British Racing and Betfair sign ₤ 40m business deal

4 July 2012

Online betting exchange Betfair has actually signed an offer with British horse racing organisers, promising a minimum ₤ 40m of financing over the next 5 years.

It will offer 10.75% of all revenues on the sport drawn from its UK consumers.

It follows conferences with industry bodies the British Horseracing Authority, the Racecourse Association and Horsemen's Group.

In return, the sport has actually pledged a minimum number of fixtures annually and to increase betting chances.

The agreement will change Betfair's existing annual voluntary Horserace Betting Levy payments.

Most major betting firms, including Betfair, now run their online operations outside the UK and are liable 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 actually voluntarily paid the UK horse racing levy as though it were still British-based.

The brand-new arrangement will change this previous ad-hoc arrangement and will take result from the 51st Levy Scheme, which covers the 2012-13 racing season.

"We are pleased that we have been able to reach an agreement with Betfair, one which represents a landmark for both the racing and wagering markets," said Paul Bittar, president of the BHA.

"It brings lots of advantages, consisting of considerable and increased guaranteed funding, as well as importantly supplying certainty for the yohaig code sport in relation to Betfair's contribution."

The Horserace Betting Levy, a significant source of moneying to the sport, has actually been gradually decreasing over the years with the relocations offshore by betting companies.

And Mr Bittar said he hoped comparable plans to the Betfair one could now be concluded with other betting operators.

Betfair's chief legal and regulative officer Martin Cruddace called the deal "historic" and likewise gotten in touch with other wagering firms to "embrace comparable arrangements to assist guarantee a strong, healthy and vibrant horseracing industry in this promotion code nation".

British Horseracing