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Minister for Sport announces 47th Horserace Betting Levy scheme

014/08
20 February 2008

The 47th Horserace Betting Levy scheme will be set at the same rate as the previous Levy scheme, Minister for Sport Gerry Sutcliffe announced today. This means most off-course bookmakers will continue to pay 10% of their gross profits on horserace betting towards the upkeep of racing.

The Horserace Betting Levy Board expect to collect between £90m and £100m from bookmakers in 2007/08 (the 46th Levy scheme). The 47th Levy scheme should lead to a similar total next year, subject to market conditions.

Minister for Sport Gerry Sutcliffe said:

“Despite thorough consideration I have not been wholly persuaded by the submissions of either the Bookmakers’ Committee or the British Horseracing Authority, nor have I been able to reconcile their starkly contrasting approaches. It is therefore my decision on this occasion to revert to the 46th Levy scheme, being the last occasion on which all parties achieved consensus, and to direct that this be rolled over into 2008/09.

“The determination concluded, I wish to add that it is a matter of serious regret to the Government that we have again found ourselves in the position of having to make a determination when it would clearly have been more appropriate for the betting and racing industries to have agreed a suitable settlement between themselves. We have repeatedly encouraged the two industries to develop a modern relationship as business partners and move away from an adversarial approach. Representatives of both sides now need to proceed to detailed commercial negotiations without delay. To this end I am convening a meeting, under the auspices of the All-Party Racing and Bloodstock Industries Group, to initiate the discussions on a wide range of issues.”

This decision was referred to the Department for Culture, Media and Sport because representatives of bookmakers and the racing industry were not able to agree on a suitable level.

Notes to editors

  1. A copy of the written statement is available on the DCMS website. The written statement details the process and considerations in determining the Levy, and also gives details of arrangements for both off and on-course betting offices.
  2. The Horserace Betting Levy is an annual fee that is collected from bookmakers and distributed to the Horserace Betting Levy Board to fulfil its three statutory purposes. These are the improvement of breeds of horses; advancement of veterinary science and veterinary education; and the improvement of horseracing. Each year the Bookmakers’ Committee makes recommendations to the Horserace Betting Levy Board as to the correct level of the Levy. If the Board agrees to these, the scheme takes effect. If no agreement has been reached by 31 October, it becomes the statutory duty of the Secretary of State to determine the Levy scheme for the following financial year. The 47th scheme takes effect from 1 April 2008.
  3. The main criteria in setting the Levy are the needs of horseracing and the capacity of bookmakers to pay. The department has sought to reflect these considerations in reaching a view about how much bookmakers should be required to contribute in order to enable the Horserace Betting Levy Board to give effect to the improvement of horseracing and its other statutory purposes.

Press Enquiries: 020 7211 6052/6277
Out of hours telephone pager no: 07699 751153
Public Enquiries: 020 7211 6200

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