The British Horseracing Authority (BHA) has reportedly turned down a new levy offer proposed by four major gambling operators; Betfred, Ladbrokes, William Hill, and Coral. According to the Racing Post newspaper, the proposed offer was associated with their retail and online business contracts that are expected to expire in 2019. All four operators have refused to give the UK Racing officials their consent to financial aid.
According to reports, the operators are entitled to different privileges if they agree to provide the UK Racing officials with financial aid. But the contributed funds should come from their offshore online businesses that are not subject to taxes.
Last year, the bookmakers offered to contribute at least 5% of their offshore revenues, but the racing officials declined the offer and negotiations were given a red flag. Negotiations resumed this year February, but weeks later, the government announced new changes in the levy system.
Offer proposed by UK leading bookmakers in May 2016
- Bookmakers proposed an offer of a three-year validity.
- They offered 5% of their offshore revenue.
- Bookmakers would also contribute 10.75% from retail in 2016-2017.
- Over the next two years, the 10.75% would then be reduced to a contribution of 7.5% from both retail and online businesses.
Bookmakers’ spokespersons have reported that it would have provided the sector and the Levy Board with the required solidity if the racing authorities had accepted the proposed offer. But as things stand, the racing authorities are more likely to not meet the deadline set for the levy replacement.
UK Racing Officials issue a statement
Will Lambe, The BHA Director of Corporate Affairs, commented on the matter by saying no public debates were issued. But he assured all affected parties that the BHA members were committed to achieving provisional arrangements before the new levy is implemented. Mr. Lambe further added that the BHA was impressed to work with three major gambling operators in their mutual relationship. He concluded by saying the new levy will soon be implemented to restore all the money lost due to offshore activities.
