Bookies rally against horserace betting right
Questions raised over "unworkable" proposal as industry bodies weigh in on fundamental change in horse racing funding in UK
UK bookmakers have called the move to a horse racing betting right announced yesterday “unworkable” and damaging for both parties, with one trade association describing the new system as “fundamentally flawed”.
Chancellor of the Exchequer George Osborne announced the move away from the current levy-based model during his budget speech yesterday (Wednesday) as part of a need to “support” the British racing industry.
And while the British Horseracing Authority claimed the switch is the “best solution” to secure the “long-term prosperity” of the sport, the news was met with dismay among bookies with a Ladbrokes spokesman describing the racing right as “fraught with legal issues” both within and between the racing and bookmaking sectors.
“I would hope our energies can be directed to agreeing a more efficient, innovative and productive relationship that benefits all our stakeholders,” the spokesman said.
The Remote Gambling Authority meanwhile called the horserace betting right proposal “fundamentally flawed” but said it will re-engage with whoever forms the new British Government later this year
“The truth is that this is still a very long way from becoming law or from the UK Government being able to demonstrate that it would be compliant with EU law,” RGA chief exec Clive Hawkswood told eGR.
Details of the betting right are yet to be confirmed, however it would see a departure from the 10.75% gross profits levy UK bookies currently pay, in favour of a variable cost linked to each event bets are taken on.
The fear among those who take bets on horseracing events is that the government, with the input of the racing authorities which will administer the fee, will pitch the cost too high.
And several bookies contacted by eGaming Review said they agreed with the Association of British Bookmakers’ (ABB) view that the model is “unworkable” and would soon run into legal problems.
“It is incredibly disappointing that DCMS and Racing appear to suggest 10.75% is a ‘low estimate’ and that the impact assessment accompanying the consultation models a 50% GPT rate, an increase of close to 500%,” a spokesperson for the ABB said.
“We are concerned that the fact that Racing has not sought to publically distance itself from the modelled rates shows the very real danger of Racing over-pricing the Right resulting in yet more litigation,” the spokesperson added.