How Does the Regulatory Environment for Pool Betting Impact on the Financial Health of Horseracing Around the World?

Simon Bazalgette, the founding Chair of specialist management consultancy GVS EQ, and Martin Purbrick, a founding GVS EQ associate, take a canter around the world to see how betting regulation, and particularly pool betting, has a vital impact on the relative level of prize money, and therefore the financial health of the sport.

For the last century and beyond, Horseracing has had a symbiotic relationship with betting, and this remains the case in most countries – to a greater or lesser extent. As a result, the financial strength of each national horseracing industry depends on the way that betting is regulated and owned in that country. An understanding of a national regulatory structure for betting is vital for any understanding the wide variation of prize money in different countries.

Pool betting, also known as ‘Tote betting’ or ‘pari-mutuel betting’, has long been associated with horse racing. Tote betting was established in the 19th century and involves all the amounts bet combined in a pool, from which the operator takes a cut, then the odds are calculated based on the proportions wagered on each outcome. Totalisator odds are different to fixed odds in that they are not set until the race begins, no more bets are accepted and the total amount in the pool is finalised.

Tote operators were created to harness wagering to support the sustainability of racing, the welfare of horses, as well as employment for the large numbers of people involved in the sport around the world. Horse racing is a high cost and capital intensive sport to organise and operate, and requires considerable sustainable funding to survive. 

In markets with strong totes such as Japan, Hong Kong and France, racing generally does relatively well. In countries where other forms of betting have been licensed, racing can still do well if there is a fair balance of funding provided back to the sport from all types of betting. Australia would be a good example of this. In the US the position is rapidly changing from a pure racing tote market with the introduction of sports betting.

In the UK, the introduction of off course fixed odds betting in the early 1960s, with a relatively loose link to horseracing, has meant that British horseracing has lost pace with its fellow racing jurisdictions around the world when it comes to prize money and investment in the sport from the betting industry.

In South Africa and Australia there remains a mixed economy of fixed odds and pool betting. Australian racing has strong statutory support to ensure a meaningful percentage of betting revenues goes to horseracing ensures that prize money levels remain internationally competitive.

For many years there has been a steady but less than speedy process of the official totes connecting with each other to combine pools on racing – commonly known as commingling. There are several reasons for the slow progress, primarily the different bet types and conditions attached to similar bet types, but also the commingling technology (ITSP) which has been in place for more than 20 years but is still embedded in many heritage platforms. The most important development in commingling has been the World Pool, which is hosted by the Hong Kong Jockey Club. 

In addition to the main national or state totes, there are a number of private pool operators who offer access to the pools particularly for large international players who offer significant liquidity to the market.

Some countries, particularly the Gulf States, do not have licensed betting of any sort, and the sport relies mainly on the financial support of the state, the royal families and rich owners.

To a large degree, the level of funding available for horseracing is dependent on the level of support that national or state regulations provide, particularly with regard to funding from betting, and therefore any attempt to assume that success in one country can be used as a template for another should be treated with great caution.

Let’s take a high level look at what this means for the major racing jurisdictions.

France

The French pool betting market is around €9 billion annually, the profits from which are reinvested back into the sport. It is notable for its wide retail distribution through the vast network of over 20,000 tabacs (tobacco and convenience stores) in the country.

Pool betting in France is primarily controlled and run by the PMU despite attempts to open up the market over the last decade or so. The PMU returns all its benefits to the 66 French horse racing companies organising gallop and trotting races (France Galop and Le Trot), sustaining more than 60,000 direct and indirect jobs throughout France. 

In 2023, the PMU paid a total contribution of 835 million euros to France Galop and Le Trot. This financial contribution supported the operation of 233 racetracks and 26,000 horses in training.

Other types of betting operator have been licensed in France since 2010 but they remain heavily restricted and take only a very small share of the French horserace betting market.

Japan

The Japan Racing Association (JRA) is the custodian of horse racing and also tote betting at the national level. Pool betting on racing in Japan generated a betting turnover of over 2.5 trillion Yen (Euro 15 billion). The JRA is required to provide 10% of its gross betting turnover to the national treasury, as well as 50% of any surplus profits remaining at the end of the fiscal year. Three-quarters of the contribution must be used for improvement of livestock breeding and the JRA also contributes additional funds to horse breeding as well as the promotion of equestrian culture.

It is no coincidence that Japanese racing offers the largest pool of prize money in the world, given the JRA’s control of horserace betting in Japan under its vertically integrated sole licensed operator. Betting on other sports is also limited to only a small number of local sports such as bicycle, boat and motor racing.

The Japanese pool is restricted from commingling with other international pool operators, with only limited pilot trials having taken place to date. Typically this is driven by the presence of Japanese runners in overseas races, to allow Japanese punters to bet on these horses. When this does take place, it generally has a major impact because the level of Japanese betting will be significantly larger than the home pool.

Hong Kong

Hong Kong has vertically integrated racing and pool betting, operated by the Hong Kong Jockey Club (HKJC). It generates around HK$130 billion (€15 billion) in annual betting turnover, with the HKJC being the largest corporate taxpayer in Hong Kong, and operating one of the world’s largest and most active charitable trusts. All surplus funds after operating expenses are either reinvested in racing or passed to the HKJC Charities Trust.

Most recently, the HKJC has become the host of the most successful international pool betting initiative, the World Pool and involves a collaboration of over 25 racing jurisdictions allowing customers to bet into a single pool involving enormous liquidity. This enlarged liquidity ensures that there are less odds (price) variations in smaller betting markets and better value for all betting customers. In the 2023/24 racing season, there are 45 World Pool fixtures at racecourses around the world, and the number is likely to continue to grow.

By allowing international horseracing fans the ability to bet into one pool on the major group races around the world, it has created a significant additional betting revenue stream in other territories whereby, for example, racedays such as the Epsom Derby, Caulfield Cup and the Dubai World Cup benefit from the significant level of betting that can be generated. 

United States

In the US, betting is regulated at the state level and historically was limited to pari mutuel betting on horseracing.

Alongside this there were some examples of licensed casinos or slots which would usually be allowed only on racecourses or designated casino sites. Where a racecourse had such additional betting, it would significantly increase the level of prize money that racecourse could offer compared to other US racecourses.

The first Off Track Betting (OTB) service for horseracing was licensed in New York State in the 1970s, and rolled out in a number of states thereafter. These have been superseded by account deposit wagering services (ADWs). Horseracing remained the prime beneficiary of the OTBs and ADWs until in 2018 a Supreme Court ruling opened up the potential for states to licence fixed odds sports betting and almost 40 states have now done so to some extent.

US horserace pool betting is dominated by the two major racetrack groups - Churchill Downs (through its Twin Spires service) and the Stronach group (through their 1/ST and Xpressbet services). The two groups also own two of the major tote tech companies, United Tote (CD) and Amtote (1/ST). Churchill recently announced that NYRA (the racing operator in NY State) had completed its purchase of a 49% stake in United Tote.

Licensed betting on horseracing remains around $10 billion pa but betting on other sports has grown to over $90 billion pa.

United Kingdom

The UK has arguably the most competitive licensing environment for betting in the world. The UK Tote was created by Winston Churchill (a Jockey Club member) in 1926 as an independent body run for the good of racing; but unlike other countries, its betting monopoly was ended in the early 1960s with the creation of licensed fixed odds betting shops. Also unlike elsewhere, British horseracing was given no control over the off-course market, but instead a statutory levy was created to ensure that a small proportion of the profits from betting on horseracing was passed through to contribute to the financing of the sport.

Since that time, pool betting has had a declining share of the betting market and currently represents around 10%. The UK is dominated by fixed odds operators, and while British punters have the widest choice of competitive bets in the world, they also benefit from the highest return on bets in the world. This means that pool betting, with its higher take-out rates, struggles to match the pricing for fixed odds for simple bets, but is more competitive in so-called exotic bets, particularly the Place Pot.

The Levy is currently set at 10% of gross margin on betting on domestic horseracing, which, due to the highly competitive market and the low margins, is the equivalent of around 0.7% of betting turnover, amongst the lowest return from betting to horseracing in the world.

There have been various attempts to bring the Tote closer to racing, either through transferring its ownership to the sport, or through a preferential sale to racing, but these attempts have all failed. In 2011, the Tote was nationalised and then sold to the bookmaker group, Betfred, who sold it on to its current owners (which includes several large owners and breeders) in 2018. The UK Tote has had a commercial arrangement with the British racecourses (via their shared on-course betting company, Britbet) which is due for renewal in 2025.

Horserace betting remains at a significant level in the UK, c£5bn pa, second in Europe to France, but due to the difference to the regulatory structures, the amount transferred to the sport is significantly lower than in France.

Australia

Australia is arguably the best example of a mixed economy of pool and fixed odds betting, all of which provides significant funding back into horseracing. 

Each state and territory has its own regulatory authority for betting and racing. Betting is owned and run separately from the sport, and generates around €15 billion pa, which is pretty evenly split between pool betting and fixed odds.

Tabcorp Holdings, a public company, is the largest operator of pari-mutuel betting, running TAB-branded services across multiple states, and each state tends to have its own pool operator as well.

As in the UK betting operators are required to pay a proportion of their revenues to the sport, under what is known as Racing Fields regulations. The level required in Australia is significantly higher than the UK levy – typically between 1.5% and 3% of betting turnover - and allows Australian racing to offer prize money at the top end of international levels. 

Ireland

The betting market in Ireland has many similarities to the UK. Betting on horseracing is around €1.1bn to €1.3bn each year, with Tote Ireland representing a small proportion (6%-7%). Betting operators pay a government levy which is paid over to the horseracing industry via Horse Racing Ireland (HRI), usually between €80m - €100m pa. This funding supports the development and promotion of the industry, racecourse maintenance and annual prize money of around €65m pa.

South Africa

South Africa is a market with a mixed economy between the original pool operator (the SA Tote, owned by Phumelela, the largest racecourse group) and fixed odds operators. Phumelela has arrangements in place with the National Horseracing Authority of South Africa to support prize money and the promotion of SA racing in the country.

Pool betting on horseracing is around €400m pa and represents around two thirds of the market, with fixed odds operators growing fast.

Conclusion

The financial contributions to racing from totes are a critical part of the sustainability of racing, supporting a huge number of jobs in the sport. However, the regulatory and tax structure for pool betting varies considerably around the world.

Most countries will have started from a similar position of the tote being the only form of licensed betting as explained by Sir Winston Churchill: “I have always believed that it was a good thing for the State to organise the totalisator and take control of this form of betting in order to eliminate illegal practices and to ensure that a proper proportion of the proceeds went to public purposes.” 

The position in each country has diverged significantly over the last 100 years, and this means the impact on the funding for the sport is very different in each country. While there are areas of similarity, building greater collaboration between tote operators is a long road but one that can only benefit racing in the long term.

Have horse will travel - incentives to race in 2023

Article by Lissa Oliver

Fitness is one thing, but placing horses in suitable races to provide the best opportunity for them is quite possibly the trickiest part of a trainer’s role. It can be hard enough to search our own racing calendar for suitable races, and yet, delving further into international calendars could well pay dividends, if not in prize money then in adding valuable black type. Despite problems with travel, the racing world grows ever smaller, and it can certainly pay to shop around and look further afield. Many racecourses will offer travel incentives to encourage international participation, and the VIP experience for visiting owners will provide a lasting memory. 

France

Close to home and a regular destination for most European trainers, prize money in France rose to €278 million last year, up on 2021 by €30 million (+12%) and on 2019 by €20 million (7.75%). The 2023 France Galop budget includes a €10 million increase in prize money, with an objective to stimulate the number of young horses in training in France. 

As a result, 19 races at Parisian racecourses will see their total prize money raised to €50,000, paid out to the first seven finishers. The winner will earn €25,000, increased by 80% for two-year-olds if the winner is eligible for the owner's premium. The total sum of earnings to the winner could be €45,000. The selected 19 races take place throughout the year and include various distances. France Galop describes them as the most sought-after and competitive events for unraced horses in the French programme, with a consistent track record of producing a number of Group horses.

In the French provinces, two races for unraced horses have been selected to be included in this scheme. They are the Prix du Four à Chaux and the Prix Didier Vezia, which will be run in September at Bordeaux. Each race will offer a total prize money of €35,000; and the winner will earn €31,500 if eligible for the owner's premium. 

The increase in prize money has also been spread throughout maiden races, and races for unraced horses, across all of France. 

The new Arqana Series is also of interest to those racing in France - the sales company offering a series of races worth €1.2m (£1.06m), open only to the yearlings and foals offered at Arqana Sales in 2022 and the two-year-olds offered at the forthcoming Arqana May Breeze Up. The Arqana Series will consist of five races, for two-year-olds and three-year-olds (the latter run in 2024) on a Thursday evening during the prestigious Deauville meeting and on the Saturday of the Prix de l'Arc de Triomphe weekend. Each race of the Arqana Series will reward both owners and vendors.

The juvenile races at Deauville will be run over 1400m (7f) for unraced horses and 1200m (6f) conditions, with a 2000m (10f) race in 2024 for three-year-olds. At ParisLongchamp, the two-year-old race will be a conditions race over 1600m (8f).

Of course, all races in France already carry a lucrative system of owners’ premiums on top of prize money. Two-year-olds and three-year-olds win an additional 80%, four and five-year-olds win an additional 55%, and six-year-olds and up receive an additional 45%. An additional 35% is paid to winners of Gp.1 races, whatever their age.

Germany

Deutsches Derby

Germany is still not yet back to the level of pre-Covid 2019, but significantly more prize money and bonuses were paid out in 2022 than in 2021 [€12.39m (£10.95m)], which will rise to €13m (£11.47m) in 2023. An increase of €2.15m (£1.90m) was recorded in prize money, and the average race value is higher than in previous years at €12,039/£10,651. The Deutsches Derby 2023 will be worth €650,000/£574,967, the Preis der Diana €500,000/£442,290, and the Grosser Preis von Baden worth €400,000/£ 353,985.

At smaller German tracks, the Harzburg meeting, 22–30 July, has significantly increased prize money for 2023, and the showcase handicaps carry €17,500/£15,475. The highlight of the meeting is the BBAG Auction Race worth €37,000/£32,683. "We want to support basic racing in particular," explains Racing Club President Stephan Ahrens, "because the costs of keeping horses have risen enormously. That is why we have increased the race values by up to 25%.” 

Scandinavia

Further afield for some, the full potential of Scandinavia has yet to be tapped, particularly the prize money on offer at Bro Park in Sweden. Bro Park covers 500 acres and has permanent stabling and training facilities, able to accommodate a further 100 horses on race days. The facilities provide the best possible environment for horses and those working with them. It is just over 30 minutes from the centre of Stockholm by car and a similar distance from Arlanda Airport.

Bro Park

Foreign raiders might be tempted by Sweden’s major race, the 2400m (12f) Gr3 Stockholm Cup for three-year-olds and up, at Bro Park on Sunday, 17 September—worth €125,825/£111,103. Earlier, on 11 June at Bro Park is the Gp.3 Stockholm Stora Pris, 1750m (8 1/2f) for three-year-olds and up— worth €89,882/£79,357. The Stockholm Cup card includes Sweden's most important two-year-old race, the 1400m (7f) Appel Au Maitre Svealandlöpning—worth €23,108/£20,424—and won by British trainer Archie Watson last year, who completed a double on the day.

On dirt, for three-year-olds and up, Jägersro hosts the 1750m (8 1/2f) Listed Pramms Memorial—worth €89,882/£79,357—21 May; the 2400m (12f) Svensk Derby—worth €223,869/£197,629,—16 July; and the €71,925/£63,509 Zawawi Cup over 1200m (6f), 16 July. Both Bro Park and Jägersro offer plenty of other opportunities at distances of 1200m (6f) up to 2400m (12f) with values ranging from €26,971/£23,809 up to €59,339/£52,386. 

In Norway, the 2400m (12f) Norsk Derby at Ovrevoll 20 August has a total value of €108,662/£96,067; and the 2400m (12f) Gp.3 Oslo Cup 15 June is worth €23,721/£20,973 to the winner. On 21 August, the Gp.3 Marit Sveaas Minnelop is run at Ovrevoll over 1800m (9f), carrying a first prize of €66,406/£58,724.

Let’s not forget Denmark, where the Gp.3 Scandinavian Open Championship for three-year-olds and up, over 2400m (12f) at Klampenborg on 27 May, is worth €57,545/£50,903, and a first prize of €31,967/£28,280. 

Spain

While there may not be high levels of prize money to chase on a regular basis in Spain, it is worth noting the major prizes in the Spanish calendar. The Listed Gran Premio de Madrid over 2500m (12 1/2f) at the end of June, for three-year-olds and up, is the major summer highlight, worth €68,000/£60,068 (€40,000/£35,330 to the winner; €16,000/£14,132 to the second; €8,000/£7,065 to the third; and €4,000/£3,532 to the fourth). 

In 2023, it will be run on Saturday, 24 June and is supported on the card by the Premio Baldoria for three-year-olds and older fillies and mares: over 1600m (8f), worth €15,000/£13,247 to the winner; €6,000/£5,299 to the second; €3,000/£2,649 to the third; and €1,500/£1,324 to the fourth.

August at San Sebastián sees the 1500m (7 1/2f) Premio Santander Cup (Criterium International) for two-year-olds, with prize money of €40,800/£36,018. The €59,500/£52,532 Gran Premio Copa De Oro De San Sebastián, over 2400m for three-year-olds and up, is the meeting highlight, worth €35,000/£30,900 to the winner; in addition to an impressive gold cup, €14,000/£12,360 goes to the second, €7,000/£6,180 to the third and €3,500/£3,090 to the fourth. On the supporting card is the Gran Premio Turismo Gobierno Vasco, 1600m (8f) for three-year-olds and up with a total prize of €40,800/£36,018. 

On Sunday, 15 October, the highlight of the Spanish season will be Champions Day, with a card that includes the Gran Premio Memorial Duque de Toledo over 2400m (12f) for three-year-olds and up, with a value of €68,000/£60,068 (€40,000/£35,330 to the winner, €16,000/£14,132 to the second, €8,000/£7,065 to the third and €4,000/£3,532 to the fourth). Also run on the day is the Gran Premio Ruban over 1200m (6f) worth €40,800/£36,018, with the winner taking home €24,000/£21,191, down to €2,400/£2,119 for fourth. A strong supporting card boasts lucrative added premiums of €5,000 for Spanish-breds.

Belgium

There are also opportunities for an average rated horse closer to home for some, in Belgium. As in Spain, the prize money might not be eye-catching, but neither is the competitiveness in comparison to similar races at home. The showpiece is the Prix Prince Rose, a National Listed Race over 2100m (10 1/2f) run at Ostend on Monday, 7 August with total prize money of €12,800/£11,304, with €8,000/£7,065 to the winner. The Prix Prince Rose is open to three-year-olds and older who have never been placed in the first five of a Pattern race. 
Ostend also hosts three interesting conditions races in July and August: the Miler Cup, 1600m (8f); the Prijs Half Oogst and BFG Galop, 1800m (9f); and the Prijs BFG and Nymphenburger, 2200m (11f)—each with a total prize money of €8,000/£7,065, with €5,000/£4,416 for the winner. They are for four-year-olds and older without a handicap value or a value equal or lower than 30kg (66 lbs). Penalties for prize money received for wins and places since 1 July 2023 are 1kg per €1,000. There is also the UAE Sprint Cup Handicap over 1000m (5f) in August for four-year-olds and older with a handicap value equal or lower than 30kg (66 lbs). See the complete list of races and conditions here: www.bgalopf.be/Meetings.htm

Britain

In Britain, the BHA, Darley and Juddmonte have come together to sponsor a high-value developmental races series of 60 races, also supported in funding by host racecourses, offering increased prize money to horses at the start of their career. As with the French developmental programme, the hope is that they will be retained to race in Britain going forward. The BHA hopes to expand on the idea of increasing the values of Flat maidens and novice races in 2024 and long-term. 

There will be 20 two-year-old restricted maiden and novice races worth €33,975/£30,000, supported by Juddmonte; 21 two-year-old open maiden and novice races worth €33,975/£30,000, supported by the BHA Development Fund; and 22 three-year-old and up open maiden and novice races worth €33,975–€56,626 (£30,000–£50,000), supported by Darley and the BHA Development Fund. The €56,626/£50,000 races will be run over longer distances to support middle-distance and staying horses.

Elsewhere in Britain, Newbury, having been infamously boycotted by trainers for one of its flat races last year, will see a 16% prize money increase this year, taking overall levels at the track to just over €6.79m/£6m. Newbury will host six novice and maiden races during the Flat season with prize money of €33,975 up to €56,626 (£30,000–£50,000).

The Racing League also returns for 2023, in which seven teams compete in 42 races over six meetings for over €2.2m/£2m prize money. The meetings for 2023 are Yarmouth 27 July, Chepstow 10 August, Windsor 17 August, Newcastle 31 August, Wolverhampton 7 September and Southwell 13 September. All races are handicaps with a range of ratings bands and distances, with normal BHA distribution for race prize money.

As with Arqana, British racing is boosted by the sponsorship of sales company Tattersalls, targeting yearlings purchased at the Tattersalls Somerville Yearling Sale, who will be eligible for the 1200m (6f) €112,826/£100,000 Tattersalls Somerville Auction Stakes run at Newmarket 26 August, as well as the 1200m (6f) €169,242/£150,000 Tattersalls October Auction Stakes, Newmarket 5 October.

Charlie Appleby-trained Regal Honour broke his maiden in the 2022 Stephen Rowley Remembered Novice Stakes at Newmarket to collect the 312th £20,000 Tattersalls October Book 1 Bonus.

The Goffs UK Harry Beeby Premier Yearling Stakes, 1200m (6f) on 24 August at York carries a guaranteed minimum value of €394,092/£350,000, for two-years-olds sold at the 2022 Doncaster Premier Yearling Sale.

Tattersalls also offer the €22,684/£20,000 Tattersalls October Book 1 Bonus Scheme for 2023. Participating owners will receive a €22,684/£20,000 bonus if their 2022 October Book 1 purchase wins a Class 2, 3 or 4 two-year-old maiden or novice race in Britain between 1 April and 11 November 2023, or any 'Open' two-year-old maiden run in Ireland between 25 March and 5 November 2023. The cost to enter the €22,684/£20,000 Tattersalls October ‘Book 1 Bonus’ Scheme is €1,928/£1,700, and there are over 300 qualifying British and Irish two-year-old maiden and novice races. All yearlings sold, bought in or failing to meet their reserve at Book 1 of the 2022 Tattersalls October Yearling Sale are eligible.

Ireland 

Tattersalls are also major sponsors in Ireland, with the Tattersalls Ireland Super Auction Sale Stakes of €300,000/£265,889, worth €150,000/£132,942 to the winner and prize money of at least €5,000/£4,431 down to 10th. Over 1200m (6f) at the Curragh, it is of course limited to those yearlings sold at the Tattersalls Ireland September Yearling Sale and the Tattersalls Ireland Sapphire Sale in November 2022.

Tattersalls also continues to support the first two Irish Classics and Gp.1 Tattersalls Gold, as well as enhanced owners’ and trainers’ facilities at the Curragh. The Irish 1000 Guineas and Irish 2000 Guineas will each have prize money of €500,000/£443,081, while the Tattersalls Gold Cup will increase in value to €450,000/£398,754.

Goffs also continue to be major sponsors in Ireland, supporting premier National Hunt and Flat races. The Goffs Sportsman Challenge Day at Naas, 14 September 2023, will be a mid-week all juvenile card featuring the 1200m (6f) €100,000/£88,653 Goffs Sportsman’s Challenge, a two-year-old race exclusive to yearlings purchased at the Goffs Sportsman’s Sale. Prize money also goes to the first 10 finishers.

Europe’s richest two-year-old race, the 1400m (7f) Goffs Million, run at the Curragh 23 September 2023, is for graduates of the Goffs Orby Sale (2022)  and is worth €500,000/£443,081 to the winner, down to €10,000/£8,869 for 10th.

Horse Racing Ireland (HRI) saw a number of restorations to prize money levels last year and an increase in funding for the IRE Incentive Scheme for breeders, which grew from €1.1m (£0.97m) paid out in 2021 as vouchers to be spent on Irish-bred horses at Irish sales, to €1.3m (£1.14m) last year. It will again provide €1.3m (£1.14m) in vouchers for 2023.

HRI’s commitment to ensuring the quality of racing is also extended to grassroots level, with a targeted increase of €1.7m (£1.5m) to prize money levels, bringing 2023 to €68.6m (+2.5%) (£60.58m).

“Prize money is a key enabler in building and maintaining the number of quality horses in training in Ireland,” says Suzanne Eade, chief executive of HRI. “Approximately 70% of horses competing [in Ireland] receive some prize money, so it is important that we prioritise its growth…in order to sustain the significant rural jobs created by the industry.” 

European Breeders’ Fund

Throughout Europe, the European Breeders Fund (EBF), with national representation in Britain, Ireland, France, Germany, Italy and Switzerland, continues to be one of the largest sponsors of races. Only the progeny of EBF registered stallions and horses nominated to the EBF can enter these races, but of course they are free to run in any EBF race throughout Europe.

The European Breeders’ Fund celebrates its 40 th year of operation in 2023 and in that time has contributed over €130m to prize money throughout Europe. The emphasis is on the two-year-old programme and fillies races, and there are valuable opportunities to be found. The EBF regularly reviews where the funds are best directed and is a vital support to both racing and bloodstock industries.

Highlights of the EBF support in 2023:

Irish EBF Ballyhane Stakes €200,000 minimum at Naas, August

British EBF 2yo series £100,000 finals at Goodwood and York, September and October

Criterium FEE €130,000 Deauville, August

Italy is recovering from difficult times and this season there will be four EBF-sponsored races with an added €2,000/£1,766 to the winner if EBF qualified.

In France, the EBF (FEE) will pay out over €1m into prize money, with over €200,000 in premiums for fillies Listed Races, and over €500,000 for two and three-year-old maidens, debutants and conditions races in both Paris and the regions.

The British EBF will in 2023 invest around €2.27m (£2m) for both Flat and National Hunt and the Irish EBF current investment has increased from €2.6m (£2.25m) to €2.7m (£2.38m), making Irish Stallion Farms EBF the largest sponsor of racing in Ireland. This year all Listed Fillies races in Ireland will be sponsored by Irish EBF and will run for a minimum of €50,000/£44,000 and all other Listed races will run for a minimum of €40,000/£35,000. Highlights include the 26-race Median Sires Series, each worth a minimum €25,000/£22,000, for horses by a sire with a median fee of €75,000/£66,045 or less. The €200,000/£177,506 Irish EBF Ballyhane Stakes has the same conditions and is the showcase, run over 1000m (5f) at Naas 7 August. The 24-race Irish EBF Auction Series for two-year-olds worth a minimum €20,000/£17,750 each has two finals, worth €120,000/£10,5672. Horses must have been bought at auction for €72,000/£63,403 or less.

*Euros converted to sterling at XE rate 03/03/2023

Brexit remains the heaviest cloud on the horizon

By Lissa Oliver

This is now the third update on Brexit we have carried and we could easily reprint the first, from March 2018; so little has changed or moved forward. Alarmingly, the bleak 2018 predictions from those involved at the highest level have come to bear, yet Britain and the EU have appeared to turn a blind eye to the prospect of a no-deal Brexit until the last possible moment. While we look at the current views and contingency plans of individual countries most affected, it is clear that their problems are shared by all, and a common thread runs throughout.

EEA nationals and UK nationals

We all need to be aware of how Brexit will affect our freedom of movement and right to live and work throughout Europe and the UK. Any EEA national with five years continuous residence in the UK can apply for Permanent Residence to protect them from future legislative changes. Applicants must have been resident and in employment, or self-employment, for five years; and it is recommended to apply before the official date of Brexit.

There are strong indications that the current Common Travel Area of the UK and Ireland is likely to remain, to enable Irish nationals to move freely and work in the UK, but this remains unconfirmed; and it is recommended that Irish nationals living and working in the UK apply for Permanent Residence.

The EU has yet to decide how UK nationals living and working in the EEA will be treated. They may qualify for Permanent Residence in the applicable country and are advised to make an application prior to the UK’s withdrawal from Europe.

France

Edouard Philippe

The economy of the French equine sector is driven by horseracing, sports and leisure, work, and horse meat production. While the sports and recreation sector is responsible for the majority of horses (68%), horseracing has the largest economic impact and financial flow (90%), for only 18% of the horse population, and will be the most affected by Brexit. 

The start of the year found France preparing for a disaster scenario, and the view hasn’t softened. Prime Minister Édouard Philippe has told press,

“The hypothesis of a Brexit without agreement is less and less improbable. Our responsibility is to ensure that our country is ready and to protect the interests of our fellow citizens.”

In January he initiated a no-deal Brexit plan prepared in April 2018. Philippe’s priority is to protect French expatriate employees and the British living in France in anticipation of the restoration of border control. 

Fishing is considered the business sector most at risk, but Philippe has also looked to protect the thoroughbred industry with a €50m investment in ports and airports, where 700 customs officers, veterinary controllers and other state agents have been added—in the hope of avoiding administrative delays. He told press,

“It will be necessary that there are again controls in Calais.” 

Dr Paul-Marie Gadot, France Galop, is also working to avoid delays at the border posts. "The political negotiation is still going on, as you know, and as long as it lasts we will not get agreement on the movement of horses. We have prepared for two years, with our Irish and English counterparts, a technical solution—the High Health Horse status—which would allow thoroughbreds and the horses of the Fédération Equestre Internationale to benefit from a lighter control. 

“This organisational scheme was presented to the Irish, UK and French Ministries of Agriculture, and we received their support. It was also introduced to the International Office of Epizootics, which is WHO for animals, and it was very favourably received. We have presented it to the European Commission, but we are not getting a favourable answer at this time.

“In the absence of agreement, border control will be put in place. This means for the public authorities and the European Commission the implementation of ‘Border Inspection Posts’ with the ability to process movements. Our departments are very aware that this situation will be very difficult to manage without endangering the economic activity and the well-being of horses. We are working on palliative solutions, but I strongly fear that the situation is unmanageable.”

Gadot points out there are 25,000 horse movements per year between Ireland, the UK and France, and any hindering of these movements would be a blow to international racing and participation and to the breeding industry. Any challenge to the current freedom of movement could also threaten sales companies such as Arqana, where Irish and British-bred horses are catalogued, and Irish and British buyers are active.

Germany

The Haile Institute for Economic Research reveals that a hard Brexit will hit employment in Germany the hardest, with an estimated loss of 102,900 jobs; although that is just 0.24% of the country’s total employment figure. With its thoroughbred industry barely figuring in any economic impact, it is little wonder that Germany’s sport-related concerns focus on football. But the issues facing Britain’s Premiership are similar to racing’s problems and also heavily tied to Ireland. 

Currently, as per EU law, Britain’s Premier League clubs are allowed to have as many EU players in a team as they wish, but a minimum of eight players in a 25-player team must be British. Elsewhere, Portugal limits non-EU players to just three per top flight team, with none allowed in the lower leagues. Italy also has restrictive rules on the purchase of non-EU players. If German football managers are concerned by the effect Brexit will have on the transfer market, how worried should British trainers be at the prospect of similarly curtailed recruitment?

And the concerns of German trainers? These are not being highlighted by the general press or by the government, but German racing and breeding are fairly self-contained and self-sufficient. How many British and Irish-bred horses are catalogued at the BBAG, however, and what percentage sell to Britain and Ireland? Ireland may still be in the EU, but its landbridge will not be come October.

At the 2019 BBAG Yearling Sale, five British-bred yearlings were catalogued and 18 Irish-bred—four of which were offered by an Irish agent. The top five lots at the 2018 sale were purchased by Godolphin, Peter and Ross Doyle Bloodstock and Meridian Bloodstock; and the sixth highest-priced yearling was foaled in the UK, as was the ninth in the listings. Fetching €110,000 and €100,000 further down the list were two Irish-foaled colts, both bought by German agents. The marketplace is cosmopolitan, and no market can afford to lose two supplier links or two buyer links.

Sweden

Swedish trade minister Ann Linde warns that a no-deal Brexit could have major implications for the country, which has a prosperous trading relationship with Britain. “The big companies have the possibility to analyse what is happening and prepare themselves, but there are too many small and medium-sized companies which have not fully prepared,” she points out. The Swedish National Board of Trade has sent out checklists to companies to work through to understand the consequences of a no-deal Brexit. 

Ann Linde

Linde is also concerned for the futures of 100,000 Swedes living in Britain and 30,000 Britons living in Sweden. Hans Dahlgren, the Secretary of State for Exiting the EU, fears it is unclear how the new British government will treat EU citizens who want to move to the UK for work after 31 October.

"The previous British government had made some openings for people coming to the UK after Brexit, and those statements have not yet been endorsed by the new government," he said.  

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Christophe Ferland - A man with a plan

First published in European Trainer issue 58 - July - September 2017

Click here to order this back issue!

When Christophe Ferland is talking to you, you have his full attention. 

He might need to break off the interview for a few moments to deal with something at the yard or on the phone, or to look at a horse, but he will resume exactly where he stopped, without missing a beat. Is this ability to concentrate 100% on what he is doing one of the ingredients in the recipe for the success of French Flat racing’s rising star?

With a jockey-turned-head-lad for a father, Ferland cannot remember the first time he saw a horse. “But I do remember going racing with my father, although he was no longer a jockey at the time, and loving it!” he says now.

So, after a few years riding out in the morning for several renowned trainers including David Smaga and starting in a dozen races as a gentleman rider “without much success or passion, as I really lacked competitive spirit at the time,” he decided that training really captivated him. His mind was made up: he would be a trainer.'

“You have to keep searching – why something went wrong and how to correct it, what could still be improved even when things go well... Never take anything for granted.”

GALLERY

Prize Money - A fair distribution?

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The French Model - Keeping ahead of the racing game

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(European Trainer - issue 33 - Spring 2011) 

Richard Gibson - leading French based racehorse trainer in profile

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(European Trainer - issue 27 - Autumn 2009)