Mr. Mark Flanagan:

As chairperson of the IHRA, I come before the committee to advocate for a simple decision that would hold economic potential and cultural significance for Ireland. This is the granting of a tote licence to our long-established sport of harness racing.

The IHRA thanks the committee for the opportunity to discuss our tote licence application. I will provide an update and detail the ongoing development and progress of the industry since we last had the opportunity to meet the committee. Its confirmation of support for the Irish harness racing industry is duly noted.

Our objectives are simple and straightforward. We want our sport to be self-financing. We are not looking for a handout. Rather, we want to be able to raise funds through a tote to build harness racing in Ireland. We want to grow our sport. We want to link in with harness racing in Europe and the US. We want to provide racetracks to encourage people who participate in illegal road racing onto properly run tracks. Members may question why we should be granted a tote licence, particularly as Irish harness racing may seem like a minor sport. However, this is why we think a tote licence would be beneficial to us. In Europe and the US, harness racing is seen as a major sport, even more than thoroughbred racing. Our aim is to reach the same level of validation. If we were granted this licence, I estimate that, in my lifetime, we would have five racetracks in Ireland and an industry supporting thousands of jobs, mainly in rural Ireland. We would become the breeding centre for trotting horses, as we already are for thoroughbreds.

Horse racing has been an integral part of our cultural heritage for centuries, intertwining tradition, sport and economic vitality. It is an industry that not only supports countless jobs but also sustains the livelihoods of breeders, trainers, jockeys and countless others within its ecosystem. However, to ensure continued growth and sustainability, we must adapt to the evolving landscape of the industry.

The IHRA has developed rapidly over the past ten years. In 2013, the association ran a total of 45 races, compared with a total of 330 races in the 2023 season. In 2014, the IHRA signed a breeding agreement with Le Trot, the French governing body for trotting in France. Since then, Le Trot has contributed more than €1.5 million into our sport to support our prize money. In 2015, the IHRA became members of the European Trotting Union, UET, and now the organisation has representation on several of their committees, making decisions with all European counterparts to improve aspects of our sport, including breeding, animal welfare, technical and gambling. In 2023, there were a total of 41,108 races ran across all the member states within the UET, with a combined total of €450 million in prize money. In Normandy alone, there are more than 50 trotting tracks. It attracts a younger audience than traditional racing and is a very family-oriented sport.

It is imperative to mention that illegal road racing or sulky racing on our road network is strongly condemned within the IHRA and is a forbidden activity under our rules for our members. We as a board do not have a solution to this problem but we believe we are an integral part of its solution. It is important to note that this illegal, antisocial activity is not seen in any other jurisdiction within the UET as they boast a well-developed network of racetracks and facilities dedicated to trotting races, providing legitimate opportunities for enthusiasts to participate, spectate and gamble. The presence of these facilities reduces the incentive for illegal road racing. However, in Ireland, there are fewer dedicated facilities for trotting racing, leading a minority of enthusiasts to resort to illegal activities for racing opportunities.

It is for this reason that we have begun to increase our footprint to reduce antisocial racing. This has been achieved by the IHRA acquiring land in Cork, with planning permission granted in the last quarter of last year; an all-weather hard track has been obtained and leased in Armagh; and we have identified a site for a new track in Dublin as a joint venture with one other local sporting organisation. We made an endowment application under the IIP scheme for the facility in Dublin.

The bottom line is that in order to become financially independent, we need to acquire a tote licence. In December 2021, the IHRA made a presentation to the Department of Finance and the then Minister, Deputy Paschal Donohoe.

The UET strides to make provision for an obligation through the legislative process at the European level, with levy rates suitable for all the member countries, with a 3% minimum on bets taken for races organised abroad and 8% for races organised in the country where the bets are recorded so that will be able to ensure that this sector, which together with thoroughbred racing provides 200,000 direct jobs in Europe, is able to continue its economic activity. In addition, the pari-mutuel or tote systems in operation among our UET members allow the respective governing bodies to increase the level of prize money such that it can attract enough competitors to generate a satisfactory level of bets. The integrity of competitions must be strictly monitored using sufficient human and material resources and through appropriate procedures.

Moreover, the economic benefits of such a decision cannot be overstated. The revenue generated from tote would not only bolster the horse racing industry but also contribute to the broader agricultural sector, providing much-needed support to farmers and rural communities across our island. It would stimulate investment, create jobs and drive economic growth in both urban and rural areas alike.

The breeding of the trotter is closely aligned to the success of the IHRA racing efforts and of their pari-mutuel systems which all our EU counterparts have, except for the IHRA. In Europe, there are approximately 200,000 trotting horses including 33,800 broodmares and 2,567 stallions to breed and approximately 22,900 foals born each year, which kick-starts each governing bodies future racing and production lines.

The IHRA had a market link case study carried out in 2017 at Dundalk Stadium. Four races on the card were streamed and available for gambling purposes through the French tote service. Nearly €900,000 was bet on these races in France. The IHRA received a return of a 3% commission to the tune of €27,000.

Should the IHRA be successful in obtaining this licence, we are ready to proceed to the next steps with the valued support of three strong partners. BetMakers is the global leader in terms of tote gambling software, providing a gambling platform which includes anti-money laundering and fraud components. They are experts in anti-money laundering as well as Know Your Customer and can provide improved safeguards for problem gambling that are currently available. Equine MediRecord is a global leader in equine welfare software and is leading a new equine database project for the IHRA. This company currently has horse welfare and anti-doping software used in Europe, US, Middle East and Asia. Le Trot, which is the governing body for the sport in France and has a turnover of €9 billion, is the largest European trotting regulator, which I mentioned already. It is investing in the Irish trotting industry and has pledged increased support for this project.

It is widely accepted that certain forms of gambling have a stronger association with gambling problems than others. Games of pure chance, such as lotteries, gambling machines and roulette, differ from games of skill factor, such as betting on horse racing. Betting on horse racing through totes is far less likely to lead to gambling harm because of the skill-based nature of the game involving comparisons of data at a relatively slow speed compared with repetitive games of chance, such as online casino gambling, which is designed for consumers to wager quickly. Tote betting causes far less harm than high-frequency online gambling as well as betting with illegal operators and should be differentiated with lower tax rates.

Trotting and the GAA both hold significant roles in rural communities in Ireland, albeit in different ways. While the GAA is deeply ingrained in Irish rural life as the custodian of Gaelic games like hurling and Gaelic football, trotting offers a unique sporting experience centred around harness racing. Like the GAA, trotting serves as a focal point for community engagement, pride and tradition in rural areas. Local trotting events bring together people of all ages, fostering a sense of camaraderie and belonging. Just as GAA clubs provide a platform for athletic competition and social interaction, trotting tracks and clubs offer a similar space for rural residents to gather, celebrate and support their local talent. Furthermore, both industries contribute to the economic vitality of rural communities. They create employment opportunities, attract visitors from neighbouring areas and stimulate local businesses such as pubs, restaurants and accommodations.

It is important to stress that the two main competitors to our industry in this country are greyhound racing and thoroughbred racing. As members are aware, both organisations are in receipt of Exchequer funding through the horse and greyhound racing fund. The latter is a fund that the IHRA fully supports. At this moment, we are not receiving any money from this fund. However, the Department of Agriculture, Food and the Marine recognises us a form of horse racing.