The UK Horseracing Betting Levy reform has received the support needed in repute to being accepted by the European Commission and its state aid rules.
The reason for the reform is to include all bookmakers including off-shore operators to comply with the horserace betting levy. A 10% levy is imposed on all Gross Gambling Yield, and will be applied to all bookmakers whose threshold is above GBP 500,00 per annum.
The UK Commission has recognized the measures needed for “essential for the improvement of horse breeding and horseracing without giving rise to undue distortions of competition”, and for creating the level of playing field it’s comfortable with amongst all betting operators.
An announcement authorizing the effective date of the reform is expected by the British Horseracing Authority. The awaited announced date will confirm all implementations of the new Levy.
Nick Rust, Chief Executive of the BHA said,
“With the final, outstanding approval now secured from the European Commission, today marks one of the last few steps in the process of securing a fair return from all betting on our sport. We look forward to receiving confirmation shortly from Government of when the new legislation will take effect.”
Rust added, “We look forward to working closely with bookmakers to build an exciting future for both our industries. The new Levy has the potential to put an end to unnecessary divisions between racing and betting as it creates a level playing field, removes the need for annual negotiations on the rate and provides long-term certainty for both parties.”