Betting Right (The Budget)

[bennythedip2]

Mixed welcome for Betting Right

British Racing has welcomed the introduction of the Horserace Betting Right, which was confirmed in Wednesday's Budget by Chancellor of the Exchequer George Osborne.

Consultation on the scheme only closed last week, during the Cheltenham Festival, but racing can now look forward to a new funding mechanism to replace the Horserace Betting Levy, which has been in use since 1963.

The system will see bookmakers pay for the right to bet on British horseracing and will, according to Osborne's Budget speech, be administered directly by the racing industry.

Per Osborne's statement: "A Horserace Betting Right would provide British Racing with the right to authorise all betting activity in return for the appropriate financial contribution from betting operators towards the administration, integrity and future development of the sport.

"It would be a bespoke solution to racing and betting, recognising the specific synergies between the two industries and replicating international precedents."


British Horseracing Authority chief executive Nick Rust, on behalf of British Racing, said: "Today's announcement is a welcome and tremendous boost for the tens of thousands of people across the country who derive their livelihoods from our sport.

“British Racing – its governing body, racecourses and horsemen – has a collective desire for a modern and direct relationship with the Betting industry, and believes that a Racing Right is the best solution to achieve this, and to secure the long-term prosperity of our sport and those within it.

"We are still in the situation whereby the vast majority of bets placed by punters outside of betting shops are making no contribution to the central finances of the sport. This is unsustainable, and there is recognition that this needs to change.

“We are extremely grateful in particular for the support of Helen Grant MP and Matt Hancock MP to help us reach this stage, as well as to all of those across the industry who submitted letters of support during the consultation period.

“The hard work will continue, throughout the forthcoming General Election campaign and beyond, and with the Betting industry, as we look to have a Racing Right introduced as soon as is possible. We remain committed to ensuring that a Racing Right works for all parties, and provides the right platform for the Racing and Betting industries to flourish together.”

But the announcement has not gone down well in the bookmaking fraternity, with a spokesman for the Association of British Bookmakers predicting problems for the sport if the Right is introduced.

"Unfortunately, we believe the racing right is unworkable and the detail will derail it, leaving racing seriously underfunded for a considerable length of time." the spokesman told the Racing Post.

"It will be mired in legal and other issues for many, many years.

"Arguably the proceeds from the right will not even be able to be distributed until legal certainty is obtained, with racing being the main loser.

"Our members already pay 10.75 per cent of their gross profits from their UK horseracing business to racing and, together with media rights and sponsorship, the transfer from our members to racing is some £248m, an incredible amount that has to be enough."

[bennythedip2]

Rust seeking 'fair' return

British Horseracing Authority chief executive Nick Rust insists racing is seeking a "fair and reasonable return" from bookmakers under the proposed new Racing Right.

Chancellor George Osborne announced the introduction of the new scheme in Wednesday's budget, with the idea seen as the replacement funding mechanism to the 1963 Horserace Betting Levy.

It would apply to all bookmakers, wherever located, who take bets from British customers on British racing and be administered directly by the racing industry.

The Association of British Bookmakers describe the Racing Right as "unworkable" but Rust, who was formerly a key player in the betting industry, has underlined the desire to set a "reasonable rate" rather than aiming to multiply revenues.

With his background in the bookmaking industry, Rust is well placed to view both sides of the argument.

"First of all it is very good news that the government recognises the need to put in place a sustainable mechanism," Rust told At The Races.

"I'm very keen that all parties look at this for the potential that it can offer in the medium term.

"The Levy Board does a really good job, but unfortunately they can only act within a statutory framework which governs what they can and can't do.

"Unfortunately, whilst the Levy has stood the test of time for the last 50 years, probably for the last 10, since the digital age came about, it is not an effective mechanism.

"As we saw at Cheltenham last week, it is pot luck whether your bet is contributing towards the funding of British racing depending on which bookmaker you bet with as offshore bets are outside the system.

"The Racing Right gives us the opportunity to work directly with bookmakers and set a reasonable rate with them to authorise betting on British racing and hopefully build the dialogue between us moving forwards.

"It is not new to look to see how we move on from the Levy system and we have proposals to allow us to effectively implement this.

"The statement made yesterday by the Chancellor suggests there is the confidence in the Department for Culture, Media and Sport and within government that a workable solution can be implemented.

"I think the major issue for the bookmakers is a cost for them of such a right and I want to reassure them we are looking for a fair and reasonable return.

"Anyone who offers bets on British racing will pay an authorisation right - we are not looking to treble revenues and I am acutely aware of the business models of betting shop business and digital business.

"After the election, we would hope we can press forward with the machinery of the legislation to put this in place, but we will still almost certainly have one more Levy year.

"There is still time for the bookmakers to make a proposal, which if British racing was prepared to accept, would give a lot of comfort as to the sort of level being looked for under the new system.

"The great thing about this is that there is a lot of cross-party support.

"We are not being complacent, we still need a big effort to move it forward, but I think this was a very big statement that the government is prepared to move it forward.

"It will be managed by a cross-sport representative body, not just the BHA."

[Part-Timer]

Is this going to apply to greyhound racing as well?