British Racing And Betfair Sign ₤ 40m Commercial Deal
British Racing and Betfair indication ₤ 40m commercial offer
4 July 2012
Online betting exchange Betfair has signed an offer with British horse racing organisers, assuring a minimum ₤ 40m of funding over the next 5 years.
It will provide 10.75% of all revenues on the sport drawn from its UK clients.
It comes after conferences with market bodies the British Horseracing Authority, the Racecourse Association and Horsemen's Group.
In return, the sport has actually vowed a minimum variety of fixtures annually and to maximise betting opportunities.
The arrangement will replace Betfair's present annual voluntary Horserace Betting Levy payments.
Most major wagering firms, consisting of Betfair, now run their online operations outside the UK and are responsible to pay tax and horserace levy only on organization done within the country - rather than on their total international operations.
However, till now Betfair has actually willingly paid the UK horse racing levy as though it were still British-based.
The brand-new agreement will replace this previous ad-hoc arrangement and will take impact from the 51st Levy Scheme, which covers the 2012-13 racing season.
"We are pleased that we have been able to reach an arrangement with Betfair, one which represents a landmark for both the racing and betting markets," stated Paul Bittar, chief executive of the BHA.
"It brings numerous benefits, consisting of substantial and increased ensured funding, as well as significantly offering certainty for the sport in relation to Betfair's contribution."
The Horserace Betting Levy, a significant source of funding to the sport, has been gradually decreasing for many years with the relocations offshore by betting firms.
British Racing and Betfair indication ₤ 40m commercial offer
4 July 2012
Online betting exchange Betfair has signed an offer with British horse racing organisers, assuring a minimum ₤ 40m of funding over the next 5 years.
It will provide 10.75% of all revenues on the sport drawn from its UK clients.
It comes after conferences with market bodies the British Horseracing Authority, the Racecourse Association and Horsemen's Group.
In return, the sport has actually vowed a minimum variety of fixtures annually and to maximise betting opportunities.
The arrangement will replace Betfair's present annual voluntary Horserace Betting Levy payments.
Most major wagering firms, consisting of Betfair, now run their online operations outside the UK and are responsible to pay tax and horserace levy only on organization done within the country - rather than on their total international operations.
However, till now Betfair has actually willingly paid the UK horse racing levy as though it were still British-based.
The brand-new agreement will replace this previous ad-hoc arrangement and will take impact from the 51st Levy Scheme, which covers the 2012-13 racing season.
"We are pleased that we have been able to reach an arrangement with Betfair, one which represents a landmark for both the racing and betting markets," stated Paul Bittar, chief executive of the BHA.
"It brings numerous benefits, consisting of substantial and increased ensured funding, as well as significantly offering certainty for the sport in relation to Betfair's contribution."
The Horserace Betting Levy, a significant source of funding to the sport, has been gradually decreasing for many years with the relocations offshore by betting firms.