UK Racing Officials Turn Down Levy Offer From Major Bookmakers
Published on by Andrew Mills
William Hill, Ladbrokes, Coral, and Betfred have had a levy offer turned down by UK Racing officials.The offer was in relation to the bookmakers’ online and land-based contracts, which are all due to expire in 2019.
Authorised betting partner policy
William Hill, Ladbrokes, Coral, and Betfred have all refused to give their consent to the authorised betting partner policy, which contains a clause stating that operators are eligible for different privileges on agreement to give financial aid to the racing industry.However, these funds should be generated from offshore operations, which are not currently subject to any taxes.In autumn 2015, the four operators offered a contribution of 5% of their offshore revenue, but racing authorities refused this and talks came to a stalemate.The negotiations started up again in February 2016, but after the government announced changes to the levy system, and the talks collapsed again.
New proposal
Last month there was another effort as the four bookmakers proposed an offer with three-year validity, including 5% of offshore profits, as well as 10.75% from retail in the first year, dropping to 7.5% for the subsequent two years.Representatives of the bookmakers stated that if racing authorities accepted this deal, it would aid the government’s plans by offering the necessary stability to the sector and the Levy Board.Will Lambe, British Horseracing Authority Director of Corporate Affairs, said that no public discussions were to be held but claimed that BHA members were committed to reaching an interim agreement before the new levy regulations come into effect.