British Racing and Betfair indication ₤ 40m industrial deal

4 July 2012

Online wagering exchange Betfair has actually signed a handle British horse racing organisers, guaranteeing a minimum ₤ 40m of funding over the next five years.

It will give 10.75% of all revenues on the sport drawn from its UK customers.

It follows meetings with market bodies the British Horseracing Authority, the yohaig code Racecourse Association and Horsemen's Group.

In return, the sport has actually vowed a minimum variety of fixtures annually and to increase wagering chances.

The arrangement will replace Betfair's existing annual voluntary Horserace Betting Levy payments.

Most significant wagering firms, including Betfair, now run their online operations outside the UK and are responsible to pay tax and horserace levy only on organization done within the country - rather than on their total global operations.

However, until now Betfair has voluntarily paid the UK horse racing levy as though it were still British-based.

The brand-new agreement will replace this previous ad-hoc agreement and will take effect from the 51st Levy Scheme, which covers the 2012-13 racing season.

"We are thrilled that we have actually been able to reach an arrangement with Betfair, one which represents a landmark for both the racing and betting markets," said Paul Bittar, chief executive of the BHA.

"It brings many advantages, including substantial and increased guaranteed financing, as well as notably offering certainty for the sport in relation to Betfair's contribution."

The Horserace Betting Levy, a major source of funding to the yohaig code sport, has actually been slowly lessening for many years with the moves offshore by betting companies.

And Mr Bittar stated he hoped similar plans to the yohaig code Betfair one could now be concluded with other betting operators.

Betfair's chief legal and regulatory officer Martin Cruddace called the bet9ja's welcome offer "historical" and also gotten in touch with other betting firms to "embrace similar arrangements to assist make sure a strong, healthy and dynamic horseracing industry in this promotion code nation".

British Horseracing