Time To Start Again With Starting Prices?

It doesn’t take a genius to know the world changed after Covid—and so did the betting landscape. As an online and on-course bookmaker who has lived and breathed betting and the betting ring for most of my life, I’ve felt that change more than most.

One of the biggest shifts—though one that hasn’t received the attention it deserves—is the way the Starting Price (SP) is now determined.

The SP has been a trusted benchmark since the 18th century. And with the increasing importance of Best Odds Guaranteed (BOG), you could argue it’s never mattered more than it does today. In 2016, Lord Donoughue of the Starting Price Regulatory Commission famously said:

“Nobody can fix the SP. Punters who bet at the SP are not being misled or ripped off. Moreover, the traditional SP has the virtues of familiarity, based on its many years as a trusted medium for the majority of punters.”

That all changed in 2021 when on-course bookmakers were removed from the sample used to compile the SP.

For betting to work, transparency and accuracy are non-negotiable. And I fear the current system lacks both.

It’s become increasingly clear that regulatory changes online—combined with the decreased risk appetite of the major corporations—have driven high-staking punters back to the racecourses. At the same time, exchange liquidity has declined significantly.

I believe the time has come for reform: a return to a balanced and trustworthy SP mechanism. Reintroducing racecourse bookmakers into the process could be the solution we need—one that not only supports a more transparent and competitive market but also restores the sense of integrity and confidence that once defined the system.

The resurgence of bigger punters, many using more sophisticated strategies, has created a more dynamic on-course market—often producing sharper and more immediate price moves than we’ve seen in years

At the same time, the drop in exchange liquidity has reduced the accuracy and effectiveness of exchanges in producing a “perfect market”—one where odds genuinely reflect a horse’s chances. As a result, on-course bookmakers like myself, who previously hedged into exchanges, are now returning to traditional, opinion-led bookmaking. That means bigger liabilities—and prices shaped by genuine market insight.

There’s also the increasing cost of providing horse racing online. The 2023 SPRC report highlights a broader trend of bookmakers adjusting pricing to achieve higher percentage margins, noting a rise in GGR (gross gaming revenue) yield that correlates with steadily increasing SP overrounds.

With the government now consulting on aligning remote gambling tax with the 21% rate currently applied to gaming—up from the 15% paid on sports betting—costs for online bookmakers are set to rise further

In my view, that cost will inevitably be passed onto consumers through poorer odds, higher overrounds, and a less competitive SP—especially when compared to the on-course market.

We offer BOG on our site www.dragonbet.co.uk, so I know first-hand how expensive it is. We build our own prices and aim to mirror the same appetite for decent bets online as we do on the racecourse. But I also know just how hard it is to make a margin on horse racing, especially with the mounting costs involved.

The Covid-19 pandemic disrupted everything—including the SP system. It left us with a structure vulnerable to market forces that don’t reflect the true spirit of betting on horse racing.

By reforming how Starting Prices are determined, and restoring the role of racecourse bookmakers, we can return to a system that served the sport—and its punters—so well for generations. This change would bring back the sense of trust and clarity that many now feel is missing, while also encouraging a more vibrant and competitive betting environment.

The time for reform is now. Let’s bring racecourse bookmakers back to the heart of the SP system—and reignite the trust, integrity, and excitement that once defined betting on horse racing.