Have horse will travel - this quarter we focus on opportunities in Dubai, Saudi Arabia, Qatar and Hong Kong

Article by Lissa Oliver

Hong Kong

While the celebrated Champions Day and Longines International races attract plenty of attention globally, all 31 Group races run in Hong Kong are open to overseas entries and include x12 established Group 1 contests, x7 Group 2 and x12 Group 3 races. 

Prize money for Group 1 races ranges from HK$13 million (€1.5m/£1.3m) to HK$40 million (€4.6m/£3.84m), while Group 2 races are worth HK$5.35 million (€622,000/£530,000), and Group 3 races offer HK$4.2 million (€493,000/£420,000). The Group 1 contests include prize money down to sixth place and all are open to three-year-olds and up and run on Turf at Sha Tin. 

The Triple Crown includes a bonus of €1.1m/£1m to be paid to the owner of the horse that wins all three legs of the Triple Crown. The opportunity opens with the 1600m (8f) Stewards Cup worth €1.48m/£1.2m, Sunday 19th January 2025. Free entries for international runners close 25th December and supplementary entries close 16th January 2025.

The second leg of the Triple Crown is the Hong Kong Gold Cup on Sunday 23rd February 2025 over 2000m (10f), worth €1.48m/£1.2m. Free entries close 27th January 2025 and supplementary entries close 11th February 2025.

The final leg of the Triple Crown is on Sunday 25th May 2025, the 2400m (12f) Champions & Chater Cup, with a purse of €1.48m/£1.2m. Free entries close 27th April 2025 and supplementary entries close 11th May 2025.

Another bonus available is for the winning horse of all three legs of the Hong Kong Speed Series. Sunday 19th January 2025 sees the 1200m (6f) Centenary Sprint Cup, the first leg of the Hong Kong Speed Series, worth €1.48m/£1.2m, with free entries closing 30th December 2024 and supplementary entries closing 13th January 2025. A bonus of €580,000/£500,000 will be paid to the owner of the horse that wins all three legs of the Hong Kong Speed Series.

Sunday 23rd February 2025 is the 1400m (7f) Queen’s Silver Jubilee Cup, the second leg of the Hong Kong Speed Series, carrying prize money of €1.48m/£1.2m. Free entries close 30th January 2025 and supplementary entries close 16th February 2025.

The 1200m (6f) Chairman’s Sprint Prize is the final leg of the Hong Kong Speed Series, worth €2.5m/£2.2m, run on Sunday 27th April 2025, free entries closing 16th March 2025 and supplementary entries closing 6th April 2025.

The Hong Kong feature event is the Longines Hong Kong International Races on Sunday 8th December, billed as the epitome of elegance and speed, featuring elite jockeys and the world’s best horses. As well as four Group One races on the day, racegoers can enjoy a variety show, live music, exquisite cuisine and a vibrant party atmosphere. Free entries for the major races on the day close 21st October and supplementary entry closes 18th November at €27,804/£23,690.

The four Group 1 races are the €2.78m/£2.31m Hong Kong Vase over 2400m (12f); the €3.01m/£2.51m 1200m (6f) Hong Kong Sprint; the €4.17m/£3.48m 1600m (8f) Hong Kong Mile; and the €4.63m/£3.86m 2000m (10f) Hong Kong Cup.

Sunday 27th April 2025 sees FWD Champions Day, one of Hong Kong’s most popular sports events. Featuring three prestigious Group 1 races on the day, free entries closing 16th March 2025 and supplementary entries closing 6th April 2025, it provides local racing fans with the chance to see how the city’s top horses shape up against their overseas counterparts.

The 1600m (8f) Champions Mile is worth €2.76m/£2.3m; the 2000m (10f) QEII Cup is worth €3.2m/£2.7m; and the aforementioned 1200m (6f) Chairman’s Sprint Prize is the final leg of the Hong Kong Speed Series.

The Hong Kong Jockey Club offers shipping incentives to selected overseas horses for the seven feature Group 1 races (Longines Hong Kong Cup, Longines Hong Kong Mile, Longines Hong Kong Sprint, Longines Hong Kong Vase, FWD QEII Cup, FWD Champions Mile and Chairman’s Sprint Prize). The Quarantine Stables are located at Sha Tin Racecourse, 45 minutes from Hong Kong International Airport.

The stable blocks are temperature controlled, with rubber flooring throughout and monitored by closed circuit television. Each stable is equipped with a feed manger and tie up ring. 

The isolation stables compound includes rubberised horse walkers, sand rolls, weighing scales, wash bays, ice machines, freezers and an all-weather arena. Paper strips and shavings are available for bedding. 

The Club imports feed from Australia, China, New Zealand, South Africa, the UK and the USA, and large selections of proprietary feeds are also available. The Club has excellent stocks of Timothy Hay, Lucerne Hay and Chaffs. Importation of feed and water, subject to examination, is permitted, however the import of plant material such as hay and chaff is subject to a valid Phytosanitary Certificate issued by the exporting country. 

Connections of selected overseas horses for Hong Kong’s seven feature Group 1 races will enjoy travel and accommodation packages provided by the Hong Kong Jockey Club, two tickets each for the owner and trainer and one ticket for the jockey. Four nights hotel accommodation (room only) will be provided for a maximum of two persons per category at the Club’s selected hotel. All airport and racecourse transfers are also included.

For staff, a maximum of two persons per horse will also be provided with accommodation (one room each) at the Club’s selected hotel in Sha Tin for the normal duration of the trip. A predetermined daily allowance to cover in-house expenses such as food and beverages, transport, telephone and internet, as well as laundry, will also be provided. All airport, stabling facilities and racecourse transfers are also included.

For those visiting, the five-star Hyatt Regency at Sha Tin provides an urban resort with a luxury spa, adjacent to the University MTR Station in Sha Tin, with lush greenery only steps away from busy urban areas.

Dubai

The Dubai Racing Carnival, now in its 20th year and given a new look for last year’s season, opens in November at Meydan Racecourse. Alongside top-class racing, Meydan boasts five-star dining and live entertainment and is 15 minutes from Dubai’s central hub. The racecourse offers tailored hospitality packages at the restaurants, lounges and private suites, all with elevated views of the racing. The climate is also described as “pleasant” during the winter season.

Home of the €28.1m (£24m) Dubai World Cup meeting, Meydan is the world’s largest integrated racing facility and hosts 15 meetings throughout the season, concluding in early April with the Dubai World Cup, the highlight of Dubai’s sporting and social calendar.

There are a number of valuable opportunities all season, beginning in November with the €125,600 (£106,912) Listed Dubai Creek Mile on dirt for three-year-olds up. January is busy, with 11 black type races from 1000m (5f) up to 2810m (14f) and ranging from €125,600 (£106,912) for Listed up to €213,489 (£181,719) for Group 2s and €924,282 (£786,662) for the Group 1 Al Maktoum Challenge, 1900m (9f) on dirt. On turf, the Group 1 Jebel Hatta, 1800m (9f) carries a purse of €464,658 (£395,469).

The 2025 Carnival sees the introduction of The Dubai World Cup bonus scheme, which offers a total prize pool of €3.5m (£2.9m) across 10 races. Winners of these races will get automatic entry to Dubai World Cup night. 

An additional 10% bonus is awarded to horses that win both the qualifying race, and the corresponding race on Dubai World Cup night. 

The scheme has been created to encourage more owners and trainers to prepare their horses in Dubai ahead of the Dubai World Cup.

Fifteen black type races from Listed up to Group 2 are run at Meydan during February and March, again from 1000m (5f) to 2810m (14f) and with similar valuable prizes, all of which lead through to the end-of-season highlight of Dubai World Cup night.

The Group 1 Dubai World Cup itself will be run a week later than normal next year on April 5th and the feature race will be worth €10.7m (£8.9m) 

The highlights of the supporting card’s Group 1s are the 1200m (6f) Al Quoz Sprint on turf worth €1.4m (£1.2m), the 1200m (6f) Dubai Golden Shaheen on dirt worth €1.8m (£1.6m), the 1800m (9f) Dubai Turf worth €4.6m (£3.9m), and the 2410m (12f) Dubai Sheema Classic on turf worth €5.5m (£4.7m).

In 2025 the UAE Derby, worth €900k (£745k), will form the final leg of the revised Euro/Mideast Road to the Kentucky Derby. The winner of the race will get an automatic spot in the starting gate at Churchill Downs on the first Saturday in May - subject to the horse being nominated to the U.S Triple Crown series.

Elsewhere in the UAE, the Abu Dhabi Equestrian Club hosts the Listed 1600m (8f) Sheikh Zayed bin Sultan Al Nahyan National Day Cup in December, and the Listed 1400m (7f) HH The President Cup, both on turf with a prize of €95,443 (£81,242) each. Jebel Ali Racecourse hosts the Listed Jebel Ali Sprint, the third leg of the Emirates Sprint Series, 1000m (5f) on dirt for a prize of €125,600 (£106,912), and the Group 3 Jebel Ali Mile on dirt, €175,840 (£149,677).

Saudi Arabia

Since its inaugural running in 2020, The Saudi Cup has rapidly become a major international race and in 2025 Saudi Cup Weekend at King Abdulaziz Racecourse in Riyadh will have total prize money of over €34.68m (£29.5m) on offer, including the 1800m (9f) Group 1 Saudi Cup itself worth €18.5m (£15.73m). The meeting, at the end of February, is also Riyadh’s social event of the year, offering visiting racegoers a taste of the finest style, culture and hospitality of Saudi Arabia.

The two days of top-quality racing include an International Jockeys Challenge, two Group 1 Purebred Arabian races, the €462,235 Al Tuwaiq Cup for locally-trained horses and dirt and turf races culminating in the Group 1 Saudi Cup, the world’s richest race, run on the King Abdulaziz dirt track, the final event on Saturday’s eight-race card.

Adding international flavour to the Friday card is the 2100m (10f) €462,235 (£393,255) Saudi International Handicap confined to horses trained within the IFHA-registered Part II and III racing countries, which should be of interest to the relevant European countries. (Part II nations Bahrain, India, Italy, Korea, Malaysia, Panama, Puerto Rico, Saudi Arabia, Scandinavia, Singapore, Turkey, Uruguay, Venezuela, and Zimbabwe. Part III nations Belgium, Czech Republic, Dominican Republic, Ecuador, Hungary, Jamaica, Mauritius, Mexico, Morocco, Poland, Qatar, Slovakia, Spain, Switzerland, and Trinidad & Tobago.)

With prize money down to 10th place, The Saudi Cup serves to raise the profile of racing to local communities, as well as foreign fans and professionals. The Jockey Club of Saudi Arabia was formed in 1965, but the founding of The Saudi Cup and the 1800m turf track at King Abdulaziz Racecourse has seen Saudi Arabia upgraded from Part III to Part II by the IFHA and is likely to achieve Part I status in the near future.

2022 saw the first international Pattern races held as part of The Saudi Cup weekend. The 2100m (10f) Neom Turf Cup, the 1351m (7f) Turf Sprint, the 1600m (8f) Saudi Derby, the 1200m (6f) Riyadh Dirt Sprint and the 3000m (15f) Red Sea Turf Handicap were all promoted to Group 3, while the Saudi Cup became Group 1.

With more than 70 international horses, The Saudi Cup hosts more international runners than any other race meeting. Stabling, quarantine and training facilities are provided at all of the racecourses, subject to availability, and invited connections at King Abdulaziz Racecourse are provided with complimentary access to the Howden Owners & Trainers Lounge, and dining in the Al Thuraya Trackside Restaurant. 

The Jockey Club of Saudi Arabia can arrange transport for delegates and guests between venues, and the racecourses have plentiful free parking with international airports close by. Riyadh Airport Marriott Hotel is a 5-star hotel five minutes from King Khalid International Airport and ten minutes from the racecourse, with a restaurant, gym and outdoor pool. The Radisson Hotel Riyadh Airport is close to the airport and 15 minutes from the racecourse, with spacious rooms, duplexes and villas, as well as restaurants and leisure facilities.

The Equine Hospital in Riyadh provides advanced care in diagnostic procedures, treatment, emergency care and hospitalisation for equine patients, open around-the-clock every day of the year for emergency and critical care cases.

Qatar

The 2023/24 racing season, running from mid-October through to the end of April, saw a rise in prize money and international runners, reflecting the commitment of the Qatar Racing and Equestrian Club (QREC) and the high standards of Al Rayyan and Al Uqda racecourses. Work will continue to ensure that the 2024/25 season will meet expectations and continue to raise standards. Al Rayyan at Doha is the premier racecourse and home to the state-of-the-art training centre. The turf track is 1800m (9f) and the sand track 1400m (7f). 

Abdulla Al Kubaisi, QREC Racing Manager, says, “We organised 67 race days during the last season, including 45 on both turf and sand at Al Rayyan and the rest on both turf and sand at Al Uqda. We base the season on weather conditions and take into account the ratings of Arabians and thoroughbreds to ensure the largest possible number of horses have the opportunity to run in races, which suit their ages and abilities.

“The 2023-2024 season saw the prize money reach an unprecedented figure in QREC’s history, €22.2m (£18.9m), of which €19.8m (£16.8m) was offered by the races held at Al Rayyan and the remainder at Al Uqda. This contributed to raising the standard, enhancing the stature of the Festival in the region and attracting several runners from European and Asian countries. For the first time, the minimum prize money for a feature race was €30,442 (£25,900).”

Mid-February sees the highlight of the season, the Group 3 HH The Amir Trophy for four-year-olds and up, over 2400m (12f) at Al Rayyan, Doha, carrying a total purse of €2.3m (£2m) and worth €1.3m (£1.1m) to the winner. 

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.

Dermot Weld

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(European Trainer - issue 37 - Spring 2012)