5. OPERATIONAL CHARACTERIZATION AND ECONOMIC IMPACT ESTIMATION OF THE HUNGARIAN HORSE INDUSTRY IN 2013
5.2 Horse breeding
5.3.1 Operational characterization of Hungarian Horse Racing
Horse racing in Hungary has been based on two breeds: the Thoroughbred and the Trotter, in contrary to some other countries, where Purebred Arabians (e.g. in the United Arab Emirates, Qatar, the Sultanete of Oman, the Syrian Republic, France, the United States, the Netherlands, Turkey, Great Britain, Russia, etc.) and Quarter Horses (e.g. in the United States) also race (International Federation of Horse Racing Authorities, 2013; American Quarter Horse Association, 2015).
Horse racing in Hungary did not form an “industry” in 2013, in contrary to, for instance, that in Ireland, France, Australia or the United States. The four agents responsible for racehorse breeding, training and racing of horses, organization of race meetings and organization of bets operated in different interest groups. There were two courses in use, one in Budapest, where race meetings were held, and at Alag which principally served as training center. The most important data on Hungarian Horse Racing are provided in table 5.9.
Table 5.9: The most important data on Hungarian Horse Racing in 2013
Description Flat racing Jump racing Harness racing
Number of racehorses 463 461
Number of breeders 240 199
Number of jockeys /drivers 107 professional
43 amateur 12 professional 135 professional 107 amateur
Number of trainers 62 7 58
Number of stables 168 191
Number of race meetings 31 59
Number of races 311 486
Number of starts 2 722 18 4,704
Total prize money (EUR) 802,326 4 718 772,741
Owners’ premium (EUR) 55,993 - 59,150
Breeders’ premium (EUR) 55,993 - 59,150
Total betting turnover (EUR) 2,376,457
Source: own construction based on the database of Hungarian Horse Racing, Magyarturf and the IFHA.
81 5.3.2 Comparison of Hungarian Horse Racing with that of other countries
In order to be able to compare data on Hungarian Horse Racing at the international level, information was collected on the number of different horses, the number of breed horses, the number of starts, the number of racecourses, betting turnover and prize money in 2013 from the database of the International Federation of Horse Racing Authorities. Data were adjusted by 100,000 inhabitants, with the exception of the number of racecourses, where the benchmark was 1 million people. The top 25% of countries per each of the specified indicators calculated on the basis of percentile rank and the rank of Hungary are presented in tables 5.10-5.15.
On the basis of the number of different horses registered in the disciplines of horse racing divided by 100,000 inhabitants, New Zealand had the highest number of horses closely followed by Australia, then Sweden and Ireland and, behind them, Cyprus, Norway and Macao.
In Hungary, 9 racehorses per 100,000 inhabitants raced in 2013, by which it could be ranked in the 41st percentile rank.
Table 5.10: Top 25% of countries ranked on the basis of percentile rank calculated by the number of
Source: own construction based on own calculation from data obtained from the IFHA
Table 5.11: Top 25% of countries ranked on the basis of percentile rank calculated by the number of breed horses in horse racing and the rank of Hungary in
Source: own construction based on own calculation from data obtained from the IFHA
82 Table 5.12: Top 25% of countries ranked on the basis
of percentile rank calculated by the number of starts in horse racing and the rank of Hungary in 2013
Country No of starts per
Source: own construction based on own calculation from data obtained from the IFHA
Table 5.13: Top 25% of countries ranked on the basis of percentile rank calculated by the number of racecourses in horse racing and the rank of Hungary in 2013
Source: own construction based on own calculation from data obtained from the IFHA
On the basis of the number of breed horses, Ireland kept the highest number of horses per 100,000 inhabitants in breeding followed by New Zealand, Australia, Uruguay, Sweden, Cyprus, the United States and France. In Hungary, the number of breed horses amounted to 4 per 100,000 people. On the basis of this result, Hungary could be placed in the 36th percentile rank.
Based on the number of starts per 100,000 inhabitants, Australia was the most excelling country in 2013, closely followed by New Zealand, then Sweden, Norway and Macao. There were 75 starts organized per 100,000 people in Hungary in 2013 by which it was placed in the 51st percentile rank. For comparison, in Australia, 1,413 starts were held per 100,000 people.
On the basis of the number of racecourses per 1,000,000 inhabitants, again, Australia was the most excelling country, followed by New Zealand then Ireland, Serbia, France and Sweden. Per
83 1 million people, Hungary did not have at least one racecourse (only 0.1011), by which it can be placed in the 18th percentile rank.
Table 5.14: Top 25% of countries ranked on the basis of percentile rank calculated by betting turnover and the rank of Hungary in 2013
Country Betting turnover
Source: own construction based on own calculation from data obtained from the IFHA
Table 5.15: Top 25% of countries on the basis of
Source: own construction based on own calculation from data obtained from the database of the IFHA
In the ranking of betting turnover per 100,000 people, Hong Kong was the first, followed by Ireland, Australia, Macao and the United Kingdom, etc. In Hungary, betting turnover amounted to 24,021 euros per benchmark (while that in Hong Kong was in excess of nearly 133 million euros per 100,000 inhabitants), by which it was placed in the 14th percentile rank.
On the basis of total prize money per 100,000 people, Macao was ranked the first, followed by Australia, Hong Kong, New Zealand, Ireland and Sweden, etc. Hungary was ranked in the 26th percentile rank by sharing 15,969 euros of prize money, in total, per 100,000 inhabitants.
84 5.3.3 Economic impacts generated by Hungarian Horse Racing
By Hungarian Horse Racing 17,172,294 euros were generated in total in 2013, of which 17,013,958 euros were in direct economic impacts and 158,336 euros were in indirect economic impacts. Total betting turnover amounted to 2,376,457 euros, of which 70% was returned to bettors and 30% to cost management. The share of the two racing disciplines of the generated direct impacts was 49% and 51%, and of the indirect impacts 36% and 64% between gallop racing and harness racing, respectively. The cost and expense categories of calculation and details on data used for the estimate are provided in table 5.16. For a more detailed estimate, see table 9.1, appendix 3.
Table 5.16: Cost and expense categories of the estimation of impacts generated by Hungarian Horse Racing Cost and expense
category Source of information and / or Note Registered number of
racehorses Database of the Hungarian Horse Racing sub-sector Registered number of
jockeys / drivers Database of the Hungarian Horse Racing sub-sector
Horse investment Executive vice-president of the Hungarian Trotter Breeders’
Association; General Manager of the Hungarian Jockey Club*
Amortization of horses Executive vice-president of the Hungarian Trotter Breeders’
Association; General Manager of the Hungarian Jockey Club Horse maintenance
(including feeding, bedding, training, management, racing and farrier services)
Executive vice-president of the Hungarian Trotter Breeders’
Association; General Manager of the Hungarian Jockey Club
Information on farrier services obtained from farriers shoeing racehorses
Jockey / driver equipment Published prices of equipment, own estimate after discussing what was necessary
Horse equipment Published prices of equipment; own estimate after discussing what was necessary
Amortization of equipment The same as the amortization of horses
Veterinary services
Executive vice-president of the Hungarian Trotter Breeders’
Association; General manager of the Hungarian Jockey Club
for 75% of racehorse population, average veterinary costs of given range, for 15% of racehorse population, 25% of the costs of given range, for 10% of racehorse population, 75% of the costs of given range
Amortization of racecourse
Executive vice-president of the Hungarian Trotter Breeders’
Association; General Manager of the Hungarian Jockey Club
In fact, the fee for using the racecourse was taken into account because there were no data on amortization.
Registration fee Executive vice-president of the Hungarian Trotter Breeders’
Association; General Manager of the Hungarian Jockey Club Number of race meetings Hungarian horse racing database
Number of starts Database of the Hungarian Horse Racing sub-sector and the International Federation of Horse Racing Authorities Entry fee Executive vice-president of the Hungarian Trotter Breeders’
Association; General Manager of the Hungarian Jockey Club Start fee Executive vice-president of the Hungarian Trotter Breeders’
Association; General Manager of the Hungarian Jockey Club Source: own construction; *The Hungarian Jockey Club organizes harness racing, as well.
85 Table 5.16 continued: Cost and expense categories of the estimation of impacts generated by Hungarian Horse Racing
Cost and expense category Source of information and / or Note Riding / driving fee Executive vice-president of the Hungarian Trotter Breeders’
Association; General Manager of the Hungarian Jockey Club Showing fee
Executive vice-president of the Hungarian Trotter Breeders’
Association; General Manager of the Hungarian Jockey Club. Only in the gallop discipline.
Doping test fee From equestrian data on MCP
Prize money Database of the Hungarian Horse Racing sub-sector and the International Federation of Horse Racing Authorities
Number of Officials and Staff
at race meetings Database of the Hungarian Horse Racing sub-sector Fee for the Officials and Staff
at race meetings
Executive vice-president of the Hungarian Trotter Breeders’
Association; General Manager of the Hungarian Jockey Club Sponsorship Executive vice-president of the Hungarian Trotter Breeders’
Association; General Manager of the Hungarian Jockey Club Catering for Officials and
Staff 15 eur / day
Catering for Participants 15 eur / day Transportation of horses
Executive vice-president of the Hungarian Trotter Breeders’
Association; General Manager of the Hungarian Jockey Club information on distance and price of transportation
Transportation of participants It was supposed that participants arrived together with the racehorses Source: own construction. See the note below the table at the previous page.
5.4 Equestrian