The Government of the UK, and more specifically the Minister for Sports, Tourism and Heritage Tracey Crouch revealed that the British gaming operators will be required to pay an extra levy amounting to 10% of the race betting revenue.
According to Ms. Crouch, the change in the levy system would be beneficial, as it would make sure that gambling companies pay their fair share to support the industry in the country, taking care of the horse racing’s future.
The UK Minister for Sports, Tourism and Heritage said that the horserace betting had a strong heritage in on the territory of Great Britain. According to Ms. Crouch, the new system would not only ensure employment for thousands of people, but would also result in developing and maintaining the sport in a sustainable state.
As revealed by the country’s Government, the new measures in the gaming and betting industry are scheduled to take effect in April 2017. In addition, the new levy increase is planned to equally apply to a number of operators in the country, including online, on-course and off-course operators, as well as retail, betting exchanges and spread betting lines.
The new levies aimed at replacing the current Horserace Betting Levy that is currently in operation in the country. The change is also planned to be officially introduced next year. The competent body that is to be responsible for collecting the new fees is to be the UK Gambling Commission (UKGC).
Previously, the Department for Culture, Media and Sport (DCMS) had consultation on the proposals to reform horserace betting levy. The latter was initially established in 1961, but has become outdated, especially considering the rapidly changing environment. Under the current system, there is no statutory obligation for offshore web-based betting operators to contribute to horseracing. Of course, such companies are allowed to make such contributions voluntarily.
However, the Department for Culture, Media and Sport has already revealed that it plans to change the legislation and regulatory framework in order to make it obligatory for all gambling businesses that race bets from local customers, to pay 10% of their gross profits generated from racing. As already announced by the Government and reported by Casino Guardian, the new funding scheme is planned to be officially introduced in April this year.
As mentioned above, after it comes in force, the new levy scheme is planned to be applicable to all operators that offer local customers to place bets on British horseracing activities. The companies subjected to the new levy include on- and off-course bookmakers, betting exchanges, pool betting as well as spread bets. After more consultations on the matter, the Government also plans to delegate the responsibility for collecting the new levy to the UK Gambling Commission at the beginning of 2018.
The Chief Executive Officer of the British Horseracing Authority (BHA) Nick Rust also commented on the Government’s plans, saying he was impatient to see the levy implemented. Mr. Rust expressed his surety that the levy would restore fair and proportionate rates to all betting on horseracing. He also said that the new levy system was expected to result in a “significant uplift” in the sport’s central funding once it was implemented in April 2017.
- Author
Daniel Williams
