Levy terms will halt damage done to racing, asserts BHA

Hunt’s decision takes into account submissions from both the racing and bookmaking industries, together with advice from the Government-appointed members of the Horserace Betting Levy Board.

The Government is responsible for determining the 50th Levy Scheme, which funds British races, after the parties involved failed to reach agreement by the end of October last year.

To achieve this, a number of changes will be made from the terms of the last scheme with the headline rate of levy increasing from 10 per cent to 10.75 per cent.

The threshold level under which betting shops pay a reduced rate of levy will come down from £88,740 to £50,000.

There will be no change to the scheme in relation to foreign racing.

As the Levy supports British horseracing, it has been decided to collect it only from bets on races taking place in England, Scotland and Wales.

“It is really disappointing that two important industries have been unable to come to a sensible commercial agreement,” said Hunt. “I have tried to be fair by listening to the advice of the Independent members of the Levy Board and I will continue to be guided by their advice in future years until what should be a straightforward commercial negotiation can be taken permanently out of the hands of Ministers.

“I am grateful to the Government-appointed members of the Horserace Betting Levy Board and both interested parties for their submissions.

“I have now asked the Horserace Betting Levy Board to finalise the operational details of the scheme as a matter of urgency.”

Paul Roy, chairman of the British Horseracing Authority, said: “Racing welcomes the decision by Secretary of State Jeremy Hunt as a major step in dealing with long-standing failings of the current system.

“It will halt the severe decline in the Levy, and the damage this is doing to the sport.

“The coalition Government could not right all the wrongs in the current system with this decision, but they have addressed issues with traditional LBOs (licensed betting offices), and have signalled fundamental reform to come.

“The next stage has to deliver what is due from remote betting, particularly offshore operators and betting exchanges.

“The range this decision sets is therefore short of the full amount the entire betting industry should be contributing, but (yesterday’s) announcement is an important shift in achieving Racing United’s goals.

“The rise in the headline rate is significant, as is the major reduction in the threshold level, and shows that nothing is set in stone.

“We believe that it is only through major reform that full and fair return, and the environment for real and constructive negotiation, on a level playing field, can be achieved.

“As we told the Secretary of State in November, we will devote our energies in the coming months to working with Government on this.”

Simon Bazalgette, group chief executive of The Jockey Club, added: “This Determination recognises the Levy’s vital role for the funding of British racing, and in turn, the importance of a strong racing industry to British society and the economy.

“We welcome the Secretary of State’s decision as positive news in the short term but urge the Government and the Levy Board to work with racing and the betting industry to modernise the Levy and address the two larger loopholes under the current system of offshore avoidance and unlicensed operators on betting exchanges.”