Will Horse Racing Survive the Next 20 Years?
The growth of on line poker, casino and sports betting along with the high cost of betting on horse racing is causing gamblers to switch to other products that offer more value. The longterm survival of the sport is now in danger.
(PRWEB) July 2, 2005 -- Although British horse racing is breaking the attendance records at the tracks many insiders are now worried about the longevity of the sport and questions are being asked whether the sport will have enough support to last the next 20 years.
In the short term the UKs governing body The British Horseracing Board is currently defending its data rights at the High Court of Appeal having lost a decision at the European Court of Justice against William Hill plc. This ruling is crucial to the future funding of racing after the government has abolished racings subsidy from betting The Horserace Betting Levy Board but the key going forward is the loss of racings market share.
The UKs betting shops have been busy promoting anything but racing in recent years due to the high cost of the product. Bookmakers pay 10% of their gross win for the privilege of taking bets on horse racing. They have introduced virtual horse racing much to the disgust of the purist, betting on the outcome of lotteries and massive promotion of soccer and sports betting.
Racing had lost Market share because of it but had survived, then came poker!
The highlight this week was the successful listing on the London Stock Exchange of Part Gaming plc and in spite of all the negative rhetoric about Partys legality its founders have created a market cap of $6.5 billion in less than 5 years and gone straight into No4 in the GBGC index of leading gambling companies by market capitalisation.
All of the Poker sites are advertising extensively throughout the UK and if you believe that there are no more new gamblers in the UK then Racing is in serious trouble. It has problems with its future funding post levy, it has a declining market share in the UK and it isnt only the UK racing industry that is suffering.
Racing USA, Hong Kong, Japan and Australia are all suffering from competition they never thought would affect them.
Is all lost? No! Various industries have over time experienced problems, cinemas were supposed to be dead with the advent of the VCR, the Pub was dead in the UK, the list is endless. Today we have Multiplex cinemas, Irish Pubs and the Witherspoon chain, both have re-invented the concept looked at the current model and filled the gap.
Racing can and must look at its current business model. Grandstands need to be looked at in a different light. They serve one purpose to view racing when they should be multi --purpose with the ability to stage concerts, conferences and all year catering and sports facilities.
All is not lost if the horserace industry behaves like any pragmatic business otherwise the odds on it lasting another 20 years are not as short as you would like to imagine.
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