Published
OnlineLand-BasedLegal & Regulatory

Horseracing levy changes to treat onshore and offshore equally

The

GenericHorseracing
UK government will have an alternative to the current horseracing levy system in operation by April 2017, according to culture secretary John Whittingdale, which could include bringing offshore revenue in line with onshore revenue.

The new system would replace the current levy system, where bookmakers pay a levy at a rate of 10.75% on gross profits from UK racing, as per the terms of the Betting Levy Act of 1961.

Operators are currently not bound to pay tax on any revenue generated from offshore online betting, so the issue is in some ways similar to that of the point-of-consumption tax, implemented in December 2014, which changed tax legislation and now requires operators to pay a 15% tax on remote gaming duty, regardless of where they are based.

Whittingdale said in a debate in the House of Commons: "Our aim is to introduce a new funding arrangement for British racing by April 2017.

"We will create a level playing field for British-based and offshore gambling operators, and ensure a fair return from all bookmakers to racing, including those based offshore.

"Racing will be responsible for making decisions on spending the new fund and we'll be making further announcements shortly."

Chancellor George Osborne announced in March last year that the government was looking to introduce a “racing right”, which would be a charge operators would have to pay to take bets on horseracing in the UK.

The British Horseracing Authority (BHA) currently has an Authorised Betting Partner initiative, where operators can make a contribution to the levy from their offshore revenue in order to not lose promotional benefits, such as sponsorship opportunities at racetracks.

BHA chief executive Nick Rust said: “We now have a great opportunity to bring together racing and betting in tackling the sport's funding issues for the benefit of all parties, and this is something that we are actively pursuing.”
Premium+ Connections
Premium
 
Premium
 
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium Connections
Consultancy
Executive Profiles
Chicken Ranch Casino
The Responsible Gambling Affiliate Association (RGAA)
Catena Media
Gambling Commission
Follow Us
The most prestigious Awards in the industry are heading to the Philippines! The Global Gaming Awards Asia-Pacific will recognise and reward (as the name suggests) the strongest performers from the Asia-Pacific gaming industry across the previous 12 months.
This year's winners will be announced at a luncheon ceremony on Day 2 of SiGMA Asia, 4th June, in Manila.
The eleventh annual Global Gaming Awards Americas will recognize and reward the gaming industry's strongest performers across the previous 12 months. These are the most prestigious and trusted Awards in the industry and have gained respect amongst industry heavyweights, due to the strict rules and procedures put in place.

Facing Facts: Operator Q3s from across the globe

Gambling Insider compares Q3 2023 results from major gamblin...

Taking Stock: Operators and suppliers across the world

Sticking with our theme of gambling across the globe, Gambli...

CEO Special: Jade Entertainment and Gaming CEO Joe Pisano - down to earth

Jade Entertainment and Gaming CEO Joe Pisano speaks to Gambl...

CEO Special: Betfred CEO Joanne Whittaker - saying it as it is

Betfred CEO Joanne Whittaker joins Gambling Insider Editor T...