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One of the most exciting weeks in horse racing is here as the great and good of National Hunt racing gather for the 2024 Cheltenham Festival.
Big Business
With wall-to-wall television coverage, the levels of horse racing betting will rise dramatically as bettors try to find winners in prestigious races such as the Gold Cup and Champion Chase.
With jam-packed crowds expected every day, the 2024 Cheltenham Festival stands to be the largest in history and it’s estimated that the festival should exceed the £274 million in revenues that the 2023 edition brought to the local economy.
Horse racing in the UK is big business. Not only is horse racing the UK’s second most attended sport but it’s estimated that it employs over 85,000 people and contributes over £4 billion to the UK economy yearly. Despite the vital role that horse racing plays to both the UK and its local regions, the immediate future of British racing is in some doubt and several questions need to be answered.
What are the challenges?
For many experts within the industry, British horse racing is currently at its lowest ebb, and there are serious concerns over both the finances and quality that is currently on offer. Those concerns will be perfectly encapsulated by the 2024 Cheltenham Festival.
Most of the festival’s biggest races are set to be dominated by Irish-trained horses and it wouldn’t be a surprise to anyone to see either Willie Mullins or Gordon Elliott finish the week as the leading trainer.
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Whilst horses from Britain will win races, the quality on average simply doesn’t compare. Many believe that the gulf in class between British and Irish horses is twofold.
Firstly, prize money in Irish racing is simply bigger. With more lucrative prize money on offer, Ireland is a more attractive place for owners to send their horses as greater returns can be made. Secondly, many are questioning the strengths of the British racing calendar. With racing on almost every day of the year, many believe that, in comparison to Irish racing, the product has become diluted.
Those within British racing have hit back at those critics as they believe all of these meetings serve a purpose, and that is through the betting levy. Gambling companies who operate horse racing betting markets in the UK are required to pay the British Government 10% of their horse racing profits on anything made over 500,000.
The levy provides essential funds to the UK horse racing industry as the money it generates is put back into the sport and used to help fund numerous services and welfare schemes. Vital to the sport, there is a fear that fewer race meetings will result in a smaller levy. If a reduction is made, there is a huge risk that both national and local economies could end up being harmed.
Fears of British horses being trounced at this year’s festival could end up being true, but those within the industry will hope a solution to the future of the levy can be quickly resolved and that this is a hurdle that the industry will be able to clear.
