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THE ECONOMICS OF RACING

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					THE ECONOMICS
   OF RACING
   September 2008
                                      The Economics of Racing
Executive Summary
 This paper sets out the significant economic contribution of Thoroughbred horseracing around the
 world, the importance of the sport in terms of wealth creation, innovation and jobs, and its cultural
 significance for diverse communities throughout the world.




 The Global Sport of Racing                             Employment

 Racing is a global sport. In 2007, 233,000             People employed by the horseracing industry
 different horses participated in 155,000 flat and      cover a wide variety of skills and include breeders
 jump races. There is a horserace somewhere in          of race horses, trainers, jockeys, stable staff,
 the world every three minutes.                         administrative staff at tracks and race clubs, and
 The sport generates revenues through a diverse         people employed in the betting industry.
 range of activities, such as broadcast rights,
 sponsorship, raceday attendance and hospitality.       Taxation
 Unlike other sports, racing has also developed in
 the majority of nations through a close relationship   Racing often makes a sizeable tax contribution
 with betting.                                          to national economies through betting taxes,
                                                        employment taxes, sales tax on racecourse
 Race meetings have a substantial impact on the
                                                        generated revenues and on the sale of
 local communities and their economy. In addition
                                                        racehorses, and corporate tax on profits of racing
 to the direct impact of hosting a race meeting
                                                        organisations. The most significant is betting tax,
 on the racecourse itself, there is also an indirect
                                                        which amounted to over €7 billion euros in 2007.
 impact from activity associated with the raceday
 itself such as additional spending by race goers
 on travel, accommodation, off-course food and          Integrity
 beverages, etc.
                                                        Governments and racing bodies apply tough rules
 Racecourses represent important capital
                                                        and regulations to protect the integrity of racing
 investments with the leading courses being
                                                        against those who want to alter the outcome of
 internationally known.
                                                        the racing event by unauthorised ways in order to
                                                        gain financial benefit from betting.
 Breeding
                                                        Welfare
 In 2007, almost 320 000 horses were involved
 in the thoroughbred breeding industry, either          The safety and welfare of racing participants,
 as stallion, mare or foal. The breeding industry       both human and equine, is a top priority.
 employs [tens of thousands] of people, many of
 which are in rural and less developed areas.


 Betting

 Horseracing and betting are interlinked, with
 almost €89 billion euros bet on horseracing in
 2007.



                                                                                                              3
    The Economics of Racing
    The Global Sport of Racing
     Racing is a truly global sport and present in every continent in the world. The countries indicated in
     green on the map below are member of the International Federation of Horseracing Authorities and
     currently have significant racing activity.
     The organisation of the sport involves a number of distinct and independent players. The racecourses
     organise the raceday, the owners of racehorses bring in the horses, trainers prepare the horses for
     competition and are assisted by stable staff, jockeys ride the horses, transport companies bring
     horses to competitions, veterinarians take care of the animal’s health, and administrators regulate
     the sport.
     The costs of keeping racehorses and staging race events are high and are paid by a number of
     sources of income, including a share from betting, admissions, sponsor contributions, sales of
     media rights, race entry fees, corporate hospitality, etc.
     To get an idea of the size of racing activity; 233,000 different horses participated in 155,000 flat and
     jump races in 2007. Annex 1 shows 2007 data on races and horses by country.


     Owners                                                France. Popular clubs and syndicates can have
                                                           up to thousands of members, making racehorse
     Owners are a vital link in horseracing’s economic
                                                           ownership possible for a wide public.
     chain, as they make a risk investment to supply
                                                           Annex 2 lists a number of countries with their
     the necessary contenders at races, as well
                                                           percentage of training costs covered by prize
     providing funds to trainers. Besides the cost of
                                                           money for 2007. They tend not to fluctuate much
     acquiring a racehorse, owners incur a number of
                                                           from year to year because they are the result of the
     other costs in relation to the training and racing
                                                           division of two different factors (prize money and
     of horses, like feeding and bedding, veterinarian
                                                           training costs) that do not change dramatically
     advice, transport, jockey fees and insurance.
                                                           from year to year. The average training cost
     Owners seek to cover their costs through the
                                                           strongly depends on labour cost, which varies
     winning of prize money, from their horse’s
                                                           considerably from country to country, as do other
     performance in a race. In some countries, owners
                                                           overheads such as transportation.
     obtain premiums, depending on where the horse
     was bred.
                                                           Trainers
     In most countries, the average owners’ income
     (prize money and premiums) is considerably            Trainers prepare the horses for them to achieve
     lower than the average costs of keeping a horse       the best possible performance in racing,
     in training. Although owners, on average, expect      consistent always with the welfare of the animal.
     not to recuperate their costs, a winning horse        Training operations range in size from small part
     can give a high return on investment, not only        time trainers with perhaps only one horse, to top
     through prize money, but also by the “stud rights”    yards with over 200 horses, often catering for the
     (breeding or bloodstock value) it represents at       top horses and owners.
     the end of the horse’s racing career. However,
                                                           Trainers’ primary revenue source is the training
     only a very small minority of owners is ever able
                                                           fees paid by owners. In many countries, trainers
     to enjoy stud rights of any importance.
                                                           may also keep a proportion of the prize money
     Joint ownership through syndicates exists in          earned by the horses they train. Trainers employ
     many countries, like the UK, Japan, Ireland or        assistants and stable staff.




4
                                         The Economics of Racing
 Racecourses                                            attendances, which in turn have a substantial
                                                        direct impact on tourism and local economies.
 There are around 1,500 racecourses in the world,
                                                        The key components of racecourse income can
 including racecourses for flat, jump, trotting or a
                                                        include: revenues from on and/or off-course
 combination.
                                                        betting, admission revenues, catering income,
 The total global raceday attendance was
                                                        sale of race broadcast images, sponsorship and
 an estimated 104 million in 2004. Certain
                                                        other related activities.
 race meetings, or festivals, attract very large




 IFHA members in green




Breeding

 Breeding is a highly skilled activity, which aims to produce horses of a specialist nature. The
 availability and quality of racehorses are important elements of the racing industry.
 All thoroughbred racehorses originate from 3 stallions of the 18th century. A global organisation of
 studbooks ensures the genealogical integrity of the thoroughbred racehorse. Other than thoroughbred
 races, which cover the vast majority of horseraces around the world, horseraces are also organised
 with other breeds, like Arabian or standard bred. The latter is mainly used for trotting races.
 Breeding of thoroughbred racehorses has developed into a truly international industry with mares
 travelling all over the world to be covered by top stallions in key breeding countries. The top stallions
 also travel, usually from one hemisphere to the other in specific breeding seasons. Thoroughbred
 studbook rules forbid any form of artificial insemination. In recent years, it has become common
 for foals born in one part of the world to spend their racing (and breeding) careers in a country in a
 different part of the world.
 In 2007, almost 320 000 horses were involved in the thoroughbred breeding industry, either as
 stallion, mare or foal. Around 9 000 stallions were responsible for covering 192 000 mares that gave
 birth to around 118 000 foals. Annex 3 lists the horses involved in breeding by country.


 A key rural activity                                   Many of the smaller stud farms are part of the
                                                        broader farming and agricultural activity. For
 Breeding is an activity that typically requires
                                                        these farmers, breeding of racehorses represents
 significant land, although the size of breeding
                                                        a diversification of their activities, and acts as an
 establishments      does    vary   considerably.
                                                        important additional income source.
 Dedicated stud farms can be home for hundreds
 of mares. However, the majority of stud farms
 are smaller - holding between 1 to 5 mares.


                                                                                                                5
    The Economics of Racing

    Employment                                                Sales

    Racing and Breeding are labour-intensive                  Horses can change ownership through private
    activities; generating direct employment among            sales, but many horses, in particular foals and
    principally breeders, stable staff, veterinary and        yearlings, are sold at auctions.
    farriery services. In addition to direct employment,
    the breeding industry supports jobs in a variety          Support measures
    of equine services, such as veterinarians, farriers,
    feed industry and transport. [The breeding                In view of the important role of breeding to
    industry also supports the development of                 the racing sector, many countries have set up
    the many equine research centres around the               schemes to support and/or encourage breeding
    world.]                                                   of racehorses. The schemes are sometimes
                                                              funded by the industry and sometimes by
                                                              government.
                                                              The most common support measures are
                                                              premiums for breeders. In some countries,
                                                              racehorses sold by breeders are subject to a
                                                              reduced Sales tax rate.


    Betting & Taxation
       Horseracing and betting are interlinked, and have developed together in the vast majority of major racing
       nations, with more than €89 billion euros bet around the world on horseracing in 2007. Annex 4 lists the
       betting volume by country.
       In each country, betting is considered a more than average sensitive activity that requires special
       legislation. Public policy concerns are the reason why governments in many parts of the world limit the
       offering of betting services to a single, non-for profit organisation, excluding competition and commercial
       companies.


       Forms of betting                                          the chances of each horse to win and offers
                                                                 his odds accordingly. At the end of the day, the
       In pari-mutuel, or tote betting, all bets on a race
                                                                 bookmaker aims to pay out fewer winnings than
       are put into one pool. At the end of the race, a
                                                                 the bets (or stakes) that he received.
       percentage of the pool is taken out as taxes,
                                                                 Pari-mutuel betting exists in almost every
       another percentage as contribution to racing
                                                                 country in the world, except those where betting
       and a percentage to the betting organisation.
                                                                 is forbidden. Bookmaking is allowed in a small
       The remainder is paid out as winnings. The
                                                                 number of countries, most notably Britain, Ireland
       percentages varies by country and bet type, but
                                                                 and Australia.
       usually is somewhere between 70 and 80%.
                                                                 However, there are a growing number of
       In bookmaking, an individual or company (the
                                                                 organisations and marketing bookmaking
       bookmaker), takes a bet from bettors at a fixed
                                                                 services through the internet and phone.
       odd. In other words, for every unit that a bettor is
       prepared to bet on a horse to win (or any other           In recent years, and due to technological
       defined event to occur), the bookmaker will offer         development, bettors can take bets from each
       a fixed winning price. A bookmaker estimates              other on so-called Internet betting exchanges. A



6
                                      The Economics of Racing

betting exchange allows an individual to do what        Intellectual Property Rights
is usually only allowed by licensed bookmakers
                                                        A bettor generally prefers pre-race data and
and that is to take a bet from another individual.
                                                        audio-visual images to select his horse and enjoy
Most countries in the world forbid this form of
                                                        the race. Broadcasters and betting operators
betting for fear of the integrity of the sport, as it
                                                        pay in most countries for data and images. The
makes it possible for bettors to bet on a horse
                                                        beneficiary is the rights holder, which can be
to lose.
                                                        the racecourses, horsemen (owners, trainers,
                                                        jockeys), a representative body or a combination
Return to racing
                                                        of these.
Each nation that allows any form of betting by          Race data is in most countries subject to
its nationals has also devised a national legal         copyright, while race images are mostly subject
mechanism by which there is a return from that          to broadcast rights and/or applicable copyright.
betting back to the sport.                              The market value of both is largely determined
As mentioned above, the total betting volume            by the value of potential betting it represents.
serves in each country to pay out the winnings          Although these rights are not traded in many
to winning bettors, pay taxes and pay the               countries, where a single operator controls both
organisation of racing and betting. The betting’s       the betting and racing side, these rights are
return to racing is used for prize money, the           always used when betting is offered on domestic
management of the races - including integrity           races in foreign countries.
controls, racecourse management, etc - and
organisation of the betting in some countries.          Size
From the global betting volume in 2005,
                                                        There are a wide variety of factors that determine
around 75% was paid out as winnings, 3.7%
                                                        the size of a national betting on horseracing but
as contribution to racing and the remaining
                                                        typically these include:
21.3% as other take outs, largely taxes. These
                                                        • popularity of     horseracing    &    consumer
percentages can differ much from country to
                                                          preferences;
country. However, betting revenues generally
contribute the main source of income for racing,        • consumer buying power & general economic
except for a few countries where betting is               outlook;
forbidden.                                              • regulation of the betting and gambling market
The pari-mutuel forms of betting around the               (whether competing forms of gambling are
world return most to racing, although the level           allowed, how off-rack distribution is regulated,
of return varies much depending on the country.           what types of bets are allowed, etc.);
This is for example in 16,2% in Argentina, 8,4%         • taxation (the betting product has a great price-
in France or 2.3% in Hong Kong. Bookmaking                demand flexibility, see further in this report)
returns much less to racing. For example, in
Great Britain the return is around 1% of betting
                                                        Unlawful betting
volume or 10% of gross win (stakes less payout).
The return to racing from exchange betting is           Throughout the world, betting is subject to strict
less than 0.5%.                                         government control. Unlawful operators look
Cross-border bookmakers and exchanges                   to offer betting services but avoid controls, the
generally return nothing to the sport, and operate      payment of taxes and contributions to racing.
largely as “pirates”.                                   In many countries, a high betting tax has lead
                                                        to illegal betting, as bettors looked for higher
                                                        returns on their bets. A high and rigid level of
                                                        betting tax leads to smaller payouts to winnings.
                                                                                                             7
    The Economics of Racing
    A flexible tax system, for example one that allows        or on its turnover. Taxes on profits are generally
    pari-mutuel operators to adjust the tax level and         lower and more flexible. Most countries apply a
    take-out rates, has proved to be an effective way         turnover-based tax.
    to tackle illegal betting.                                Governments have a key role to ensure that
    At present, there is no globally enforceable right        racing receives sufficient ongoing funding by:
    that racing can use to ensure that only reputable         • the adoption of appropriate taxation regimes
    and lawful traders in other countries are offering          and policies
    bets on its product.
                                                              • policing of illegal betting which makes no
                                                                contribution to racing’s funding
    Taxation                                                  • local support for racecourses and other racing
                                                                entities in their initiatives to diversify revenue
    The total betting tax contribution of racing in 2007
                                                                streams (supporting planning applications,
    was around €7,3 billion euros. Annex 4 gives an
                                                                provision of grants, tourist promotion, etc)
    overview of betting tax contribution by country.
                                                              The support of governments is particularly
    In addition to the considerable betting tax
                                                              important given the diversification in global betting
    contribution usually made by the racing sector,
                                                              activities and products over the last decade.
    further tax is generated from employment tax;
                                                              This has resulted in racing facing a challenging
    value added tax and corporate tax.
                                                              environment in which to maintain its current level
    Taxes can either be on profits of the operator
                                                              of funding from the betting industry.




    Integrity & Welfare

       Integrity                                                  apply. These are strict everywhere in the world
                                                                  and punishment for the manipulation of race
       One of the key public policy concerns for both
                                                                  results to gain betting benefits can be tough.
       the regulator and the racing participants is to
       maintain the integrity of the sport as individuals
       may be tempted to alter the outcome of the                 Safety & Welfare
       racing event by unauthorised ways in order to
       gain financial benefit from betting.                       The safety and welfare of racing participants,
                                                                  both human and equine, is a top priority. Although
       The main task of racing authorities around the
                                                                  horseracing, like many other sports, carries
       world is to ensure the fair, rule based conduct
                                                                  certain risks, policies by governments and racing
       of horseraces. Racing authorities have laid these
                                                                  authorities are aimed to minimize these risks.
       rules down and have systems in place to monitor
                                                                  These policies usually include:
       compliance to the rules before and during the
       race with respect to breed, medication and                 • Standards for protective equipment of jockeys
       race conduct. Unauthorised conduct by racing               • Conditions for racecourses
       participants can be sanctioned by disciplinary             • Rules on racing, like the use of the whip
       measures.
                                                                  • Standards of care for horses before, during
       Manipulation of races can sometimes be identified            and after the race
       by unusual betting patterns. Betting operators
                                                                  • Veterinary inspections        of   horses     and
       therefore have a responsibility in maintaining the
                                                                    medication
       integrity of races.
                                                                  • Prevention of racing by unsuitable horses
       In addition to racing authorities’ rules, government
                                                                  • Other
       laws and regulations affecting racing and betting
8
                                     The Economics of Racing
Horseracing’s funding model

 There are substantial costs involved in the organisation of horseracing. These include the breeding and
 training of racehorses, operation of racecourses and betting infrastructure and various related activities.
 In the chapters above, we already touched upon some of the main cost and income streams.




 In brief:                                               In addition to prize money, many countries
                                                         have systems in place to encourage ownership
 Racecourses’ costs include: personnel,
                                                         and breeding through the allocation of owners’
 maintenance of track and stands, prize money,
                                                         premiums, as mentioned above.
 marketing and others. Income sources include:
                                                         The global prize money in racing including
 betting contributions, attendance, catering,
                                                         premiums in 2007 is €2,3 billion euros. Annex 2
 sponsorship and sale of images/TV rights.
                                                         gives a table of prize money per country.
 Owners’ costs include the purchase of horses,
                                                         Trainers, jockeys receive service fees by owners.
 feeding, retaining trainers and jockeys, transport,
                                                         The costs of trainers include stable costs and
 veterinary. Income sources are prize money,
                                                         staff.
 owners’ premiums and (sometimes) stallion
 rights.                                                 Breeders’ costs include purchase of horses,
                                                         feeding, veterinary, stallion rights. Income
 Prize Money                                             includes: sale of horses and stallion rights.
                                                         Betting organisations’ costs include personnel
 Owners win prize money through the performance          and buildings, purchase of race data and images,
 of their racehorses at races. Although joy,             marketing, information technology and others.
 competitiveness and prestige are some of the other      Income comes mainly from betting revenues.
 important reasons for an owner to participate at
                                                         Others with a direct or indirect income from
 the sport, many would not necessarily participate
                                                         horseracing include specialised written media
 if they where unable to recuperate some of the
                                                         and TV, tourism industry, manufacturers of
 costs or have the prospect of making profits in
                                                         racetrack surface and equipment
 case of a consistently successful horse.




                                                                                                               9
     Annex 1

     Racing flat & jump 2007

                                    Racing, Flat 2007                                Racing, Jump 2007

                               Different               Average Average           Different            Average Average
                       Flat    Horses                  Runners Starts    Jump    Horses               Runners Starts
         Country                            Starts                                           Starts
                      Races    Having                    Per     Per     Races   Having                 Per     Per
                                 Run                    Race    Horse              Run                 Race    Horse

     ARGENTINA         6 101    11 123       49 650      8,1     4,5
     AUSTRALIA        19 382    30 907     192 478       9,9     6,2       163      512       1 528      9,4     3,0
     BELGIUM            182       405         1 783      9,8     4,4         4        45        47      11,8     1,0
     BRAZIL            4 455     5 600       33 858      7,6     6,0
     CANADA            5 057     7 482       40 608      8,0     5,4
     CHILE             4 949     4 009       56 245     11,4    14,0
     CROATIA             38         94         261       6,9     2,8
     CYPRUS            1 069     1 539       10 724     10,0     7,0
     CZECH REP.         348       939             -        -       -       168      535
     FRANCE            4 633     8 537       50 838     11,0     4,9     2 197     3 901     21 806      9,9     5,6
     GERMANY           1 670     2 730       14 892      8,9     5,5        66        71       444       6,7     6,3
     GREAT BRITAIN     5 659     9 618       60 081     10,6     5,4     3 218     8 346     33 638     10,5     4,0
     GREECE            1 000     1 396        9 173      9,2     6,6
     HONG KONG          726      1 154        9 083     12,5     7,9
     INDIA             3 036     3 540       25 321      8,3     7,2
     IRELAND            958      2 463       12 681     13,2     3,6     1 439     5 350     21 600     15,0     4,0
     ISRAEL              39       230                    0,0     0,0
     JAPAN            17 476    23 615     182 614      10,4     7,7       132      244       1 766     13,4     7,2
     KOREA             1 697     2 999       19 311     11,4     6,4
     LEBANON            369       332         2 269      6,1     6,8
     LITHUANIA           27         25
     MACAU              737       768         8 988     12,2    11,7
     MADAGASCAR         105         68         746       7,1    11,0
     MALAYSIA           770      1 232        8 530     11,1     6,9
     MAURITIUS          243       351         2 108      8,7     6,0
     MOROCCO            462       629         3 663      7,9     5,8
     NETHERLANDS        101       227          798       7,9     3,5
     NEW ZEALAND       2 734     5 489       30 574     11,2     5,4       129        77      1 183      9,2    15,4
     NORWAY             260       567         2 439      9,4     4,6         9        14        58       6,4     4,1
     SINGAPORE          704      1 099        7 719     11,0     7,0
     SLOVAKIA           140       388         1 154      8,2     3,0        23        75       168       7,3     2,2
     SLOVENIA            21         37         153       7,3
     SOUTH AFRICA      3 883     6 567       41 873     10,8     6,4
     SPAIN              509      1 077        5 168     10,2
     SWEDEN             607      1 261        5 959      9,8     4,6        20        56       138       6,9     2,5
     SWITZERLAND        169       335         1 561      9,2     4,7        48        97       346       7,2     3,6
     TUNISIA            350       550         3 500        -       -
     TURKEY            3 526     4 414       37 773     10,7     8,6
     UAE                305      1 115        3 514     11,5     3,2
     USA              51 132    66 691     418 563       8,2     6,3       172      437       1 321      7,7     3,0
     URUGUAY           1 081     1 799        9 836      9,1     5,5
     Total           146 710   213 401     1 366 489     9,3     6,4     7 788    19 760     84 043     10,8     4,3




10
                                                                                                    Annex 1

      Number of races
        200000                                                         flat

                                                                       jump




        160000




        120000




         80000




         40000




             0
                   2002   2003    2004           2005      2006      2007
                                                                                             200000
sia       europe

                                                                                             160000


                                                                                             120000
      Racing by region (# races, 2007)
           flat

           jump                                                                                  80000
                                      americas          asia           europe
                                                                    americas              asia              europe
           americas                     asia                                  europe
                                                          Europe                                 40000
                                                           25 803
                                                                                                    Asia
                                                                                                   54 801
                                                                            flat

                                                                            jump                    0
                          Americas
                             72 947
                                                                                                             flat

                                                                                                             jump




                                                                                   flat

                                                                                   jump




                                                                                                                     11
     Annex 2

     Prize money in 2007

                                    FLAT                                     JUMP
                                               Average prize                               Average
                     Number of   Prize money    money per      Number of   Prize money   prize money
                       races      (x 1000e)         race         races      (x 1000e)      per race
                                                 (in Euros)                               (in Euros)
     ARGENTINA          6 101       31 065          5 092
     AUSTRALIA         19 382     223 805          11 547
     BELGIUM             182          521           2 863            4          190         47 500
     BRAZIL             4 455       11 716          2 630
     CANADA             5 057       90 886         17 972
     CHILE              4 949       16 458          3 326
     CROATIA              38           80           2 105
     CYPRUS             1 069        5 088          4 760
     CZECH REP.          348          941           2 704          168          589          3 506
     FRANCE             4 633       99 945         21 572         2 197       60 203        27 402
     GERMANY            1 670       13 968          8 364           66          461          6 985
     GREAT BRITAIN      5 659       86 079         15 211         3 218       48 425        15 048
     GREECE             1 000       12 527         12 527
     HONG KONG           726        66 471         91 558
     INDIA              3 036       10 663          3 512
     IRELAND             958        31 094         32 457         1 439       28 513        19 814
     ISRAEL               39           24             615
     JAPAN             17 476     490 933          28 092          132        20 105       152 311
     KOREA              1 697       84 660         49 888
     LEBANON             369          525           1 423
     LITHUANIA            27           13             481
     MACAU               737        17 755         24 091
     MADAGASCAR          105           29             276
     MALAYSIA            770         7 152          9 288
     MAURITIUS           243         2 382          9 802
     MOROCCO             462         1 512          3 273
     NETHERLANDS         101          295           2 921
     NEW ZEALAND        2 734       24 851          9 090          129         1 099         8 519
     NORWAY              260         2 890         11 115            9          108         12 000
     SINGAPORE           704        25 003         35 516
     SLOVAKIA            140          501           3 579           23           40          1 739
     SLOVENIA             21           10             476
     SOUTH AFRICA       3 883       25 239          6 500
     SPAIN               509         5 062          9 945
     SWEDEN              607         5 555          9 152           20          147          7 350
     SWITZERLAND         169         1 265          7 485           48          384          8 000
     TUNISIA             350         1 131          3 231
     TURKEY             3 526       79 604         22 576
     UAE                 305        24 140         79 148
     USA               51 132     663 347          12 973          172         3 528        20 512
     URUGUAY            1 081        3 586          3 317


12
                                                                                                                                      Annex 2

      Prize money 2002-2007
                           3000




                           2250
            )
            (x 1 million




                           1500




                            750




                              0
                                  2002   2003   2004   2005     2006   2007




            Note 1: Prize money does not include breeders’ premiums, owners’ premiums and travel allowances.
            Note 2: Prize money does not cover trotting races.




      Percentage of keeping and training expenses covered by prize money
      won, per horse having run, 2007



      %                                                       EUROPE          AMERICAS               ASIA AND MIDDLE EAST


200




150




100




 50




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                                      AN




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                                    GIU
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                                   VEN




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                                   SPA

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                                   RW




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                                    ED




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                                    PR




                                   OA




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                                                                                                                                                                                                                        AN
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                                                                                                                     LUM




                                                                                                                                                                                          AFR
                                 TUN

                                 TUR




                                                                                               UG




                                                                                                                                                  KO
                                  RM
                                 FRA




                                                                                                                      BR




                                                                                                                                                                                                                  EAL
                                 ERL

                                 RLA




                                                                                                                                                                             MA




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                 RO




                                                                                                              N
                                EPU




                                                                                                    ME
                                 BR




                                                                                                                                      MIR




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            These statistics do not consider horses in training which did not run.



                                                                                                                                                                                                                  13
     Annex 3

     Breeding 2007

                                                  Breeding 2007

                                Stallions    Mares                Foals    Total
     Argentina                      916      13 065               7 538    21 519
     Australia                      827      29 706           18 255       48 788
     Belgium                         14         59                   35      108
     Brazil                         275       4 060               1 820     6 155
     Canada                         261       3 169               2 650     6 080
     Chile                          137       2 408               1 820     4 365
     Croatia                         14         41                   13       68
     Cyprus                          64        824                  328     1 216
     Czech Republic                  47        630                  307      984
     France                         426       9 004               5 393    14 823
     Germany                         81       2 240               1 224     3 545
     Great Britain                  352      11 091               5 839    17 282
     Greece                          68        430                  274      772
     India                          106       2 743               1 497     4 346
     Ireland                        416      20 700           12 633       33 749
     Italy                          150       3 205               2 153     5 508
     Israel                           7         88                   66      161
     Japan                          270      10 219               7 495    17 984
     Korea                           89       2 040               1 225     3 354
     Lithuania                        6         18                            24
     Madagascar                       5          8                    4       17
     Malaysia                         6         79                   57      142
     Mexico                          67        590                  459     1 116
     Morocco                         57        353                   95      505
     Netherlands                      4         25                   16       45
     New Zealand                    259       8 286               4 340    12 885
     Norway                          11         56                   49      116
     Peru                            60        520                  488     1 068
     Slovakia                        16        211                   64      291
     Slovenia                        13         55                   12       80
     South Africa                   105       3 654               3 526     3 759
     Spain                           35        360                  255      650
     Sweden                          40        383                  313      736
     Switzerland                      4         83                   36      123
     Tunisia                          8         67                   39      114
     Turkey                         392       3 359               1 590     5 341
     United Arab Emirates             2          2                    1        5
     United States of America     3 050      55 271           34 350       92 671
     Uruguay                        279       2 925               1 850     5 054
     TOTAL                        8 939     192 027          118 109      319 075




14
                                                                                                                  Annex 3

       Breeding 2000-2007
           Total amount of horses involved in breeding (mares, stallions, foals)

                                                                                                      stallions

                                                                                                      mares
           200000
                                                                                                      foals



           160000




           120000




            80000




            40000




                 0
                          2000   2001      2002    2003   2004           2005      2006     2007




asia         europe

       200000

        Breeding
       160000               by region, 2007
              stallions

       120000mares
              foals


        80000         americas             asia             europe


            americas                              asia                                    europe
        40000                                                               Europe americas                   asia             europe
                                                                                80 900


             0                                               stallions
                                                                                                                      Asia
                                  Americas                   mares
                                                                                                                     100 147
                                        138 028              foals




                                                                                                                               stallions

                                                                                                                               mares

                                                                                          stallions                            foals


                                                                                          mares

                                                                                          foals




                                                                                                                                           15
     Annex 4

     Betting & deductions, 2007
                                     Betting Turnover        Returned to Bettor                            Total Deductions
               Country                                                                        %                                             %
                                        (x 1000€)                (x 1000€)                                     (x 1000€)
     ARGENTINA                                 125 217                     90 156           72,00                    35 061               28,00
     AUSTRALIA (tote)                        5 568 010                  4 788 489           86,00                   779 521               14,00
     AUSTRALIA (book)                        2 090 529                  1 881 477           90,00                   209 052               10,00
     AUSTRALIA (total) °1                    7 658 540                  6 669 965           87,00                   988 574               13,00
     BRAZIL                                    110 476                     77 333           70,00                    33 143               30,00
     CANADA °2                               1 197 858                   918 846            76,70                   279 012               23,30
     CHILE                                     158 671                   111 069            70,00                    47 601               30,00
     CYPRUS                                    101 378                     76 689           75,65                    24 689               24,35
     FRANCE °2                               9 035 972                  6 697 051           74,12                 2 338 921               25,88
     GERMANY (tote)                             82 149                     59 147           72,00                    23 002               28,00
     GERMANY (book)                             51 627
     GERMANY (total) °2                        133 776
     GREAT BRITAIN (tote) °7                   481 179                   404 130            83,40                    74 284               15,44
     GREAT BRITAIN (book) °7                16 039 784                14 275 010            89,00                 1 764 267               11,00
     GREAT BRITAIN (total) °7               16 520 963                14 679 140            88,85                 1 838 551               11,15
     GREECE                                    283 150                   226 520            80,00                    56 630               20,00
     HONG KONG °1                            6 207 984                  5 144 880           82,88                 1 063 104               17,12
     INDIA (tote)                              258 365                   223 344            86,40                    35 021               13,60
     INDIA (book)                               21 554
     INDIA (total)                             279 920
     IRELAND (tote)                             61 320                     50 741           82,70                    10 579               17,30
     IRELAND (book) °3                       3 931 030                  3 459 307           88,00
     IRELAND (total) °3                      3 992 351
     JAPAN                                  19 032 681                14 166 458            74,40                 4 866 222               25,60
     KOREA                                   4 671 729                  3 372 945           72,20                 1 298 784               27,80
     LEBANON                                      6 278                     4 493           71,60                     1 785               28,40
     MACAU                                     221 097                   184 383            83,40                    36 714               16,60
     MADAGASCAR                                   4 589                     2 616           57,00                     1 973               43,00
     MALAYSIA                                  244 388                   193 360            79,10                    51 028               20,90
     MAURITIUS (tote)                           36 904                     27 678           75,00                     9 226               25,00
     MAURITIUS (book)                           71 433                     53 575           75,00                    17 858               25,00
     MAURITIUS (total)                         108 337                     81 253           75,00                    27 084               25,00
     MOROCCO                                   244 211                   170 802            69,90                    73 408               30,10
     NETHERLANDS °2                             34 328
     NORWAY °2                                 395 338                   263 325            66,60                   132 013               33,40
     SINGAPORE                                 923 570                   735 449            79,60                   188 121               20,40
     SLOVAKIA                                       119                        77           65,20                         42              34,80
     SOUTH KOREA                             4 104 169                  2 949 637           71,87                 1 154 532               28,13
     SOUTH AFRICA (tote)                        421 887                  325 451            77,10                    96 437               22,90
     SOUTH AFRICA (book)                             n/a
     SOUTH AFRICA (total)                            n/a
     SPAIN                                       26 509                    16 301           61,50                    10 209               38,50
     SWEDEN °2                                1 246 224                  876 488            70,30                   369 737               29,70
     SWITZERLAND °2                              69 133                    50 797           73,50                    18 336               26,50
     TURKEY                                   1 063 182                  518 346            48,80                   544 836               51,20
     USA °4                                   9 998 058                 7 898 466           79,00                 2 099 592               21,00




     Note °1 - For these countries in the Southern Hemisphere, the statistics cover the racing season from July 2006-July 2007.
     Note °2 - The betting figures for these countries cover both gallop and trotting races. The betting turnover on trotting races can be important,
     from an estimated 50% of the total in France to more than half in Canada to more than 90% in Scandinavian countries.
16   Note °3 - The betting figure for bookmaking includes the betting on sports, which is estimated at around 50% of the total betting turnover by
     bookmakers, the other 50% is on horseracing.
     Note °4 - The betting turnover only covers betting on gallop racing and not the betting turnover on trotting races.
                                                                                                                Annex 4


    Received by                                 Returned to Racing                                   Other
                                     %                                           %                                           %
Government (x 1000€)                                 (x 1000€)                                     (x 1000€)
              3 506                 2,80                   11 269               9,00                  20 285               16,00
           226 061                  4,10
            35 539                  1,70
           261 600                  3,42
              1 657                 1,50
            57 156                  4,83
              4 760                 3,00                   16 660               10,50                 26 181               16,50
              8 723                 8,60
         1 094 538                  12,61
                542                 0,70




              3849                  0,95                      n/a                                         n/a
           264 695                  1,65                 158 790                0,99               1 340 919                8,36
           268 544                  1,63
              3 398                 1,20
           779 781                  12,56                142 438                2,29                 140 885                2,27
            14 829                  5,80                    9 801               3,80                  10 199                3,90




                  0                                           673               1,10                  10 579               17,30
                                                           58 539               1,50


         1 794 748                  9,40               1 013 139                5,30               2 058 337               10,80
           840 882                  18,00                  94 504               2,00                 363 401                7,80
                341                 5,40
              1 786                 0,80
                782                 17,00
            28 545                  11,70
              3 457                 9,40                    1 840               5,00                   3 928               10,60
              7 635                 10,70                   2 475               3,50                   7 748               10,85
            11 092                  10,24                   4 315               3,98                  11 676               10,78
            28 850                  24,10


            14 763                  3,70                   58 113               14,80                 59 138               14,90
            47 030                  5,10
                  1                 1,00
           816 118                  19,89
              7 261                 1,70




           135 818                  10,90
              2 082                 3,00
           326 759                  30,70
           184 964                  1,90                 801 619                8,00               1 113 009               11,10




Note °5 - At the time of print, June 2008, the betting figures of some main racing nations were not yet available, notably the UK and
New Zealand.
Note °6 - All figures are given in Euro exchange rate of 31 December 2007. The weak position of the national currency against the
Euro, notably the US dollar, has obviously deflated the figures of these countries. Alternatively, if figures would have been expressed   17
in US dollars, the figures of many countries would have been inflated, notably in the Euro zone.
Note °7 - BHA estimates.
asia                   europe
               Annex 4

                  Betting by Region 2007

                        Tote handle

                        Bookmaking




            americas                             asia                                           europe

                                                                                                                    americas   asia   euro
                                                                                                                  Europe
                                                                                                                  32 089 610


                                                 americas          asia       europe



                                                               Americas                             Tote handle
                                                               11 604 093
                                                                               Tote handle          Bookmaking
                                                                               Bookmaking




                                                                                                                                      Tote

                                                                                                                                      Boo




                  Total Betting Volume

                                      95000




                                      71250
                       )
                       (x 1 million




                                      47500




                                      23750




                                        0
                                              2002          2003      2004   2005            2006     2007




       18
19
Fédération Internationale des Autorités Hippiques de Courses au Galop
          International Federation of Horseracing Authorities
           46 place Abel Gance - 92100 Boulogne - France
             T. : + 33 1 49 10 20 15 - F. : +33 1 47 61 93 32
       www.IFHAonline.org - secretarygeneral@IFHAonline.org

				
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