The British Horseracing Authority said on Wednesday that a government announcement that it will consult on the introduction of a right to accept bets on the sport is “the biggest step yet” towards the abolition of the statutory Levy system, which has returned money to racing for the funding of the sport from off-course betting for nearly 50 years.
The announcement, though, shows that the government has now moved on from considering whether the Levy system could simply be reformed and decided that replacement is the way forward. The creation of a racing right – to be known as the Horserace Betting Authorisation – has also been chosen as the most robust method for ensuring that bookmakers, both online and on the high street, pay an agreed percentage of the proceeds from off-course betting in order to accept bets on the sport.
Consultation on the new system is expected to take four weeks rather than the usual three months, and though the general election in May 2015 will intervene before legislation to introduce the Horserace Betting Authorisation can make its way through parliament, the plan is believed, crucially, to enjoy broad cross-party support. As a result, the BHA is confident that it will proceed regardless of the ultimate outcome of the election.
“This is the biggest step forward yet,” Will Lambe, the BHA’s director of public affairs and policy, said on Wednesday. “Of course, there is a long way to go in terms of the framework, but the main battle has been convincing legislators that something needs to be done.”
Steve Harman, the BHA’s chairman, said that the latest progress on replacing the Levy, which was announced in the autumn statement document, is a “landmark opportunity” for the racing industry.
“This is extremely positive news for British racing and all those connected with the sport,” Harman said.
“We have a landmark opportunity to secure a modern, fair and sustainable funding mechanism, and generate future growth and more jobs in our industry, greater returns to our participants and a new partnership with the betting industry.
“British Racing looks forward to engaging constructively with government and the betting industry in the consultation process early next year, and in particular will demonstrate how an enforceable replacement for the Levy can genuinely work for all parties.”
It is almost 10 years since a previous scheme to replace the Levy, which depended on racing receiving payment for the use of its database, was halted by a ruling in the European courts in a case brought by the bookmaker William Hill. The initial reaction of one bookmaker on Wednesday, however, suggested that the betting industry will be willing to engage with the consultation process.
“It is essential racing and betting have a framework that enables us to maximise racing’s potential,” Ladbrokes said in a statement issued after the chancellor’s announcement.
The statement added: “Given bookmakers already pay media and data rights along with the Levy we will be interested in what, if any, protections against abuse of monopoly power will be included in the consultation document and what levers will ensure racing is incentivised to deliver a product that delivers to the modern betting customer.”
