British Racing and Betfair sign ₤ 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 incomes on the sport drawn from its UK customers.

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

In return, the sport has pledged a minimum variety of fixtures per year and to increase wagering opportunities.

The contract will change Betfair's existing annual voluntary Horserace Betting Levy payments.

Most significant betting companies, including Betfair, now run their online operations outside the UK and are liable to pay tax and horserace levy only on business done within the nation - 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 contract will replace this promotion code previous ad-hoc agreement and will work from the 51st Levy Scheme, which covers the 2012-13 racing season.

"We are delighted that we have actually been able to reach an agreement with Betfair, one which represents a landmark for both the racing and wagering markets," stated Paul Bittar, president of the BHA.

"It brings lots of benefits, consisting of substantial and increased ensured financing, along with importantly providing certainty for the sport in relation to Betfair's contribution."

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

And Mr Bittar said he hoped similar arrangements to the Betfair one might now be concluded with other betting operators.

Betfair's primary legal and regulatory officer Martin Cruddace called the deal "historic" and likewise called on other betting companies to "adopt comparable arrangements to help ensure a strong, healthy and lively horseracing industry in this promotion code nation".

British Horseracing