ARC to Reduce Prize Money Contribution in February

[Wandering Eyes]

Following a cut in the maximum stake on fixed-odds betting terminals (FOBTs) from £100 to £2 by the British government in November, the Arena Racing Company has opted to forgo unlocking qualifying races across its race program beginning on Feb. 11, 2019, the company announced on Monday. As a result, the purse contribution from ARC will drop by £3 million annually across the ARC’s 3,406 races. Its total prize money contribution will be £15.3 million in 2019. If ARC had instead opted to unlock qualifying races, including the Race Incentive Fund (RIF) and the Appearance Money Scheme (AMS) which extended prize money payments to placed horses, the additional prize money would have instead gone to bolster the lower levels of the racing program. ARC also noted that further reductions in prize money were still a possibility.

“The British racing industry is today in a considerably different position than when we underwent the funding review of 2017 which came about as a direct result of the increase in Levy income to the sport, itself a result of the Levy being extended to cover online betting companies,” said ARC Chief Executive Officer Martin Cruddace in a statement released by the company on Monday. “This increase of approximately £40 million per annum to the Levy, through this extension to cover online operators was, to a large degree, a result of the Authorised Betting Partner policy adopted by British racing in 2016. ARC played a central role in leading and supporting this policy, albeit at the cost of some very significant sums in sponsorship agreements.

“At the time of the 2017 funding review it was agreed that the Race Incentive Fund and Appearance Money Scheme, paid for by these Levy increases, should be unlocked alongside further direct investment from racecourses.”

He continued, “Today, however, the well-publicised impact of betting shop closures on racecourses’ media rights income has already started to take effect, and will only increase in the months and years to come.  As a result of this, ARC simply cannot continue to support our current levels of executive contribution to prize money and unlock all qualifying races, as was the case throughout 2018. We fully understand the importance of prize money across the industry, and do not take such a decision lightly.”

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