Directors at Corbett optimistic despite economic challenges in UK horseracing industry
Last week, Corbett Bookmakers Limited reported stable revenues of £92.9 million, a slight drop on the £93.3 million in 2023. Their pre-tax profit sharply declined to £7,348, down from £584,616 in 2023, reflecting the economic strain affecting the UK horseracing industry.
Corbett directors expressed satisfaction with these latest results despite ongoing uncertainty. The industry faces challenges in 2025 amid a backdrop of regulatory and global economic tensions.
Established in 1947 by William Thomas Corbett, the Deeside-headquartered bookmaker operates over 55 betting offices across Wales and England, alongside betting pitches at prestigious racecourses like Ascot and Cheltenham. While Corbett also diversified its offering of traditional bookmaking services to include casino and gaming products, its directors remain focused on long-term sustainability. They plan to invest in retail real estate to ensure competitiveness and provide a better service to their customer base.
Hurdles for horseracing in 2024
The broader UK horseracing sector faced challenges in 2024. A downturn influenced by fewer races staged and a decrease in average turnover per race led to a nine percent drop in turnover in the first three quarters of 2024, as compared to the previous year, and by 18.4 percent compared to 2022.
Regulatory challenges continue to pose problems for the industry. The UK government’s suggested reforms in the Gambling White Paper, including proposed affordability checks, threaten to impact the industry and affect funding and sustainability. A review of the Horserace Betting Levy, crucial for industry funding, faced scrutiny, fuelled by threats of a tax hike by the new UK Labour government. Advertisement and promotional restriction provisions of the White Paper threaten the industry, too, as it relies historically on bookmaker adverts for support. The Betting and Gaming Council (BGC) CEO Grainne Hurst recently called for clarity on the new statutory levy.
Another potential impact for the sector is staff shortages and low wages for skilled workers. The key issue in 2025 is undoubtedly sustainability and welfare to improve the industry’s public image. This issue will increase operation costs and require careful management to maintain profitability. Technological advancements that enhance and enrich fan engagement will also provide new revenue streams but need significant investment.
Consumer spending is flat
The rising cost of living continually impacts consumer spending habits. There is also more competition from other entertainment and leisure sectors, which has affected the UK horseracing industry. Media rights revenues declined because of regulatory changes and increased competition.
A new UK government brought uncertainty regarding potential policy shifts and proposed tax increases. Rising pressure on the UK gambling regulator, , also drove conversations about the sport’s future sustainability. While industry leaders say more regulation and increases in tax will derail the horseracing sector, others say the gambling industry at large should further fund healthcare and support resources that gambling addiction adds pressure to.
The UK population is more prudent in their spending habits because of rising inflation and increased energy and food costs. Reduced ticket sales and decreased revenue from hospitality sales threaten the rural areas that rely on horseracing as a leading contributor to employment and income. Rising operational costs, including staff wages and animal care expenses, challenge the industry further.
Priority of essential spending affects industries like horseracing, where revenues rely on attendance and betting revenues. Price sensitivity is a key issue as consumers become more savvy, actively seeking discounts, comparing prices, and using coupons to save money. Shifting to budget-friendly options, bulk buying, using comparison sites, choosing where to spend any disposable income, and looking at less expensive days out affects the horseracing industry.
However, betting revenue in the UK gambling industry shows an upward trend. For the 2023-2024 financial year, the UK’s total betting and gaming receipts increased by three percent from the previous year. General Betting Duty (GBD) also saw a year-on-year rise.
External factors threaten a photo-finish
External factors further compound the horseracing industry’s difficulties. Protests at major events like the Grand National disrupt and raise questions about the sports public perception. Additionally, the industry also faced scrutiny over its social licence, and leaders gathered to look at the challenges faced, animal welfare, and how to improve public relations.
Corbett directors also cited the Ukraine conflict as a possible cause of the uncertainty facing the horseracing betting industry. The war interrupts the global supply chain and increases economic uncertainty. It also leads to humanitarian crises affecting both humans and animals.
Climate change is a growing disrupter to events in the UK. Frequent extreme weather, increased flooding, and drier spells disrupt travel and racing schedules and impact the well-being of horses. The industry must focus more on sustainability, including reducing carbon footprints and improving environmental practices at racecourses and training facilities.
Saddling up for technological advancements
Advances in technology and market trends continue to shape the betting environment. The rise of mobile betting platforms altered traditional revenue streams, bringing challenges and increased competition to bookmakers. The whole industry needs to adapt and innovate.
Data analytics, artificial intelligence (AI), and predictive insights can enhance race planning and betting strategies. Horse performance metrics can influence training methods and lead initiatives like StrideSAFE to reduce injuries. Virtual and augmented reality improves the spectator and online player experience, offering tailored, immersive, and interactive engagement.
New partnerships also seek to revitalise the horseracing industry. The UK’s largest racing group, the Arena Racing Company (ARC), recently rebranded its main betting and content product. Previously known as ATR Markets, it is now called Racing1 Markets. This change is part of an international effort to revitalise horse racing. This technological revolution is part of a wider adoption of increased accessibility to online platforms and live streaming.
Future developments rely on integrating emerging technologies, such as blockchain and cryptocurrency. Enhanced connectivity and real-time data exchange improve safety, performance monitoring, and fan engagement. Enhanced data analysis, such as machine learning and global digital expansion, increases accessibility and engagement. The industry will use technology to monitor and reduce the environmental impact of racing events and innovate animal welfare.
Despite the hurdles, the UK’s horseracing industry remains resilient. Its rich history and cultural significance continue to attract participants, spectators, and bettors alike. However, addressing the current threats requires a collaborative effort among stakeholders to ensure the sport’s enduring legacy.
