The Horse Betting Levy Board (HBLB) has decided to give £31.9 million in financial aid to horse racing in the UK for the initial four months of 2021.
The HBLB stated that the funding will keep providing “significantly enhanced” financial backing to the sector, as it has done since racing restarted in June 2020 following the coronavirus (COVID-19) stoppage.
The funding will include £24.4 million for prize money distribution, a 46% rise on the typical prize money distribution for January to April.
Racing Services Grants (RSG) will also be given to racetracks, at £12,571 per race, totaling £5.5 million. Furthermore, the HBLB will give £1.35 million through the Race Incentive Fund to encourage racetracks to hold events on weekdays during the winter months to boost off-course betting turnover.
The Levy Board will also provide £200,000 for the purchase of personal protective equipment for race days, and £450,000 for extra regulatory costs associated with COVID-19 measures.
HBLB Chairman Paul Darling stated: “We are pleased to be able to continue our strong support into 2021.” “This announcement is intended to provide the sport with clarity on prize money and regulatory grants until next spring.”
The governing body is especially worried about the postponed return of fans to the sport, which will continue to affect the racetracks’ capacity to pay their usual prize money.
Darlin explained that wagering activity has been “promising” since racing resumed in June, and projections for the rest of the fiscal year, as well as HBLB’s cash reserves, gave them the confidence to agree to the plan.
He added: “Unless our financial position deteriorates substantially in the coming months, we will not be re-evaluating what has been announced today.”
Work has already commenced on the tax levy estimations for the 2021-22 fiscal year. HBLB noted that the UK’s leading betting firms have voluntarily provided detailed information on their horse racing betting performance, along with operator assessments of current monthly payments, which has helped with this.
As a result, the board predicts that total income this year will be no less than £75 million. However, the resurgence of the COVID-19 pandemic across the nation, leading to the closure of betting shops in Scotland, Northern Ireland, Wales and northern England, will inevitably have an effect on the final figure.
Darlin acknowledged that this situation “inevitably requires ongoing consideration,” adding that the increased funding is not a long-term solution.
He cautioned: “As has been the case since June, the level of funding being provided by the board is unsustainable in the short term.”
We persistently encourage industry professionals to collaborate and formulate strategies for the future. We recognize that our support will inevitably return to standard levels.
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