The restrictions implemented by the UK Government because of the coronavirus pandemic are responsible for the decrease in prize money in the British horseracing sector. The trend has raised concerns that horse owners will disregard the prestige of the sector that has been built over centuries of tradition and shift their interests to overseas races.
According to reports, the British horseracing, which is estimated at £4 billion on an annual basis, is asking the UK Government for some reforms and financial help that is supposed to help it survive the social distancing measures unveiled by the authorities as part of their efforts to protect local people from further spread of the Covid-19 infection. The boss of racing and communications for Ascot racecourse, Nick Smith, explained that the coronavirus pandemic had resulted in a quick reduction in prize money, which has made the problem even worse.
According to data provided by the British Horseracing Authority (BHA), prize money at the top 10 flat races held in the country in the summer declined by 63% from £10.3 million offered at the same races in 2019 to £3.8 million.
Prize Money Reduction Make It Hard for British Horseracing to Remain Competitive to Foreign Rivals
The industry regulatory body also revealed that owners of horses that participated in the 2020 Investec Derby, one of the top flat races on a global scale, also saw a decline in prize money from £1.6 million a year earlier to only £491,850 this year. The Juddmonte International horse race that takes place in York is also originally announced as a £1-million race, but the prize fund was reduced to £266,805 in 2020.
The Royal Ascot also faced the negative effect of the coronavirus pandemic. The British Champion Stakes slashed its purse from almost £1.4 million to £750,000, while the King George VI Stakes fell from £1.25 million in 2019 to £400,000 in 2020.
It was hard for the British racing industry to keep the prize money that is being offered by some overseas races. According to data provided by the BHA, usually, flat race prize money was lower in the UK in comparison to any of the big seven racing nations. According to the country’s racing regulatory body, the reason why British racing prize money is not comparable to the prizes offered by other nations is that the country is unable to control the gambling operators that draw profit from its events.
For the time being, the British horse racing industry bets from a 10% tax imposed on bookmakers’ gross profits, some of its international competitors, such as the Hong Kong Jockey Club, for example, hold a legal monopoly on the sector. The BHA has already addressed the UK Government that the levy that is required to be paid by bookmakers should be subject to reforms, warning that the sector’s profitability could spiral down in case the country fails to ensure competitive prize money for the local horseracing industry.
- Author
Olivia Cole
