OFT prepares to sweep away curbs on horse racing

The Office of Fair Trading this week will launch an assault on the outdated and complex rules governing the multibillion-pound horse racing industry and the stranglehold that the governing bodies have on the sport.

The findings of the OFT's two-year investigation into racing, expected to be published in the next few days, will demand that the sport be thrown open to market forces. Insiders describe the 200-page report as the "case for the prosecution" against the British Horseracing Board and the Jockey Club, which together control racing.

It will say that the BHB has abused its dominant market position, particularly in its control of the racing fixture list and its rights over the key runners and riders data.

The findings will provide a massive boost to racecourse owners and the bookmaking industry, which complain that the sport is not run in their interests or the interests of racing fans.

The BHB controls what races can be put on at which courses and at what times. It also stipulates that racing cannot take place at two courses within 50 miles of each other. The board controls rights over the broadcast pictures of racing and "pre-race data" – the "form" information on the runners in a race.

Chris Palmer, chief executive of GG Media, which represents 10 courses including Towcester, said: "The consumer should decide where he goes to watch racing, based on value for money. And racing should reflect the fact that it is a betting product first and a sport second, because most of our income comes from bookmakers."

The betting industry, led by William Hill, has been angered by the price it must pay for the pre-race data. Under the OFT proposals, courses will be given much more freedom to decide for themselves the day's race programme and they may be given the opportunity to exploit their own data rights. Stephen Atkins, chief executive of the Racecourse Association, said: "Publication of the OFT report will remove the uncertainty. That uncertainty has been stopping investment in the courses."

The BHB will try to resist many of the findings, arguing against a "free for all" and saying the race programme needs to be centrally co-ordinated. Alan Delmonte of the BHB said: "The current structure of racing has allowed for much progress in recent years. Any changes must not jeopardise that."

The BHB and the Jockey Club, which licences courses, will be given the opportunity to respond to the OFT's finding.