HORSE Racing Ireland will reveal the industry’s winners and losers from Budget 2020 following its board meeting on Monday, December 16th.

There was no increase in this week’s Budget for racing, with the grant remaining at €67.2 million. However there are seven extra fixtures scheduled for next year and HRI already has some significant financial commitments, which means that there could be cuts for some sectors.

The mid-December statement is expected to outline how the €67.2 million will be allocated across prize money, integrity services, marketing, training and education and point-to-points. HRI’s chief executive Brian Kavanagh said: “The Budget parameters will be considered by the Board in advance of that meeting and will be tighter given Tuesday’s announcement.”

Capital development funds for racecourse improvements look likely to be on the back burner, not least because racecourses themselves could struggle to find matching funds as their own media rights revenues continue to fall. This is due to the number of betting shop closures across Ireland and Britain, plus the weakness of sterling.

Shop closures

Paddy Walsh, CEO of the Association of Irish Racecourses, said yesterday: “We had budgeted for the shop closures and that effect is gradual and controlled. But the exchange rate is more volatile and our members will be glad to see sterling coming back up today.”

Looking ahead, he said: “While we managed well this year, we could be looking at a bigger drop in media rights revenues next year, and that is mainly due to the new restrictions on fixed odds betting terminals [FOBTs] in Britain, which is likely to see more betting shops close. This in turn could impact on racecourses planning capital development fund projects.”

Asked to explain why horseracing’s annual grant was not increased, the Minister for Agriculture, Michael Creed, told The Irish Field: “This Budget was predicated in the context of a no-deal Brexit. The equine industry is acutely aware of how calamitous that would be.

“However, I think it is possible to make progress on some capital investment projects. In particular we are aware of the need to invest in the Irish Equine Centre. It will take a while but we will begin the process of replacing that facility with a fit-for-purpose centre in 2020.”

Sarah McNicholas, CEO of the Irish Equine Centre, commented: “We made a formal submission in July 2019 to the Department and we are pleased to note the Minister is supportive of the project.”

The Minister also said that, in the event of a no-deal Brexit, equine businesses would be eligible to pitch for support from the €650 million fund being set aside for that scenario.

Betting tax will remain at 2% next year, having generated an expected €95 million in 2019. There will, however, be some relief for smaller betting shop owners. The Minister for Finance said: “In recognition of the difficulties experienced by small independent bookmakers I am introducing a relief from betting duty and betting intermediary duty up to a limit of €50,000 per calendar year.”

Racing’s annual grant

2014: €43 million

2015: €54 million

2016: €59 million

2017: €64 million

2018: €64 million

2019: €67.2 million

2020: €67.2 million