European Commission endorses horseracing betting reform
Representatives of the European Commission have today endorsed the UK government’s plans to reform the UK Horserace Betting Levy.
Under proposals announced earlier this year, the regulations will place a 10% levy on profit for all bookmakers that receive bets on British horseracing from UK gamblers, bringing this into line with existing European Union state aid rules.
The reforms will ensure that all off-shore bookmakers contribute to the levy whereas currently only bookmakers based in the UK contribute to the financing of horseracing.
This replaces the current system where only companies based in the UK have to pay a 10% levy on gross profits above the first £500,000.
A statement on the European Commission’s website said that it felt the new system would create a level playing field amongst bookmakers, while at the same time supporting the entry of new businesses and fostering competition between firms.
BHA Chairman Nick Rust has welcomed the Commission’s approval saying: “With the final, outstanding approval now secured from the European Commission, today marks one of the last few steps in the process of securing a fair return from all betting on our sport.
“We look forward to receiving confirmation shortly from government of when the new legislation will take effect.”
The current Authorised Betting Partners scheme will cease once the new levy system commences, as all bookmakers will be paid on a statutory basis. A new racing authority due to take over collection of the levy will be appointed by the Gambling Commission later this year.
Many bookmakers have expressed concern about a potential lack of industry representation on this new authority. Speaking to the Racing Post, William Hill’s Director of Communications Ciaran O’Brien said: “It surely makes sense for both industries to have an input into how the funds are invested, otherwise this move represents an increase in taxation alongside a removal of representation.”
The decision made by the Commission will only apply as long as the UK remains a member of the European Union.
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