British racing’s plan to impose new sponsorship rules on online bookmakers faces its first test after York racecourse refused to play ball.
On Wednesday, York announced that it would continue to accept sponsorship money from online bookmakers who had existing deals with the course, regardless of whether or not those companies had met the British Horseracing Authority’s criteria for becoming an Authorized Betting Partner (ABP).
In October, the BHA and the UK’s two main racing groups – the Arena Racing Company and Jockey Club Racecourses – laid down new conditions for racing sponsorships. Only bookies willing to extend the 10.75% Levy to their online race wagering revenue or who reached some other suitable accommodation would be deemed an ABP. All other bookies would be barred from racing sponsorship opportunities as of Jan. 1, 2016.
Earlier this month, the BHA announced that Betfair, Bet365 and 32Red had already qualified for the ABP designation. Many other bookies have heaped scorn on the ABP scheme, threatening to challenge its legality in court or end their racing sponsorships altogether.
In making its announcement, York said it would decline sponsorship deals from any company with which it didn’t already have commercial ties. But York will honor existing deals with companies like Betfred and Sky Bet, despite their non-ABP status.
York said it “wishes to work with” the BHA to achieve their common goal of ensuring racing gets an adequate slice of the betting revenue pie. York said it hopes to encourage the track’s existing betting partners “to reach a wider settlement with the racing industry” but would honor the “strong, longstanding partnerships” York has already lined up for 2016.
York is one of four major independent courses that had yet to weigh in on the ABP scheme. The others – Goodwood, Ascot and Newbury – have so far said nothing regarding their plans.
In a speech at York the night before the track’s announcement, BHA CEO Nick Rust claimed that a “number of so-called smaller operators” had approached the BHA in the past two weeks asking how they could become an ABP because these bookies “see the opportunity.”
Rust denied that the ABP plan was “ a declaration of war” on bookies but rather “a commercial approach” necessitated by racing’s dire financial position. Without the ABP plan, Rust believes racing will be “staring into the abyss of further drastic cuts to central expenditure.”
Racing may yet survive an exodus of betting partners, as Newark-based telecom firm Timico announced this week that it had signed a four-year deal to sponsor the Cheltenham Gold Cup. The race was previously sponsored by Betfred, but renewal talks broke down last month after the track’s Jockey Club owners insisted that Betfred meet the ABP criteria.
