British Racing and Betfair sign ₤ 40m industrial deal

4 July 2012

Online wagering exchange Betfair has signed a handle British horse racing organisers, guaranteeing a minimum ₤ 40m of financing over the next 5 years.

It will give 10.75% of all revenues on the sport drawn from its UK clients.

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

In return, the sport has pledged a minimum number of components each year and to maximise wagering chances.

The contract will change Betfair's existing yearly voluntary Horserace Betting Levy payments.

Most significant wagering firms, consisting of 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 global operations.

However, till now Betfair has voluntarily paid the UK horse racing levy as though it were still British-based.

The new agreement will replace this promotion code previous ad-hoc contract and will take impact from the 51st Levy Scheme, which covers the yohaig code 2012-13 racing season.

"We are delighted that we have had the ability to reach an agreement with Betfair, one which represents a landmark for both the racing and betting industries," said Paul Bittar, president of the BHA.

"It brings numerous advantages, consisting of substantial and increased guaranteed financing, along with significantly providing certainty for the sport in relation to Betfair's contribution."

The Horserace Betting Levy, a significant source of moneying to the sport, has actually been slowly diminishing for many years with the moves offshore by wagering firms.

And Mr Bittar stated he hoped similar arrangements to the Betfair one might now be concluded with other wagering operators.

Betfair's primary legal and regulative officer Martin Cruddace called the deal "historic" and also gotten in touch with other wagering companies to "embrace comparable contracts to assist ensure a strong, healthy and vibrant horseracing industry in this nation".

British Horseracing