Flutter Signs Long-Term Deal with RMG
Flutter Entertainment has entered into a long-term strategic partnership with Racecourse Media Group. The deal, which focuses on streaming rights and marketing, is set to last until 2028. Flutter Entertainment operates some of the UK’s most popular betting brands, including Paddy Power, Betfair and Sky Bet. Racecourse Media Group is a media and data rights holding firm owned by 34 racecourse shareholders.
As part of the deal, Flutter will be granted streaming and marketing rights to a number of high-profile racing events. ©Daniel/Pexels
Streaming and Marketing Rights
Leading betting and gaming operator Flutter Entertainment has announced the signing of a new deal with Racecourse Media Group. RMG is the company behind a range of media rights management businesses with the UK’s top racecourses. The holding firm is 100% owned by its 34 racecourse shareholders, allowing them full control of their media and data rights.
Thanks to RMG’s new agreement with Flutter, the gambling operator will be granted an array of exclusive streaming and marketing rights. A considerable level of confidence has been invested into the long-term agreement, which is set to finish at the end of 2028. CEO of RMG, Martin Stevenson, was pleased to announce the new partnership:
“This agreement will have far reaching benefits for RMG’s racecourses and the industry itself. We are delighted to collaborate with Britain and Ireland’s largest betting company, Flutter Entertainment, which gives both companies the opportunity to work together to promote RMG’s racecourses and the sport.”
Stevenson added that RMG would benefit from Flutter’s considerable marketing reach. Through sponsorships and advertising strategies with the company, it hopes to grow the appeal of horseracing both in the UK and overseas. Flutter will leverage its marketing and promotional assets to increase turnover and engagement with the racing events taking place at RMG’s courses.
The racecourses and the sport in general will benefit from boosted revenue streams. Meanwhile racing fans can look forward to watching high quality racing content through Flutter’s channels. The gambling operator will be able to grow its customer base and offer even more great content to its existing users.
Earlier this year, RMG renewed a number of its deals with leading British racecourses. These included agreements with the Cheltenham Festival, Randox Grand National Festival, Cazoo Derby Festival, Welcome to Yorkshire Ebor Festival and Qatar “Glorious” Goodwood Festival. These deals have been renewed until 2028, ensuring continued quality content for RMG and its partners.
Exposure and Income for Racing
Speaking on behalf of Flutter Entertainment, CEO Conor Grant explained the benefits that the deal will bring. Grant described RMG as a key partner in terms of offering top tier horseracing content to Flutter’s customers. Through partnering with RMG, it hopes to strengthen its position in the sports wagering market, whilst supporting the sport. Grant went on to say:
“We have an important and longstanding relationship with the racing industry, investing a total of £100m through media rights, sponsorship, hospitality, marketing and the levy in the last year. We are continually looking for ways to collaborate directly with partners like RMG and the rest of the racing industry to enable British horseracing to achieve its great potential and secure the long-term sustainability of the sport.”
The deal is sure to be a relief to RMG’s shareholders, as racing has struggled for revenue over the last two years. The pandemic caused income to the sport to dry up, as racing schedules were cancelled and postponed. After months of delay, when races were finally allowed to go ahead, it was behind closed doors.
Without spectators present at grounds when races took place, revenue that would otherwise have been generated from ticket sales, refreshments and on-site wagering was lost, amounting to several hundred million pounds. Since racing fans were allowed to return to courses in the summer, the sport has slowly been able to start recouping its losses.
Flutter Entertainment is one of the UK’s leading gambling operators, and is listed on both the London Stock Exchange and the FTSE100 Index. It is responsible for a large number of well-known betting and gaming brands, including Paddy Power, Sky Bet and Pokerstars. Earlier in November, it sealed a £402 million deal to acquire online bingo site Tombola.
ITV Seeks to Renew Deal
Television broadcaster ITV is also reportedly pushing for an early renewal of its rights deal with RMG. It signed its most recent contract extensions with RMG, Arena Racing Company and Ascot in August 2020, but it has now indicated that it is keen to renew those deals as soon as possible.
Formal talks between the broadcaster and the racing body have not yet begun, but the outlook is positive. Only ARC agreed to comment on the speculation, saying that it would be happy to take part in discussions for an early renewal. Now that Flutter has signed its long-term deal with RMG, ITV is even more likely to seek early renewal.
Paddy Power, one of Flutter’s top-performing brands, is ITV’s headline sponsor for its racing coverage. If ITV manages to secure an extension to its deal with RMG, it is likely that its sponsorship deal with Paddy Power will also be rolled over.
ITV’s ownership of the racing broadcast rights has widely been regarded as a success, and there are many in the industry that would like to see that relationship continue. Speaking to the Financial Times, Chief Executive of the Spotlight Sports Group, Alan Byrne, said that ITV had benefitted the sport by boosting its profile, introducing new fans and increasing engagement and betting turnover.
According to figures from the Betting and Gaming Council, horse racing benefits from revenue of £350 million every year from the gambling industry. This money is raised through sponsorship deals, media rights and levies on bets. While there is a clear case to argue that betting generates income for the sport as a whole, new gambling laws could have a negative impact on racing.
As part of its review of the 2005 Gambling Act, the UK government is expected to introduce new gambling legislation in the coming months. New affordability rules mean that gamblers will have to provide verifiable proof that the can afford to make certain bets. While these rules are intended to make gambling safer and reduce harms, they could make it harder for people to bet and affect bookmakers.
