THOSE in charge of Irish racing’s finances are assessing the likely impact of the news from Britain this week that at least 700 betting shops are to close and there will be 20 fewer British fixtures next year.

The shop closures will have an immediate effect on media rights payments. British betting offices are effectively the biggest customer for Irish racing pictures which are supplied by SIS, the intermediary which bought the rights from Horse Racing Ireland’s media rights committee.

Details of that deal are commercially sensitive but it is understood that Irish racecourses receive a basic €7,000 per race in media rights payments, with extra for blacktype races. The deal expires in 2023.

Ladbrokes Coral have stated that up to 900 of their shops are as risk of closure, and industry insiders in Britain estimate that betting shop closures could cost the racing industry there as much as £60 million.

Brian Kavanagh, CEO of Horse Racing Ireland, said: “The news was not unexpected and within the range of our expectations and should not have any budgetary impact this year. What wasn’t clear was the timeframe over which this might happen. There will however be a loss of income for racecourses in the longer term and this is a concern.

“It’s an issue which we are constanrtly monitoring and I think the restrictions on FOBTs are something that have been generally welcomed. So far in 2019, the level of shop closures has been less than anticipated.”

Paddy Walsh, chief executive of the Association of Irish Racecourses, said: “The reported shop closures in Britain is bad news but it is not a surprise. It was well flagged up in the aftermath of the British government’s decision to drastically reduce the maximum stakes permitted on FOBTs.

“Our current media rights deal is more akin to a profit-sharing arrangement, rather than the cash payment we would have had in the past. So there will be an impact on our income as soon as shops start to close down. However, there are 9,250 betting shops in Britain, to put it in context. I believe just 150 have closed so far this year and, in Ireland, the number of shops has fallen by only 20.”

A much higher number of Irish betting shop closures were forecast this year, following the doubling of betting tax from 1% to 2%, all of which must be absorbed by the bookmakers. While only a small number of shops have closed, it is feared that race sponsorship by betting companies will drop off.

Fixture list

Meanwhile, Kavanagh says there is a possibility of a small increase in the Irish fixture list for 2020, depending on available funds.

Earlier this week the British Horseracing Authority revealed it plans to trim 20 meetings from its fixture list next year due to pressure on prize money, number of runners, and evidence that the current number of fixtures is putting too much strain on the industry’s participants.

Kavanagh said: “The 2020 fixture process has just started and, at the moment, we are working on the premise that the number of fixtures will be similar to 2019 with the possibility of a small increase.

“Our funding situation will dictate the number. We are anxious to maintain our base prize money levels. We’re aiming to finalise and publish the fixture list after our board meeting on September 3rd.”