Macbet Pulls Betting on Arena Racing Tracks over Data Fee Dispute

Independent bookmaker Macbet has announced it will no longer offer its customers the ability to bet on Arena Racing Company (ARC) tracks. The company motivated its decision by ARC’s shift to a turnover-based data charging model. This decision, announced via Macbet’s social media channels, aligns with broader unrest among the horse racing industry following the UK government’s significant betting tax increase.

Macbet Could Reintroduce ARC Bets Under New Rules

Previously, Macbet and other bookmakers were required to pay a flat fee of £15,000 ($20,350) for the racing data rights to tracks operated by ARC. According to a recent report by news outlet Next.io, that charge has now been replaced with a 2% levy on betting turnover, a price Macbet cannot absorb, given its current business model, which prides itself on accepting winning customers.

Macbet noted it did not take this decision lightly but felt it was necessary to ensure sustainable operating margins. The company alluded to potential solutions such as offering higher-margin books on ARC races or introducing a surcharge specifically for events held at ARC venues. However, Macbet was adamant it could not sustain its operations under current market conditions.

From October 1, Macbet will no longer be able to offer betting on our website on any TRP (Arena Racing) racetracks.

Macbet statement

Industry reaction to Macbet’s decision has been mixed but generally sympathetic. Industry insiders are increasingly concerned that mounting costs could prove prohibitive for smaller bookmakers, driving them away and consolidating the market around a few high-profile gambling giants. While Macbet could find a way around this newest predicament, broader industry challenges remain.

The UK Horse Racing Sector Is Facing Increased Pressure

This move coincides with a difficult time for horse racing, which is bracing for a potential tax hike under the government’s plan to harmonise online betting duties. Industry experts note the proposed increase from 15% to 21% could drain £330 million ($448 million) from the sector over the first five years and threaten nearly 3,000 jobs in the first year alone.

Economic analysis by Regulus Partners and Development Economics has shown that racing would be disproportionately impacted by the proposed tax harmonisation, due to its unique dependence on betting revenue.  The study contends that this measure would result in reduced investments, decreased horse ownership, reduced viability of racecourses, and lower prize money.

For ARC, the tax change represents another incentive to link its revenue more closely with betting activity. For bookmakers like Macbet, however, the shift raises existential questions about the ability of small and medium-sized operators to compete with industry giants who can cross-subsidise racing turnover with their revenues from other verticals such as iGaming and sports betting.