The state of the British horseracing industry ITB_February2025

In his last column for the magazine, Ted Voute pulls it all together and tells the British racing industry just what is wrong and what it needs to do to put things right... ... it really is not that complicated!

THE UNITED KINGDOMhas a rich and storied history in horseracing, a sport that has been deeply ingrained in its culture for centuries.

From the prestigious Royal Ascot meeting to the thrilling Grand National, horseracing is not just a pastime but a significant economic driver, supporting 1000s of jobs and contributing millions to the UK economy.

However, in recent years, the industry has faced a myriad of challenges that threaten its sustainability and growth.

This article explores the current state of the UK horseracing industry, identifies the key issues it faces, and proposes potential solutions to ensure its future prosperity.

Economic Impact and Employment

The UK horseracing industry is a major contributor to the national economy.

According to recent estimates, the industry generates over £4 billion annually and supports approximately 85,000 jobs.

These jobs span a wide range of sectors from trainers, jockeys, and stable staff to breeders, veterinarians, and racecourse operators.

Additionally, the industry has a significant multiplier effect, benefiting related sectors such as tourism, hospitality, and retail.

Popularity and Betting Revenue

Horseracing remains one of the most popular sports in the UK, with millions of spectators attending races each year and even more watching on television or online.

According to recent estimates, the industry generates over £4 billion annually and supports approximately 85,000 jobs

Betting is a crucial component of the industry, with horseracing accounting for a substantial portion of the UK’s gambling revenue.

The sport’s popularity is further bolstered by high-profile events, such as the Cheltenham Festival and the Epsom Derby, which attract international attention and participation.

Despite its economic and cultural significance, the UK horseracing industry is grappling with several challenges that could undermine its long-term viability.

Declining prize-money

One of the most pressing issues is the decline in prize-money, which has made it increasingly difficult for owners and trainers to cover the costs of training and racing horses.

This has led to a reduction in the number of horses in training and a decline in the quality of racing.

Regulatory and welfare concerns

The industry is under increasing scrutiny from animal welfare organisations and the public regarding the treatment of racehorses.

Issues such as the use of whips, the rate of horse fatalities, and the welfare of retired racehorses have sparked debates alongside calls for stricter regulations.

Competition

Horseracing faces stiff competition from other sports and forms of entertainment, as well as from alternative gambling options such as online casinos and sports betting.

This has led to a decline in attendance at racecourses and a reduction in betting revenue.

Economic uncertainty

The broader economic environment, including factors such as Brexit and the COVID-19 pandemic, has created uncertainty for the industry.

The pandemic had a devastating impact, with races being cancelled or held behind closed doors, leading to significant financial losses.

Aging demographic

Sadly, the audience for horseracing is aging, with younger generations showing a reducing interest in the sport.

This is part of a wider decline alongside many other sports in general.

This poses a long-term challenge for the industry and sports in terms of attracting new fans and participants.

Proposed Solutions

Increase prize-money and funding

One of the most immediate steps that can be taken to support the industry is to increase prize-money.

This could be achieved through a combination of increased funding from the government, higher contributions from racecourses, and a greater share of betting revenue.

The government could consider providing tax incentives for owners and breeders, while racecourses could explore new revenue streams, such as hosting non-racing events or offering premium experiences to attract higher-spending customers.

Enhance animal welfare standards

Improving animal welfare standards is essential to maintaining public trust and ensuring the long-term sustainability of the industry.

This could involve stricter regulations on the use of whips, improved veterinary care, and better tracking and management of retired racehorses.

The industry should also work closely with animal welfare organisations to develop and implement best practices, and to communicate these efforts transparently to the public.

Modernise and diversify the sport

To attract a younger and more diverse audience, the industry needs to modernise and diversify its offerings. This could include introducing new formats of racing, such as shorter, more fast-paced events, or incorporating technology to enhance the spectator experience.

Social media and digital platforms should be leveraged to engage with younger audiences, and partnerships with influencers and celebrities could help to raise the sport’s profile.

Expand international reach

The UK horseracing industry should look to expand its international reach by promoting its events to a global audience.

This could involve hosting more international races, attracting foreign owners and trainers, and leveraging digital platforms to broadcast races to a worldwide audience.

The industry could also explore partnerships with international betting companies to increase revenue from overseas markets.

Strengthen its economic resilience

To mitigate the impact of economic uncertainty, the industry should focus on strengthening its economic resilience.

This could involve diversifying revenue streams, such as by developing new betting products or offering virtual racing experiences.

The industry should also work to build stronger relationships with sponsors and advertisers, and explore opportunities for public-private partnerships to secure additional funding.

Invest in education and training

Investing in education and training is crucial to ensuring the industry has a skilled and sustainable workforce.

This could involve offering apprenticeships and training programmes for young people interested in pursuing careers in horseracing, as well as providing ongoing professional development opportunities for existing staff.

The industry should also work to promote diversity and inclusion, ensuring that opportunities are available to people from all backgrounds.

Promote responsible gambling

Given the importance of betting revenue to the industry, it is essential to promote responsible gambling practices.

This could involve working with betting companies to implement measures such as self-exclusion programmes, deposit limits, and mandatory breaks in play. The industry should also invest in public awareness campaigns to educate bettors about the risks of problem gambling and the importance of gambling responsibly.

Conclusion

The UK horseracing industry is at a crossroads, facing significant challenges for its future.

However, with the right strategies and a collaborative approach, these challenges can be overcome.

By increasing prize-money, enhancing animal welfare standards, modernising the sport, expanding its international reach, strengthening economic resilience, investing in education and training, and promoting responsible gambling, the industry can ensure its long-term sustainability and continue to thrive as a vital part of the UK’s cultural and economic landscape.

Many of these solutions are already in hand, which I applaud.

My parting shot however is that the time to act is now, to preserve the legacy of this beloved sport for future generations.