More than €42m paid as horse racing prizes by taxpayer…

More than €42m paid as horse racing prizes by taxpayer last year as TD hits out at costs

MORE than €42million of tax-payers’ money was paid out in prize money at horse races last year, it was revealed yesterday.

And Horse Racing Ireland has revealed a similar amount will be paid across 390 fixtures this year.

The owners, some of whom are multi-millionaires, who win the prize money don’t pay tax on the winnings they get from the State, but trainers and jockeys do.

Horse Racing Ireland claims prize money stimulates investment and drives rural economic activity.

It said the funding impacts the sale of Irish horses and the decision to keep horses in training in Ireland.

The total amount of public money paid out in prizes increased by €7.8million last year compared to 2020, when racing was curtailed due to the Covid-19 pandemic.

The figures were supplied to People Before Profit TD Paul Murphy, who asked why so much money was allocated to a “lucrative, predominantly private industry, in a free-market economy which should be able to support itself”.

He told RTE’s This Week there is a huge transfer of public funds “to a small number of multi-millionaire or billionaire horse owners”.

He said the figures for last year show the top four beneficiaries were JP McManus, Michael O’Leary, John Magnier and Michael Tabor - “they get that money tax free, transferred from the taxpayer”.

Mr Murphy added the total core funding for all sports organisations such as the FAI, GAA, Athletics Ireland, Swim Ireland and the Special Olympics amounts to €15million.

He said: “And yet here we are giving €70million a year to an already wealthy industry.

“I don’t think it’s justifiable at any time. Particularly so given the cost of living crisis – it’s completely unjustified.”

The horse racing industry receives financial support from the State through the Horse and Greyhound Racing Fund, with €72.8million having been allocated for next year, 80% of which goes in prize money.

In a statement Horse Racing Ireland said: “The activity of training thoroughbred racehorses is very labour intensive and, therefore, the greater the number of horses in training in Ireland, the greater the employment and economic impact.”

The spokesman added “prize money is the subject of competition internationally, particularly at the higher level where we’re seeking to attract horses to compete here”.

He said: “Flat racing is a global sport with the same horses competing in a series of top-level races around the world.”

It is understood the owners of racehorses get 72% of the winnings, with 10% directed to trainers and jockeys, and 8% for other causes including to stable staff, charities and industry organisations.

Defending the Government, Agriculture Minister Charlie McConalogue told This Week the €70million which the Government allocates every year is “money that is very well invested in an industry which overall contributes about €1.84billion to the Irish economy”.