British Racing rejects Coral's ABP offer
Proposal to pay a 7.5% levy across retail and online labelled "unrealistic" by racing bodies
Coral’s offer to pay a 7.5% levy on UK racing profits derived from both its retail and online businesses has been rejected by British Racing.
In a joint-statement issued last night, British Racing members the BHA, Racecourse Association and Horsemen’s Group said the proposal was “not a realistic starting point for negotiations” and would result in the sport receiving less in contributions than was currently the case.
British Racing has asked operators to pay a 7.5% digital contribution in the form of its authorised betting partner (ABP) scheme, on top of the current 10.75% retail levy. Bookmakers had also seen an earlier offer to pay a 5% digital levy rebuffed by the sport.
Gala Coral chief executive Carl Leaver yesterday described the ABP scheme and levy rate as “draconian” and argued that while the bookmaker’s racing-related costs had risen 45% in the past seven years, the profitability of the sport had been in steady decline.
“Far from being draconian, ABP is a voluntary policy, and we hope that all betting operators who see value in British Racing agree to come on board,” British Racing argued.
“We note comments from some operators that the value of gross win on British Racing is falling.
“However, such an assessment does not take into account the fact that people who bet on British Racing are more likely to bet on multiple betting and gaming activities, generating significant additional value, or the fact that indicators suggest that total betting activity is currently increasing,” the statement added.
British Racing said its “doors remain wide open” for further negotiations but appeared to criticise the decision of some to go public with their comments.
“We remain firmly of the view that this issue will be best resolved through private rather than public discussion,” it said.
Currently none of the bookmakers paying the required 10.75% retail levy have signed-up to become an ABP. So far the online-only operators of bet365, 32Red and Betfair have joined the scheme, each of whom had previously made voluntary contributions to the sport.