UK Bookmakers Face Losses in Racing Sector, Says Flutter Exec

In a recent opinion piece for the Racing Post, Ian Brown, CEO of Flutter Entertainment’s UK and Ireland branch, discussed the situation of British horseracing. He underlined how urgently the industry needs reforms, noting that earnings are rising while prize money and audience participation are declining.

Brown’s request for reform comes as Sky Bet and Paddy Power, two of Flutter’s top brands, have stopped offering early rates for meetings at Chepstow and Bath. In order to enhance payment terms for betting and streaming rights, Flutter also intends to renegotiate its agreement with Arena Racing Company (Arc).

Financial Strain and Declining Engagement

Brown pointed out that the high costs associated with betting and streaming rights are affecting profitability. “Our data shows how declining prize-money leads to declining field sizes, making the product for customers less compelling. This, in turn, leads to lower betting revenues, and so less revenue for the sport,” Brown stated.

This decline in engagement has led to what Brown described as “a clear and concerning spiral.” He highlighted that decreasing field sizes result in lower revenues and reduced attractiveness of the sport, making it difficult for Flutter to justify its investments.

Earlier this year, Flutter announced a shift to primary listing on the New York Stock Exchange (NYSE). This move aims to optimize operations and expand the company’s presence in the lucrative US market. Brown noted that Flutter cannot afford to continue investing in British horseracing under current conditions, given the escalating media costs and shrinking audience.

“We, as Flutter, simply cannot afford to keep investing in horseracing as an unprofitable product with a shrinking audience, where media costs are escalating at significant rates, and the underlying quality of the product is declining,” Brown added.

The media rights contract between Flutter and Arc is set to expire in 2027, and it remains to be seen what changes will be negotiated and their potential impact on the horseracing industry.