UK government votes through offshore racing levy
Parliamentary scrutiny of Gambling Bill comes to an end with levy amendment, Royal Assent to follow shortly
The UK government yesterday rubber-stamped an amendment to the Gambling Bill which will see offshore operators required to pour around £20m of their UK-derived horse racing profits back into the sport.
The amendment, which was confirmed in the House of Commons during the Bill’s ‘ping-pong’ stage, comes a week after chancellor George Osborne set out the government’s intention to boost the cash available to the Horse Betting Levy Board (HBLB).
At present, offshore operators are exempt from paying the current 10.75% levy on profits gained via the offer of UK horse racing, but this is set to change from 2016, pending final clearance from the European Commission (EC).
The racing levy, which helps to fund the development of the sport, is considered to be a form of state aid and any changes to current aid agreements must first receive the green light from the EC.
The extension of the levy, however, is only considered to be a short-term fix with the government yesterday also setting out plans to launch a consultation this summer in order to find a longer-term funding solution.
The idea of developing a horse racing right, where operators would need to pay a set fee in order to take bets on the sport, was mooted by Osborne during last week’s Budget speech.
However, sports minister Helen Grant told the Commons that the introduction of a racing right was “not a foregone conclusion” although confirmed the idea was one being considered along with a more sophisticated racing levy and also commercial deals.
MPs agreed that change to the levy was required after amounts raised for the HBLB had been reduced by around £40m in recent years as UK operators moved offshore.
The end of the ping-pong stage, the term given to the final review of amendments made in the House of Lords and House of Commons, means the final Bill has now been drafted and will be put forward for Royal Assent in the coming days.
It is expected that the UK regulator, the Gambling Commission, will open the licensing window for the new UK Point of Consumption regulatory regime two months after Royal Assent has been granted.
News of the extended racing levy comes as former member of the HBLB Paul Darling QC is set to be revealed as the new chairman of the Association of British Bookmakers (ABB) later today.
Darling will succeed former Gala Coral chairman Neil Goulden and will be immediately tasked with helping the industry come through a period in which it is facing increased political and media pressure surrounding the impact of FOBTs on wider society.