Levy board agrees on 2015-16 British racing levy
British-based online bookmakers will continue to pay 10.75% levy on profits derived from domestic horseracing as offshore 'big four' continue voluntary contribution
Online bookmakers based in Great Britain will continue to pay a 10.75% levy on profits derived from British horseracing after the Levy Board came to an early agreement on what is likely to be the final scheme before the inclusion of offshore operators.
The 54th Levy scheme, which will run from 1 April 2015 to 31 March 2016, will see Betfair contribute an estimated £7.8m to a total fund expected to yield roughly £74.6m. The likes of bet365 and Sky Bet will also pay into the pot.
The majority of the Levy will be paid by the ‘big four’ land-based bookies of William Hill, Betfred, Coral and Ladbrokes, with the quartet having guaranteed to make a combined minimum contribution of £47.5m across the period based on their retail business.
At present, only bookmakers based in Britain are required to pay towards the scheme which helps fund the upkeep and future sustainability of horseracing, although the wheels are in motion to extend the Levy to remote operators based offshore.
However in addition to the scheme, the big four, which all have digital businesses based offshore, will each make a £4.5m voluntary contribution towards an Incentive Fund as part of a four-year deal which was first agreed last year “ a deal which was criticised by Betfair at the time.
Bookmakers based overseas are expected to be required to contribute to the fund in time for the 56th Levy scheme. A 10-week consultation regarding potential long-term adjustments or replacements for the Levy was launched by the UK government late last month.
Paul Bittar, chief executive for the British Horseracing Authority, said he was pleased the scheme was finalised well ahead of the 31 October deadline and looked forward towards discussing plans for the Levy’s future.
“Our attentions are now focused on the government’s consultation on fundamental reform or replacement of the Levy and establishing a modern relationship with an evolving betting industry, and we will continue to work actively with bookmakers to this end,” Bittar said.
According to Coral CEO Andy Hornby, the early announcement of the Levy would now leave the sport free to be able to revive what many observers, including Ladbrokes CEO Richard Glynn, see as its flagging popularity.
“Achieving a swift and mutually agreeable deal for next year’s Levy will enable bookies and racing to continue to focus on the most important challenge “ that of growing the appeal and popularity of betting on horse racing,” Hornby said.