SIS has stepped in to back a sponsorship scheme which will help racehorse owners stay in the sport.

The Racehorse Owners’ Associations scheme had been supported by Totesport but that agreement ended when the Tote was sold to Betfred. That left the ROA unable to finance the scheme beyond this autumn.

SIS’ intervention means that the ROA can offer sponsorship payments totalling up to £200,000 a year, while joining the scheme also means that owners can register as a business for VAT purposes and therefore reclaim the VAT on their racing activities as well on the purchase price of their horse. The ROA estimates that the reclaimed VAT is worth at least £6million each year.

David Holdgate, Chief Executive, SIS, said: “We are always searching for the right opportunity to demonstrate our long-term commitment to British racing and we are delighted to work with the ROA to provide support to owners. It is essential to our customers that racing continues to provide a competitive betting product and we are only too pleased to be able to contribute to that by supporting the sport through this agreement.”

Richard Wayman, Chief Executive, ROA, said: “This agreement is a most welcome development and we extend our deep gratitude to SIS, which has shown the insight to fully appreciate the importance of this sponsorship to both racehorse owners and the racing industry generally.

“With the number of owners and horses continuing to decline, I can’t overstate the importance of this agreement and the fact that SIS has committed to support the scheme for at least three years secures its future for a significant period of time.”

Horses are seen regularly carrying the sponsored silks to victory on Britain’s racecourses, including in 2012 Arctic Cosmos in the Listed Magnolia Stakes at Kempton Park, Cape Tribulation in the Pertemps Final at the Cheltenham Festival and Prince of Johanne in the Royal Hunt Cup at Royal Ascot.