Government will act as liaison
Talks have stalled between UK online bookmakers and representatives of the country’s horse racing industry, who were working to set a new race betting levy, according to CalvinAyre.com.
On October 31, the Horserace Betting Levy Board and the Bookmakers’ Committee agreed to disagree on the terms of the 55th Levy scheme, which is slated to take effect next April 1. They have kicked the ball to the government’s Department of Culture, Media and Sport, which will attempt to intercede in the dispute and come up with a resolution.
The British Horseracing Authority had asked for a 10.75 percent cut of racing revenue from retail betting operators and 7.5 percent from online operators, according to CalvinAyre.com. The online rate would have risen to 8.25 percent in the 56th scheme and to 9 percent in the 57th.
The bookmakers offered a flat rate over the next four years that reportedly worked out to slightly over 4 percent of revenue; that rate would decline over time as more and more race fans chose to bet online.
Nick Rust of the BHA told the Racing Post the online offer “represented around 3p in a £10 bet. It’s not a fair contribution and we couldn’t accept it.” He added that “two or three of the major operators” had been prepared to offer “a significantly higher rate.”
Bookmakers’ Committee Chairman Mike O’Kane the bookies’ offer “realistically addressed the challenges faced by bookmakers and racing.” O’Kane said the bookies’ total contribution to racing has risen yearly, but racing continues to seek “substantial increases from the levy.”
Rust said the BHA would press the government to place the levy with a Horserace Betting Right.
