THE Irish racing and breeding industry is bracing itself for the fallout from the latest funding crisis to hit the sport in Britain.

With the threat of a no-deal Brexit seemingly greater than ever before now, the news that British racing has just discovered a £17 million shortfall in revenue from bookmakers was most unwelcome.

The drop in revenue for British racing was announced by the Horseracing Betting Levy Board. The levy is a percentage of bookmaker profits and it generated £95 million in 2017-'18. Following the Government decision to drastically cut the amount punters can stake on fixed odds betting terminals, it was widely expected that the levy yield would drop, but industry experts had forecast a yield of £87 million.

However, final returns showed that revenue had nosedived to £78 million for the latest year and prize money levels are now likely to be affected. This in turn could have a negative impact on British demand for Irish bloodstock.

Brian Kavanagh, CEO of Horse Racing Ireland, said: "Obviously, this is not good news for British racing, the health of which is a major concern to Irish breeders, in particular. British racing may be able to buffer the immediate impact through use of reserves, but it is a real concern for the longterm funding of the sport there. It illustrates the risk of a gross profits funding model as there does not seem to be any downturn in betting activity on British racing."

Shane O'Dwyer, CEO of the Irish Thoroughbred Breeders' Association, commented: "It is very concerning to read about the fall in the Levy yield. Some 65% of Ireland’s annual foal crop is exported and 80% of these exports are to Britain. It is the single biggest market for Irish bloodstock and a major source of overseas revenue to Ireland.

"A healthy industry is dependent on owners who rely on sustainable prize money to attract them to the game. We have seen a drop in the number of new owners in Britain in recent times and this further reduction in the Levy only adds to this ongoing problem.

"Any further dilution of prize money will reduce the demand for Irish horses in Britain and this needs to be addressed soonest as the British racing model is dependent on imports, a large percentage of which are Irish-bred."