Ever since COVID-19 hit in 2020, the horse racing industry – like most industries in the UK – has been heavily impacted and not for the better. Due to the ongoing pandemic, major events on the horse racing calendar have had limited attendance, have been postponed, or have even been cancelled. The reduction and changes in events have led to less revenue for the industry as a whole, negatively effecting employees, track owners, horse owners, betting shops, online bookies and beyond.
Though the UK entered somewhat of a COVID-19 recovery period in the mid to latter part of 2021, this quickly took a sharp turn when the Omicron variant struck, resulting in a significant resurgence in cases. This has once again led to bigger crackdowns on public events and will also impact the biggest events on the horse racing calendar like the Royal Ascot, Grand National, and Cheltenham Festival. Now, due to more COVID-19 disruption, many are wondering what the status for horse racing will be for 2022.
Off Course Horse Racing Betting Revenue in the UK Has Declined
There’s no question that the British horse racing industry is a money-maker. However, revenue from off-track betting has been steadily declining over the past decade, even for top horse racing bookmakers in the UK, long before the pandemic hit.
According to Statista, turnover from off course horse racing betting in the UK has notably decreased from £5.74 billion in 2009 to approximately £1 billion in September 2020. That said, it was noted that the significant decrease in 2020 was likely related to COVID-19’s impact on sporting events.
Additionally, on-course betting revenue has been decreasing over the past ten years with the growth in popularity of online betting. On the whole, the overall GGY (gross gambling yield) of the United Kingdom’s betting sector dropped in 2020 to about £0.63 billion. Again, the drop in 2020 was likely related to the pandemic.
Will 2022 see a turn of events? Maybe, but a potential increase in turnover will no doubt depend on how well the UK (and the world) recovers from COVID throughout the year.
How New COVID-19 Measure Will Impact Racing Attendance in 2022
New measures to deal with COVID-19 at British racecourses came into effect in England on the 15th of December, 2021 and have been incorporated into the British Horse Racing Authority (BHA) guidelines. The most recent UK Government guidance for sports venues includes:
- COVID-19 status certification for all 18+ racecourse attendees – Those who are aged 18 or over who wish to attend a fixture in England where the attendance is likely to be over 4,000, will need to provide evidence of COVID-19 status certification (e.g. be fully vaccinated, or have completed a negative PCR or lateral flow test no less than 12 hours and no more than 48 hours prior to attending, or be exempt due to approved medical exemption).
- Certification to enter a Weighing Room complex – In addition to mandatory face coverings and social distancing requirements, all personnel and anyone entering a Weighing Room complex at any fixture in England – including those will less than 4,000 attendees – must present evidence of COVID-19 status certification (proof of full vaccination, recent negative COVID test, or proof of exemption).
- Mandatory face coverings outdoors – Face coverings must be worn in all outdoor racing operation areas on British racecourses by all personnel, jockeys, officials, trainers, owners and guests. This includes Weighing Room, parade and pre-parade rings, saddling and unsaddling areas, racecourse stables, horse walks, and at the start. Likewise, unless a person is consuming food or drink, face coverings must also be worn at all times indoors.
The Horse Racing Market is Expected to Increase
In spite of the COVID-19 pandemic’s negative impact on the horse racing sector, the global horse racing market, according to Market Growth Reports, is forecasted to rise at a considerable rate between 2021 and 2025. The reason for the expected growth during the projected period is due to the increasing use of horse racing in online, racecourse, lottery store, and other industries.
Today, the British horse racing market industry is worth an estimated £4.1 billion annually and, aside from football, is the most attended sport in the nation, with an estimated seven million spectators each year.
Overall, in 2022, it’s likely that the industry will continue to improve as long as restrictions are lifted for public events and there are no event cancellations. This will allow horse racing spectators, bettors, event organizers, employees, owners, and bookies a better chance to reap the benefits of this beloved sport.
