UK operators face horseracing data price crunch

ARC is looking to take direct control over the distribution of its horseracing data in a move that could herald increased fees for operators, EGR understands.

ARC’s data distributor, The Press Association, has written to operator partners saying that ARC is taking over direct control of its distribution from 1 January 2020.

It is understood the group of racetracks is looking to charge data fees on turnover instead of the previous fixed costs – a move it is also trying with streaming.

RMG, which manages rights for 35 tracks, is understood to be asking for similar changes to its fee structure.

One source with knowledge of the negotiations said the tracks had more leverage in asking for increased fees for data compared to streaming, as the information was integral to the racing product.

The raceday data includes things like results, non-runners, jockey changes, off-messages and Rule 4’s.

“You can’t really be without it,” one UK bookmaker exec told EGR.

One exec from a major UK firm downplayed the need for immediate concern, saying operators and tracks were holding talks in November and negotiations were still “very early stage”.

However one racing-focused exec from a smaller UK shop said the increased fees were a legitimate issue for smaller firms.

“Yeah it’s a concern because it will see the base cost of providing a comprehensive horse racing product rise quite dramatically,” the exec said.

“For operators who are already finding growth hard to achieve in the UK, it’s another hammer blow and for those Tier 1 firms who have massive racing businesses and use it as a low-cost acquisition tool – like bet365 or Sky Bet –  they will probably find that it’s incompatible with that model.

The exec said operators could either drop UK racing completely – very unlikely for any major firm –  or try and recoup the costs elsewhere in racing by dropping Best Odds Guaranteed, widening overrounds or cutting advertising.

“That type of cost-cutting only works if the Tier 1 firms do it as well and you suspect the very biggest ones won’t,” the exec added. “They’ll just wait it out and end up with a greater share of the pie than they already have.”

ARC declined to comment and RMG did not immediately respond to a request for comment.