The Irish racing industry was bolstered last week following the publication of a report by Deloitte, which found that the racing and breeding industry generates almost €2.5 billion in economic activity, up 36% since 2016.

The report also reckoned that the sector supports 30,350 jobs, up 1,450 since 2016, while the document also highlighted significant increases in active owners and growing attendances at the major festivals in recent years.

This positive news is timely for Horse Racing Ireland (HRI), as it comes not long after the racing and breeding industry came under fire from the Football Association of Ireland (FAI), who criticised the annual contribution of the government to the sector (€73 million this year).

The FAI commissioned a report by KHSK Economic Consultants, which inaccurately claimed betting tax revenue was ringfenced for the horse racing and greyhound sectors.

Funding allocation

While the betting tax and the funding of racing has been linked since the beginning of the millennium, in reality, HRI receives their funding allocation from the Department of Agriculture.

Jackie Cahill, Fianna Fáil TD for Tipperary and chairperson of the Oireachtas Joint Committee on Agriculture told The Irish Field: “The report is heavily weighted on the economic importance of the industry and it makes clear that racing is self-financing.

“When you take into account the employment it generates in every corner of the country and the money it brings into the state, it’s my view that it is a good investment for the Government. I would have no problem defending it.

“Other sports are entitled to look for increased funding, but they should do so on their own merits. It shows a weakness to try and target another sport. Racing is more a business than a sport, and this week’s report shows that to be the case.”

The report broke down the sub sections of the industry, and found that the breeding sector generated revenues of €819 million. A total of €264 million was spent by racehorse owners on training costs, and racegoers are estimated to have spent €193 million.

It was also recognised how important Ireland’s global reputation is in the report, with prize money, often a stick used by critics of the industry’s funding, shown to be integral to maintaining that reputation.