The European Commission has approved the UK laws related to the reforms for foreign horseracing operators in the local market. Yesterday, the Commission informed the international sports betting operators about the horseracing industry amendments which it had approved earlier.
Under the provisions of the new financial reforms, the UK authorities would be able to impose a 10% tax levy on horseracing operators that offer their services in the British market. The European Commission has found that the amendment is in line with the laws of the European Union. The new levy scheme is apply to all operators who provide local players with the chance to make bets on British horseracing events. The levy is also applied to pool betting, spread betting, on-course bookmakers and betting exchanges.
The decision of the European Commission on the new financial reforms in the UK horseracing market are to apply until the UK finally ends its membership in the European Union.
Previously, the international companies have taken advantage of certain benefits which allowed them not to contribute with any taxes to the local market. The UK Horserace Betting Levy reform finally puts an end to that situation, with the foreign operators being required to pay as much as the local ones. So far, British operators have been subjected to a 10% levy on their Gross Gaming Yield (GGY).
The reform will make sure that all betting operators would pay a 10% tax on their GGY. The new rules come into effect from April 1st, 2017 and immediately change the status quo of the offshore betting companies which were not obliged to contribute to local horeseracing market. Of course, they were given the opportunity to make voluntary contributions whenever they wanted.
As revealed by the European Commission itself, the new amendment was approved by it as the Commission recognised how importance of the regulatory changes for the overall improvement of the horseracing industry and horse breeding in the region. What is more, according to the Commission, the measure is set to create a certain level of equality among the betting operators in the UK, both domestic and offshore ones and even claims that the change would support the new operators’ entry in the British horseracing market.
What is also important is the fact that a review of the levy rate is set to be carried out within seven years in order for the local regulatory authorities to make sure that the levy corresponds to the market environment over the upcoming years.
Also, the UK Gambling Commission (UKGC) is expected to pass the levy funding to a nominated racing authority which is to act as an official representative of UK racing. The racing authority is to also bear the responsibility for making decisions on some issues related to the levy range.
- Author
Daniel Williams
