British Racing And Betfair Sign ₤ 40m Commercial Deal
British Racing and Betfair indication ₤ 40m industrial offer
4 July 2012
Online wagering exchange Betfair has signed a deal with British horse racing organisers, assuring a minimum ₤ 40m of financing over the next five years.
It will offer 10.75% of all earnings on the sport taken from its UK customers.
It follows meetings with industry bodies the British Horseracing Authority, the Racecourse Association and Horsemen's Group.
In return, the sport has actually promised a minimum variety of fixtures per year and to increase wagering opportunities.
The arrangement will replace Betfair's current annual voluntary Horserace Betting Levy payments.
Most major wagering firms, including Betfair, now run their online operations outside the UK and are accountable to pay tax and horserace levy just on organization done within the country - instead of on their total international operations.
However, till now Betfair has willingly paid the UK horse racing levy as though it were still British-based.
The new contract will change this previous ad-hoc agreement and will take impact from the 51st Levy Scheme, which covers the 2012-13 racing season.
"We are thrilled that we have actually been able to reach an arrangement with Betfair, one which represents a landmark for both the racing and wagering markets," stated Paul Bittar, president of the BHA.
"It brings lots of benefits, including substantial and increased ensured financing, as well as notably providing certainty for the sport in relation to Betfair's contribution."
The Horserace Betting Levy, a major source of funding to the sport, has been gradually lessening over the years with the moves offshore by wagering companies.
And Mr Bittar said he hoped similar plans to the Betfair one might now be concluded with other betting operators.
British Racing and Betfair indication ₤ 40m industrial offer
4 July 2012
Online wagering exchange Betfair has signed a deal with British horse racing organisers, assuring a minimum ₤ 40m of financing over the next five years.
It will offer 10.75% of all earnings on the sport taken from its UK customers.
It follows meetings with industry bodies the British Horseracing Authority, the Racecourse Association and Horsemen's Group.
In return, the sport has actually promised a minimum variety of fixtures per year and to increase wagering opportunities.
The arrangement will replace Betfair's current annual voluntary Horserace Betting Levy payments.
Most major wagering firms, including Betfair, now run their online operations outside the UK and are accountable to pay tax and horserace levy just on organization done within the country - instead of on their total international operations.
However, till now Betfair has willingly paid the UK horse racing levy as though it were still British-based.
The new contract will change this previous ad-hoc agreement and will take impact from the 51st Levy Scheme, which covers the 2012-13 racing season.
"We are thrilled that we have actually been able to reach an arrangement with Betfair, one which represents a landmark for both the racing and wagering markets," stated Paul Bittar, president of the BHA.
"It brings lots of benefits, including substantial and increased ensured financing, as well as notably providing certainty for the sport in relation to Betfair's contribution."
The Horserace Betting Levy, a major source of funding to the sport, has been gradually lessening over the years with the moves offshore by wagering companies.
And Mr Bittar said he hoped similar plans to the Betfair one might now be concluded with other betting operators.