Finnish horse industry braces for funding cuts as Ministry of Finance proposes €8.5 million reduction

The Finnish horse industry, particularly the harness racing sector, is facing significant challenges following the Ministry of Finance’s proposal for substantial cuts to state support. Initially suggested cuts of €14.5 million have been reduced to €8.5 million after negotiations during the government’s budget discussions. This means that funding for the horse industry will decrease by about 20% next year from nearly €40 million.

Harri Koivunen, a leading harness racing trainer in Finland, warns that this reduction will lead to fewer horses being kept and could jeopardize jobs in the sector. He likened the funding cuts to “slaughtering a milking cow,” noting that the horse industry generates significantly more revenue for the government than it receives in support.

Over the past few years, revenue from equestrian betting, including lottery taxes, has been around €60 million annually. The majority of state support is directed to racetracks and prizes for races, and Koivunen is particularly concerned about the future viability of these racetracks. He fears their operations will dwindle, negatively impacting training opportunities and diminishing interest in horse ownership.

Minna Mäenpää, CEO of Suomen Hippos, the central organization for the horse industry, stated that the specifics of how the cuts will affect funding next year are still unclear. This year, slightly over half of the nearly €40 million in subsidies will go towards prizes, with about €10 million allocated for central and regional racetrack operations and investments.

As the industry plans its activities for next year, it aims to maintain prize levels, which are crucial for encouraging investment in the sector. There is hope that state support can remain at a reasonable level in the coming years, and the potential partial opening of gambling markets could provide additional funding pathways, possibly materializing by 2027.