Supplier News
UK – British bookies to face 10 per cent horseracing levy
By Phil - 17 January 2017
British bookmakers will have to pay a 10 per cent levy on their profits, under new plans unveiled by Tracey Crouch MP, Minister for Sport, Tourism and Heritage, who 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.
The Levy replacement will be charged at a rate of 10 per cent on a betting operator’s gross profits above the first £500,000 on British racing and will provide a multi-million pound boost to the UK’s second largest sport.
Ms Crouch said: “The new levy will ensure gambling firms pay a fair return. Horse racing has a strong heritage in this country, employing thousands of people and is enjoyed by many almost every day of the year.”
The move was welcomed by horseracing association although betting groups have questioned the ‘cumulative impact’ of media rights, tax and regulation.
Nick Rust, Chief Executive of the British Horseracing Association, said: “The Levy replacement will restore to racing a return from all betting on our sport at a fair and proportionate rate. 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.
“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.”
Clive Hawkswood, Chief Executive of the Remote Gambling Association, added: “There is a passing reference to the need for them to obtain state aid clearance and that remains a significant hurdle for them to overcome. It would be premature to talk about legal challenges until that process is complete and that could take months.”
