The Law to Pull the Plug on Racing TV’s Ads on Irish Racing?
A scenario where Irish racing can be viewed on TV screens anywhere in the world, except for Ireland, is drawing closer. Ireland’s Gambling Regulation Bill, which has already passed the Dáil (the lower House of Irish legislature) and is currently being debated in the Seanad (the upper House), is the piece of law threatening the blackout.
Ireland’s Gambling Regulation Bill proposes to stop all televised gambling advertising between 5.30 am and 9 pm. Will this move cause rights holders to stop broadcasting to Irish viewers? ?Getty
The Bill is purposed to create a new regulator – the Gambling Regulatory Authority of Ireland. It aims to reform licensing, boost consumer rights, and compel the betting industry to contribute to a fund to aid problem gamblers.
Establishing a National Gambling Exclusion Register is another key part of the Bill, and it seeks to prohibit gambling adverts on social media by default. However, it is section 141 of the Bill – which proposes bans on television, radio, and other audio-visual media gambling adverts between 5.30 am and 9 pm – that is giving Irish horse racing and horse racing betting sites palpitations.
Gambling Ad Issues Addressed With a Blackout
“The Bill provides for a wide-ranging power to allow the Authority to prescribe the times, place and events where gambling advertising can be broadcast, displayed or published,” says an ‘Information for the public’ gov.ie web-page.[1]
It continues, “The Authority will also specify the frequency at which advertising can be broadcast, the duration of advertisements, and the volume/amount of advertisements that can be shown. This power will allow the Authority to address the issue of gambling advertising on social media, online, and on traditional media such as on television, radio, in publications, and outdoor advertising such as billboards.”
Stating, “broadcasters and licensees will be obliged to comply with the obligations concerning advertising and sponsorship.” Gov.ie’s information page explains: “In the case of broadcasters in particular, it has been shown that they have the capacity to replace advertising intended for other jurisdictions with Irish-focused advertising. Therefore, they should be able to comply with the obligations being introduced in the Bill.”
Is It Lights Out for Irish Viewers?
In recent weeks, the Racing Post newspaper has reported that broadcasters Racing TV and Sky Sports Racing “have said it would be financially unviable for them to continue broadcasting in Ireland if the bill remains in its current form.”
In Ireland, there is free-to-air television coverage of major horse racing meetings, but Racing TV, a subscription-based channel, is the only broadcaster televising Irish racing on a regular basis. Its business model relies heavily on bookmaker advertising.
In June 2023, Horse Racing Ireland (HRI) and the Association of Irish Racecourses completed a €47 million-per-year media rights deal with Racecourse Media Group, the owners of Racing TV.[2] The agreement covers streaming, betting shop services, and direct-to-home coverage through Racing TV. The deal is for five years.
A Big Loss With No Work Around
A third-party report by Frontier Economics, which was commissioned by Flutter PLC (the world’s largest online gambling firm and owners of Irish bookmaking brand Paddy Power), has estimated that section 148 of the Bill, which will outlaw inducements, could lead to a €30 million reduction in HRI’s budget over five years due to the forecast fall in betting tax revenue.
The survey was commissioned to consider the economic effects of the measures proposed in the Bill. It found 230,000 punters would be driven to the black market over the next five years – at a cost of €150 million to Ireland’s revenue commissioner.
In early May, the Irish Field newspaper stated that any shortfall from betting advertising could be plugged by more appearances and contributions to TV coverage by bookmaker representatives. However, Racing TV quickly ruled this out.
“Having bookmakers’ contributions on the channel as a replacement for ads is completely against the regulator Ofcom’s advertising regulations. We can categorically say that no deals have been reached with bookmaker partners on this,” the channel said in a following statement. It added: “The drafting of the bill as it stands makes it unviable for Racing TV to continue broadcasting in Ireland.”
What’s Next for the Bill?
The Dáil may have passed the new legislation, but Minister of State James Browne said he would introduce amendments in the Seanad to address the potential impact on charities and sports clubs advertising fundraisers. The Bill is then expected to be returned to the lower House for final consideration.
During a Seanad debate on May 14th, Senator Timmy Dooley warned of “unintended consequences” when highlighting Racing TV and Sky Sports’ concerns about their ability to continue broadcasting Irish race meetings to an Irish audience because of the gambling advertising watershed. He also said that if racing were to disappear from Irish television screens, it “would represent a terrible blow to their livelihoods and local economies.”
The Lottery Ball Has Been Dropped
Senator Rónán Mullen raised interesting points, referencing a recent Economic and Social Research Institute report.[3] He said: “The number one place gambling is happening is the national lottery and the EuroMillions, followed by scratch cards in second place, horse racing in third and greyhound racing in fourth.”
“This legislation does not deal with the national lottery, the EuroMillions draw, or scratchcards, and this is regrettable. It seems this is to be regulated by the Department of Public Expenditure, National Development Plan Delivery, and Reform, but many will wonder whether, in fact, the main problem bullet is being dodged inappropriately, whether the main problem is not being grasped, and whether we should proceed to tackle that first.”
“Like most people, from watching TV, I can tell the House there is saturation advertising of the national lottery, and it has to be addressed. It is no argument to say it is making money for the State. This approach has no integrity. Ideally, we would be starting there.”
Senator Mullen supported his argument by saying that: “A small enough percentage of problem gamblers, at 26.7 percent, spend on bingo. This is way behind the figures for lotteries at 73 percent, scratch cards at 65 percent, sports betting at 59 percent, horse and dog betting at 50 percent, slot machines at 42 percent, and gambling between friends at 27 percent.”
- Gambling Regulatory Authority of Ireland – information for the public, (February 6, 2024), Gov.ie.
- Irish racing media right dispute resolved, (June 17, 2023), Irish Examiner.
- ó Ceallaigh, D., S. Timmons, D. Robertson and P. Lunn (2023) – Measures of problem gambling, gambling behaviours and perceptions of gambling in Ireland, (October 5, 2023), Economic and Social Research Institute.
