The future financing of British Racing has been strengthened with the news that Tracey Crouch MP, Minister for Sport, Tourism and Heritage, has confirmed that the existing Horserace Betting Levy will be replaced with a new system that will capture all betting on the sport from April 2017. This new Levy replacement will be charged at a rate of 10% on a betting operator's gross profits on British racing and will provide a multi-million pound boost to the sport. In a tumultuous week for British racing that saw many divided opinions over the future potential closure of Kempton Park this development should receive unanimous support from horsemen.
“I welcome today's announcement from Government regarding the implementation of the Levy replacement which will restore to racing a return from all betting on our sport at a fair and proportionate rate,” said BHA chief executive Nick Rust. “This is critical to the future health of British racing. Once the new system is implemented in April 2017, we will see a significant uplift in the sport's central funding that will benefit our participants and the many local communities which racing supports across all corners of the country.”
Rust continued, “Everyone in British racing would like to extend their thanks to the Minister for Sport, Tourism and Heritage, Tracey Crouch MP, and her dedicated team at the Department for Culture, Media and Sport. British racing is committed to working closely with our partners in the British betting industry to make a success of this new environment, and grow what is the most natural, exciting betting product to the future advantage of both our industries and the wider economy.”
These views were echoed by Tracey Crouch who commented, “This move will help secure the future of horseracing in Britain by making sure that gambling firms pay a fair return to support the sport. Horseracing has a strong heritage in this country, employing thousands of people and is enjoyed by many almost every day of the year. This new approach to the Horserace Betting Levy will help sustain and develop the sport.”
While no doubt it is good news for racing, bookmakers were naturally unenthusiastic about the proposed change which, before implementation will be required to meet state aid approval from Europe. Speaking to The Racing Post a spokesman for Ladbrokes-Coral said they had agreed to the principle of paying on their offshore business “some time ago” but that the rate remained an issue. “On its own, people may think it looks fair but in the round, with cost escalation in the levy, shop pictures, streaming rights and advertising, the sport is in danger of pricing itself out of friends,” he said.
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