KPMG distances itself from HRI report

KPMG HAS told the Irish Bookmakers’ Association (IBA) to stop quoting from a report into horseracing’s finances that the organisation commissioned from the accountants’ firm.

KPMG has written to Denis Brosnan, chairman of Horseracing Ireland (HRI), the sport’s administrative body, saying the report it produced for the IBA was “misrepresented” and asked the association to stop quoting the document.

Horseracing Ireland wants the Government to increase betting taxes from their current 1 per cent of turnover level and to include bookmakers’ internet and phone gambling operations in the levy, to boost funding for the sport itself.

Bookmakers oppose such moves and argue it would result in betting closures and leave home-grown internet betting businesses at a competitive disadvantage to overseas competitors.

Last week, the IBA called for an investigation of Horseracing Ireland’s finances and published the findings of research it commissioned KPMG to carry out into the racing organisation’s annual accounts between 1998 and 2008.

The bookmakers said the results showed huge increases in spending over the 10-year period. Horseracing Ireland pointed out it was not founded until 2001 and the report covered both it and the Irish Horseracing Authority, whose role it took over, along with other administrative duties.

KPMG said this restructuring could explain the differences between the two bodies’ spending and its conclusions were not “an appropriate basis” for the conclusions drawn by the IBA.