British Racing to establish Authorised Betting Partners
Press Release
Today British Racing is setting out to establish a new and more viable relationship with betting operators in a move which addresses the need to create a sustainable method of transferring funds and value between the racing and betting industries.
British Racing’s leaders, through the Members’ Committee which is the focal point of the forthcoming tripartite agreement between the sport’s governing body the British Horseracing Authority (“BHA”), the Racecourse Association (“RCA”) and the Horsemen’s Group, supports the initiation of a policy that will reward betting operators who pay an agreed contribution to the Horserace Betting Levy (“the Levy”) for their digital businesses or who have a commercial funding deal in place which sees them pay an agreed equivalent sum to British Racing.
Currently, British Racing is losing out on an estimated sum of at least £30 million a year in Levy or equivalent payments. Over the last decade the Levy will have dropped from over £105 million in 2004-05 to a forecasted £53 million by 2017-18 if no action is taken, despite the sport remaining a highly desirable and seven-days-a-week betting product. This is because the majority of betting operators generating profits from taking bets on British Racing do not pay Levy on their digital businesses, which are based offshore and thus not covered by the Levy legislation. The Levy will continue to haemorrhage unless urgent measures are put in place.
The British Government recognises the importance of the British Racing industry, which directly employs over 17,000 people, and supports over 85,000 throughout the country, many in rural areas where it is a vital source of employment. The industry generates over £3.4 billion annually for the British economy, and is the second highest spectator sport in the country. It has committed to introducing legislation in the current Parliament to support the industry and close the loophole in the current Levy legislation through the introduction of a Horserace Betting Right, which is restricted to betting on racing, preserves the VAT advantages to Racing and to betting operators, and which can be delivered within EU rules on state aid.
