BOOKMAKERS in York and North Yorkshire who are fearful their livelihoods may be destroyed by controversial changes on racecourse pitches have been buoyed after they were backed by a Government committee.

A select committee report from the Department for Culture, Media and Sport (DCMS) has emerged wholly in favour of the stance of bookies who are fighting plans to "confiscate" their spots in betting enclosures.

Last June, the Press reported how bookmakers are concerned tracks will start charging them for pitches from September 2012, making them pay to buy or lease a spot in betting enclosures.

In the past, bookmakers have paid each other in contracts which they are worried could soon be worthless after the Racecourse Association (RCA) decided it would no longer recognise pitch lists.

Following the end of a five year moratorium in 2012, the RCA says the allocation of pitches would be "for commercial negotiation between racecourses and betting operators".

The impasse between the two groups led to involvement of the DCMS, but the long-awaited report has angered the RCA, while delighting the bookies.

That document said it was "very disappointed in the manner in which the RCA has approached the transition to commercial arrangements" and agreed bookies who bought pitches in auctions believed these were assets "which were purchased in perpetuity".

Should the impasse remain, it said "the Government should stand ready to reimpose the condition previously required under the certificate of approval system that racecourses should observe bookmakers' lists".

York bookmaker Paul Dolan said: "Now we will have to wait and see what the RCA come up with. We will keep pushing but, obviously, we are now hoping to make some progress."

Graham Thorpe, of the Northern Bookmakers Protection Agency, said: "This is a wonderful result. They have given us everything we could have hoped for. It has proved the justice of our case and we are delighted they have understood our concerns. We understand this is not the end of the road, but the select committee can have huge influence over the minister. Our next move is to continue the talks we have started under the auspices of the DCMS."

The RCA, however, said it was "outraged" by the report findings.

Chairman David Thorpe said: "The RCA is disappointed the committee has misunderstood the facts and tried to interfere in the way in which independent businesses will engage in commercial activities in 2012. No one should be surprised that the move to commercial arrangements would have a significant effect on the value of list positions even if they were recognised.

"The suggestion that racecourses should compensate bookmakers is nothing short of outrageous."

Committee backs bookies...

The DCMS report states:

  • While it didn't see any evidence suggesting pitches were bought in perpetuity it was convinced those purchasing spots believed that to be the case and were "encouraged in this belief"
  • Racecourses should compensate list position holders for their losses if they were determined to move "to a fully commercial relationship for the allocation and pricing of pitch positions" after announcing the scheme would end in 2012
  • Government should "stand ready" to reimpose conditions that racecourses should observe bookmakers' lists if negotiations are not successful
  • "Very disappointed" with the "manner in which the Racecourse Association approached transition to commercial arrangements"