Hills loses Betfair Levy appeal
Hills will not launch further appeal against decision regarding Horserace Betting Levy Board's treatment of exchange customers
The British Court of Appeal has rejected William Hill’s argument that online betting exchanges such as Betfair should have to pay the same horse racing levy as traditional bookmakers.
Hills first challenged Betfair’s position in 2011by calling a judicial review of its Horserace Betting Levy payments, however the High Court found at the time that exchange bettors were not liable for such fees. Hills was granted leave to appeal in July last year, however the Court of Appeal has today unanimously found in Betfair’s favour.
A spokesperson for William Hill said the operator “acted with the best of intentions”, adding “It is a significant understatement to say we are disappointed”.
Last summer’s ruling was described at the time by Betfair corporate and legal affairs director Martin Cruddace as having “vindicated the position of Betfair”. Hills has not sought leave to appeal today’s decision, a decision which Cruddace described as “obviously sensible”.
“We are very pleased that our arguments have, yet again, prevailed in a unanimous verdict of the Court of Appeal and that winning customers, uniquely welcome at Betfair, now have this clarity,” Cruddace added in a statement this morning.
In July last year Betfair reached a “landmark” agreement with British Racing to pay 10.75% of horseracing revenues to the body over a period of five years, with the figure replacing its voluntary contribution to the levy. Following that agreement, British Racing member the British Horseracing Authority (BHA) opted to withdraw its involvement from Hills’ judicial review, leaving the operator to proceed alone.
William Hill will now be liable for 50% of Betfair’s legal fees, plus an additional 25% of the operator’s legal fees associated with the original High Court hearing.
“‘We acted with the best of intentions in pursuing this matter, with the sole aim of creating a level playing field for the entire betting industry,” the operator said in a statement. “We still maintain that people in Britain acting to all intents and purposes as bookmakers on British Horseracing should be liable to pay levy. The Court however has said that no users of exchanges should be considered as bookmakers.”