:

  • Funding flows into horseracing come predominantly through racecourses and through contributions by owners. Racecourse costs in 2014 – the latest year for which it was possible to derive estimates – amounted to around £490 million.
  • Direct bookmaker contributions to racing flow through two key channels: the Levy (£73 million in 2014), and sponsorship, hospitality and advertising (£17 million).
  • Bookmakers also contribute indirectly through payments made to media companies to show horseracing in shops. Dividends and other payments from media companies to horseracing were £128 million in 2014, though around a quarter of media company revenues come from sources other than British bookmakers.

Frontier (Europe) regularly advises clients on issues relating to the design and analysis of tax policies.

For more information, please contact Saskia Nett on s.nett@frontier-economics.com, or call +44 (0)20 7031 7000.

Comments are closed.

Posted on

Related Disciplines:
Public Policy