Horse Racing Bets Hit Again In UK

Betting operators around the UK were surprised on Thursday after reports indicated that the government plans to grant the Horse Racing industry with its coveted ‘betting right’.The Racing Post announced the story on Wednesday, stating that the Tory government planned to replace the Levy system with a new regime, where land-based and online bookmakers must transfer 10.75% of race betting revenue back to into the sport.

£30 Million Extra Revenue

Currently, the Levy system creates about £100 million in Horse Racing per annum. Using the new scheme could generate an extra £30 million on top of that, though we won’t be certain of the figures until the budget is revealed by the government on March 16.For the new regime to pass it would require a majority vote in parliament and the House of Lords, in addition to assurances from the European Union that it doesn’t signify illegal state aid. It’s thought that Bookies may lead an EU challenge of the UK proposal, however racing supporters believe precedent has already been set by a similar plan in France.The British Horse Racing Authority (BHA) are apparently ready to dig their heals in and hold on to its Authorised Betting Partner (ABP) system until the new betting right is passed. The group restricts racing sponsorships amongst other things to betting companies who voluntarily give some of their revenue to the sport. So far, only 32Red, Bet365, Betfair and BetVictor have official ABP status.Horse Racing Bets Hit Again In UK

Bookies Affected

In February, Ladbrokes, Coral, William Hill and Skybet were not allowed to advertise on Racing UK as they are not ABP partners. A spokesperson for Racecourse Media Group, the channel’s owner, told reporters they’ll allow the operators to advertise if they become ABP partners, a decision that had nothing to do with the BHA.Bookies may also feel hard done by at this time, as the new 15% online point-of-consumption tax and the land-based Machine Games Duty rose from 20% to 25% in the past 18 months. These taxes have cost operators a lot of money, particularly in the case of William Hill who paid £87 million in taxes throughout 2015.Horse Racing Bets Hit Again In UK

Leave a comment