More than €42m in public funds was paid out in prize money at horse races last year. Horse Racing Ireland projects that a similar amount will be paid out across 390 racing fixtures this year.
The owners of racehorses who win the prize money do not have to pay tax on income earned from prizes, however trainers and jockeys are subject to taxation.
The organisation which governs the sport of horse racing said prize money stimulates investment and drives rural economic activity.
Horse Racing Ireland said prize funding "impacts the sale of Irish horses and the decision to keep horses in training in Ireland. "The activity of training thoroughbred racehorses is very labour intensive and, therefore, the greater the number of horses in training in Ireland, the greater the employment and economic impact." The amount of public money paid out in prizes increased by €7.8m last year compared to 2020, when racing was curtailed due to the Covid-19 pandemic.