Arena Leisure has entered into a five-year deal worth £40m to provide live broadcasts from its racecourses into licensed betting offices.

The agreement, with the Bookmakers Afternoon Greyhound Service (BAGS), takes effect from 1 January 2005 and is expected to increase Arena’s annual income from BAGS by at least £1.5m – an increase of 24 per cent on 2003.

Ian Penrose, group managing director of Arena, said: “This deal allows us to plan for the development of our business with certainty.

“The guaranteed income flow will enable us to continue to invest in our racing and spectator facilities to further the growth of Arena and enhance our position as the UK’s busiest racecourse operator.”