New system to be in place by April ’17
The British horseracing industry is celebrating news that the UK government will introduce a new funding model for the sport, expected to be in place by April 2017. The plan would require bookmakers to contribute to the levy from profits taken both online and in betting shops. The Irish Times called it “a seismic overhaul” that could add up to £30 million (US$43 million) to the industry.
Culture Secretary John Whittingdale said the new system will provide a “level playing field” and guarantee “a fair return from all bookmakers to racing, including those based offshore.” And Nick Rust, CEO of the British Horseracing Authority, called the change “truly historic.”
“The new funding model will ensure a fair transfer of funding to British racing based on all betting activity on the sport—a link that was first established in law in 1961,” Rust said. “It meets all of racing’s requirements for a new funding model and can bear fruit in 2017, which is crucial given the significant levy cliff we face.”
Longer term, he said, the funding formula will mean “greater financial security for the sport, a platform for growth, a huge boost to our participants and more certainty for the tens of thousands of people who rely on racing for their livelihoods.”
So far, Betfair, bet365, 32Red and BetVictor have signed on to the new system. Other big bookmakers like Ladbrokes, Betfred, Coral, William Hill and Paddy Power have yet to agree.
