Racing and breeding in Turkey

Article by Paull Khan

-Istanbul Veliefendi Racecourse final stretch Derby day.

The true scale of the thoroughbred industry in Turkey is surely widely underestimated. Turkey is indeed a big hitter in the racing and breeding world, but much of its activity flies under the international radar. This is perhaps not unsurprising, as Turkish racing is almost completely closed. Of the 3,159 thoroughbred races run in the country annually, all but six are closed to foreign-trained runners. All its races may be broadcast across two television channels, but pictures of Turkish racing are rarely seen abroad; and unless one has a Turkish identity number, one cannot place a bet on those races on the Turkish Jockey Club’s  platforms. There are only 10 foreign-based owners in the country, and hardly any of its racehorses were bred anywhere other than in Turkey.

But shine a light on this sunniest and most welcoming of countries, and the vibrancy of the industry is remarkable.

Let’s take breeding first. The latest figures available to the International Stud Book Committee (the 2020 foal crop) show that Turkey is one of the few major thoroughbred breeding nations whose foal numbers have actually grown over the past decade. In 2010, Turkey ranked 15th in the world, in terms of number of foals bred, with 1,500. She now ranks as high as 9th in the world, with 2,103 foals – a 40% increase, no less, at a time when global production is in marked decline. Turkey is, in fact, the fastest-growing major breeding nation in the world. Amongst the top ten, only Ireland’s and Japan’s foal crops have increased over this decade, and both have seen much more modest growth than Turkey’s (15% and 11% respectively). And this Turkish expansion continues: some 2,280 foals were registered in 2022 – a further 8% rise.

Look down a racecard in Turkey, and you would be lucky to see a foreign-bred suffix beside any of the runners’ names. With only 24 out of 3,500+ horses having been foaled outside the country, such a racecard would be something of a collector’s piece. The explanation can be found in a regulation that only allows Thoroughbreds to be imported in the year of their birth. A striking example of the closed nature of Turkish racing, this rule is in place to support local breeders. Another disincentive to buying foreign-breds is that imported horses only receive 75% of the normal prize money. 

So, it is domestic production that, almost exclusively, fuels Turkey’s racing product. But that does not mean Turkey is closed to the purchase of foreign bloodstock. Far from it. It has embraced a long-term policy of importing stallions and broodmares strategically to build up the quality of its herd over time. Ten of these stallions are currently owned by the Turkish Jockey Club (TJC) and stand at one or another of their various Stud Farms, which also hosts 47 privately owned stallions. In this way, they are able to offer world-class stallions to their mare owners at knock-down prices.

The most expensive stallion, at least of those whose fees are in the public domain, Luxor, stands at under €8,000.

Current Champion Sire, 1998 Belmont Stakes winner Victory Gallop (CAN), heads the  roster of TJC-owned stallions. By the time TJC bought him from America in 2008, he was the sire of multiple-stakes winners. His nomination fee: around €3,000.

2007 Derby hero Authorized (IRE) now stands in Turkey.

2007 Derby hero Authorized (IRE) now stands in Turkey.

A more familiar name to many European Trainer readers among the TJC’s team is 2007 Derby hero Authorized (IRE). Having stood at Dalham Hall, Newmarket and Haras de Logis in France, this sire of six individual Gp1 winners, as well as of Grand National winner Tiger Roll, was acquired by the TJC in 2019, where he stands at some €2,500.

Daredevil (USA), dual Gr1 winner for Todd Pletcher, was purchased by the TJC in 2019.

Daredevil (USA), dual Gr1 winner for Todd Pletcher, was purchased by the TJC in 2019.

Daredevil (USA), dual Gr1 winner for Todd Pletcher, was purchased by the TJC in 2019 and stood the 2020 season in Turkey, before returning to his native USA to stand at Lane’s End Farm. However, the TJC have retained ownership of the horse. 

Ahmet Ozbelge, General Secretary of TJC, explains the rationale behind this arrangement and the Turkish philosophy on stallion purchases. “After we bought Daredevil, his offspring Shedaresthedevil and Swiss Skydiver performed incredibly well; and we subsequently received many offers from various US stud farms to buy or to stand him. We evaluated all offers and decided not to sell him because of his young age but to stand him at Lane’s End. This is a first for the Turkish breeding sector, and we are glad to be in such a collaboration, to the benefit of the global breeding industry.

“In Turkey, we have very strict criteria for breeding stock purchases from abroad, based on performances of the stallion or the mare in question but also of his/her progeny’s performances. On top of that, we work hard to select the best-suited ones for our country’s specific conditions, including racetrack types, race dıstances, conformation and bloodlines. We also try to build up a good variety in our stallion pool in order to meet the various expectations of our breeders.”

Rising foal numbers are but one example of how Turkey is, in many ways, swimming against the tide. While many countries are seeing a slow decline in their racecourse numbers, Turkey is adding to its roll. Antalya is the latest addition, and it would take a brave punter to bet against further tracks opening their doors in the coming years.

Some €70M will be distributed across Turkey’s national race programme, creating a more than respectable average prize money of €8,200 per race, with owner’s and breeder’s Premiums boosting this to €11,300 per race. 

The TJC has no fewer than 2,300 people on its payroll and an outlook that places social engagement higher up the list of priorities than do many racing authorities – perhaps in part to win over the hearts and minds of a populace which tends to be disapproving and to conflate racing and betting. For example, the racecourses offer not only pony and horse rides for the general public but also free equine assisted therapy for the handicapped. 

Pony Rides for children and the disabled are routinely offered at Turkish racecourses.

Pony Rides for children and the disabled are routinely offered at Turkish racecourses.

How is an industry of this size sustained? In a word – and unsurprisingly – through betting. Horserace betting has long provided a rich seam of income for the TJC via a formula of which most racing governing bodies can only dream and which is likely to have yielded some €190M in 2022. 

By international standards, the Turkish punter gets a raw deal, indeed, with only a 50% return on his stakes. The TJC retains an eye-watering 22% of monies staked, with the remaining 28% slice going to the government. Other income streams for the TJC pale into insignificance: any money from sponsorship, for example, is heavily taxed at a rate of 74%. 

Enviable though the TJC’s position may be to many Racing Authorities, it rues the fact that sports betting enjoys yet more favourable treatment. “This is a key point, actually,” explains Ozbelge. “There is a seven-point tax gap between the two sectors in favour of sports betting, which allows them to offer higher payouts. As football is so popular and the most beloved sport in Turkey, we have so many common punters to both racing and football. As a result, they can easily be driven away from the lower payout environment to high payouts.” The paucity of the horseracing return is most evident in single bets, and least apparent in exotics such as the Pick 6 - the Turks’ favourite bet.

To support Ozbelge’s point, sports betting dwarfs horserace betting, accounting for no less than 90% –  to racing’s 10% – of legal betting activity. To what extent this is due to the payout differential is difficult to tell. There is also the underlying relative popularity of football which he alludes to; and a further factor may be that, while racing offers pool betting, sports betting is fixed odds. (Exchange betting is outlawed in the country due to integrity concerns). 

What is clear is that, with payouts so low, the temptation to bet via the illegal websites is high. “We import race meetings from different countries to prevent Turkish citizens from betting on illegal sites on these races,” continues Ahmet Ozbelge. Even so, it is estimated that the scale of illegal betting at least matches that of legitimate betting.

If European punters and bloodstock agents are likely to find the Turkish landscape somewhat alien, so too might trainers and owners, as the structure is, again, very different.

General Secretary Mr. Ahmet Ozbelge .

General Secretary Mr. Ahmet Ozbelge .

There are 795  trainers in the country whose licences allow them to train thoroughbreds or purebred Arabians. There are almost as many Arab races as thoroughbred races, and the prize money is similar. Between the codes, there are over 8,000 horses in training.There is no jump racing nor trotting. A quarter of the race programme is on turf: the majority of races are run on sand with around 10% on a synthetic surface.

To retain their licences, trainers must attend compulsory training sessions, which have heretofore been annual, but are about to be moved onto an ‘as required’ basis. The great majority of trainers train US-style on the racetracks, and each track has plentiful boxes for the local horses-in-training. 

But here’s the thing: for the most part, trainers do not charge a fee to their owners, in the manner of those in Western Europe. Their sole remuneration is, rather, a percentage of their horses’ earnings – 5% or 10%. (Some do strike separate agreements with their owners for a fixed salary, but this is not the norm).

The owner, for his or her part, is then responsible for all their horses’ expenses. However, what one might imagine would be a hefty part of those costs –  that of the horse’s stable at the racetrack – is again heavily subsidised by the TJC, who charge just €15 to €20 (depending on the racecourse) per annum per box. The owner’s total expenses – including the salary and insurance of the stable staff, feed, bedding, veterinary expenses, etc. – are not far in excess of €1,000 per month. But, lest this information should start a goldrush amongst European owners, salivating at the potential returns on investment, it should be explained that not everyone can become an owner in Turkey. One must have a Turkish residence permit and be able to demonstrate financial sufficiency. This explains why there are only 10 foreign-national owners on the TJC’s books.

Turkey is one of a select few European countries with internationally recognised Group races (the others being France, Germany, Great Britain, Ireland, the three Scandinavian countries and Italy). The Gp2 Bosphorus Cup (3yo+, 2,400m/12f) and Gp3 Topkapi Trophy (3yo+, 1,600m/8f) are the richest, worth north of €150,000. The Istanbul Trophy (Gr3), for fillies and mares, makes up its Group-race trio. All are run over the turf course at Istanbul’s impressive Veliefendi racetrack –  the main centre and flagship of Turkish racing. They are joined by the International Thrace Trophy (turf) and International France Galop FRBC Anatolia Trophy (dirt), both of which are international Listed Races. The only other open race takes place at the nation’s capital, Ankara, being the Queen Elizabeth II Cup for two-year-old thoroughbreds; but this has never attracted any European runners.

The start of the Gazi Derby.

The start of the Gazi Derby.

Richer than all of these is the Gazi Derby, a €330,000 race run over the classic mile and a half in late June. 

Veliefendi is not, however, Turkey’s oldest racecourse. That honour goes to Izmir, at which members of the EMHF’s Executive Council spent a most enjoyable day’s racing in September, following this year’s annual meeting. 

The window into Turkish racing has for some years been its International Festival, at which all Veliefendi’s international races are run. Its wide – up to 36 metres – turf track and attractive prize money once proved highly popular with foreign trainers, who frequently made the journey to Istanbul in September. The Topkapi Trophy , for example, saw a 10-year unbroken spell of foreign-trained winners, with Michael Jarvis, Mike De Kock, William Haggas, Richard Hannon Snr., Kevin Ryan, Andrew Balding and Sascha Smrczek all making the scoresheet. However, COVID has brought about a sea-change in behaviour, and there has not been a foreign-trained winner of any Turkish Group race for the past five years. 

EMHF ExCo members at Izmir Racecourse.

EMHF ExCo members at Izmir Racecourse.

Inevitably, the quality of the race fields has suffered. In 2022, the Topkapi Trophy had to be downgraded from Gp2 as a result, and the pressure on all the Turkish Group races is unlikely to ease unless and until the raiders can be enticed back.

Turkey’s governance structure is also a little unusual. The Ministry of Agriculture and Forestry plays a very hands-on role when it comes to regulation – appointing the Stewards and taking responsibility for race day operations and doping control. The Jockey Club itself operates under the provisions of a triad agreement with the Ministry of Agriculture and the Turkish Wealth Fund, which is the holder of the licence for racing and betting in Turkey.

The TJC prides itself on its not-for-profit status and ethos. Ozbelge explains: “Having a centralised governing system of the racing, breeding and betting activities by a nonprofit organisation with a non commercial approach, but rather a ‘horsemen’ one, with a main goal being to develop [the] racing industry by improving the racehorse breed in the country, has many advantages. This system supports the horse owners and breeders by offering them world-class stallions for very reasonable covering fees, offering boarding and veterinary services of high quality for minimum possible costs to them. Also, supplying the industry with well-educated jockeys in its own Apprentice School and delivering live broadcasting of all races through two TV channels and so on. 

“But when one thinks about the cost of all of these investments as well as all the facilities that the Club has to operate with its staff of 2,300 experienced people, with betting revenue being its sole income, it’s easy to see that this has many challenges that come with it. But the main challenge is the unfortunate general perception of ‘gambling’ of our beloved sport, which is considered the king of sports and the sport of kings throughout the world. With a little bit of support or at least a ‘fair approach’ in comparison to betting on other sporting activities, Turkey has great potential to be a major player in the world league of horse racing.”     

So, what are the prospects of the veil over Turkish racing being lifted? 

There is hope of a new media rights deal which promises to bring pictures of Turkish races to an international audience. But those hoping to see Turkey adopt the policy of most of its European neighbours – namely that of having open races – are likely to be disappointed. Ozbelge again: “As Turkey is not in close proximity to major racing countries in Europe, horses cannot travel frequently by road as between central European countries, but only by air in order to participate in international races. As one can imagine, this is quite costly, and in order to attract some horses from abroad, the prize money is the key factor here. So, it all comes down to the economics of the industry and of the country for sure. We do plan and hope to have more international races, but we can realise it only if and when we have the right infrastructure and dynamics for it.”   

Game face – can betting pools find a new market for European racing?

Game face – can betting pools find a new market for European racing?Where there is competition, there is gambling. Punters naturally take an interest in a sporting outcome and enjoy “putting their money where their mouth is” when it comes to having …

By Lissa Oliver

Where there is competition, there is gambling. Punters naturally take an interest in a sporting outcome and enjoy “putting their money where their mouth is” when it comes to having an opinion on the winner, but never more so than in horseracing. Rightly or wrongly, our industry seems to be inextricably interlinked with gambling and increasingly dependent on betting options. Can betting pools be turned to our advantage and bring in new fans?

A totalisator, or pari-mutuel system, is similar to a lottery in that all the stakes on a race are pooled with a deduction to cover costs and a contribution, where obligated, to racing. The remainder of the pool is divided by the number of winning units to provide a dividend.

On-course bookmakers are struggling to compete with online betting opportunities, and on-course pari-mutuels are no exception. The Irish Tote returned a year-on-year 33% decrease in 2018 to under €70m, due to falling international turnover. Yet a sliver of silver shines in the gloom for 2019, with first-half figures showing a 5.4% increase on-course.

Speaking to a government committee in November, HRI CEO Brian Kavanagh announced a strategic review of the Tote in Ireland, saying, “There is talk of a new gambling regulator being appointed and the taxation status of the Tote has been raised as an issue. The Tote is facing the same struggle as on-course bookmakers. We are in discussions with a number of parties with regard to the future of the Tote, and we will be bringing some strategic options to the board.”

It's interesting to note that in countries such as Ireland and Britain, where horseracing is managing to retain its popularity with the general public, the simple win-only bet is by far the most popular bet, suggesting punters are following form and looking outside our sport for more adventurous fun bets. 

The most popular bet in Britain, Ireland, France, Germany, Spain and Switzerland is the win-only, in Greece the trifecta, multiples in The Netherlands, and in Denmark, Norway, Sweden and Russia, it’s the Jackpot that most captures public interest and investment. Understanding the market and what attracts customers is half the battle, but attracting new customers is the greatest challenge.

Cyril Linette

Cyril Linette

Cyril Linette is the CEO of the French PMU, the biggest betting pool in Europe and the third-largest in the world. Having turned the ailing fortunes of L’Équipe newspaper successfully around, he is now turning his attention to revitalising the PMU. Earlier in 2019, he outlined a new “operating roadmap” designed for corporate recovery and transformation strategy, reviving French racing for all stakeholders.

At a conference in April, Linette expressed confidence in PMU’s long-term prospects, despite declines across its portfolio in 2018—notably sports and poker betting down 2.3% to €9.7bn and horseracing down 2.6% to €8.8bn. This comes on the back of a 20% decrease in betting since 2011, when betting on horseracing has almost halved during that period.

In response to these declines, Linette has launched a €30m cost savings plan, sanctioning “strong actions” across PMU’s retail network, which currently generates 75% of corporate wagers. “If we do not find a solution, in five or 10 years the company puts the key under the door,” Linette warned starkly. As a result, the operator will no longer service the Brazilian horseracing market, ending its partnership with Rio de Janeiro’s Hipódromo da Gávea. 

A key proposal is the revamping of the Quinté, which celebrated its 30th anniversary in 2019, removing all bonus rounds to make it “less reliant on chance.” Linette states his aim to simplify the Quinté: “The Quinté is a rather complicated game, not in its formula, but finding five horses is complicated. There are very simple bets where you just have to find the horse that will win, to attract a younger clientele. That is the big challenge in the years to come—to try to rejuvenate our clientele.”

Among other measures introduced is a new loyalty programme, to engage and reward regular French racing patrons.

“The PMU will place horseracing bettors back at the centre of its business, take good care of today's customers; because our PMU clients are important, they contribute to the social link, they contribute to the financing of the sector,” Linette vows. 

This goes hand-in-hand with a nationwide campaign to improve the general public’s awareness of the sport and hopefully bring in a wider audience. “I do not know if the PMU is corny, but it's a world a little closed,” Linette acknowledges. "The younger generation is not going to naturally play PMU and does not always go to racetracks. There is a real value to our public image. The PMU is known but not sufficiently considered.”

Linette explains, “One thing is certain: diversification towards gambling is over. The PMU has had years of decay; we are no longer in the 1950s, 1960s or 1970s, during the glorious Thirty Years when we used to play the trifecta to buy our new clothes, caravans or something else. There was competition, so at one time the PMU went into lottery games, games of chance, and I think we were losing our soul a little.

“Basically, it's a life-size board game—you have to find the right combination, and the one who finds the right combination deserves to be rewarded, whether in very expert games like the Quinté or in games a little simpler like finding the horse that wins.

“I think we have two ranges of customers: the turfistes (400,000 people), which represent 80% of our turnover, and those who we could call the gamers (2 to 3 million people), which are more volatile. For the first, we must go back to fundamentals by erasing the maximum references to games of chance. Return to the DNA of horse betting, sagacity and gains. For the latter, we must work on image and innovation, so new types of bets to keep them or conquer them.” The message here is clear: stop trying to diversify and instead specialise for each group of particular clients.

Harald Dorum

Harald Dorum

The issue of attracting a fresh, new and younger audience is not just a problem for France. Paull Khan spoke with former CEO of the Norwegian Betting Operator Rikstoto, Harald Dorum, who stepped down earlier in 2019 to “allow a ‘new broom’ to attract a younger audience, with whom racing is struggling to communicate.” He remains President of the European Pari-Mutuel Association, however.

Dorum places much emphasis on the benefits of the pool betting model. Primary among these is the greater susceptibility to race-fixing of fixed odds bets and, especially, exchange models.

“The pari-mutuel operator is completely independent of the result of the race. If a punter places a large stake on an unexpected result, his winnings will be correspondingly lower. Moreover, bets on losers are not allowed,” he says and even claims, “In countries with the Tote model, there has been no case of fixed races for years.”

Despite this, pool betting has not been immune to a general trend in public opinion, which is hardening against gambling and focuses not only on its links to race or match-fixing but also on its use for money laundering, the growth of illegal betting and, perhaps most notably, on the social cost of gambling addiction.

“We have to modernise. We have to find a way of bringing a new and modern product to the market, while still taking care of the integrity of the sport. And fixed odds may be a part of that mix,” Dorum concedes.

He believes that the likelihood of public support will be increased if Tote has a real and clearly explained public mission, whereby some of its profits are directed to other causes, such as financial support of broader equestrian interests. 

It is an oft-observed fact that there is no universal rule book for horseracing and the discrepancies in the interference rules significantly deter many punters. Dorum agrees that the recent progress in harmonising these rules under the so-called ‘Category 1 approach’—now uniform pretty much the world over save for North America—has “absolutely been good news.” Medication rules would be top of his list of the remaining rules to harmonise. Aside from harmonisation, Dorum believes that the sport’s rules must chime with the sensibilities of today’s population, in particular the need to limit the use of the whip to a broadly acceptable level.

Dorum concedes that progress towards a Global Bet, a single world-wide product available around the world and backed by strong marketing and branding has been very slow with neither the betting operators nor the racing authorities gripping the concept and taking ownership of it. But software developments promise an imminent technical solution, he believes. “Just like with a lottery, you have the chance for a life-changing win, but at the same time, you have a great experience.” 

In his view, success in launching a Global Bet will require a joint effort between betting operators and Racing Authorities and this, in turn, will require a commitment in terms of time and policy prioritisation, from the global Racing Authorities, both for galloping and trotting races. And there is a general feeling that the key to this must be the support of the powerhouse that is the Hong Kong Jockey Club. For Dorum, it is political issues rather than technological or legal ones, that have hindered the Global Bet. For instance, he explains, a time of day must be agreed by all the parties, and a publicity programme then to surround it to give it the marketing reach. 

Further, Dorum believes, “We need to increase our cooperation between Tote operators and find solutions and future products together.”

In this context, it has been reported that the PMU, Europe’s pre-eminent Tote operator, is considering its future within the EPMA. “I very much regret, if it will be the case, that the PMU will be leaving the EPMA in May and joining the World Lotteries Association. We and the WLA have a lot to learn from each other, and we have established a working group to determine how we might work and cooperate together.”

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EMHF - Positive EU decisions give cause for optimism

POSITIVE EU DECISIONS GIVE CAUSE FOR OPTIMISMThere have now been no fewer than five European Commission decisions, over the past five years, which have given the green light to member states wishing to introduce state aid in favour of their horserac…

By Paull Khan

There have now been no fewer than five European Commission decisions, over the past five years, which have given the green light to member states wishing to introduce state aid in favour of their horseracing industries and which should be of great interest and encouragement to a number other European racing industries. If lessons can be learnt from these cases, this may help the racing industries in other European countries construct the arguments necessary to follow suit, thereby improving the financial health of our sport across the region.

Racing authorities the world over are engaged in conversations with their governments, seeking to establish, protect, or maximise statutory funding for horse racing as well as to safeguard the future health and stability of the industry and that of the breed. Normally, this funding takes the form of a statutory return to horseracing from betting.

So, typically, the racing authority must first provide good arguments to answer the question of why government should support such a guaranteed return to horseracing from betting (which would normally constitute special treatment for the sport). Then, in many cases, a further question has to be successfully answered: “Why should Government feel confident that objections on the grounds of state aid will be overcome?”

These five decisions – relating to France and Germany (in 2013) and to the UK, Finland, and Denmark (last year), are examples of racing authorities not only having convinced their governments to provide such assistance, but also of their governments having successfully argued before the European Commission that the measures introduced constituted ‘compatible’ (ie admissible) forms of state aid. These decisions should be of interest to those racing industries that either:

  • have no current statutory support, but where their government either allows, or is contemplating allowing, betting operators independent of the sport to take bets on their racing, or

  • have statutory support, but where the level of that support can be demonstrated to be insufficient to sustain the country’s racing industry, and/or the terms of that support can be shown to be in some way unfair.

 

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April - June 2018, issue 61 (PRINT)
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Fair trade betting

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(European Trainer - issue 34 - Summer 2011)

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Are racecourses selling their customers?

The world has gone gambling mad, and perhaps it will hit us harder than most people anticipate in coming years. There is fierce competition out there, for the betting pound, the gambling euro and the wagering dollar. Therefore, this is not a good time for horseracing to lose its share of the gambling pot.

Geir Stabell (European Trainer - issue 22 - Summer 2008)

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Global Superbet -can it take horseracing to a bigger stage?

Twenty-five years ago John R. Gaines in Kentucky came up with an idea: the Breeders' Cup series. Gaines felt that Thoroughbred racing needed a high profile day, which would make it possible for the sport to compete with NFL, NHL and NBA in the media picture. Everyone involved in racing agreed, just as much as they agreed that Thoroughbred breeding and racing needed new innovations, offering opportunities for more international competition with chances of winning bigger purses. Has it worked? Partly, and the Breeders' Cup has most certainly been more a star actor than just another face to the stage.
Geir Stabell (14 February 2008 - Issue Number: 7)

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The European gambling scene – which way for horseracing?

The war is over: so said France Galop director general Louis Romanet a year ago, after he had put his name to a groundbreaking deal with British bookmakers Ladbrokes. For the first time, live pictures of all French races – Flat, jumps and trotting – were being made available to show in UK betting shops, via a new broadcasting service known as Ladbrokes Xtra. 

Howard Wright (Trainer Magazine - issue 16 - Winter 2006)

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Who is Controlling Racing's TV signals?

For all the differences between the horseracing and betting landscapes in Britain and North America, one similarity of principle has emerged over the last five years. The live televised racing scene has crystallised into two entities, and the impact on both the foundation and prosperity of the sport and the availability of its betting facilities has been thrown into the blender. 

Howard Wright (European Tariner - issue 19 - Autumn 2007)

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