Alphameric warns of loss as bookmakers up pressure

Alphameric, a supplier of software and information to the gambling and hospitality sectors, warned of a significant financial loss, thanks to losses at its Amalgamated Racing joint venture.

The joint venture between Alphameric and a consortium of Britain's leading racecourses provides horse racing coverage in competition with a firm run by the UK's big bookmakers, and Alphameric said in a statement that the bookmakers had started legal action against the firm.

Alphameric is to provide TV pictures and data for more than half of Britain's race courses by January but is losing money rapidly as Britain's big three bookmakers Ladbrokes William Hill and Coral have refused to take the service.

"The deterioration in trading and the losses associated with the Amalgamated Racing joint venture means the directors now expect to announce a significant loss for the group in the current financial year ending November 30, this year," the firm said in a statement.

Alphameric said it would have to look to third parties and shareholders for extra funding in the coming weeks.

The bookmakers' feathers have been ruffled by the horse racing industry's move to break their near monopoly on race coverage and data, complaining it will create clashes in race scheduling and increase costs.

Bookmakers have been gradually cranking up the pressure on Alphameric and its partners in the venture and have said they may also oppose the renewal of the horse-racing levy - the percentage of profits on racing that they give to the horse-racing industry.