Bookmakers open to discussions on new levy agreement following 'powerful' racing debate in Westminster Hall

Bookmakers have expressed a willingness to reopen discussions with racing to conclude a voluntary agreement to levy changes with an emphasis on a means to “better promote, market and grow the sport” in the face of falling punter engagement.

On Thursday, sports minister Stephanie Peacock urged the two sides to reach a deal on amending the rate of tax paid by bookmakers to the sport, which had started under the previous government to ensure racing’s finances were not undermined by legislation proposed in the gambling white paper.

A deal collapsed in May following the announcement of the general election, but Peacock said during a Westminster Hall debate on government support for horseracing that a proposal by bookmakers to increase levy payments to 11.5 per cent from ten per cent had been deemed “reasonable” by racing with the “majority” of the extra funding being targeted at a growth fund.

The Betting and Gaming Council (BGC), which represents the interests of most bookmakers, said any levy agreement had to work for both sides with recent Levy Board figures showing betting turnover on racing dropping by a fifth in the last two years.

A BGC spokesman said: “The BGC welcomes the ministers’ comments that the levy ‘needs to reflect the common interests of both sides of the relationship'. It cannot be one over the other or punters, and the sport, will lose out.

“The BGC and our members are prepared to continue to have dialogue with racing to better promote, market and grow the sport in a sustainable way for the future.”

The spokesman added that racing was “close to a loss-making product for some of our biggest bookmakers”. This position has been highlighted through the summer by Flutter Entertainment, the parent company of Paddy Power, Betfair and Sky Bet, which offered no early prices and SP only on a number of fixtures hosted at Arena Racing tracks due to the costs involved.

The importance of amending the levy and ensuring affordability checks were proportional where highlighted by the BHA as key points raised in the debate, as well as the cross-party nature of the 15 MPs who spoke during the session.

Greg Swift, BHA director of communications and corporate affairs, said: “This debate was yet another powerful demonstration of the importance of our sport and how well that is recognised in parliament.

“It is encouraging that the MPs’ public commitments to secure a better financial future for racing were shared across political parties. Participants also made it clear that there is a need for the government to protect and support British racing through reform of the levy – to include bets placed on overseas racing – and in urgently addressing the impact of financial risk checks on horserace bettors.

“We are sure the sports minister will have listened with interest to the views expressed and we look forward to making further progress on these issues with gambling minister Baroness Twycross in the coming weeks and months.”

Read more here:

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