Racecourse Media Group blames affordability checks for drop in payments to shareholders

The impact of affordability checks has been blamed for a drop in the payments to Racecourse Media Group's (RMG) shareholders generated from their media and data rights in 2023.

Other than during Covid-19, it is the first time there has been an interruption in RMG's annual growth.

RMG is set to pay out £113.9 million to its 35 shareholder courses, down from a record £117.6m in 2022 and £10m less than what the company would have ordinarily expected.

The company's 35 shareholder courses include Goodwood and York as well as those under the Jockey Club banner. However, Newbury and Ascot's betting shop media rights left RMG to join rival group The Racing Partnership in March 2023, which also affected income.

RMG chief executive Martin Stevenson said: “2023 was a challenging year as the effects of regulatory change really made itself felt. We estimate that falls in betting turnover in the year, combined with changes in our affiliated racecourses, meant that our returns to racing fell by circa £10 million in the year and we would otherwise have expected to deliver circa £124 million."

The rights payments to courses made by RMG are derived from a number of sources, including betting shops, online bookmaker digital streams, international betting, Racing TV, international non-betting distribution, the agreement with ITV, and data through Racecourse Data Company.

Conor Grant, who assumed the role of RMG chair on October 1, said: "Last year proved to be a challenging year for our sport, with gambling regulatory reform in Britain and Ireland and affordability checks severely impacting betting revenues. RMG has actively supported racing’s engagement with both governments.

Conor Grant: "Racing needs to continue to evolve, attract new audiences and grow its fan base."Credit: Rmg

“A key focus in Britain has been on advocating on behalf of the racing customer, evidenced by the successful completion of our September survey by over 15,000 subscribers, and in helping the industry to secure 100,000 petition signatures and trigger a parliamentary debate [on affordability checks]. 

"This all helped to highlight how the racing customer was being overlooked and provided objective insight for the ongoing affordability checks debate."

Grant said RMG had demonstrated resilience in the face of the headwinds he had described and thanked its shareholders.

He added: "Racing needs to continue to evolve, attract new audiences and grow its fan base. The sport traces its origins back many centuries, but now, more than ever, we all need to come together and shape the future of racing. 

"RMG and our shareholders have a critical role to play in this and the board will do everything it can to focus on strategic initiatives which grow racing."

Stevenson said RMG was continuing to develop and implement plans to expand interest in the sport and deliver new betting and revenue opportunities.

He added: “Tracking data sits at the heart of our product innovation plans. It has allowed us to deploy in-play betting online and support a range of further developments that are progressing."

RMG has also relaunched international operation GBI Racing together with Arena Racing Company.

Read these next:

General election called for July 4 as government pledges levy update 'very shortly' and reiterates affordability promise 

'The whole thing hasn't gone away' - wary response to Gambling Commission's six-month pilot for affordability checks 

Affordability checks: everything you need to know from the Gambling Commission's consultation 

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