Mandatory Horse Racing Betting Levy Introduced by UK Government
The UK government settled a long running dispute between the British Horseracing Authority and UK bookies adding a mandatory contribution of 10% of revenues that are accrued from bets made by UK punters.
The UK government replaced the current perpetual voluntary system of the horse racing levy. It was announced late Friday by Tracey Crouch, Minister for Sports, Tourism and Heritage. Crouch said that starting April the levy will be implemented with it applying to all bookmakers accepting wagers from UK punters. This goes for all companies who accept horse racing wagers.
“This move will help secure the future of horse racing in Britain by making sure that gambling firms pay a fair return to support the sport,” Crouch said. “Horse racing has a strong heritage in this country, employing thousands of people and is enjoyed by many almost every day of the year. This new approach to the Horserace Betting Levy will help sustain and develop the sport.”
The accrued income from the 10% levy contributions will be distributed by the Racing Authority. After the first GBP 500,000 is grossed the levy will kick in. This is valid for all revenues earned from retail and online bookmakers.
The Gambling Commission will take on responsibility of collecting the fees from all licensed betting companies and bookmakers in early 2018. The Levy Board will be done in the early part of 2018 said Crouch.
The decision will have to be approved by the European Commission because the UK is a member of the European Union. The decision will clarify if the levy constitutes “state aid” or not.